Around the Bloc: Resignations Pile Up in Polish Government, Russian Reporter Faces Threat

Around the Bloc: Resignations Pile Up in Polish Government, Russian Reporter Faces Threat

Author(s): Evgeny Deulin,Casper Frederiksen,Barbara Frye,Ioana Caloianu / Language(s): / Issue: 06/16/2015

Keywords: Russia; milashina; Chechnya; journalist; Kadyrov; Poland; Sikorski; scandal; World Bank; economy; Czech Republic; coal; environment; Montenegro; crime; Pink panthers; interpol;

Plus, sickly oil economies drag down the region and Czech protesters try to stop mining expansion. Around the Bloc is TOL's daily digest of the important, the trivial, the tragic, the weird, and the sober from its coverage region.

Social Impacts of Incomes Inequality of the Bulgarian Population

Социални влияния на неравенството в доходите на населението в България

Author(s): Vasil Tzanov / Language(s): / Issue: 2/2015

Keywords: D31; I14; I32

The paper studies the impact of inequality in household incomes on selected key aspects of the social area in the country. Selected aspects include poverty and social exclusion, material privation, family formation, health, keeping the home, crime and subjective feelings of satisfaction and happiness. The impact of inequality is studied in two aspects – the dynamics of the studied processes and the different social groups. It is established that the inequality influences to a smaller degree on the development of the social processes than on the state and differentiation of the different social groups.

Non-Government Debt and Economic Activity

Non-Government Debt and Economic Activity

Author(s): Garabed Minassian / Language(s): / Issue: 2/2015

Keywords: A14; D02; E02

It is almost a tradition for analytical papers to state that the high extent of corporate indebtedness (intercompany including) might hinder investments and growth. The thorough review of the existing research, however, does not reveal a reliable and definite proof that the gross non-government debt contracted might put economic performance in danger. Assuming new debt as a rule represents an incentive for economic growth but to a varying extent. Given a low level of indebtedness both developments go in parallel – the rates of indebtedness’ growth (in the way of credits), on the one hand, and the rates of economic growth on the other. Provided a higher (much higher) speed of indebtedness, linked with the self-induced euphoria for accumulating relatively easy profits, economic development lags behind and the convergence of both curves is broken. The contribution of new lending for intensifying economic operations gradually declines until it reaches a point since which any further increase in lending starts hindering economic growth. The author’s position is that non-government indebtedness in Bulgaria has not reached its break-even point, since which it turns into a brake to economic development. Insufficient indebtedness rather is what impedes economic growth. The question is why households and companies refrain from taking on new liabilities which would have stimulated investment and economic development. The investment and consumer restraint of economic players is much more the outcome of an assessment of the conjuncture in the future. The base period presumes a recovery of the economic development, the more so that there is a long way to go to reach the average European level. Despite that investments are slack. There is obviously a need for adopting a much more different style of social and economic management rather than the change in one or another parameter of economic management. It is obligatory to realize the decisive function of macroeconomic institutions. This process of awareness involves a much better quality of education and the growing up of all the population.

Cultural Attributes of Bulgarian Management

Културни характеристики на българския мениджмънт

Author(s): Mariya Bobina,Diana Sabotinova / Language(s): / Issue: 2/2015

Keywords: M14; Z10

The paper displays the cultural profile of Bulgarian management and responds to the gaps in comparative studies by positioning Bulgaria in the cross-cultural space. The study is based on the survey of Bulgarian managers (2014-2015) per the GLOBE methodology and on culture distance (friction) measures for Bulgaria relative to 57 countries/societal cultures. It highlights the behavior-tied profile that is low on Uncertainty Avoidance, Performance and Future Orientation, visible Collectivism and high Gender Egalitarianism; and the values-tied profile that is compatible with all-countries average scores with slightly higher indicators of Collectivism, Assertiveness, and Uncertainty Avoidance. This research distinguishes between countries that display cultural proximity to Bulgaria (East European, Latin Europe, Latin American clusters) and those with greater distance (Germanic, Asian Nordic, Middle Eastern clusters).

Are Unemployment Rates in the Post-Communist Economies Stationary? Empirical Evidence from Central Asia

Are Unemployment Rates in the Post-Communist Economies Stationary? Empirical Evidence from Central Asia

Author(s): Fumitaka Furuoka / Language(s): / Issue: 2/2015

Keywords: E24; C22

Hysteresis of unemployment is a crucial element to understand the nature and characteristic of the labour market in the post-communist economy. However, previous empirical inquiries mainly focused on unemployment hysteresis in the post-communist economies in Europe and there is little systematic analysis on the former communist countries in Asia. To fill this research gap, this paper chooses five Central Asian republics of the former Soviet Union, namely Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, and examines the unemployment hysteresis in these post-communist economies. For the purpose of empirical analysis, this paper uses several different unit root tests, such as the SURADF test, the Fourier ADF test and the panel Fourier IPS test. The univariate unit root tests indicate that unemployment rate in Kazakhstan, Kyrgyzstan and Tajikistan can be characterised as the stationary process. The panel unit root tests indicates that unemployment rate in the Central Asia can be stationary process. Overall, the current study concludes that unemployment rates in the post-communist economies in Central Asia can be best described as stationary process in line with the natural rate hypothesis.

Theories, Directions, Approaches, Methods and Tools of Scientific Research in Management Accounting

Теории, направления, подходи, методи и инструменти на научно изследване в управленското счетоводство

Author(s): Anita Atanasova / Language(s): / Issue: 2/2015

Keywords: 41

Management accountant has its own theory. It uses many theories from other disciplines as its methodological theory. They are most often economic, sociological, psychological and other complex theories. Concerning the philosophical base of the research studies – ontology and epistemology – there is duality like in most social sciences: they use approaches of materialism/positivism/ empiricism, as well as those of idealism/constructivism/normativism. Presented are the methods used in management accounting studies. The focus is placed on those applied mostly in the positive/empirical approach, which is dominating in the research studies globally. Unlike in the developed countries, there is no discussion on the raised issues in Bulgaria. The positive approach in studies of the management accountant in Bulgaria is rarely used. A method, theory, database are rarely announced. This paper is the first attempt to systematize the raised theoretical and methodological questions in the Bulgarian context and an opportunity for a beginning of a creative discussion.

Taxation of Labour Income in European Union Member States in 1995-2014

Изменения в облагането на трудовите доходи в страните от Европейския съюз през периода 1995-2014 г.

Author(s): Nelly Popova / Language(s): / Issue: 2/2015

Keywords: H21; H31

Тhe present paper dwells upon the reforms in taxation of working income in the European Union Member States. The first part considers the main types of tax reliefs towards personal income as well as the indicators for effective tax burden. In the second part the main theoretical views of optimal taxation of income are presented. The next two parts examine the reforms carried out over the last two decades in EU Member States with a focus on the measures aimed at increase of labour supply. The “old” Member States of EU-15 are considered separately from the new Member States from Central and Eastern Europe and the specificities of the personal income taxation in both groups are analyzed.

University towns in Slovakia

University towns in Slovakia

Author(s): Lukáš Sekelský / Language(s): / Issue: 2/2014

Keywords: local action group; municipality funding; EU funds; regional development

The paper deals with funding from the European Union as one of the ways for municipalities to obtain an additional source of funding to increase their standard. Given that Slovakia participated in first programming period from the European Union in cohesion policy in years 2007-2013, the municipality were able to apply. Common problems of municipalities in Slovakia are their size in terms of low population and low budget when applying for funding from EU funds. The solution for small municipalities may be creating of so-called local action groups as a special form of local productions systems. The aim of this paper is to analyse obtaining and use of non-repayable financial contributions from the European Union funding in the programming period 2007 – 2013 in the municipality of Ilija through membership in local action group Zlatá cesta (Golden road).

Technical Articles And Information

Technical Articles And Information

Author(s): Peter Pisár / Language(s): / Issue: 2/2014

Hysteresis, Structural Shocks and Common Trends in Labor Market: Consequence for Ukraine

Hysteresis, Structural Shocks and Common Trends in Labor Market: Consequence for Ukraine

Author(s): Marianna Oliskevych / Language(s): / Issue: 4/2015

Keywords: С30; E24

This article provides an econometric analysis of the effects of technology shocks, labor demand shocks, labor supply shocks and wages shocks on the labor market in Ukraine. Structural vector autoregressive error correction model is formed on macroeconomic data for 2002-2014. The presence of hysteresis in unemployment is revealed. Three common trends are defined which determine the behavior of labor productivity, employment, unemployment rate and real wages. It is shown that only technological shocks have a positive long-term impact on productivity, although in the short run positive changes can be caused by positive shocks of wages and labor supply. The unemployment rate in the long run significantly reduces due to technological shocks and demand shocks, while supply shocks lead to its growth. Technological shocks and labor demand shocks are the source of positive change in the number of employed and real wages.

Impact of Secondary and Tertiary Education on Economic Growth: a Co-integration Model for Bulgaria

Ефекти на средното и висше образование върху икономическия растеж: коинтеграционен модел за България

Author(s): Mariya Neycheva / Language(s): / Issue: 4/2015

Keywords: O40; O57; J24; C32; I20

The purpose of this study is twofold. First, it tries to check the hypothesis that human capital stimulates growth of the contemporary economies. Second, it estimates the effects of both secondary and tertiary education on the aggregate activity in the Bulgarian economy over the period 2000-2013. The co-integrating models with a structural break are based on the neoclassical approach to growth. The negative impact of secondary education is clearly expressed. A positive statistically significant result has not been found for tertiary education as well. Moreover, in conformity with the real patterns of development the results confirm that the main drivers of Bulgaria’s growth path аre foreign direct investments and export which keeps its crucial role for the post-crisis development. Тhe unfavorable outcome with regard to education might be explained in light of both the vertical qualification mismatch and the quality of human capital. When the latter is measured by foreign language proficiency, a stronger impact on real GDP per capita in comparison with that for the human capital’s quantity has been derived.

Investment in Intangible Assets in Bulgaria

Investment in Intangible Assets in Bulgaria

Author(s): Todor Gradev,Lubomir Dimitrov,Spartak Keremidchiev / Language(s): / Issue: 4/2015

Keywords: O3; O52; P2

This paper presents results of the breakthrough study that applies the methodology developed by Corrado, Hulten and Sichel in 2006 to measure investment in intangible assets in Bulgaria and the factors involved in their contributions at the level of the economy. The study encompasses the transition and EU pre-accession period 1995-2006 and makes use of micro-level data aggregated to sector level, taking account imports and exports. We consider the following types of investment in intangible assets: computer software and computerized databases, innovative property, scientific R&D, copyright and license costs, new architectural and engineering design, brand equity and economic competences, market research and advertising as brand building, firm-specific human capital and organizational structure. According to this nomenclature, we compute the share of these intangible assets in the GDP and make estimates of the potential adjustment of the GDP if these investments were to be taken into account. The study unfolds on the background of the profound changes taking place in the Bulgarian economy over the 1990s, including a critical mass of privatisation, fragmentation of industries, financial shocks and a massive entry of new firms and foreign investment.

The Bases of Functioning and Development of Innovative Infrastructure of Ukraine

The Bases of Functioning and Development of Innovative Infrastructure of Ukraine

Author(s): Igor Britchenko,Anna Aleksandrovna Kniazevych / Language(s): / Issue: 4/2015

Keywords: О10; O31; O32

The preconditions and features of the formation of post-industrial society are defined in the article. The distinctive role of active innovation infrastructure of the country in integrating into the European community and society based on knowledge are proved. The characteristic features of the economy of post-industrial society are the increasing role of intangible resources in ensuring social reproduction, “softization” and “servization” the subjects of innovation infrastructure. The essence of economic category “innovation infrastructure“ is defined in the article. It is a dynamic self-regulating system of markets and subjects that entering these markets in certain economic relations and it provides the necessary conditions for implementation of the innovation processes. Mechanism of functioning of the constituent elements of innovation infrastructure in market economy is proposed, relationships between them are defined.

Branding Agricultural Products

Брандиране на земеделски продукти

Author(s): Lubomir Lubenov / Language(s): / Issue: 4/2015

Keywords: M39; O34; Q13

The goal of the study is to outline opportunities for branding of agricultural products. The study discusses the difficulties in branding agricultural products, the significance of the legally protected intellectual products for branding agricultural products, the conflicts between the intellectual products, the approaches for branding agricultural products. The paper analyzes the main difficulties for branding agricultural products – big heterogeneity of the quality of the agricultural products in time and space. Determined are the intellectual products (inventions, new sorts and breeds, geographic names, brands, firm names, domain names, technologies and know-how), which are a basis for branding agricultural products. The paper states that there are many conflicts between geographic names, brands and other intellectual products. There are substantial difficulties concerning creating and establishing a brand of an agricultural product at agricultural enterprise level. In perspective, internet will be significant for branding agricultural products. The agricultural products should increase the integration with markets, processing and R&D sectors. They should also form strong structures for joint marketing, which will improve their access to intellectual products.

Towards Holistic Theory of Money: Overcoming Twentieth Century Neoclassical Monetary Paradigm

Towards Holistic Theory of Money: Overcoming Twentieth Century Neoclassical Monetary Paradigm

Author(s): Gancho Ganchev / Language(s): / Issue: 4/2015

Keywords: E31; E40; E50; E60; F31; F60

The present paper is about rethinking and reformulating conventional assumptions concerning monetary economics. The money homogeneity and neutrality are rejected. New formulation of money market is suggested. It is demonstrated that money market is entangled with all the other markets and that the system of markets, including money, does not converge to equilibrium. Only under the gold standard some kind of self-regulation may be observed. Appropriate monetary and fiscal policies do not distort, but increase the efficiency of market forces. The introduction of internal money issued by private banking sector does not improve the situation and does not guarantee stability. Further, if we institute external value (exchange rate) of money, the basic conclusions are not altered. Flexible exchange rates require autonomous monetary policy and also rule out automatic equilibrium convergence. Prevailing floating exchange rate monetary regimes imply in addition dominance of internationally cooperative equilibrium based on mutually consistent macroeconomic policies. This implicit macroeconomic coordination precedes the international liberalization and deregulation, so, paradoxically the driving force behind globalization is the broadening of the scope of macroeconomic regulation. Finally, money uncertainty principle is introduced and connection between maximum entropy rule, economic uncertainty and money is established. The conclusions of the paper are related to certain basic Keynesian postulates about money.

On the Role of Financial Stress in the Transmission of Monetary Policy

On the Role of Financial Stress in the Transmission of Monetary Policy

Author(s): Ozge Kandemir Kocaaslan / Language(s): / Issue: 4/2015

Keywords: F44; E44; E52

This paper examines the asymmetric impact of monetary policy shocks on real output growth considering the role of financial stress. We carry out our examination using monthly Turkey data over 1998:M1 and 2012:M12 and apply a threshold vector autoregression model. Our investigation presents evidence that the impact of monetary policy shocks on output growth is stronger during high financial stress periods. However, it is found that there is no sign asymmetry in the real effects of monetary policy shocks.

Two Approaches for Evaluating the Aggregated Production Function of Bulgaria

Два подхода за оценка на агрегираната производствена функция на България

Author(s): Ivan Todorov / Language(s): / Issue: 4/2015

Keywords: O47

The objective of this study is to identify the main supply-side determinants of Bulgaria’s economic growth in the period of the currency board arrangement. In order to achieve the objective of the study, the aggregate production function of the Bulgarian economy has been estimated by two methods –least squares and growth accounting.

Swamp Culture

Kultura na bagnach

Author(s): Tomasz Kowalski / Language(s): / Issue: 127-128/2015

Keywords: review; "Swamp Club"; Wiener Festwochen; Vivarium Studio; Philippe Quesne

Tomasz Kowalski reviews Swamp Club byPhilippe Quesne and Vivarium Studio (Wiener Festwochen, premiere: 4.06.2013; Polish showing: CK Zamek, for the #you are not indifferent to me series, 29.03.2014). The author describes the course of the play's narrative in detail, calling attention to the spaces in which the events take place and the various accompanying atmospheres. For Kowalski, the notion of patience is key to the project (both in terms of its interpretation and participation in it).

The Polish Jewish Theater

Polski teatr żydowski

Author(s): Marta Bryś / Language(s): / Issue: 127-128/2015

Keywords: review; Teatr Żydowski w Warszawie; Maja Kleczerwska; "Dybuk"; "Dybbuk"; Szymon An-Ski; Wojciech Klemm; "Rodziny; których nie ma; czyli anonimowi Żydzi polscy"; Michał Pabian; Łukasz Chotkowski

Marta Bryś reviews two plays performed at the Jewish Theater in Warsaw – Maja Kleczewska's Dybbuk (premiere: 17.04.2015) and Non-existent Families, or: Anonymous Polish Jewsby Wojciech Klemm (premiere: 28.03.2015). In describing Kleczewska's play, the author notes that the director has foregone the powerful means of expression usually found in her theater. She has made a melancholy performance that poses no important questions and avoids confrontation, preferring to offer the audience a safe sense of sadness. Klemm's intimate production tackles the issue of discovering Jewish identity. Bryś sees it as less than radical, and inappropriate to the current socio-political situation. She does note interesting strands in either production, however, which could add nuances to the issues they address.

When a Few Laps of the Swimming Pool Won't Cut It

Gdy kilka długości basenu nie załatwia sprawy

Author(s): Pola Sobaś-Mikołajczyk / Language(s): / Issue: 127-128/2015

Keywords: review; Teatr Dramatyczny w Wałbrzychu; TR Warszawa; Grzegorz Jarzyna; Anna Augustynowicz; "Męczennicy"; Teatr Współczesny w Szczecinie; Marius von Mayenburg

Pola Sobaś-Mikołajczyk reviews two stage adaptations of Marius von Mayenburg's drama Martyrs, directed by Grzegorz Jarzyna (TR Warsaw, premiere: 14.04.2015) and by Anna Augustynowicz (Dramatyczny Theater in Wałbrzych and Współczesny Theater in Szczecin, premiere: 11.10.2014). The author puts forward the thesis that the two stagings are opposite interpretations of the text, which means they enter an interesting sort of dialogue. To her mind Augustynowicz's play tackles the theme of the fragility of the secular world-view in the face of fanaticism, while Jarzyna's performance draws from the ideological debate on the interference of the Catholic Church in secular institutions and investigates the power (political or otherwise) of fundamentalism backed by unshakeable faith.