Around the Bloc: Poison Letters Put Czech Police on Alert, Russian Loan for French Nationalists
Plus, Georgia and her allies decry Russia-Abkhazia pact; Estonia opens its e-government platform to the world.
More...We kindly inform you that, as long as the subject affiliation of our 300.000+ articles is in progress, you might get unsufficient or no results on your third level or second level search. In this case, please broaden your search criteria.
Plus, Georgia and her allies decry Russia-Abkhazia pact; Estonia opens its e-government platform to the world.
More...
Parallel to the development of new communication environments with the help of technology in recent years, social media is defined as a virtual platform on which users share their knowledge and experiences. As consumers spend more and more time indoors, whether it is at work or at home, the use of social media increases and these consumers develop a good knowledge about products and services through advertisement. The objective of this research is to examine the relationship between online advertising, purchasing intention and word of mouth marketing. The research is exploratory and descriptive in nature. The data were generated cross sectionally. The questionnaires were conducted to 233 facebook users determined by convenience sampling method. The scales used for this research was developed and tested by other researchers. The data was analysed by using SPSS and NCSS 2007. The reliability of the data was found appropriate. Factor analysis, canonical correlation analysis and multiple regression analysis were used to analyse the data. As a result, it was found that the online advertisements has an effect on purchasing intention and word of mouth marketing.
More...
Donald Trump’s first year as President of the United States foreshadowed serious political changes and raised a number of questions related to the future of both domestic and foreign US policy. The main tasks for the new administration were: to „repair damages” created by its predecessors, eliminate malpractices in American politics, and implement ambitious election goals – all under the general „America First” slogan. Domestically, Donald Trump’s administration focused primarily on issues related to health care (i.e. repealing “Obamacare”), tax reductions, strengthening the American energy sector and enhancing US security through reorganization of immigration issues. Key foreign policy goals included: the rejection of Obama’s legacy (i.e. suspension or rejection of Obama’s most significant projects) and redefinition of foreign policy priorities. All that came amid growing interest in the media and public opinion, increased attention paid to Trump’s family businesses and the office he held, prosecutor inquiries into Russian interference during the US elections and contacts between the President’s most trusted associates and the Russians (the so-called Russiagate), ethic and moral scandals and personal problems in the President’s immediate surroundings. At the same time, the American economy was booming, and the US stock exchange achieved record highs. The aim of this article is to examine the transformation of Donald Trump-businessman into the President of a superpower, the implementation of the idea of „America First” and its consequences for the United States as well as its position in the international arena in 2017.
More...
The aim of this article is to analyze international relations in the Asia-Pacific region in terms of the balance of power. This mode of analysis is justified not only by the explanatory power of this theoretical concept, but also by the absence of regional institutional arrangements. The United States as a superpower is very active in balancing and rebalancing regional strategy, motivated by the desire to counter China’s growing influence. Meanwhile, in 2017 both superpowers were able to manage their bilateral relations by dialogue and cooperation on many regional issues, including North Korean nuclear programme.
More...
In 2017, Russian domestic, economic as well as foreign policy were subordinated to the preparations for the presidential election, which was expected to legitimize Vladimir Putin’s further rule. For this reason, the Kremlin’s main concern was to prevent any events endangering stability in those spheres in order to avoid even the slightest risk to the political process. In their internal policy, the authorities continued to block the tools that gave the West any potential influence on the situation in the country, tightening control over the society, harassing the political opposition and disciplining the broader political elite. The tensions in the elite and the oppositional mobilization on the part of the youth were problems for the Kremlin. In their economic policy, the authorities took advantage of rising oil prices to try to ensure financial stability, maintain a small economic growth and rebuild reserves in case of a deterioration of the situation. The problem was economic stagnation and pauperization of a part of society. In foreign policy, Russia made small attempts to normalize its relations with the West, but not at the expense of any political concessions. On the other hand, it strengthened, also informally, cooperation with China and tried to discount its growing activity in the Middle East and dominance in Syria to build its image of a superpower. The main problem was the unexpected further deterioration of relations with the US, in particular the threat of toughening American sanctions.
More...
In 2017, no major changes took place in Eastern European and Southern Caucasus states. The development trends observed in previous years were confirmed. First, in all of the countries in the regions, the rulers remained in power: only Armenia held parliamentary elections, but no major political changes followed. Second, the region remained within the scope of interest of the global powers, in particular because of the ongoing conflict between Russia in Ukraine. Third, both the EU and the Russian Federation continued their efforts to strengthen relations with some countries of the region, e.g. though introducing the Schengen visa free regime for Ukraine and Georgia on one hand, and organizing the Russian-Belarusian military exercises Zapad 2017 on the other. Fourth, all of the countries of the region, with the exception of Azerbaijan, overcame the economic crisis. At the inter-political level, there were no changes in the specificity of the politics in the region, which aims mainly at consolidating the position of the existing political and economic elites. Two states (Belarus and Azerbaijan) have been presidential dictatorships since the 1990s. Four other are currently ruled by the nomenclature (Armenia) or local oligarchs – either directly (Petro Poroshenko in Ukraine) or indirectly (Vlad Plahotniuk in Moldova, Bidzina Ivanishvili in Georgia). The rulers often simulate reforms in order to gain public support and help from the West while in fact their actions are aimed at strengthening their own power. At the international level, there is growing disappointment over the cooperation with the biggest neighbours, i.e. EU and Russia. The former has created a “ring of friends” in its Eastern neighbourhood: Ukraine, Moldova, and Georgia have all signed association agreements and obtained visa free regimes. However, the EU has little idea of the direction in which its cooperation with these countries should be developed in future, and no political will to recognize their membership perspective. Russia disposes of considerable influence in Belarus and Armenia: both countries accept it rather because of the lack of alternatives than any benefits it brings. As a result, they are trying to cooperate with the West, provided it does not jeopardize Russia’s interests. Azerbaijan remains a specific case, as it effectively avoids an overdependence on one of the global players in the region and strives to benefit from cooperation with both the EU and Russia.
More...
2017 in the Middle East saw a continuation of the same trends which had destabilized the situation in the region for several years. Conflicts which broke out as a consequence of the so called Arab Spring continued to reveal their destructive potential, not only within the countries where they took place but also in the wider dimension – the regional and global international system. In Libya and Yemen, internal chaos persisted. In Syria, bloody clashes between government forces and various opposition organizations continued. In each of this conflicts political forces that appealed to politicized and fundamentalist interpretation of Islam – the Islamic State (IS) or local structures related to Al-Qaeda – also played a significant role. At the same time, in 2017 the balance of power significantly changed to the disadvantage of IS, which suffered a number of strategic failures on major fronts, both in Syria and Iraq (and also in Libya).
More...
Although the data collected by Esri Story Maps team and PeaceTech Labdemonstrates that 2017 saw a decline in the number of terrorist attacks around theworld, and ISIS in Syria and Iraq was nearly destroyed, this does not mean that theterrorist threat has expired. This threat can be compared to a virus which continuesto be dangerous and keeps attacking, using different methods in different parts of theworld. In this context, several important research questions should be asked about thescale and characteristics of modern terrorism on the one hand, and on the other, onits future, for example, its further evolution and escalation, its forms, or the potentialtactics and strategies that may be used by terrorists. Some experts anticipate thatfurther serious evolution and escalation of terrorist attacks should be expected inthe future. This evolution will be marked not only by an increase in the number ofattacks, but above all by even greater diversification of terrorist forms and methods,including the use of, for example, drones, cyberterrorism or chemical, biological orradiological agents. Another manifestation of this evolution will be the escalation ofattacks on Islamist, as well as extreme right, leftist, separatist and other grounds. Thisfollows from the connection of terrorism with many different phenomena, such asthe influx of migrants. In this context, it is necessary to take into account the use ofterrorism by extremist groups (e.g. right-wing or left-wing) opposing or supporting,for various reasons, the influx of immigrants/refugees and its consequences. In orderto present the scale and characteristics of modern terrorism, and to show potentialnew trends, the author analyzes three important reports on the terrorist threatpublished in 2017 by the US Department of State, the National Consortium for theStudy of Terrorism and Responses to Terrorism (START) University of Marylandand Europol.
More...
Examining the interpretation of the concept of common good in the so-called Reform Era in Hungary (1830–1848), the study concludes that the use of “common good”, a notional part of early modern political language, had by then become fairly topos-like. Beginning with the texts that mediate the classical political inheritance, common good meant before all concord, the unity of the community, and was consequently connected to moral values, with community enjoying priority. Political economy, however, related as it was to rationalism, discourses of welfare, the language of politeness and utilitarianism, favored private interest and the conditions of private gain. The study first explores István Széchenyi’s Hitel from the perspective of the extent to which the emergence, or even dominance, of private interests modified the public view. Although frequently operating with economic descriptions and analyses, and using economic images, the Hitel does not completely break with the public view nor with the moral expectations connected to the nation. Yet it does make viewpoints of private interest sensible, and one of the efficient ways of its argumentation is to spur the quest for private gain and the acquisition of the „goods of life”. The analysis of Miklós Wesselényi’s Balítéletekről has yielded similar results. While its author is more strongly attached to republican outlook, and displays more sympathy towards the ancient constitution, he likewise operates with economic descriptions and images, emphasizing through economic argumentation the necessity of individual gain and material welfare, and thereby fragmenting and transgressing traditional public conception and morality. As both authors were as a matter of fact nationalists as well, as all politicians and publicists in the Reform Era, they could not completely part with republican public sense in the interpretation of the national community. The analysis also briefly touches upon the terminology of Ferenc Kölcsey and Ferenc Deák, a digression that, despite divergences in the frequency with which of synonyms and the individual elements of the verbal family (interest, happiness) are used, clearly corroborates the view that, in the political debates and publicism of the 1830s, all liberal reformers sought ways for the transformation and integration of society that would lessen the distance between private and public interests. Although they could express public good with a number of terms, they were clearly on the way to a national integration of the political community that would also make liberty rights prevail.
More...
The essay is dedicated to the influence of the Protestantism on economic effectiveness. According to the well-known Max Weber’s thesis the Christian culture was of crucial significance for the incremental creation of the market economy principles. In turn the Protestantism formed fundamental background for „modern rational capitalism”. Richard Swedberg, famous economic sociologist, following Max Weber, pointed out three factors bound up with Protestantism that had an impact on modern capitalism. Firstly, Dr Martin Luther stressed that the calling of man is the everyday solid work. Secondly, Jean Calvin defined economic success as the proof of the grace of Lord. Thirdly, American Protestantism demands absolute obedience to the commandments and honest behaviour towards other people. The diligence, activity and honesty were the source of trust among people (today defined as a component of „social capital”). The main thesis of the essay focused on the role of Protestant inspiration in forming trust as the source of contemporary economic effectiveness. Sociological research (among others conducted by Ronald Inglehard) proved that relatively high level of trust (especially „bridging social capital”) is a vital feature of highly developed economies of the Protestant countries. However, it should be stressed that there exists no simple cause-effect relationship between these two phenomena. Rather, they are aspects of a complex correlation network.
More...
This paper researches the relationship between financial depth (private credit to GDP ratio) and the subsequent response of GDP to the 2007+ financial crisis. The prevailing view in the finance-volatility of growth nexus literature is that financial depth reduces production volatility, but this holds true only up to a certain level of financial depth. Another stream of research documents that rapid growth in credit is a financial crisis predictor. Purpose of the article: We ask: did financial depth or its change have any impact on the post-crisis response of the real sector? Methods: Cross-sectional regression, 144 countries. Findings & Value added: The post-crisis GDP response corresponds to a change of financial depth prior to the crisis, rather than to the financial depth itself. The increase of financial depth prior to the crisis is statistically significant to the extent of GDP drop; in countries where the credit-to-GDP ratio surged prior to the crisis, the post-crisis response of the real sector was more pronounced. There is no evidence that financial depth negatively affected the extent of the GDP drop after the 2007+ financial crisis; some calculations suggest that the effect is slightly positive (i.e. the collapse was less severe in the countries with higher financial depth). The variables relating to financial depth affected the response of GDP mainly in countries where financial depth is relatively high.
More...
Economic development in sub-Saharan Africa is of paramount importance, yet it escapes most of the attempts to understand it better in the economic discourse, and it remains a sensitive issue in politics, contradicting stakeholders at national and international levels. The region still lags behind others in terms of technological advancement and economic development. It has grown significantly in the precedent decade, but the extent of growth has not sufficiently translated to its development. Determining strategies for sub-Saharan Africa is a scientific challenge, which requires more attention. In the globalized, interconnected reality, solving problems of the South is in the best interest of the North. Purpose of the article: The aim of this research is to analyze structural changes as factors of economic development in the best performing sub-Saharan African countries on the grounds of new structural economics in order to provide policy implications. Methods: Namibia, Botswana, South Africa and Gabon were selected as best performing economies in the region. Based on the literature review and the analysis of descriptive statistics, profiles of sample countries were set. This in turn allowed to determine the potential explanatory variables for OLS model of economic development. In the model, factors relating to labour productivity, technology and structural change were included. The data was sourced from WDI (World Development Indicators) database, Gretl software was used for computations. Findings & Value added: This paper contributes to the literature by attempting to explain structural changes in the process of economic development in the sub-Saharan region on the sample of best performing states. Results of the study revealed that there is no common way of economic development in sub-Saharan Africa. However, best performing states are characterized by relative advantage in human capital. Based on the results, policy implications were proposed with respect to technology promotion, natural resources management, and quality of institutions. The research was limited by data availability and reliability.
More...
Brands are considered to be the most valuable asset of a company. Some of them achieve spectacular global results. The significance of global brands is proved by the fact that their value is often greater than the sum of all company’s net assets. Purpose of the article: The aim of this article is to highlight that brand value does not only create company’s value, but also leverages economies. The Authors claim that even though global brands are sold worldwide and are a part of “global factories”, they strongly relate to the development of economies in the countries where these brands’ headquarters are located. Methods: Based on 500 Brandirectory, the Most Valuable Global Brands ranking powered by Brand Finance, an analysis of spatial auto correlation of brand values, GDP per capita was performed and also the interdependency between them was illustrated with the use of the spatial cross-regressive model (SCM). The SCM approach allowed us to include spatial effects of brand values into the final form of the estimated equation. The empirical analysis was performed for 33 countries in 2014. Findings & Value added: Findings confirm the hypothesis that there is a highly statistically significant relationship between brand value and GDP per capita and, what’s more, it is observed that spatial dependencies matter for brand values. The evidence is based on the results of spatial cross-regressive model (SCM).
More...
Real estate and urban economics literature are abundant in studies discussing various types of property taxes and their characteristics. A growing area of research has been focused on tax equity, tax competition, and yardstick competition, where the latter two reflect the idea of tax mimicking. Recently, due to substantial developments in spatial and regional economics, more attention has been drawn to spatial effects. Empirical results are focused on spatial interaction and diffusion effects, hierarchies of place and spatial spillovers. Property tax system in Poland differs from those utilized in the majority of developed countries. As a consequence, property tax policy at the local government level (including tax competition and tax mimicking effects) in Poland can differ substantially from those found in previous research in the US and other European countries. There are few studies addressing the problem of tax competition and tax mimicking in Poland from an empirical perspective. Purpose of the article: In the article, we explore spatial interdependence in property taxation. We identify clustering or dispersion of high and low values of the tax rates within major metropolitan areas in Poland. The effects can indicate the presence of tax mimicking among municipalities in given metropolitan areas. Methods: We analyze the data from 304 municipalities in 10 metropolitan areas in Poland from the year 2007 to 2016. The data covers four property tax rates: (1) on residential buildings (2) on buildings used for business purpose (3) on land used for business purpose (4) on land for other uses. To explore the spatial distribution of rates, we used global and local spatial autocorrelation indicators (Moran’s I statistic and LISA). Findings & Value added: The results suggest the presence of spatial correlation within metropolitan areas. We also found significant differences between metropolitan areas. The results of the study fill the gap in empirical research concerning property tax interdependencies and tax mimicking in Poland.
More...
Savings of households are accumulated as a result of individual propensity to save. Simultaneously, they provide the sources of financing investments in the economy through financial institutions as intermediaries in the flow of funds, between entities with a surplus and those with a demand for them. Purpose of the article: The paper aims at indicating the changes in the structure of households’ financial savings in Poland in the period 2003–2015, as well as at exploring them as a source of financing the activities of other sectors through institutional mechanisms of the financial system. Methods: Intersectoral financial flows were estimated using input-output methods for compiling “sector by instrument” tables of financial assets and liabilities into “sector by sector” matrices of intersectoral flows of each financial instrument. The research is based on statistical data published in the Eurostat database, i.e. annual accounts — financial balance sheets by institutional sectors and subsectors. The role of households’ financial savings in the network of intersectoral linkages in the financial system has been examined on the basis of financial input-output model. Findings & Value added: The comparison of the significance of particular institutional sectors’ supply of funds clearly indicates that the increase in households’ financial assets causes the largest increase in financial flows both as a result of direct effect and indirect effects reflecting the size of these flows’ feedback in the financial system. The study presented herein is the first application of the input-output approach for the Polish financial system. The idea of financial input-output model proposed by Tsujimura & Mizoshita (2003) is extended to disaggregate intersectoral flows in the form of individual financial instruments.
More...
The European Union currently provides financial support to the Member States through various financial tools from European Structural and Investment Funds 2014–2020, and previously from the EU Structural Funds. In both terminologies, the funds represent the main instrument of EU Cohesion Policy to sustain territorial development, to increase competitiveness and to eliminate regional disparities. The overall impact of EU Funds depends on the structure of funding and absorption capacity of the country. Purpose of the article: The efficiency of funding across the EU Member States is a fundamental issue for EU development as a whole. The Author considers deter-mining the efficiency of EU Funds as an issue of high importance, and therefore this paper provides a contribution to the debate on the role of EU Cohesion Policy in the Member States. The paper focuses on territorial effects of relevant EU Funds in programming period 2007–2013 in infrastructure through efficiency analysis. Methods: Efficiency analysis is based on data at the country level, originating from ex-post evaluation of Cohesion Policy programs 2007–2013 and representing the input and output variables to analyse whether the goal of fostering growth in the target countries have been achieved with the funds provided, and whether or not more resources generated stronger growth effects in transport accessibility. The paper deals with comparative cross-country analysis, descriptive analysis of data set and multiple-criteria approach of Data Envelopment Analysis (DEA) in the form of output-oriented BCC VRS model of efficiency and output oriented APM VRS subsequently model of super-efficiency. Findings & Value added: The paper aims to test the factors of two inputs and five outputs, trying to elucidate the differences obtained by the Member States in effective use of the European Regional Development Fund and the Cohesion Fund in the transport sector. The paper determines if the countries have been more efficient in increasing their levels of competitive advantages linked with transport. Preliminary results reveal that most countries with a lower amount of funding achieve higher efficiency, especially countries in a group of so called “old EU Member States”, i.e. group EU15.
More...
In the literature little discussion was made about predicting state of time series in daily manner. The ability to recognize the state of a time series gives, for example, an opportunity to measure the level of risk in a state of tranquility and a state of turbulence independently, which can provide more accurate measurements of the market risk in a financial institution. Purpose of the article: The aim of article is to find an appropriate tools to predict, based on today's economic situation, the state, in which time series of financial data will be tomorrow. Methods: This paper proposes an approach to predict states (states of tranquility and turbulence) for a current portfolio in a one-day horizon. The prediction is made using 3 different models for a binary variable (Logit, Probit, Cloglog), 4 definitions of a dependent variable (1%, 5%, 10%, 20% of worst realization of returns), 3 sets of independent variables (untransformed data, PCA analysis and factor analysis). Additionally, an optimal cut-off point analysis is performed. The evaluation of the models was based on the LR test, HosmerLemeshow test, Gini coefficient analysis and CROC criterion based on the ROC curve. The analyses were performed for 43 individual shares and 5 portfolios of shares quoted on the Warsaw Stock Exchange. The study has been conducted for the period from 1 January 2006 to 31 January 2012. Findings & Value added: Six combinations of assumptions have been chosen as appropriate (any model for a binary variable, the dependent variable defined as 5% or 10% of worst realization of returns, untransformed data, 5% or 10% cut-off point respectively). Models built on these assumptions meet all the formal requirements and have a high predictive and discriminant ability to one-day-ahead forecast of state of turbulence based on today's economic situation.
More...
The problem of bankruptcy prediction models has been a current issue for decades, especially in the era of strong competition in markets and a constantly growing number of crises. If a company wants to prosper and compete successfully in a market environment, it should carry out a regular financial analysis of its activities, evaluate successes and failures, and use the results to make strategic decisions about the future development of the business. Purpose of the article: The main aim of the paper is to develop a model to reveal the unhealthy development of the enterprises in V4 countries, which is done by the multiple discriminant analysis. Methods: To conduct the research, we use the Amadeus database providing necessary financial and statistical data of almost 450,000 enterprises, covering the year 2015 and 2016, operating in the countries of the Visegrad group. Realizing the multiple discriminant analysis, the most significant predictor and the best discriminant of the corporate prosperity are identified, as well as the prediction models for both individual V4 countries and complex Visegrad model. Findings & Value added: The results of the research reveal that the prediction models use the combination of same financial ratios to predict the future financial development of a company. However, the most significant predictors are current assets to current liabilities ratio, net income to total assets ratio, ratio of non-current liabilities and current liabilities to total assets, cash and cash equivalents to total assets ratio and return of equity. All developed models have more than 80% classification ability, which indicates that models are formed in accordance with the economic and financial situation of the V4 countries. The research results are important for companies themselves, but also for their business partners, suppliers and creditors to eliminate financial and other corporate risks related to the unhealthy or unfavorable financial situation of the company.
More...