Ekonomika 2021-02-03T09:34:06+00:00 Vincentas Giedraitis Open Journal Systems <p>Founded in 1960.&nbsp;Dedicated to publishing articles analysing the current economy, sectoral situation and development of business strategies for local and foreign markets, which contributes directly to Central and Eastern European economic development.</p> Enterprise research and development activity in Poland in com-parison to Eurozone countries 2021-02-03T09:33:45+00:00 Magdalena Gostkowska-Drzewicka <p>During the years 2000-2018, the number of enterprises conducting research and development activity in Poland was increasing systematically, thus the expenditures on research and development were increasing as well. The impact of R&amp;D activity on the level of innovation of both enterprises and entire economies is related to objective and subjective structure of these expenditures which means that is not connected only with the value of the expenditures for its financing. The purpose of this paper is to present the level of expenditures on R&amp;D in the business enterprise sector in Poland, in comparison to Eurozone countries and to analyze the convergence of value of these expenditures in Poland. The authors of the article used description and analysis of the statistical data obtained from the EUROSTAT and the GUS (General Statistical Office in Poland) statistics and estimation of econometric models and testing the occurrence of sigma and beta convergence. Based on the results we state that the key issue is to further activate Polish enterprises within the sphere of research and development, because Poland, in comparison with Eurozone countries, ranks within the group of countries with low expenditures on research and development and with structures characteristic of less prosperous economies. The study allowed determination of occurrence of sigma and beta convergence in Poland, in comparison with the Eurozone countries.</p> 2020-12-17T17:52:52+00:00 Copyright (c) 2020 Magdalena Gostkowska-Drzewicka COVID-19 Induced Economic Uncertainty: A Comparison between the United Kingdom and the United States 2021-02-03T09:33:48+00:00 Ugur Korkut Pata <p>The purpose of this study is to investigate the effects of the COVID-19 pandemic on economic policy uncertainty in the US and the UK. The impact of the increase in COVID-19 cases and deaths in the country and the increase in the number of cases and deaths outside the country may vary. To examine this, the study employs the bootstrap ARDL cointegration approach from March 8, 2020 to May 24, 2020. According to the bootstrap ARDL results, a long-run equilibrium relationship is confirmed for five out of the ten models. The long-term coefficients obtained from the ARDL models suggest that an increase in COVID-19 cases and deaths outside of the UK and the US has a significant effect on economic policy uncertainty. The US is more affected by the increase in the number of COVID-19 cases. The UK, on the other hand, is more negatively affected by the increase in the number of COVID-19 deaths outside the country than the increase in the number of cases. Moreover, another significant finding from the study demonstrates that COVID-19 is a factor of great uncertainty for both countries in the short-term.</p> 2020-12-15T00:00:00+00:00 Copyright (c) 2020 Authors The Development Strategies for National Economies After Covid-19 Pandemic 2021-02-03T09:33:52+00:00 Olha Fedirko Tetiana Zatonatska <p>What are the economy sectors will help countries overcome the crisis caused by the COVID-19 pandemic? How countries should rezone their investment strategies to bolster recovery in main economy sectors? Using the Cobb-Douglas model, the importance of agriculture, energy, education, and ICT industries for GDP growth was proven. It was confirmed that agriculture and industry will be key sectors in the post-crisis period for Ukraine, Poland and Austria. During the time of economic uncertainty growth, ICT and e-commerce sectors are principal tools that will sustain the population’s well-being.</p> 2020-12-11T07:43:04+00:00 Copyright (c) 2020 Olha Fedirko | Tetiana Zatonatska Impact of Environmental Information Disclosure on Cost of Equity and Financial Performance in an Emerging Market: Evidence from Turkey 2021-02-03T09:33:58+00:00 Oğuz Yusuf Atasel Yusuf Güneysu Hüseyin Ünal <p>Financial instability, financial crises, and business frauds cause a loss of society confidence on firms. Similarly, the economic uncertainty increased as a result of the social problems, such as rapid consumption of natural resources, climate change, water scarcity, violation of human rights. For these reasons, the reliability and validity of the reports published by firms have been questioned. Firms make voluntary disclosures, such as environmental, social, sustainability, in order to overcome these problems and gain trust of investors. In this context, the purpose of this study is to explore the impact of information disclosure, including environmental disclosures, within the context of sustainability on the cost of equity (COE). At the same time, the study examines the effect of information disclosure on financial performance in terms of firm value and profitability. In doing so, the study employs BIST100 data of non-financial firms from 2010 to 2019, and uses panel regression models for Turkey. As a result, it was found that information disclosure negatively impacts the COE while positively affecting firm value and profitability.</p> 2020-12-11T07:33:21+00:00 Copyright (c) 2020 Oğuz Yusuf Atasel | Yusuf Güneysu | Hüseyin Ünal INST Institutional Ownership and Firm Value: A Study on the Bist Manufacturing Index 2021-02-03T09:34:06+00:00 Mesut Doğan <p>The aim of this research is to test the relation between institutional ownership and firm value. To accomplish this aim, data from 104 firms listed in the BIST (i.e. Borsa Istanbul) industrial index between 2006 and 2018 have been used. Studies on the structure of ownership have problems with endogeneity. In order to avoid these problems, this study adopted Durbin-Wu-Hausman test with advanced econometric techniques, Ordinary Least Squares (i.e. OLS), and Two-Stage Least Squares (i.e. 2SLS). As a result of the simultaneous&nbsp;equation system improved in this study, a positive relation between institutional ownership as an<em xml:lang="en-GB">&nbsp;endogenous</em>&nbsp;variable, and firm value has been located. Besides, it has been found that institutional investors are more interested in the firms that have a higher market performance.</p> 2020-12-11T07:21:13+00:00 Copyright (c) 2020 Authors Modeling of Economic Convergence Processes in Eastern Europe Countries 2020-11-16T09:15:45+00:00 Andriy V. Stavytskyy Maryna B. Kozub <p>The article describes the features of the processes of economic convergence in the countries of Eastern Europe for the last 10 years. The analysis of β- and σ-convergence was carried out based on a system of macroeconomic indicators with 10 key parameters. The calculation of the direction and speed of convergence was performed using the econometric instruments in the region as a whole and pairwise analysis of the β-convergence index for all analyzed countries. The obtained results allowed to conclude the inequity development of Eastern European countries and the lack of a stable trend towards convergence of macroeconomic indicators. The resulting model is universal and can be applied to other world regions or to determine the processes of convergence of another system of macroeconomic indicators and choose main directions of reforming to bring national economies closer and achieve stronger external relations.</p> 2020-11-16T00:00:00+00:00 Copyright (c) 2020 Authors Volatility Modeling for Currency Pairs and Stock Indices by Means of Complex Networks 2020-11-16T09:15:44+00:00 Olena Liashenko Tetyana Kravets Anastasiya Filogina <p><strong>&nbsp;</strong>Financial markets are complex systems. Network analysis is an innovative method for improving data sharing and knowledge discovery in financial data.<strong>&nbsp;</strong>Oriented weighted networks were created for the Shanghai Composite, S&amp;P500, DAX30, CAC40, Nikkei225, FTSE100, IBEX35 indexes, for CNY-JPY, EUR-USD, GBP-EUR, RUB-CNY and for cryptocurrency BTC-USD. We considered data since January 6, 2006 to September 6, 2019<strong>.&nbsp;</strong>The complex networks had a similar structure for both types of markets, which was divided into the central part (core) and the outer one (loops). The emergence of such a structure reflects the fact that, for the most part, the stock and currency markets develop around some significant state of volatility, but occasionally anomalies occur when the states of volatility deviate from the core. Comparing the topology of evolutionary networks and the differences found for the stock and currency markets networks, we can conclude that stock markets are characterized by a greater variety of volatility patterns than currency ones. At the same time, the cryptocurrency market network showed a special mechanism of volatility evolution compared to the currency and stock market networks.</p> 2020-11-16T00:00:00+00:00 Copyright (c) 2020 Authors An Assessment of House Loans Cointegration with Macro Variables in Selected Euro Zone Countries 2020-11-16T09:15:43+00:00 Kazys Kupčinskas Arvydas Paškevičius <p>This paper performs an empirical study on house loans, interest rates, unemployment, and house rent prices relationship in Germany, France, Spain and Italy from the year 2003 to 2018. We look for the cointegration and causality relationship between the house loans and macro variables with the help of the Vector error correction model (VECM) and Granger causality methods. We investigate whether variables with monthly data explain better the relationship and causal effects between the variables. We find a long term cointegrating relationship between the real house loans and interest rates, unemployment and house rent prices for France, Spain, and Italy, but not for Germany. On average the equilibrium in house loan development is reached from 4 to 8 years, meaning that long term equilibrium exists, but the variables reach it in a rather long time period. The ECB deposit facility rate included as an exogenous variable in four countries gained no significant power in explaining the short term changes of house loans in any of the country. We reveal a complex interaction between the bank’s credits and unemployment, interest rates, house rental prices in the paper.&nbsp;</p> 2020-11-16T00:00:00+00:00 Copyright (c) 2020 Authors The economic culture of the polish countryside in the process of 9. changes – an outline of the issues 2020-09-14T09:01:12+00:00 Grażyna Krzyminiewska <p>The paper The Economic culture of the Polish countryside in the Process of Changes – an outline of issues sets up a thesis that the transformation process has a multidimensional character and that its final effect is decided by an interaction between the organizational-institutional and mental-cultural level. Drawing attention to the cultural aspect increases the accuracy of the formulated diagnoses, explanations and prognoses. The author’s arguments are based on three elements. Firstly, she indicates the theoretical aspects of understanding the economic culture – the ways of defining and operation; secondly, she discusses the essential components of the traditional economic culture of the countryside, indicating the impact that the traditional value system has on contemporary economic attitudes and mentality. Thirdly, she points out how the changes connected with the transformation process exert an influence on modification of the crucial elements of this culture, adapting it to the requirements of contemporary world.</p> 2020-09-14T08:44:14+00:00 Copyright (c) 2009 Grażyna Krzyminiewska Short-Term Forecast of Ukrainian Economy Including Shadow Sector Using Causal Simulation Model 2020-06-11T09:06:07+00:00 Yuriy Vasylenko <p>A new causal simulation model of economic development was created, which comprehensively in detail and fully reflects various types of legal and shadow economic activities and their interrelations.<br>The model is used to forecast the whole (legal and shadow) country’s economy up to 2022.<br>The dynamics of shadow and legal indicators are different.<br>The biggest and most important difference is about exports and imports. Official statistics give a negative balance of the Ukrainian foreign trade of Ukraine in 2019-22. However, total export, determined by the model, considerably exceeds imports, so actually we expect a surplus.<br>This is very important for the National Bank: its policy based on the official (legal) negative balance of Ukraine foreign trade should be one (throw foreign currency reserves into the market or to devalue the hryvnia), but with the actual balance that includes shadow flows and is positive, - contrary one (to buy currency on the market or to revalue the national currency).<br>Our model calculates how the production volumes of all types of goods and services should change to ensure that supply and demand are balanced. These numbers can serve a reference for manufacturers.<br>We suggested that the relevant Ukrainian authorities take an active position in the implementation of the developed forecast for the economic development of Ukraine: measuring actual rates of changes in the production of these types of goods during the year, they provide recommendations to producers to increase or decrease their production.</p> 2020-06-11T08:12:52+00:00 Copyright (c) 2020 Yuriy Vasylenko