scholarly journals Mean Reversion and Momentum in Central and Eastern European Countries – A Case Study on Poland and Romania

2018 ◽  
Vol 11 (1) ◽  
pp. 129
Author(s):  
Alina F. Klein ◽  
Rudolf F. Klein
Keyword(s):  
Stock Prices ◽  
Mean Reversion ◽  
Developed Countries ◽  
European Countries ◽  
Eastern European ◽  
Momentum Effect ◽  
Chinese Market ◽  
Developed Markets ◽  
Eastern European Countries ◽  
The Developed Countries

There is considerable evidence showing that both mean reversion and momentum exist in stock prices, especially in financially-developed countries. We analyze these phenomena for two Central and Eastern European countries with very different transitions from centrally-planned to market economies: Poland and Romania. Although Poland’s stock market cannot be considered well-developed, its capitalization increased from 3 percent of GDP in 1995 to about 30 percent in 2017, while Romania’s stayed under 6 percent of GDP in the 1990s and early 2000s, and only recently has increased to about 21 percent. Examining how mean reversion and momentum affect stock prices, we find very similar results for the two countries. The speed at which stocks converge back to their fundamentals (i.e., mean reversion) is much faster than that of the developed markets, with half-lives of just over 9 months for both countries (similar to the results obtained in the literature for the Chinese market, but much shorter than the 3-4 years for  the well-developed markets). We also find that the momentum effect lasts less than in the developed countries. Therefore, in most cases, strategies combining mean reversion and momentum generate abnormal excess returns only for holding periods of less than 12 months.

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 Public Finance Sectors Central and Eastern European Countries and in Developed Countries

2018 ◽  
Vol 18 (2) ◽  
pp. 31-48
Author(s):  
Renata Małkowska
Keyword(s):  
Public Finance ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Developed Countries ◽  
European Countries ◽  
Social Spending ◽  
Eastern European ◽  
The Public ◽  
Per Capita ◽  
Eastern European Countries

This paper analyses the interdependencies between state debt and the volume of the public sector’s expenditure, focusing particularly on pro-social spending. These phenomena have been studied in relative values (versus GDP) and in absolute values (per capita). This served as the grounds for an attempt to identify general directions of the public finance policies followed by countries in the Central and Eastern Europe and in selected highly developed countries.

scholarly journals Reaching the Objectives of Sustainable Development on the Basis of the Creative Industries – A South and Eastern European Analysis

2016 ◽  
Vol 63 (1) ◽  
pp. 109-116 ◽  
Author(s):  
Costică Mihai ◽  
Mioara Borza ◽  
Mihai Talmaciu
Keyword(s):  
Sustainable Development ◽  
Developed Countries ◽  
Individual Characteristics ◽  
Creative Industries ◽  
Eastern European ◽  
East European ◽  
Healthy Development ◽  
Eastern European Countries ◽  
The Developed Countries ◽  
High Level

The reduction of the development gap of South and East European economy compared with the rest of the developed countries represent an important condition to achieve the goal of „healthy development“ of European Union. High level of competitiveness in West European industries as well as new policy of sustainable development causes a rethinking of strategy of individual countries. Creative industries may contribute to the efficient utilization of local resources and individual characteristics. Using the culture like an “engine” of regional development, in South and Eastern Europe, countries can generate many positive and lasting effects on these economies. This article presents the role and evolution of creative goods and industries in South and Eastern European countries, and aims to prefigure their impact on sustainable development of these regions. The involvement of these goods in international trade may improve or rehabilitate the position of different economies at European level.

scholarly journals Institutional competitiveness of Central and Eastern European countries and the inflow of foreign direct investments

Catallaxy ◽  
2020 ◽  
Vol 5 (2) ◽  
pp. 87-96
Author(s):  
Magdalena Owczarczuk
Keyword(s):  
Quality Assessment ◽  
Western Europe ◽  
Recipient Country ◽  
Developed Countries ◽  
European Countries ◽  
Foreign Direct Investments ◽  
Eastern European ◽  
Global Competitiveness ◽  
Per Capita ◽  
Eastern European Countries

Motivation: Central and Eastern European countries (CEE) in spite of a long period of European Union membership and integration with the developed economies of Western Europe are still on the path of convergence, i.e. pursuing the highly developed countries in terms of, among others, GDP per capita. Assuming that the FDI inflow carries numerous benefits for the economic growth of the recipient country, those economies still compete against one another for foreign capital. One of the factors that attracts FDI is high quality of institutional surrounding. Aim: assessment of institutional competitiveness of the selected CEE countries (Czech Republic, Estonia, Lithuania, Latvia, Poland, Slovakia, Slovenia, Hungary) as well as verification of the relationship between institutional competitiveness and the FDI inflow to the analyzed economies. Materials and methods: The article reviews positions obtained by the selected CEE countries in the ranking of competitiveness published by Global Economic Forum (Global Competitiveness Report). The analysis and assessment of CEE countries competitiveness focused around the institutional quality assessment. Quantitatively, the connection was revealed between competitiveness ranking in the field of institutions and FDI inflow per capita and FDI as % of GDP to the economies under consideration. Results: the analysis of the global competitiveness index (GCI) allows to notice that among the CEE countries, Estonia is characterized with the highest institutional competitiveness. The detailed analysis indicated that low social capital quality decreases institutional competitiveness in case of all analyzed economies. The conducted quantitative analysis of the potential link between the GCI?Pillar 1. Institutions index and the inflow of foreign direct investments to CEE countries indicates the positive correlation of those variables. Higher index values (institution quality assessment) corresponds to the higher FDI per capita level and FDI calculated as GDP percentage.

MODELLING THE SLOW MEAN-REVERSION OF THE CENTRAL AND EASTERN EUROPEAN COUNTRIES' REAL EXCHANGE RATES*

2007 ◽  
Vol 76 (1) ◽  
pp. 21-43 ◽  
Author(s):  
GILLES DUFRENOT ◽  
ELISABETH GRIMAUD ◽  
EUGÉNIE LATIL ◽  
VALERIE MIGNON
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Mean Reversion ◽  
European Countries ◽  
Eastern European ◽  
Eastern European Countries

scholarly journals STRATEGY FOR MANAGING BANKING SYSTEMS IN CENTRAL AND EASTERN EUROPE COUNTRIES UNDER GLOBALIZATION

2021 ◽  
Vol 14 (27) ◽  
Author(s):  
Nenad Vunjak ◽  
Milan Radaković ◽  
Miloš Dragosavac
Keyword(s):  
Financial Crisis ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Developed Countries ◽  
Corporate Identity ◽  
Capital Adequacy ◽  
European Countries ◽  
Eastern European ◽  
The World ◽  
Eastern European Countries

The financial crisis has adversely affected all the countries of the world in the conditions of globalization with different intensity, no matter if it is higher or lower level of development and different economic structures. In the context of globalization in the countries in transition, the banking system was reformed, thus creating a new financial market. The International Monetary Fund has taken an active part in the transition process of Eastern European countries by providing advice and approving financial arrangements. Developed countries of the world have implemented measures of non-standard monetary policy to overcome the global financial crisis. In some parts of Central and Eastern Europe, in addition to the general corporate identity (bank name, abbreviated name, trademark and slogan of the bank), the countries also applied qualitative features of the bank's corporate identity (image, reputation and goodwill). As they enter the 21st century, banks in developed countries are increasingly emphasizing the corporate culture and style of business of the bank. In the practice of banks, the following performances are most often present: financial, marketing, performance management, employee performance, business philosophy, reputation and the image of the bank. The banks' performance analysis included 13 Central and Eastern European countries divided into three groups. Performance over the period 2008-2018 is analyzed, related to: share of total assets in GDP, share of total loans in GDP, share of total deposit in GDP and level of capital adequacy of Central and Eastern European countries. The analysis shows that the central banks of the countries of Central Europe are dominant, and that in certain performances they are approached by the banks of the countries of Eastern Europe (members of the European Union and the Western Balkans).

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