nep-tra New Economics Papers
on Transition Economics
Issue of 2015‒03‒27
forty-five papers chosen by
J. David Brown
United States Census Bureau

  1. Relationship Between Exchange Rates and Stock Prices in Transition Economies Evidence from Linear and Nonlinear Causality Tests By Gunay Akel
  2. Body Weight and Labour Market Outcomes in Post-Soviet Russia By Sonya Huffman
  3. Why do people want to change jobs? A survival analysis on job turnover in China By Yulei Weng
  4. Competitiveness of the Polish Economy against the Background of Other European Union Member States. Selected issues By Iwona Pawlas
  5. Lower coverage but stronger unions? Institutional changes and union wage premia in central Europe By Iga Magda; David Marsden; Simone Moriconi
  6. Short Run Effects of The Economic Reform Agenda By Rod Tyers; Ying Zhang
  7. Migration Externalities in Chinese Cities By Pierre-Philippe Combes; Sylvie Démurger; Shi Li
  8. Foreign Investment and Vertical Specialisation: An Analysis of Emerging Trends in Chinese Exports By Kishor Sharma; Wei Wang
  9. "Financial System Development and Economic Growth in Transition Economies:New Empirical Evidence from the CEE and CIS Countries" By Laura Cojocaru; Evangelos M. Falaris; Saul Hoffman; Jeffrey B. Miller
  10. Real Exchange Rate Determination and the China Puzzle By Rod Tyers; Ying Zhang
  11. The Impacts of Structural Transformation and Industrial Upgrading on Regional Inequality in China By Tsun Se Cheong; Yanrui Wu
  12. Disentangling Size and Efficiency Effects of Finance: New Evidence from Transition Countries By ayse demir
  13. Renewable Energy Sources and their Reflection on Regional Economic Growth in the Czech republic By Vukica Janković; Helena Mitwallyova
  14. Youth Unemployment in the Czech Republic and Targets for 2020 in the Labour Market By Jena Å varcová; Monika Horáková
  15. Economic stratification of the Russian population and its subjective assessment By Margarita Perova; Evgeniy Perov
  16. Institutional effects on Bachelor-Master level transition – a case of Hungary By Zsuzsanna Veroszta; Szilvia Nyüsti
  17. Crisis Management in the Slovak Republic at the National Level By Rudolf KucharÄík; Karol Janas
  18. International Effects of China’s Rise and Transition: Neoclassical and Keynesian Perspectives By Rod Tyers
  19. Effects of fiscal shocks in new EU members estimated from a SVARX model with debt feedback By Stanova, Nadja
  20. China challenges to America: An Economic and Cultural Perspective By Gilles Vandal
  21. Convergence and Transitional Dynamics of China's Industrial Output: A County-Level Study Using a New Framework of Distribution Dynamics Analysis By Tsun Se Cheong; Yanrui Wu
  22. Hodrick-Prescott filter in the analysis of structural unemployment and business cycle on the labor market in the countries of the Visegrad Group By Božena KadeÅ™ábková; Emilie Jašová
  23. Designing a New Derivation of the Subjective Discount Rate and its Application in the Czech Republic By Jiri Rotschedl
  24. The sensitivity of households to interest rate - analysis of the relationship of interest rates and the amount of loans and deposits in the Czech Republic By Jiri Rotschedl
  25. A Model for Estimation of NAIRU Extended by Demand Shocks and its Application to Business Cycle Analysis in the Labour Market in Hungary and Poland By Emilie Jasova
  26. The role of foreign sentiment in small open economy By Jana Juriová
  27. The relationship between dynamic price and dynamic unemployment: the case of the CE-3 and the Baltic Tigers By Luis Dumlao
  28. Theories of Political Arrangements of Central Europe after World War I By Peter Csanyi
  29. The Cluster Initiatives By Katarína Kramárová; Margaréta Nadányiová; Eva Kicova
  30. Contribution of R&D services to added economic value in Estonia By Aaro Hazak; Raul Ruubel
  31. Crowding (out) the retirees? RDD application to raising effective retirement age in Poland By Paweł Strzelecki; Joanna Tyrowicz
  32. The Impact of Migration on Lithuanian Economy in an Ageing Society Context By Gindra Kasnauskiene; Loreta Vebraite
  33. Unemployment – under conditions in the territory of Slovak Republic and the measures for its solution By Eva Rievajová
  35. Measuring the efficiency of heritage institutions: Example of historic buildings in Czech Republic By Zdenek Patek; Michal Straka
  36. The Effects of Polish Special Economic Zones on Employment and Investment: Spatial Panel Modelling Perspective. By Cizkowicz, Piotr; Cizkowicz-Pekala, Magda; Pekala, Piotr; Rzonca, Andrzej
  37. Fiscal Sustainability and Economic Growth: Case of Bulgaria By Irena Nikolova
  38. Self-employment and Small Workplaces in the Czech and Slovak Republics: Microeconometric Analysis of Labor Force Transitions By Pavla Nikolovova; Filip Pertold; Mario Vozar
  39. Social network site users and political participation in Kyrgyzstan By Elira Turdubaeva
  40. Examining the Liaison between Marketing Communication and Open Innovation, in the Scope of the Hungarian Innovation Clusters By István Kovács
  41. Self-learning as a method of improving skills by adult Poles – evidence from non-metric survey data By Alicja Grześkowiak
  42. Urban system and administrative-territorial organization of Croatia By Dražen NjegaÄ; Aleksandar Toskić; Zoran Curić
  43. Challenges before Bulgarian state universities for development of financial management and control systems in spending public funds By Tihomir Staykov; Pepa Hadzhieva
  44. Visa liberalisation in the Republic of Albania By Iris Dhamo; Ana Dhamo
  45. Promoting Sustainable Development: A case study between Turkey and Czech Republic By Bilal Özel; Ahmet Ay; Mustafa Gerçeker

  1. By: Gunay Akel (Necmettin Erbakan University)
    Abstract: The existence of causation linkage between stock prices and exchange rates is one of the popular debate especially since the beginning of 1990s. The aim of this paper is to investigate the nature of the causal transmission mechanism between foreign exchange and stock markets in 9 transition countries (i.e., Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Russia) for the periods of 1995-2011. The results of the paper show that uni-directional linear Granger causality running from exchange rates to stock prices for 4 countries (i.e., Czech Republic, Hungary, Poland, and Romania) and a feedback exists between two markets for only Russia when both linear and nonlinear Granger causality are used.
    Keywords: Exchange Rates, Stock Prices, Transition Economies, Linear and Nonlinear Causality Tests
    JEL: C22 F31
    Date: 2014–07
  2. By: Sonya Huffman (Iowa State University)
    Abstract: This research focuses on the impacts of weight, measured by body mass index (BMI), on employment, wages, and missed work due to illness for Russian adults by gender using recent panel data (1994-2005) from the nationally representative Russian Longitudinal Monitoring Survey (RLMS). We employ econometric techniques to control for unobserved heterogeneity and potential biases due to endogeneity in BMI. The results show an inverted U-shaped effect of BMI on probability of employment for men and women. We did not find evidence of wage penalty for higher BMI. In fact, the wages for overweigh men are higher. However, having a BMI above 28.3 increases the number of days missing work due to health problems for men. Overall, we find negative effects of obesity on employment only for women but not on wages. During the transition in Russia, the increasingly competitive pressure in the labour market combined with economic insecurity faced by the population has lead to a muted impact of an individual’s weight on labour market outcomes.
    Keywords: Body Weight, Labour Market, Post-Soviet Russia, BMI
    Date: 2014–06
  3. By: Yulei Weng (The University of Sheffield)
    Abstract: China introduced a household registration system (known as hukou) in 1950s, which initially used to collect and manage residential information. By having different types of registration, the population is divided into urban and rural parts. However, the labour market is segregated by this system as well, preventing an efficient flow of labour and achievement of full benefits from mobility. In the pre-reform Chinese urban labour market, jobs were allocated to urban residents either from local communities or educational institutions. Employers were mainly in the public sector, which includes state-owned or collective-owned enterprises and government departments. These employers were not allowed to recruit and dismiss employees freely as they wanted. They should follow an employment plan made by the central government. By contrast, from employees’ side, they should accept the allocated job offers and cannot make decisions on job turnover. Though jobs were secure in the pre-reform labour market, disincentives and skill mismatch might occur. However, life-long employment was gradually broken after introducing the policy of reform and opening up in 1978. For example, the state-owned enterprise reform in 1990s led to huge downsizing and reorganisation. In addition, universities abolished the policy to guarantee life-long employment for graduates and expanded the recruitment scale in late 1990s, which added competition and pressure to the Chinese labour market. By contrast, in rural, surplus labour force was created after adopting a household responsible system for agricultural production in 1978. Therefore, many township and private-owned enterprises were established to absorb surplus rural labour. Some rural people also migrate into urban for jobs after the restriction on migration was eased. The labour mobility is associated with job turnover, which motivates this study on job turnover in China. Employment histories of respondents were asked in the China General Social Survey 2008, in which, there are 1750 pieces of uncensored employment records (58.59% of the total) with an average duration at 6.18 years. Using this micro-level data, a discrete-time duration model is built to find determinants on job turnover. As urban and rural people may have different concerns about job turnover, it is necessary to study them separately. However, similar results are found after controlling for the household registration type in the estimation. Firstly, non-parametric analysis supports the fact that most of new jobs end early and the probability of job turnover decreases with job tenure. Secondly, the probability of job turnover is high among young people. Thirdly, social insurances are the most significant determinants on job turnover for both urban and rural people. Based on these findings, this study concludes that urban and rural people change jobs in return for more secure jobs. Although this research is designed from the labour supply side, the implication is that employers can design better jobs so as to reduce employment costs from job turnover.
    Keywords: Job turnover; Survival analysis; China
    Date: 2014–06
  4. By: Iwona Pawlas (University of Economics in Katowice)
    Abstract: Poland joined the European Union in 2004. Accession to the EU resulted in considerable economic, social and political advantages. It also stimulated competitive development of the Polish economy. An attempt was made in the paper to determine Poland's competitive position against the background of other EU member economies. Competitiveness of Polish goods both on the world market and on Single European Market was studied. Investment attractiveness of Poland and the significance of the inflow of foreign capital for its development were analyzed. Low level of innovativeness was considered one of major barriers for achieving a higher level of competitiveness. The results of Author's own research were compared with the findings of World Economic Forum, Geneva and Institute for Management Development, Lausanne.
    Keywords: competitiveness, Poland, European Union
    JEL: F00 F15
    Date: 2014–06
  5. By: Iga Magda; David Marsden; Simone Moriconi
    Abstract: In this paper we use the national samples from the European Structure of Earnings Survey (ESES) to analyze the evolution of the wage premium of firm- and industry-level agreements in the Czech Republic, Hungary, and Poland (the CE3) around the time of their accession to the EU. We find that despite a generalized reduction in union coverage in these countries, the union wage premium after accession to the EU became bigger and statistically more significant. This is particularly the case for Poland and Hungary, where in the years immediately following EU accession a wage premium associated with industry-level agreements emerged which mostly applied to low-income workers ages 30 and older. We interpret these findings in terms of the institutional reforms that occurred in the CE3 between 2002 and 2006. These reforms, which were prompted by the EU Commission’s requirements for EU accession, increased the social partners' ability to bargain and enforce wage agreements, and made industry-level unions more effective in guaranteeing the protections provided by labor standards.
    Keywords: institutional change, unions, wages
    JEL: J51 J31 P2
    Date: 2015–03
  6. By: Rod Tyers (Business School, University of Western Australia); Ying Zhang (Business School, University of Western Australia)
    Abstract: China’s size limits its capacity to source further growth from exports and so the inevitable turn inward is in progress. Thus far, key home policy drivers have been fiscal expansion and public investment, though provincial indebtedness will constrain these in future and growth will be driven by the reform agenda, including further industrial reform and “internationalisation”. The short run effects of these domestic policy and external shocks are examined using a model of the Chinese economy that takes explicit account of oligopoly behaviour. The results confirm that industrial reform in heavy manufacturing and services would reduce costs and foster growth in output, private consumption and modern sector employment. At the same time, while China’s private investment will be sensitive to the uncertain effects of internationalisation, increased nominal exchange rate flexibility would offer a reliable cushion.
    Date: 2014
  7. By: Pierre-Philippe Combes (Groupement de Recherche en Économie Quantitative d'Aix-Marseille); Sylvie Démurger (CNRS); Shi Li
    Abstract: We analyse the impact of internal migration in China on natives’ labour market outcomes. We find evidence of a large positive correlation of the city share of migrants with natives’ wages. Using different sets of control variables and instruments suggests that the effect is causal. The large total migrant impact (+10% when one moves from the first to the third quartile of the migrant variable distribution) arises from gains due to complementarity with natives in the production function (+6.4%), and from gains due to agglomeration economies (+3.3%). Finally, we find some evidence of a stronger effect for skilled natives than for unskilled, as expected from theory. Overall, our findings support large nominal wage gains that can be expected from further migration and urbanisation in China.
    Keywords: migration; urban development; agglomeration economies; wage disparities; China.
    Date: 2015–03
  8. By: Kishor Sharma (Charles Sturt University); Wei Wang (TUC)
    Abstract: This paper contributes to the literature on the role of foreign direct investment and vertical specialisation in China’s growth trajectory. Globalisation of the world economy, together with well-developed physical infrastructure, and falling costs of transport and communications, has led to a significant increase in foreign investment into China to take advantage of its comparative advantage in labour intensive activities. Initially foreign investment came to simple assembly line (such as textile, clothing, electronic goods), but gradually China attracted FDI to sophisticated manufacturing industries (such as, ICT products, office and medical equipments etc), giving rise to vertical specialisation in its exports. Over one quarter of Chinese exports appears to be due to the expansion of back-and–forth transactions in vertically fragmented cross-border production process. Our analysis suggests that foreign input content in Chinese exports is high and rising. When the share of ‘foreign value-added’ in Chinese exports is taken into account the ‘actual trade balance’ is much lower than what ‘raw trade balance’ would indicate.As expected, share of foreign input content (vertical specialization) is high in Chinese exports of high-tech industries (such as, communications equipment, computers and other electronic equipment manufacturing etc) and low in labor-intensive industries such as (food and tobacco, textile, leather products, footwear etc). China’s increased involvement in global production network as an assembly centre has created an opportunity for other countries and countries in the region to benefit from its rapid integration with the world economy as its imports of parts and components have grown dramatically and most of these imports come from advanced economies such as US, Europe and newly industrialised economy. Clearly, China’s success story has led to win-win situation, improving welfare globally. As China is committed to continue to integrate with the world economy, its involvement in processing trade will continue. However, China will require to upgrade skills of its workforce through appropriate human capital development policy, otherwise higher wages (for semi-skilled workers) can wipe out its comparative advantage in low-end assembly trade brought about by globalisation. Policy makers in China should also need to think carefully how to embark on industrial upgrading to sustain growth.
    Keywords: Foreign Investment, Vertical Specialisation, China, Exports
    JEL: F19
    Date: 2014–07
  9. By: Laura Cojocaru (Bankable Frontier Associates); Evangelos M. Falaris (Department of Economics, University of Delaware); Saul Hoffman (Department of Economics, University of Delaware); Jeffrey B. Miller (Department of Business, Gallaudet University)
    Abstract: We examine the role of financial development in economic growth in the former Communist countries of Central and Eastern Europe and the Commonwealth of Independent States during the first two decades since the beginning of transition. These countries, which had undeveloped financial systems under Communism, provide an interesting test of the relationship between financial development and growth. Our study is the broadest in terms of coverage and time period. We find that measures of financial market efficiency and competitiveness are more important than the size of the market in terms of promoting economic growth.
    Keywords: transition economies, CEE, CIS, financial sector development, economic growth
    JEL: O16 P27 P34
    Date: 2015
  10. By: Rod Tyers (Business School, University of Western Australia); Ying Zhang (Business School, University of Western Australia)
    Abstract: While there is much controversy over exchange rates, particularly between the large, advanced economic regions, arguably more important real exchange rates receive comparatively little attention. Traditionally, these are seen to be influenced in the long run by forces that return economies to purchasing power parity (PPP) and by differences in productivity growth across sectors and across regions, as per the Balassa-Samuelson Hypothesis (BSH). Minor and realistic relaxations of the assumptions underlying the BSH greatly generalise the set of possible influences over real exchange rates, however. This paper surveys the literature on real exchange rate determination, as well as that addressing the puzzles over the trends in China’s real exchange rate. While this was widely expected to appreciate against the advanced economies after China’s first growth surge in the mid-1990s, it actually depreciated slightly until the early 2000s. Then, after 2005, its rate of appreciation was more rapid than expected. These puzzles are resolved by accounting for the effects of the trade liberalisations associated with WTO accession, China’s excess saving and the tightening of rural labour markets.
    Date: 2014
  11. By: Tsun Se Cheong (University of Western Australia); Yanrui Wu (University of Western Australia)
    Abstract: China has achieved unprecedented success in economic growth since the initiation of economic reforms. The high growth could partly be attributed to the success in structural transformation of the economy. Another contributing factor may be the industrial upgrading of the manufacturing sector towards high value-added products. However, regional inequality in China has increased considerably behind the scenes. In order to have sustainable economic growth, it is thus crucial to investigate both the impacts of structural transformation and industrial upgrading on regional inequality. This paper contributes to the literature in the analysis of the structural transformation by employing a database at the county-level. Decompositions are performed for different spatial groupings so as to provide a clear view of evolution of regional inequality. In addition, the contributions of the major industries to inequality in industrialization are examined by using a database of value-added at the provincial level. The results may have important policy implications for the formulation of a comprehensive and coherent strategy in managing inequality while promoting structural transformation and industrial upgrading.
    Date: 2014
  12. By: ayse demir (university of leicester)
    Abstract: This paper aims to shed light on the role of financial development on the growth dynamics of transition countries. Particularly, the impacts of several financial development indicators (in terms of size and efficiency) on the income level in 25 transition economies and two subgroups with varying intensities of socio-economic development are empirically examined. The countries of interest tend to have weaker financial system in comparison with the advanced markets. Subgroups are formed for 16 Central and Eastern Europe (CEE) transition economies and 9 former Soviet Union (CIS) members in order to conduct panel data estimations with a time period of 1990 - 2012. Findings, clearly suggest that, improvements in the financial system (size measurements) are highly associated with rising income levels for all country groups. Increase in liberalization of interest rates, private credit and banking lending affect the income level in the CEE lower than in the CIS. According to results, high interest rate spreads (efficiency indicator) negatively affect economic growth and remains statistically significant even if size measurements are included in the regression for both group of countries, indicating that an unsubstantial increase in the size of financial intermediation does not affect growth unless it is also followed by banking efficiency developments and rising competition in the banking sector.
    Keywords: economic growth, transition economies, panel data, financial development
    JEL: F39
    Date: 2014–10
  13. By: Vukica Janković (University of Economics, Prague); Helena Mitwallyova (University of Economics, Prague)
    Abstract: Paper explore relation betweeen energy and regional development and more precisly the influence of renewable energy installation and production on regional economic growth in the Czech Republic. The Czech Republic has long tradition in energy sector, more than 100 years of stable and self –sufficient energy production. The base of energy sector consist of energy production from coal, followed by nuclear energy as a second impotant energy resource. Renewable energy sources have the relatively small share in total energy mix, compared to the other EU member states. Their faster commercial production and usage have been existing from the resent history, after the accession of the Czech Republic into the European Union. Supported by tha state, renewable energy power has fast growth, which caused different influence through regions of the Czech Republic.
    Keywords: renewable energy resources, Czech Republic, regional growth
    JEL: O44 Q01
    Date: 2014–10
  14. By: Jena Å varcová (Tomas Bata University in Zlín); Monika Horáková (Tomas Bata University in Zlín)
    Abstract: Youth unemployment in the EU and in the Czech Republic has increased significantly in recent years. This is partly a consequence of the economic crisis that has hit Europe since 2008. This article also analysis other factors, which had an impact on the increase in youth unemployment in the Czech Republic. Strategic objectives of EU employment and training for the labour market were confronted with the methodology of measurement of employment and unemployment, and supplemented by information on the application of ESA 2010, Comprehensive revision in the national accounts by Czech Statistical Office since October 2014. Primary research among high school students across the Czech Republic and students of Faculty of Management and Economics, Tomas Bata University in Zlín in the years 2011-2014 found a weak focus in the choice of professions. The research used the classification system of professions according to Roe because of CZ-ISCO has proved to be unsatisfactory for this purpose. Student preferences in choosing the professions largely do not match the structure of the Czech economy. Research, on the other hand, confirmed the prevailing educational aspirations of students at the bachelor level of the tertiary education. This is important to fulfilling the target that 40% of the population aged 30-34 years successfully finish tertiary education till 2020. Lengthening the period of economic inactivity of students before entering the labour market in the borders of 26 years will bring increased demand for funding from relatives. This will deepen intergenerational problem - 50 years old parents will have to take care of their dependent offspring in studies, but they should save money for retirement. This problem can threaten funding for studies of young people. On the other hand, it could accelerate the access of young people to the labour market.
    Keywords: Labour Market, Youth Unemployment, ESA 2010, Educational Aspirations, Choice of Professions
    JEL: J21 J24 J23
    Date: 2014–12
  15. By: Margarita Perova (Vologda State University, Scientific centre for studying social and economic conflicts); Evgeniy Perov (Scientific centre for studying social and economic conflicts)
    Abstract: Social and economic inequality is inherent in any society. During the Soviet period it was manifested in social status and prestige that defined social privileges rather than in income differentiation. The formation of the market relations in Russian society was accompanied by a considerable decrease in living standards and by economic stratification of the population. The relevance of the research is caused by the intensification of the income stratification of the Russian population under the conditions of transformation and development of the economic system. According to the statistical data, the income differentiation of the population was insignificant at the end of the Soviet period: R/P 10% ratio made up 2.99 in 1989. By 2012 it reached the level of 16.4. In 1995–2012, 20% of less provided population accounted for 5-6% of the income. The Gini coefficient increased from 0.387 in 1995 to 0.422 in 2007, when it reached the highest value. The aggregate indicator of the income stratification of the population is suggested for the collective estimate of the income differentiation of the population. The subjective image of the income stratification of the population is formed on the basis of opinion polls data. The subjective poverty index shows that the family’s financial situation was perceived by the population as the most unfavourable in 1998, with the assessment becoming more positive in subsequent years. The share of the population that according to its own estimations can hardly make ends meet gradually decreased from 51% in 1995 to 6% in 2012. The population stratification into the rich and the poor based on the amount of wealth, property was considered by more than a quarter of the population as an acute social problem during all years of the analyzed period. It was noted by more than 40% of the respondents in 1997-1998. The subjective image of the economic stratification of the population is reflected by the aggregate indicator of the subjective assessment of the income stratification of the population.The comparison of the dynamics of the aggregate indicators of the population income stratification and of its subjective assessment revealed their multidirectional dynamics. It can indicate that either people gradually get used to the income differentiation of the population, and it does not bother them as much anymore, or that the real income of the population exceeds the statistical data, by means of shadow income, for example.
    Keywords: Keywords: income differentiation of the population, subjective image of income
    JEL: I30 C10
    Date: 2014–12
  16. By: Zsuzsanna Veroszta (Educatio Public Services Non-profit LLC); Szilvia Nyüsti (Educatio Public Services Non-profit LLC)
    Abstract: The results presented are based on the analysis of transition from higher education to work or further training. The study is focused on exploring determinants of BSc graduates’ decision to continue their studies at MA level or to enter the labor force in the context of the ’Bologna-type’ linear educational system introduced in Hungary in 2007. In our approach BA/MA transition is considered as an educational selection mechanism (Shavit and Blossfeld, 1993; Shavit et. al, 2007; Breen et. al, 2009) which is determined by several socio-demographic, meritocratic and institutional effects as it has been previously studied in the Hungarian context (Veroszta, 2013). In the current study we focus on the institutional determinants of decision between further study or labor market transition. The main research question is that after controlling for several background variables (i.e. social composition of the student body, excellence of students, academic staff or faculties, marketability of training) how to identify the components of institutional effects on transition. During the study a number of indicators - such as regional characteristics, institutional structure, training supply - are considered as institutional background variables. The paper applies explanatory models in order to respond the research questions. Many of data of the Hungarian Graduate Career Tracking System was integrated into the model from different databases. The analysis of the institutional effects is based on the administrative dataset of the Hungarian Higher Education Information System (FIR) covering the entire population of BSc graduates in a given year. Other effects are operationalized as macro level variables, created from a number of parallel data sources and linked into pre-defined institutional and training subgroups. Some of these macro level variables come from online survey based graduate career tracking database, while others come from the administrative dataset of the centralized Hungarian higher education admission system.
    Keywords: higher education, transition, bachelor, master, institutional effects
    JEL: I23 I24 I29
    Date: 2014–07
  17. By: Rudolf KucharÄík (Alexander Dubcek University in Trencin); Karol Janas (Alexander Dubcek University in Trencin)
    Abstract: Crisis management in the Slovak Republic works on a hierarchical basis. It consists of a very well designed system of functioning of state bodies that provide crisis management of the country in times of war and peace . The supreme body of crisis management is the Security Council of the Slovak Republic - consultative body of the Government of the Slovak Republic. The Security Council of the Slovak Republic is involved in the development and implementation of the security system of the Slovak Republic. The Security Council ensures compliance of international obligations in the field of security, evaluate the security situation of the Slovak Republic and the world. Central Crisis Staff also plays pivotal role in crisis management procedures in the Slovak Republic.
    Keywords: Crisis Management, Security Council, Slovak Republic
    JEL: H12 H56 H79
    Date: 2014–12
  18. By: Rod Tyers (Business School, University of Western Australia)
    Abstract: Opinion over the global implications of China’s rise is divided between critics, who see it as having developed at the expense of both investment and employment in the US, Europe and Japan and proponents who emphasise improvements in the terms of trade and reductions to the cost of financing that stem from China’s supply of light manufactures, its demand for Western capital and luxury goods and its high saving. The criticism implies Keynesian assumptions while proponents take a neoclassical perspective. In this paper, both are embodied in a global macro model that emphasises bilateral linkages via both trade and investment, with monetary spill-overs represented by globally integrated bond markets. Net gains are suggested for the US and Europe from China’s successful export-oriented growth, though there are partially offsetting Keynesian effects. China’s recent slower, more consumption focussed, growth appears also to be beneficial in those regions and in Japan notwithstanding terms of trade losses.
    Date: 2014
  19. By: Stanova, Nadja
    Abstract: This paper analyses in a VAR framework with debt feedback effects of fiscal policy over 1999q1-2013q4 in five Central and East European economies: Slovakia, Czech republic, Hungary, Slovenia and Lithuania. The results are compared to two alternative specifications, a model without debt feedback, and a model with debt within the linear VAR. Omitting the debt feedback would affect the magnitude and sign of the impulse response coefficients, especially those of GDP, government revenue and interest rate. Simulated out-of-sample debt paths are stabilised if debt feedback is included, but strongly explosive otherwise.
    Keywords: fiscal policy, structural VAR, debt dynamics, endogenous debt feedback, impulse response functions, historical decomposition of times series, meta-analysis, CEE countries, new EU member states
    JEL: C32 E37 E62 H63
    Date: 2015–03
  20. By: Gilles Vandal (School of Applied Politics, Sherbrooke University)
    Abstract: Napoleon Bonaparte once said that “China is a sleeping giant. Let her sleep, for when she wakes, she will shake the world.†In 2008, American prize Nobel of economics, Joseph Stiglitz asserted that no society in human history has undergone such a rapidly transformation as China did in the last 15 years. Indeed, the economic performance of China in the last 35 years marveled the world at many levels. Not surprisingly, the United States follow with great interest the rise of China as the latter plays an increasingly international role. As a result, the American authorities have multiplied meetings with Chinese leaders to strengthen their bilateral relations. Enhancing the importance of the meetings of the G-20, Washington has implicitly acknowledged that China has become a major player in the global economy. Meanwhile, China has surpassed Japan to become the second largest economy in the world. In addition, the rise of China has been so rapid that many observers are questioning whether or not China would overtake soon the United States to make the 21st century a Chinese century as the 20th century was an American one.
    Keywords: China challenges to America
    Date: 2014–10
  21. By: Tsun Se Cheong (Business School, University of Western Australia); Yanrui Wu (Business School, University of Western Australia)
    Abstract: Many scholars have argued that the huge increase in regional inequality in China can be attributed greatly to the disparity in industrialization. This paper contributes to the literature by providing empirical evidence on the transitional dynamics of industrial output by employing a new framework of distribution dynamics analysis, namely the Mobility Probability Plot (MPP), and a database compiled at the county-level. The new framework can address several inadequacies of the traditional display tools in the distribution dynamics literature, while the database is made up of counties and county-level cities in 22 provinces in China. Stochastic kernel analyses are performed for the nation, the economic zones and the provinces individually so as to provide an in-depth understanding of the evolution and convergence of industrial output. This study fills the gap in the literature and provides information on mobility of the county-level units, which can greatly aid the policy making process.
    Date: 2014
  22. By: Božena KadeÅ™ábková (University of Economics Prague); Emilie Jašová (University of Economics Prague)
    Abstract: The Natural rate of unemployment indicates such a level of unemployment at which the inflation rate is constant (Estrada, Hernando a Lopez-Salido, 2000). This concept is called Non-Accelerating Inflation Rate of Unemployment (NAIRU). NAIRU is an unobservable variable (Boone, 2000). Richardson, Boone, Giorno, Meacci, Rae a Turner (2000) in their papers classified the methods to the following groups: structural methods, purely statistical methods and so called reduced form approach. In our analysis we used only Hodrick-Prescott filter. Lamda value was set at standardly recommended value for quaterly data, which is 1600 and we real values completed by ours´ own predictions. In case of the Czech Republic the values of estimated NAIRU were between 2 % and 8,8 %. Real rate of unemployment was below the NAIRU in 2Q 1995-3Q 1998, 2Q 2001-2Q 2003 and in period from 4Q 2006 till 3Q 2008. In Slovakia the HP filter estimated the NAIRU in the interval between 9,4 % and 18,3 %. From 2Q 2006 till 2Q 2008 the real rate of unemployment decreased below the NAIRU. In 3Q 2008 the real rate of unemployment exceeded the NAIRU. The NAIRU in Hungary was estimated between 5,9% and 10,8 %. From 1Q 2005 starts the recession phase, from 2Q 2007 comes the phase of soft boom. In 3Q 2008 the negativ gap signaled shift into recession phase caused by global financial and economic crisis. In case of Poland the HP filter estimated NAIRU in the interval between 7,5 % and 18,8 %. From 1Q 2001 till 1Q 2007 the real rate of unemployment was exceeding the NAIRU. In the last part of the examined period the economy was in the boom phase with peak in 4Q 2007. The negativ gap in 3Q 2008 was only about 0,29 pp.
    Keywords: Phyllips curve, NAIRU, Hodrick-Prescott filter, Kalman filter, Stochastic trend
    JEL: C10 J08
    Date: 2014–05
  23. By: Jiri Rotschedl (University of Economics, Prague)
    Abstract: The paper deals with the derivation of the subjective discount rate and for this purpose; it introduces a new subjective discount index: Current Discount Index (CDI). The author assumes a very close relationship with the commonly known subjective discount rate (Ï). CDI is derived indirectly from the ratio of loans to deposits of households. New index is considered the aggregate variable of the subjective discount rate (Ï), of the elasticity of intertemporal substitution (1/θ) and also other unspecified psychological factors (ξ). The values of CDI in the Czech Republic suggest reasons why there was a long-term decline in household consumption during the years 2012 and 2013.
    Keywords: Subjective discount rate, subjective discount factor, consumption of households, intertemporal choice, current discount index
    JEL: E21 D91
    Date: 2014–07
  24. By: Jiri Rotschedl (University of Economics, Prague)
    Abstract: This paper deals with the relationship of short-term and long-term interest rates and the amount of deposits and loans of households. The aim is to demonstrate the relationship between interest and Current Discount Index (CDI). CDI expresses the growth rate of the ratio of loans to deposits of households. Author’s assumption is: increasing interest rates will reduce loans and increase savings. In the paper are savings considered to be identical with deposits in bank accounts. The results of the analysis show that households do not respond to changes in interest rates relative to the amount of loans and the amount of savings.
    Keywords: Interest Rate, Loans, Savings, Households, Current Discount Index
    JEL: D14 E29 E43
    Date: 2014–10
  25. By: Emilie Jasova (University of Economics)
    Abstract: Article seeks to extend the Standard Gordon's " Triangle " model with demand shocks. The demand shocks are represented by a newly derived Current discount indicator (CDI). The recession on the labour market in Hungary and Poland was influenced by the growth of future consumption preferences of consumers. Negative gaps of unemployment increased during the recession only in Hungary. Short period subsequent boom in Hungary is linked with excessive pessimism of consumers what reduced unemployment positive gap and shortened the period with positive gape. In Poland the negative vision of future development in the economy resulted in shortening the period of boom. Policymakers should create more positive expectations and prevent to transfer negative emotions on the labour market.
    Keywords: Unemployment gap, psychological factor, Kalman Filter, Phillips Curve, NAIRU
    JEL: E24 E32 E37
    Date: 2014–07
  26. By: Jana Juriová (VÅ B - Technical University of Ostrava)
    Abstract: The role of foreign sentiment is researched for explaining macroeconomic fluctuations in small open economy. The main goal is to find out whether the domestic variables react significantly to the shocks in the foreign sentiment. For this purpose a structural vector autoregression model is constructed for the Czech Republic and the Slovak Republic including relations between foreign environment and domestic variables. Both small open economies considered are highly dependent on foreign demand from euro area. Therefore the foreign development is represented by real GDP in euro area and alternatively is explored the possibility to replace foreign real GDP by economic sentiment indicator of euro area as sentiment indicators are available in advance. The impact of foreign shocks is examined by impulse response functions on the following domestic variables – real gross domestic product, consumer prices and effective exchange rate against euro area trading partners. The study confirms that foreign economic sentiment can be used for explaining fluctuations of domestic variables of a small open economy.
    Keywords: economic sentiment indicator, structural vector autoregression, variance decomposition, impulse response functions
    JEL: C51 E32
    Date: 2014–12
  27. By: Luis Dumlao (Ateneo de Manila University)
    Abstract: Convention specifies the relationship between price and unemployment in terms of the Phillips curve (PC) where inflation and the rate of unemployment are correlated. This paper argues that the relationship is ambiguous. In the aggregate supply (AS) curve, price and output are both in levels at a given time. But in the PC, price represented by inflation is its change through time while unemployment represented by its rate is frozen at a given time. This paper uses a variant of the PC that is more consistent with the relationship between price and output as depicted in the AS curve. In the variant specification, price as represented by inflation and unemployment as represented by the rate of change in the level of unemployment net of employment are both changes through time. The relationship between price and unemployment using convention and its variant is tested on Poland, the Czech Republic, Hungary, Estonia, Latvia, Lithuania and the pooled data. The Expectations Augmented (EA) is able to track a negative relation between inflation and unemployment better than the New Keynesian (NK) is able. Within the EA runs, the convention is able to track the same negative relation better than the variant, but one has to be cautious given the implied results.
    Keywords: Employment, Unemployment, Inflation, Central Europe
    JEL: E24 E31
    Date: 2014–05
  28. By: Peter Csanyi (Alexander Dubcek University of Trencin)
    Abstract: The goal of this paper is to describe and analyze the theories of political organization of Central Europe during the interwar period, especially from the Czechoslovak perspectives. Some connections between the European integration process, and a national and a civil identity are outlined, in particular the problems of the Central European national states in the process of the European integration. The discourse on the Central Europe is one of the most difficult, because it has many aspects: political, cultural, philosophical, historical, religious, ethnic, psychological and economic.Small states, such as the interwar Czechoslovak Republic was, depend on their surroundings. They do not have enough power to enforce a balance of power favorable to themselves. If they originated as an expression of a temporary state of the balance of power, they are condemned to dissolution. Some representatives of the Czech and Slovak nations attempted to understand and confront these realities with a practical policy. I guess that if we want to understand these theorists and politicians, it will be important to know and understand the view of Central Europe, which they represent.The most of the integration projects of 1920s and 1930s reflect the fear of economic and political strengthening of Germany, optimistic hope of democratization of the USSR, and seeking for allies in the Central European region.
    Keywords: Central Europe, political organization, theories, Czechoslovak perspectives, nation
    Date: 2014–12
  29. By: Katarína Kramárová (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics); Margaréta Nadányiová (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics); Eva Kicova (University of Zilina in Zilina, Faculty of operation and economics of transport and communications, Department of economics)
    Abstract: The development of the national economy of any country is (besides others) highly addicted to the economic success of its business entities. However, due to the process of trade globalization and market liberalization, the business environment has become more competitive that requires companies to build up own competitiveness not only in the domestic, but as well in the international measure. If we take into account the fact that approximately 99% of Slovak businesses are formed by small and medium enterprises (SMEs), next that our economy has character of opened one (in the meaning of export and import transaction), to compete with rival multinational companies is a question of their daily survival. The way how to support the development and competitiveness of such kind companies (that the practice has proved as well), consequently the regional and national economic development, the concept of business clusters is considered. “Business clusters are a striking and common feature in today´s economy, nonetheless it is not exactly a new phenomenon – it has been the object of attention from a wide variety of social scientists†(Kuah, 2002, p. 207), economists and practitioners for much of this century. Currently, in broader sense of word, we may talk about the clustering of different economic activities – about the close cooperation between cluster members (constituents) such as different kinds of entrepreneurs of different size and business history, universities, independent research institutions, trade associations, and government and its institutions. The role of business clusters has become increasingly important for the Slovak economy, too.The presented paper deals with the concept of business clusters. Briefly, at first its theoretical aspects are discussed (mainly from the point of view of its ability to support building competitive advantages for businesses and regional/national economy). Then we focus on brief presentation of the Slovak cluster policy and official cluster initiatives in Slovakia.
    Keywords: cluster, cluster initiatives, cluster policy, competitiveness, cooperation, globalization, innovations, regional development
    JEL: F43 R11
    Date: 2014–12
  30. By: Aaro Hazak (Tallinn University of Technology); Raul Ruubel (Tallinn University of Technology)
    Abstract: The role and intensity of knowledge within an economy remains a key success factor for long-term economic growth, increased productivity, competitiveness and socio-economic sustainability. These challenges are particularly important for emerging economies that are yet to catch up frontier knowledge economies. This paper seeks to understand the contribution that R&D services have through added economic value to the GDP in Estonia. Based on the most recent supply and use matrices on the data from year 2009, prepared under the input-output framework of Estonian national accounts, we identify to which extent do the R&D services used in the Estonian economy originate from domestic industries and imports, and how the supplies of R&D services are allocated between intermediate and final uses, including exports. As an output of that analysis we identify the direct contribution of R&D services to added economic value in the Estonian economy to be 0.5% and their primary indirect contribution to be 0.4%. Further indirect effects however exist which need to be quantified under our following studies. Vast majority (93%) of the R&D services used in the Estonian economy appear to be of local origin, generated primarily by companies specialising in R&D services. Export capacity of Estonian R&D services appears to be very limited, contributing 0.2% of Estonian total exports. Overall, we identify that a significant progress is yet to be made to catch up with knowledge frontier countries.
    Keywords: R&D services, GDP, supply and use tables, input-output modelling
    JEL: L80 C67
    Date: 2014–07
  31. By: Paweł Strzelecki (Warsaw School of Economics; National Bank of Poland); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland)
    Abstract: As of 2007 increased labor force participation of the elderly has been observed in Poland. In 2009 a reform in the eligibility criteria narrowed the scope of early retirement opportunities for majority of the occupations. While labor force participation in the directly affected cohorts continued to grow, but an increase already prior to the reform hints that other factors may have been at play as well. The objective of this paper is to isolate and evaluate the causal ef-fect of the changes in eligibility criteria on labor force participation and exit to retirement of the affected cohorts. We rely on Polish Labor Force Survey and employ regression disconti-nuity design to evaluate the change in participation subsequent to the eligibility reform among the treated cohorts. We find a statistically significant, but economically small discontinuity at the timing of the reform. The placebo test shows no similar effects in earlier or later quarters. Yet, the pure treatment effects are insignificant in vast majority of the specification. Our con-clusions are thus as follows: the changes in the eligibility criteria were not instrumental in fostering the participation rates among the affected cohort, i.e. the immediate contribution to increased labor force participation of these cohorts is not economically large.
    Keywords: retirement age, early retirement, regression discontinuity, Poland
    JEL: J14 J26
    Date: 2015
  32. By: Gindra Kasnauskiene (Vilnius university); Loreta Vebraite (Vilnius university)
    Abstract: Because of rapid population ageing Lithuania possesses new economic and social challenges. One of these challenges is the shortage of labour force in the future, which will have a negative impact on the country’s economy. Thus, in this paper the study on impact of one of the significant factors of population ageing - migration - on the economy of Lithuania is conducted. Using a system of variables of net migration, gross domestic product, wage and unemployment rate a structural vector error correction model is developed. The paper also claims that, there is urgent need to implement effective policy means in order to maximize the migration related opportunities and minimize the costs. In addition, while migration can contribute to the growth of Lithuanian economy, it cannot provide by itself a solution to the demographic problems and budgetary implications of an ageing population.
    Keywords: population migration, population ageing, structural vector error correction model, economic impact, migration policy
    JEL: J11 J61 O15
    Date: 2014–10
  33. By: Eva Rievajová (University of Economics in Bratislava, Faculty of National Economy, Department of Social Development and Labor)
    Abstract: Since the onset of the financial and economic crisis, the situation in the area of employment, in average, didn't improve within the whole EU. Between Member States and the positions of individual groups of the population, there are significant differences in the area of labour market. Therefore, the area of employment and social inclusion has become a key shared priority for the EU and also the base for meeting the objectives of the strategy Europe 2020, as well as related documents. There are many reforms of the labour market, but it is necessary to continue to make further effort to modernize labour markets and to invest in human capital in order to creating of the conditions for renewal and supporting job creation.
    Keywords: labour market, unemployment, employment, global crisis, development of economy, active policy of labour market
    JEL: J01 J08 J21
    Date: 2014–10
  34. By: Suzana Demyen (West University of Timisoara); Ion Lala Popa (West University of Timisoara)
    Abstract: The phenomenon of migration is widely spread throughout the world, as long as more and more individuals choose to work abroad in the idea of gaining a better payment. Also the process of globalization and the decreasing of demographic aspects manifest their influence upon the evolution of business environment generally. We also witness a general gap between men and women in terms of payment, a salary difference through the whole Europe, but also a general gap between the wage levels among countries. The paper proposes an analysis of the current situation regarding wage gaps in Romania, the research being developed in mainly a qualitative one and the results are analyzed in accordance to the data provided by official institutions. Often, the way managers perceive aspects of organizational performance in general and HR performance differs from the results reflected by the economic and financial indicators. Therefore, it becomes interesting to perform a comparison of the results expressed in official reports, through a content analysis, but also by conducting own surveys.
    Keywords: salaries; gender disparities; human resource management; emigration, performance assessment
    JEL: J21 L25 M54
    Date: 2014–10
  35. By: Zdenek Patek (University of Economics); Michal Straka (University of Economics)
    Abstract: The current society opinion about the public sector is not positive. In general, people perceive the public sphere as an area where the government wastes money or where the public management of non-profit organisations just squanders money provided by the government. We may find this sort of considerations even in the sphere of culture. The goal of this paper is to show that there are a way and a method that can be applied to public institutions for their effective management. It is the application of evaluations in the field of culture which in the future may bring positive results in economic understanding of culture. Culture is often associated with tourism, of which the largest share is the cultural tourism. The main component of cultural tourism is visiting monuments. The basic question in connection with the sights therefore is whether the public manage of these objects is efficient. Data Envelopment Analysis (DEA) is a widely applied tool in efficiency evaluation for public sector, however it has scarcely been put into use in the case of historic building such as castles and palaces. The article is a response to the growing need to measure performance in all forms of public management. The purpose is to suggest some ways in which it is possible to evaluate the relative performance of activities of cultural monuments on the territory of the Czech Republic, and also to consider whether UNESCO is more effective than classical monuments or not. Scientific plan is based on the belief that castle managers should manage historical monument in order to achieve certain results.
    Keywords: Effectiveness, Monuments, Data Envelopment Analysis
    JEL: Z10 H21 M11
    Date: 2014–12
  36. By: Cizkowicz, Piotr; Cizkowicz-Pekala, Magda; Pekala, Piotr; Rzonca, Andrzej
    Abstract: We estimate the set of panel and spatial panel data models of employment and investments for 379 Polish counties over the period 2003-2012. We take advantage of a unique firm-level dataset for Polish Special Economic Zones (SSEs), which includes about 30,000 observations. We find that SSEs have substantial positive effects on employment: jobs in a given SSE create jobs outside the SSE in hosting county and even more jobs in neighbouring counties. Effect of SSEs on investments is weaker, but still positive. Investments in a given SSE neither crowd out nor crowd in investments outside the SSE. Thereby, they add one to one to capital stock in hosting county. Our findings are robust to changes in estimation methods, sample composition, set of explanatory variables and spatial weight matrix.
    Keywords: special economic zones, regional economic development, economic policy tools, panel data models, spatial panel data models
    JEL: C21 C23 H25 H32 R15
    Date: 2015–03–20
  37. By: Irena Nikolova (New Bulgarian University)
    Abstract: The fiscal sustainability is one of the important issues of the financial and fiscal policy of a country. However, that is not enough for its economic development and for improving the living standard where a higher level of economic growth is needed in order to achieve them. The crucial point is how to increase the economic growth and at the same time to preserve the fiscal sustainability in the short and long run. The purpose of the paper is to present and analyze the budget practices in Bulgaria and to review the opportunities for economic growth and future economic development. The analysis is prepared within the horizon of the European Union up to 2020 and the EU funding is examined as one of the budget instruments as well.
    Keywords: fiscal sustainability, economic growth, Europe 2020, EU funds absorption, budget policy
    JEL: E62 F15 F30
    Date: 2014–12
  38. By: Pavla Nikolovova (CERGE-EI); Filip Pertold (CERGE-EI); Mario Vozar (CERGE-EI)
    Abstract: In this paper we investigate the role of the business cycle for the transitions of Czech and Slovak workers to informal economy using Czech and Slovak Labor Force Survey data. We use two approximations for the participation in informal economy, self-employment and employment in small workplace (10 and fewer workers or 5 and fewer workers). Both statuses are potentially associated with the participation in an informal economy. Using the similar methodology as presented in Bosh and Maloney (2007), we show that recent recession caused substantial increase in transitions of workers from formal into both self-employment and employment. As compare to pre-recession time the flow into self- increased more than 4 times. The increase in transitions to small workplaces is less pronounced.
    Keywords: informal economy, business cycle, labor force
    JEL: J21 H26
    Date: 2014–07
  39. By: Elira Turdubaeva (Kyrgyzstan-Turkey Manas University)
    Abstract: There are a few key studies around the social impact of information technologies and Internet access within Central Asia. Kyrgyzstan, with a high level of political participation and an avant-garde position regarding internet access in Central Asia, broadband and social media penetration in the population, is a critical case for studying social media in relation to political participation. New media combined with a high level of internet freedom in Kyrgyzstan is a powerful tool that has the possibility to channel citizen opinion, offer an alternative to traditional print, TV and radio outlets, and craft new methods by which the citizen or collective interacts with the political and social environment (Robbins, 2012).According to some authors, the Tulip Revolution in 2005 in Kyrgyzstan was the ï¬rst revolution amongst post-Soviet nations where the Internet was considered a factor in disseminating information and mobilization political protest. Still in its infancy, the Internet in Kyrgyzstan played its first role – albeit a highly weak one – in supporting anti-government protests which overthrew President Akayev and his government during the “Tulip Revolution†in 2005.In 2010, five years after new media saw its first use as a political tool in the “Tulip Revolutionâ€, the significance of new media was revealed once more when Kyrgyzstan was mired in political conflict between the months of March and June. In March various online communities began reporting on allegations of widespread corruption in then President Bakiyev’s government. In spite of its further attempts to stifle political and social unrest by censoring traditional Kyrgyz media and blocking access to certain Russian TV stations, Bakiyev’s regime was unable to stop the elusive flow of information running through new media outlets. On April 7 an estimated 10,000 protesters gathered around Bishkek and successfully stormed the White House, forcing President Bakiyev to flee the country. This study analyzes the practices and attitudes of social media users and whether using social network sites alone drives previously inactive respondents to political participation. Three types of users – members of political parties, members of interest organizations, and non-members – are interviewed in focus groups about their attitudes to political content in the social network site Facebook.
    Keywords: Kyrgyzstan, Central Asia, political participation, new media, interaction, social media, Tulip Revolution.
    Date: 2014–05
  40. By: István Kovács (Budapest University of Technology and Economics, Department of Management and Corporate Economics)
    Abstract: In the last decade, a new phenomena has appeared in the scope of innovation, deriving from the exaggerated perception of the forming and optimizing effects of the community groups coming exist outside of the company which have an essential role to boost up its competitiveness in the future. Thus many companies have realized that sharing their innovations infers better position in the market.It indeed contributed to the widespread of this concept. Nonetheless this phenomena – non episodically – brings additional advantages for the company, such as exploitation of the own market with enhanced research capacity or building in originally not existed ideas to the current capital (Chesbrough, 2003).On the other hand, open innovation can be described as the flow of direct exploitation of knowledge for the sake of accelerating internal innovation along with expanding markets to its external applicability. On the market this philosophy appeared firstly with the open source software’s (West and Gallagher, 2004).In this manner, open innovation is a paradigm that assumes internal and external ideas are inseparably applied together when a company tends to develop technology, toolkit and communication. This business model is about to utilize even internally and externally created ideas to create values, simultaneously indicates internal movements to exploit a certain (created) value. As a result, open innovation brings significant advantages to the companies which become capable to obtain intellectual power from outside their boundaries (Gassmann, Enkel and Chesbrough, 2010).In Hungary, the idea of open innovation is widely supported by the innovation clusters (currently 23 are operating in Hungary). The target population of my research was made up of the accredited innovation clusters. The duration of data registration took place between July 2011 and May 2013, during which period a total of 21 innovation clusters earned the title accredited cluster. In my assessment I managed to contact 18 accredited innovation clusters, which is 85.71% of the entire target population (access rate). The result and practical significance of my study shows that innovation clusters are relevant organisational forms during the examination of open innovation. Because from networks they secure wider platform for cooperation; help the integrity of knowledge through collective projects and create trustful atmoshpere between the members using different communication technologies and practices.
    Keywords: innovation, open innovation, communication, clusters
    JEL: O32 M31
    Date: 2014–10
  41. By: Alicja Grześkowiak (Wrocław University of Economics)
    Abstract: Nowadays, in a rapidly changing environment, it is essential to participate in lifelong learning activities in order to update and develop knowledge and qualifications. There are various forms of learning from highly formalized and structuralized to informal ones which allow to improve knowledge and skills. European Union educational policy underlines the necessity of lifelong learning involvement. Unfortunately the participation rate in continuous education in Poland is far beyond European benchmarks. The official statistics concern mostly the engagement in formal and non-formal educational processes. This paper is focused on self-learning activities of adult Poles. The analyses are carried out on the basis of data from a nationwide survey. As the data are categorical adequate statistical methods are applied to reveal and describe the regularities concerning this aspect of continuous education.
    Keywords: longlife learning, informal learning, non-metric data
    JEL: I21 J24
    Date: 2014–10
  42. By: Dražen NjegaÄ (University of Zagreb, Faculty of Science, Department of Geography); Aleksandar Toskić (University of Zagreb, Faculty of Science, Department of Geography); Zoran Curić (University of Zagreb, Faculty of Science, Department of Geography)
    Abstract: This work deals with the necessity of reforming the administrative-territorial organization considering the characteristics of the urban system and settlement structure of Croatia. Up until the 1990s the basic unit of administrative-territorial organization in Croatia was the municipality – in total approximately one hundred of them. During the thirty years period (1963-1992) of their existence, the municipalities became autonomous political and economic units. Such municipal system influenced spatial structures and processes and had an impact on the development of Croatia’s urban system. Municipal centers (mainly small and medium sized cities) became spontaneous centers of polarized development on the local levels. After the political and economic changes in the 1990s, a new administrative-territorial organization was introduced. Today Croatia consists of two levels of administrative units - counties (21 higher level units) and municipalities (556 lower level units, with reduced jurisdictions as opposed to previous ones; their average size is around 102 km2 and population around 7700). This new administrative-territorial organization, based on the considerably greater jurisdiction of larger – regional territorial units, in which the smaller, local ones no longer have the opportunity of economic decision-making, modified the basic character of the impact the administrative-territorial organization had on spatial structures and processes, and thereby on the urban system and regional development. In such circumstances the smaller cities (apart from county seats) no more have the importance they had before. As the counties have become the basic planning units and were given the jurisdiction for balancing and improving economic and social development in their large territories, even some of the smaller county seats are not strong enough to support such development. Therefore it is necessary to increase the importance of municipalities by reducing their total number at least by half and increasing their territory as well as jurisdictions by giving them opportunities to autonomously plan their development.
    Keywords: Urban system, administrative-territorial organization, regional development, county, municipality, Croatia
    JEL: R58
    Date: 2014–05
  43. By: Tihomir Staykov (Research Sector of University Prof. Dr. Assen Zlatarov - Burgas, Bulgaria); Pepa Hadzhieva (Bulgarian National Audit Office)
    Abstract: After accession of Bulgaria to the European Union, the Bulgarian government performed new initiatives and some actions related to the implementation of major reforms in the field of financial control, in order to ensure good financial management of public funds. Among several new acts, the Financial Management and Control in the Public Sector Act was focused on managerial accountability and requires the managers of public sector organisations to manage resources so as to achieve the objectives of the organisation, and to ensure the protection of public interests. They have an obligation to introduce adequate and effective financial management and control systems and to ensure the internal audit function. “Prof. D-r Assen Zlatarov†University is the only state university in Southeastern Bulgaria. The University faced the challenge of designing and implements a system for financial management and control after legislative amendments that were passed to implement the adopted strategy for the overall development of public internal financial control in Bulgaria after 2006. Difficulties have risen from the differentiation of the various components of the integrated framework for financial management and control, as well as misunderstanding how important the implementation of these systems is. The internal rules adopted by that time have launched a dynamic process of development of the internal controls in this public institution. In 2012, the financial management and control system of the University was updated in accordance with five interrelated components, based on the Integrated Internal Control Framework, as well as with the organisational structure and its specific activities, contributing to the consistent application of the regulatory framework in the country. The financial management and control is carried out through financial management and control systems, including policies, procedures and internal rules established by the management of the organisations for the purposes of providing reasonable assurance that the goals of the organisation have been achieved through: 1. Compliance with legislation and internal acts and contracts; 2. Reliability, comprehensiveness and accuracy of financial and operational information; 3. Economy, efficiency, effectiveness and transparency of operations; 4. The safeguarding of assets and information; 5. Promoting compliance with prescribed management policies.One of the biggest challenges facing Bulgarian higher education institutions in the implementation of the financial management and control is the process of risk management, which should provide a better understanding of potential threats, actions or events that may positively or negatively affect the ability of public institutions to achieve their objectives.
    Keywords: Internal control, Financial Management and Control Systems, IICF
    JEL: M48 A19
    Date: 2014–07
  44. By: Iris Dhamo (European University of Tirana); Ana Dhamo (European University of Tirana)
    Abstract: The visa liberalization concerns the right to freedom of movement is accomplished through the area of freedom, security and justice without internal frontiers. The abolition of the visa regime has made it possible for many Albanian citizens to bring down the enormous burocratic and discriminatory barrier that separated them from other Europeans. First we want to deal with the history and evolution, together with the development of the idea of freedom of movement. Secondly, we have analyzed the meaning of the abolition of the visa regime in Albania and the changes made by the Treaty of Lisbon in 2009. Finally, we examined the possibility that the abolition of the visa regime involves a step forward in the process of European integration of Albania. The road to European integration of our country, Albania, is very long, but achieving the goal of being able to travel freely in the Schengen countries should not be a point of arrival but must be regarded as the beginning of a path inside a tunnel where we can see, even if from a distance, the light.
    Keywords: visa liberalisation, concept, history, Albania, international law, ue
    JEL: F22
    Date: 2014–12
  45. By: Bilal Özel (Selcuk University); Ahmet Ay (Selcuk University); Mustafa Gerçeker (Selcuk University)
    Abstract: Throughout human history, unlimited resources were accepted. This unlimited acceptance with a growing population has led to the depletion of resources. This diminishing resource to be transferred to future generations with the aim of providing sustainable development concept has been developed. Nowadays, the concept of sustainable development is discussed in almost every area. Basically, economic, environmental and social areas are being studied. Notably the United Nations; All international organizations have set goals by working in this area. The studies for future generations basically include the same goals. In this study, the sustainable development between the Czech Republic and Turkey will be analyzed in comparative studies.
    Keywords: Sustainable Development, Czech Economy, Turkish Economy
    JEL: Q01 R11 O18
    Date: 2014–10

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