The Impact of Global Economic Crisis on the Stock Markets: Comparison Between East Asian and Eastern European Countries

This study examines the impact of the 2008 economic crisis on youth unemployment and NEETs in the Central and Eastern European Countries (CEECs). It also analyses structural labor market problems in these economies such as youth unemployment by duration and skill, labor underutilization, and mismatch. The findings show that youth unemployment and NEET rates were more sensitive to the crisis in the CEECs compared to those in the EU-28. The highest increases were experienced in Latvia, Lithuania, Estonia, and Croatia for youth unemployment; and in Bulgaria, Latvia, Croatia, and Romania for youth NEETs. The NEET rates of 15-29 ages emerged as a more crucial issue than that of 15-24 ages. The examination of labor market structural problems shows that most of the relevant proxies worsened after the crisis in the CEECs; however, the proxies for Croatia were higher than the others. Romania, Bulgaria, and Slovak Republic also signal some structural problems, to a lesser extent.

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Patterns of Interrelationships between Inflation, R&D, Innovation, and Economic Growth: Evidence from Central and Eastern European Countries

10.15179/ces.22.2.1 ◽

2020 ◽

Vol 22 (2) ◽

pp. 5-33

Author(s):

Ljubivoje Radonjić ◽

◽

Nevena Veselinović ◽

Keyword(s):

Economic Growth ◽

Positive Impact ◽

Primary Objective ◽

Output Growth ◽

European Countries ◽

Eastern European ◽

Innovation Activities ◽

Private And Public ◽

Eastern European Countries ◽

The Impact

The primary objective of the article is to examine the nexus between inflation, R&D, patents, and economic growth within a group of Central and Eastern European countries (CEECs). The examination is conducted in two parts. First, the impact of total R&D expenditures on economic growth is observed, as well as the influence of growth on private and public R&D investments. Second, the conversion from private and public R&D investment to innovation, measured by the number of patents, is observed. Throughout the analysis, economic growth and inflation are representative of macroeconomic stability. The outcomes of the panel auto-regressive distributed lag estimation indicate that total R&D expenditures are essential and positively significant for economic growth in the observed countries. The results also show that output growth has a remarkably positive impact on generating private R&D expenditures. Such an influence is also found, but at a weaker level, in the case of public R&D expenditures. In this part of the analysis, inflation has demonstrated a harmful influence on R&D expenditures. The results of the second part indicate that public and private R&D expenditures, at a significant level, generate innovation activities, while the impact of inflation has proven to be unimportant.

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Mining, Poverty, and Income Inequality in Central and Eastern European Countries: What Do the Data Tell Us?

Comparative Economic Research ◽

10.18778/1508-2008.24.19 ◽

2021 ◽

Vol 24 (3) ◽

pp. 7-25

Author(s):

Kunofiwa Tsaurai

Keyword(s):

Income Inequality ◽

Random Effects ◽

Poverty Reduction ◽

Common Ground ◽

European Countries ◽

Estimation Methods ◽

Eastern European ◽

Infrastructural Development ◽

Eastern European Countries ◽

The Impact

The study investigates the effect of mining on both poverty and income inequality in Central and Eastern European countries (CEECs) using econometric estimation methods with panel data spanning from 2009 to 2019. Another objective of this paper was to determine if the complementarity between mining and infrastructural development reduced poverty and or income inequality in CEECs. What triggered the study is the failure of the existing literature to have a common ground regarding the impact of mining on poverty and or income inequality. The existing literature on the subject matter is contradictory, mixed, and divergent; hence, it paves the way for further empirical tests. The study confirmed that the vicious cycle of poverty is relevant in CEECs. According to the dynamic generalized methods of moments (GMM), mining had a significant poverty reduction influence in CEECs. The dynamic GMM and random effects revealed that the complementarity between mining and infrastructural development also enhanced poverty reduction in CEECs. Random effects and pooled OLS shows that mining significantly reduced income inequality in CEECs. However, random effects and the dynamic GMM results indicate that income inequality was significantly reduced by the complementarity between mining and infrastructural development. The authorities in CEECs are therefore urged to implement mining growth and infrastructural development-oriented policies in order to successfully fight off the twin challenges of poverty and income inequality.

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The Impact of Fiscal Variables on Risk Premiums in Central and Eastern European Countries

International Finance Review - Emerging European Financial Markets: Independence and Integration Post-Enlargement ◽

10.1016/s1569-3767(05)06003-6 ◽

2005 ◽

pp. 47-68

Author(s):

Dalia Grigonyte

Keyword(s):

European Countries ◽

Eastern European ◽

Risk Premiums ◽

Eastern European Countries ◽

The Impact

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After 2008 Global Financial Crisis, Short-Term Dynamics of CDS, Bond, and Stock Markets in South Eastern European Economies

Technology and Financial Crisis - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-4666-3006-2.ch016 ◽

2013 ◽

pp. 181-194

Author(s):

Ali Sabri Taylan ◽

Hüseyin Tatlidil

Keyword(s):

Financial Crisis ◽

Credit Risk ◽

Stock Markets ◽

European Countries ◽

Stock Index ◽

Bond Markets ◽

Eastern European ◽

South Eastern ◽

Eastern European Countries

Credit risk pricing is perhaps an understudied topic in comparisons to its profound impact on the world’s financial markets and economies. This study uses established price discovery techniques to develop a method of price discovery for credit risk in three financial markets: equity, debt, and credit derivative. This chapter is motivated by the development of credit-related instruments and signals of stock price movements of South-Eastern European countries—Bulgaria, Croatia, Greece, Hungary, Romania, Slovenia, Slovakia, and Turkey—during the recent financial crisis. In this study, the authors evaluate the dynamics of fiscal risk or country risk measured by sovereign Credit Default Swap (CDS), liquidity risk measured bond markets, and stock markets for the monthly based September 2008 – February 2011 period. The study examines monthly data observing 38 months and 8 countries. A panel vector autoregression model is proposed for changes in Long-Term Interest Rate (LTIR), changes in CDS spreads (CDS), and changes in stock index. In conclusion, CDS markets and stock markets are more significant than bond markets in explaining the post-crisis relationship among developing South-Eastern European countries. The analysis displays that long-term monetary policy did not affect CDS premium and stock index level. A strong relationship is found between the CDS spread and stock market. During financial crisis and after the crisis, the correlations among CDS, stock, and bond markets are collapsed by panicked investors’ rapid movement and wild speculators. This risk perception can explain the difference between the finance theory and practices in the market.

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The impact of real exchange rates on price competitiveness in Eastern European countries

Economics of Development ◽

10.21511/ed.19(1).2020.05 ◽

2020 ◽

Vol 19 (1) ◽

pp. 45-55

Author(s):

Nadiia Proskurnina ◽

Jürgen Kähler ◽

Rosario Cervantes-Martinez

Keyword(s):

Exchange Rates ◽

Real Exchange Rates ◽

European Countries ◽

Eastern European ◽

The European Union ◽

Local Exchange ◽

Developed Economies ◽

Countries In Transition ◽

Eastern European Countries ◽

The Impact

The subject of this paper is empirical research on studies of exchange rates in Eastern European countries, such as Albania, Bulgaria, Bosnia and Herzegovina, Belarus, Czech Republic, Estonia, Croatia, Hungary, Latvia, Lithuania, Moldova, (North) Macedonia, Montenegro, Poland, Romania, Serbia, Slovakia, and Slovenia, in order verify the validity of theories that explain these changes. This research aims to explain the mixed evidence of the Balassa-Samuelson effect in Ukraine, taking into account the intentions of Ukraine to become a member of the European Union. Unlike previous works, the attention is shifted to a review of empirical evidence and the identification of main factors that limit the ability to verify the theory. The main conclusion is that all the currencies studied underwent substantial real appreciations during the study period. Thus, it can be concluded that an adequate monetary policy in countries under study is very important, given that local exchange markets are not sustainable enough and the volatility of exchange operations is higher than in countries with developed economies. However, the Balassa-Samuelson Hypothesis (BSH) can explain the impact of the real exchange rate due to changes in productivity in countries in transition.

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