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on Transition Economics |
| By: | Bogdan Popovici (Academy of Economic Studies, Bucharest) |
| Abstract: | Today world context generates continuous urban development , accelerates economic competitiveness and intensifies city branding. Capital cities in Central and Eastern Europe must position themselves as national growth engines and as internationally recognisable brands competing within the European urban hierarchy. We analyse Budapest and Bucharest, two capitals of two very interlinked neighbour countries, former communist cities with different trajectories in competitiveness and branding after the 1990s.The paper analyses the structural and dynamic factors which influence the performance of the two cities starting from theories of urban competitiveness. Indicators like GDP per capita, foreign direct investment, labor productivity, human capital, innovation ecosystems, infrastructure and governance draw the competitive advantages and vulnerabilities. Budapest is a city with deep historical integration into Western markets, institutional continuity and strong branding as a Central European cultural and innovation hub. Bucharest grows after EU accession and has a cost attractiveness for investors mixed with a fast developing IT sector. Bucharest struggles with lack of cohesion of governance , infrastructure deficits and a weak city branding.The analysis highlights that branding is not only promotion, it is a strategic component of competitiveness and it influences perceptions of the investors, residents and international institutions. The study finds out that sustainable competitiveness for these two cities requires a shift from cost advantages to innovation growth which must be supported by governance reform, human capital investment and coherent branding strategies. |
| Keywords: | City branding, economic competitiveness, urban development, Budapest, Bucharest |
| JEL: | F02 F63 O10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:15416980 |
| By: | Romashchenko, Taras |
| Abstract: | In this working paper I focus on the critical demographic situation in Ukraine caused by the 2022 Russian invasion, which threatens the prospects of post-war recovery and socio- economic revival. By and large, I argue for the need to develop and implement nationwide repatriation programmes targeting Ukrainian refugees based on economic (investment) incentives that may be effective in the context of the country of origin. Drawing on desk research of previous return scenarios in some post-conflict countries and a series of in- depth interviews with Ukrainian refugees in Austria and Germany, I launch into this discussion by outlining a conceptual framework for the voluntary return of forced migrants to Ukraine. These include: financing the restoration of destroyed housing for refugees and providing them with land plots for independent reconstruction, payment of significant financial assistance upon return, targeted grants to forced migrants for business development in Ukraine, financial incentives enhancing social welfare particularly for families with children and launching powerful investment projects with the participation of foreign capital. Then I deal with potential challenges that could significantly complicate the process of mass re-emigration. These include: the ongoing active hostilities, the conflict of economic interests between Ukraine and host countries (the case of Germany is considered), the socio-economic collapse of the homeland implying the lack of decently paid jobs in the country of origin, as well as inconsistent and often contradictory policy of the Ukrainian authorities towards returnees. I end with a number of policy suggestions which, if taken into account by the Ukrainian government, could increase the likelihood of voluntary return of forced migrants to Ukraine. |
| Keywords: | forced migrants, refugees, economic incentives, investments, repatriation, return, challenges, Ukraine |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:331557 |
| By: | Lazar, Cristina; Asalos, Nicoleta; Bostan, Ionel |
| Abstract: | Background and aim: The article investigates the systemic deficiencies and risks in Romania’s municipal waste management system during the post-pandemic period, focusing on the role of external public audit missions conducted by the Romanian Court of Accounts. The main objective is to assess the risk of infringement procedures against Romania due to persistent non-compliance with EU environmental directives. Scope and limitations: The research concentrates on the period 2015–2021, with particular emphasis on the case of Constanța County, and is limited to the analysis of official audit reports and regulatory frameworks. Methods: The study employs a qualitative methodology based on document analysis, comparative evaluation of legal frameworks, and synthesis of audit findings, with emphasis on compliance, infrastructure, and institutional performance. Results: Findings highlight significant shortcomings: delayed closure of non-compliant landfills, insufficient implementation of selective collection and recycling, lack of a functional electronic traceability system, and weak monitoring by central and local authorities. Constanța County illustrates critical infrastructural and contractual deficiencies that compromise EU compliance targets. Conclusions: Romania remains at high risk of EU sanctions due to poor waste management performance, limited strategic coordination, and underuse of European funding. Originality: The article provides an integrated perspective by linking external audit findings to broader systemic vulnerabilities in the post-pandemic context. Practical implications: The study offers actionable recommendations for improving compliance, strengthening administrative capacity, and ensuring alignment with EU circular economy goals, thus supporting policymakers and practitioners in sustainable waste governance. |
| Keywords: | Municipal waste management, external public audit, Constanța county (Romania), environmental compliance, EU infringement risk. |
| JEL: | H6 H61 H8 H83 M4 M42 M48 Q5 Q59 |
| Date: | 2025–09–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126535 |
| By: | Klaus Weyerstraß; Michael Reiter; Daniel Schmidtner; Hannes Zenz |
| Abstract: | Abstract:In 2021 and particularly in 2022, gas prices rose sharply in Europe due to Russia’s invasion of Ukraine and the previous throttling of Russian gas supply to Western Europe. Because of the merit-order system, this also led to an increase in electricity prices in Austria and in many other EU countries. Since Russian pipeline gas must be replaced by more expensive liquefied natural gas and by more volatile electricity from renewables, energy prices in Europe will also in the future remain higher than before 2021 and higher than in other regions, particularly in the US and in Asia. In Austria companies and households are also confronted with rising fees for the gas and the electricity grids. The higher energy costs undermine Austria’s international competitiveness. Simulations with a panel econometric model in this Policy Brief underline that exports of the Austrian manufacturing industries are negatively affected by higher energy prices. Economic policy should support structural change towards new industries. Permanent subsidies are, however, not an economically sustainable option. |
| Keywords: | Austrian Foreign Trade, trade |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:wsr:pbrief:y:2025:m:11:i:70 |
| By: | Khakimov, Parviz; Ashurov, Timur |
| Abstract: | This study examines recent agriculture sector development trends in Khatlon region of Tajikistan and its contribution to development of the sector between 2010 and 2021. The findings of the study show that the development of the crops sector in the region was strongly intensive, except sluggish intensive growth for cotton and extensive growth for potato. Further deep dive is needed to figure out the source of growth, however, lack of disaggregated data prevents us from doing so in this analysis. To understand the drivers of recent growth the farmers survey needs to be conducted. Unlike the crop sector, the livestock sector in Khatlon region has experienced mainly extensive growth, with surge up in cattle and small ruminants’ population rather than productivity increase. The livestock sector faces several challenges such as severe degradation of pastures due to poor pasture management system, and increased pressure on pasture due to rapidly growing livestock numbers. In addition, the sector is affected by climate change and at the same time accelerates the ongoing process of climate change due to greenhouse gases, especially methane emissions. In sum, the region now plays a vital role in meeting Tajikistan's food security needs and income generation for rural households, however, further sustainable growth of the sector requires addressing challenges, increasing investments into the sector and promoting CSA practices (Table 1A in Appendix). |
| Keywords: | agriculture; crops; development; food security; Tajikistan; Middle East |
| Date: | 2025–05–14 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cenawp:174596 |
| By: | Oscar Claveria (AQR-IREA, University of Barcelona); Petar Soric (University of Zagreb) |
| Abstract: | Recent energy tensions caused by conflicts in Ukraine and the Middle East have added to the pressure that global warming exerts for an energy transition towards low-carbon energy sources. This study combines two time series approaches with the aim of delving deeper into the relationship between environmental degradation and economic growth and to test the environmental Kuznets curve (EKC) hypothesis, using information from 20 European countries between 2007 and 2021. Overall, the obtained results suggest the existence of a N-shaped nexus between emissions and income per capita. Additionally, we evaluated stability of this nexus and the potential existence of an asymmetric adjustment. In most countries we find asymmetries in the adjustment of emissions to positive and negative changes in income, but not so much in economic complexity. However, notable differences are observed between countries, which could be indicating their differentiated phase in the EKC curve |
| Keywords: | economic growth; economic complexity; environmental degradation; greenhouse gas emissions; Europe JEL classification: C38; C55; O44; Q20; Q50 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:aqr:wpaper:202509 |
| By: | Luka Dragani\'c; Leonarda Srdeli\'c; Marwil J. Davila-Fernandez |
| Abstract: | Using Croatian data and the IMF's Natural Disaster Debt Dynamic Tool, this paper assesses how public debt adjusts to extreme events in a small open economy. We compare debt paths under baseline and stress scenarios, the latter simulating a major earthquake in 2025. Croatia provides a unique setting for evaluating post-disaster recovery in countries recently incorporated into the European Union. Our benchmark projections, which assume moderate economic growth and a broadly neutral fiscal stance, suggest the debt-to-GDP ratio will gradually decline to below 55% by 2040. In contrast, in the disaster scenario, we document a sharp short-term increase and a persistent upward shift in the debt trajectory, reaching 75% of GDP. Deterministic and stochastic simulations allow us to assess the distribution of potential outcomes. It is shown that, in the absence of shocks, public debt is on a sustainable downward path, but a severe natural disaster could reverse this trend and keep it elevated for years. Our findings highlight the importance of fiscal buffers that are critical for creating space to absorb shocks. The paper innovates by integrating natural disaster stress-testing into public debt analysis, with implications for fiscal risk management and policy planning. While we focus on Croatia, the mechanisms we uncover have broader implications for small open economies exposed to extreme events. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.02973 |
| By: | Richard Grieveson (The Vienna Institute for International Economic Studies, wiiw); Ioannis Gutzianas (The Vienna Institute for International Economic Studies, wiiw); Branimir Jovanović (The Vienna Institute for International Economic Studies, wiiw); Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Olga Pindyuk (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This study identifies the minimum economic and institutional conditions that candidate countries must meet to ensure macroeconomic stability, sustainable growth, and effective integration into the EU, under a politically accelerated enlargement process. In the area of external accounts, successful past accessions managed current account deficits through FDI into tradable sectors, while real effective exchange rate misalignments and FDI into non-tradables led to post-accession instability. Key reforms include building export capacity, targeting FDI to tradables, aligning wages with productivity, and reducing debt-financed imbalances. On fiscal policy, while fiscal discipline is essential, overly conservative approaches can hinder growth. Countries with high debt-to-GDP ratios at accession faced prolonged austerity. Reforms should focus on fiscal sustainability, growth-oriented spending, tax base expansion, and procurement transparency. Labour market challenges include depopulation, low productivity, and high poverty. Effective employment policies, migration strategies, regional equity, and education-labour market alignment are essential. Institutional quality remains a critical barrier. Weak rule of law, corruption, and governance backsliding threaten accession prospects and must be addressed before accession. The study concludes that a focused set of pre-accession ‘must haves’ can guide enlargement, supported by adapted EU tools to mitigate risks and foster convergence. |
| Keywords: | EU Enlargement, EU Accession, Candidate Countries, Ukraine, Western Balkans |
| JEL: | F02 F15 F55 P52 O52 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:102 |