scholarly journals A model for analyzing the financial stability of banks in the VUCA-world conditions

2021 ◽  
Vol 16 (1) ◽  
pp. 182-194
Author(s):  
Svitlana Khalatur ◽  
Liudmyla Velychko ◽  
Olena Pavlenko ◽  
Oleksandr Karamushka ◽  
Mariia Huba
Keyword(s):  
Financial Stability ◽  
Business Environment ◽  
European Countries ◽  
Series Data ◽  
Regression Equations ◽  
Eastern European ◽  
Macroeconomic Indicators ◽  
Modern Business ◽  
Eastern European Countries ◽  
The Impact

VUСA is a chaotic and rapidly changing business environment that, based on the variability, uncertainty, complexity and ambiguity of the modern world, transforms the approach of banks to the analysis of financial stability. The aim of the paper is to improve tools for monitoring the impact of VUCA-world conditions on the financial stability of banks, namely a model for studying and analyzing the impact of the modern business space “VUCA” on the financial stability of the country's banks. To test the model, the method of constructing regression equations in multifactor regression analysis is used. For this study, data from some Eastern European countries (Ukraine, Belarus, Latvia, Lithuania, Moldova) were used, and time series data were used for 10 years from 2010 to 2019.Having considered the definition of “VUCA-world conditions”, the model of modern business space “VUCA” was developed when analyzing the activity of banks in the studied countries. Drivers, consequences, requirements and macroeconomic indicators of the countries’ activities in the VUСA-world conditions are determined. The VUCA-world conditions also consider the study of key macroeconomic indicators that allow building long-term relationships throughout the value chain. The analysis of the studied Eastern European countries showed that with the increase of factors of GDP growth, GNI per capita growth, research and development costs, foreign direct investment, and net inflow of 1%, the effective ratio of bank capital and assets also increases. The assessment, in contrast to the existing ones, makes it possible to consider the impact of the macroeconomic environment of banks on their financial stability.

scholarly journals Does a National Innovation System Encourage Sustainability? Lessons from the Construction Industry in Serbia

2021 ◽  
Vol 13 (7) ◽  
pp. 3591
Author(s):  
Marija Mosurović Ružičić ◽  
Mirjana Miletić ◽  
Marina Dobrota
Keyword(s):  
Energy Efficiency ◽  
Construction Industry ◽  
Innovation System ◽  
Business Environment ◽  
National Innovation System ◽  
Eastern European ◽  
System Perspective ◽  
Modern Business ◽  
Eastern European Countries ◽  
The Impact

Influences from the modern business environment indicate the need for the incorporation of sustainability concepts from an innovation system perspective. In the presented research, we emphasize the energy efficiency concept within the frame of sustainability and innovation. The aim of this research was to underline and explore the relationships between innovation, energy efficiency, and sustainability in the construction industry. To answer the research questions, a questionnaire was created to explore the impact of the energy efficiency certification process on the innovation behavior of construction industry enterprises in Serbia. The results show that energy efficiency has supported innovation, and that there exists a relationship between sustainability and innovativeness in the construction industry. Applying energy efficiency passports has influenced the co-operation of enterprises in the construction sector and other actors in the national innovation system in Serbia. The innovation concept demonstrates that enterprises in the construction industry should be observed as a part of the wider picture—the national innovation system. In turn, the specific context of a particular national innovation system should be seen within the wider picture of national innovation systems of Central and Eastern European Countries (CEECs).

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

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.

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

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.

scholarly journals The relationship between the relative GDP share of agriculture and the unemployment rate in selected Central and Eastern European countries

2017 ◽  
Vol 63 (No. 7) ◽  
pp. 308-317
Author(s):  
Bein Murad A ◽  
 Ciftcioglu Serhan
Keyword(s):  
Granger Causality ◽  
Unemployment Rate ◽  
European Countries ◽  
Regression Equations ◽  
Eastern European ◽  
Causality Tests ◽  
Dynamic Panel Regression ◽  
Granger Causality Tests ◽  
Eastern European Countries ◽  
The Relationship

The study empirically investigates the relationship between the relative GDP share of agriculture and the unemployment rate in a sample of ten Central and Eastern European countries. Utilising the annual data for the sample period 1996–2013, the empirical analysis is carried out using the dynamic panel regression analysis and the Granger causality tests. The estimation results based on the alternative specification of regression equations for the unemployment rate suggest that the unemployment rate is negatively related to the relative GDP share of agriculture. In addition, a similar effect has been obtained for some other explanatory variables we have included in the unemployment equation as controlling variables: higher investment rate and trade openness are likely to lower the rate of unemployment. The financial development has also been found to be negatively related to the unemployment rate, although the statistical significance of its effect depends on the estimation technique used. On the other hand, the GDP growth and the government consumption have been found to be insignificantly related to the unemployment rate. While the Granger causality tests performed for each country produced evidence of a causal effect of the relative GDP share of agriculture in some countries, in some other countries the direction of causality has been found to be from the unemployment rate to the relative GDP share of agriculture. Our findings suggest that agriculture may play a potential role in lowering the prevailing rates of high unemployment; but this potential is likely to vary between countries.  

The developments in the business models of biotechnology in the Central and Eastern European countries: The example of Estonia

1969 ◽  
Vol 17 (1) ◽  
Author(s):  
Margit Suurna
Keyword(s):  
Business Models ◽  
Developed Countries ◽  
Business Environment ◽  
European Countries ◽  
Current Debate ◽  
Eastern European ◽  
Current Article ◽  
Institutional Convergence ◽  
Eastern European Countries ◽  
The One

In light of the current debate on the validation of the prevalent business models and trends taking place in the field of biotechnology in developed countries (see here in particular Pisano versus Glick), it is relevant to explore whether, and if so in which form and circumstances, the set arguments hold up and could be complemented by the context prevalent in transition countries. As one of the main concerns for the long-term development in the area relies on Pisano's argument that the sector is moving towards greater fragmentation, the deep analysis of that becomes particularly important in an environment where the very same problems are somewhat rooted in the local policymaking context and business environment. A specific example can be drawn here from the Central and Eastern European countries (CEE). Derived from this, the aim of the current article is to trace the trends in biotechnology business models in one of the rather well-performing CEE countries: Estonia. The article argues that the developments in the business models in Estonia are led by two rather contrary directions, where on the one hand increasing specialization and fragmentation and on the other hand movements towards geographical and institutional convergence can be detected.

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

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.

scholarly journals An impact of macroeconomic stabilization on the sustainable development of manufacturing enterprises: the case of Central and Eastern European Countries

2020 ◽  
Author(s):  
Aleksandra Pieloch-Babiarz ◽  
Anna Misztal ◽  
Magdalena Kowalska
Keyword(s):  
Sustainable Development ◽  
Slovak Republic ◽  
European Countries ◽  
Eastern European ◽  
The European Union ◽  
Macroeconomic Stabilization ◽  
The Sustainable Development ◽  
Manufacturing Enterprises ◽  
Eastern European Countries ◽  
The Impact

Abstract Sustainable development is a socioeconomic development that respects environmental protection. It can be analyzed at a macro- and microscale. The goals of sustainable development are realized by ordinary people, politicians, organizations, and enterprises. At the enterprise level, sustainable development means an improvement in quantitative and qualitative conditions of running a business, the use of pro-ecological standards and solutions, and support of employee development. The sustainable development of enterprises depends on several factors, including macroeconomic conditions. The main aim of this paper is to show the impact of the macroeconomic stabilization on the sustainable development of the manufacturing enterprises in the Central and Eastern European Countries (CEECs). We examine only the CEECs which are the members of the European Union. Considering this, we focus on the eleven counties (i.e., Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic, and Slovenia) in the period from 2008 to 2018. The main hypothesis is formulated as follows: Macroeconomic stabilization has a statistically significant impact on the sustainable development of manufacturing enterprises in the period from 2008 to 2018. The results of the study indicate that in all analyzed countries there is a statistically significant relationship between the indicator of sustainable development (SISDE) and the indicator of macroeconomic stabilization. The highest level of correlation was observed in Czechia, Poland, and Hungary, while the lowest in Estonia.

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