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Specific Features of Economic Cooperation of Russia and China with Central and Eastern European Countries

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TL;DR

This study examines the distinct features of economic cooperation between Russia, China, and Central and Eastern European countries, highlighting China's active engagement through initiatives like Belt and Road and 16+1, while Russia's cooperation remains limited by political factors and low investment opportunities, hindering its potential.

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The presented study analyzes the specific features of economic cooperation of Russia and China with the countries of Central and Eastern Europe (CEE). In recent years, China has begun to actively cooperate with the former socialist republics of Central and Eastern Europe, offering them new institutional projects, such as the Belt and Road and 16+1 initiatives. At the same time, the CEE region has been distancing itself from Russia — it's once main economic partner — for a number of political reasons. Russia needs to maintain its standing in the region of its traditional external interests. This makes the analysis of the specific features of China and Russia's strategies for cooperation with the CEE countries relevant and practical. Aim . The study aims to analyze the specific features of economic cooperation of the People's Republic of China (PRC) and Russia with the countries of Central and Eastern Europe, assess the efficiency of their cooperation, and examine the existing problems. Tasks . The authors determine historical and strategic prerequisites for the development of Russia and China's cooperation with the countries of Central and Eastern Europe; examine the institutional framework of interaction between the countries under study; assess the dynamics of changes in the volume and structure of Russia and China's trade with the CEE countries; analyze the dynamics, priority sectors, and regional structure of direct Chinese investment in the countries of Central and Eastern Europe; assess the problems in Russia and China's cooperation with the CEE countries and prospects for further development of their interaction. Methods . This study uses such research methods as verbal and statistical analysis, observation, synthesis, generalization, description, graphical modeling, and data classification. Results . Central and Eastern Europe currently occupies one of the leading positions in China's foreign policy. After a long period of stagnating economic cooperation, relations between China and the CEE countries have entered a new stage within the framework of established institutional formats. The 16+1 strategy has been proposed, and the CEE countries have been included in China's Belt and Road Initiative. The pattern of economic interaction between Russia and the countries of Central and Eastern Europe in 2005-2018 is cyclical. Political factors have a significant impact on Russia's cooperation with the CEE. Conclusions . The lack of diverse tools for economic cooperation between Russia and Central and Eastern Europe, combined with Russia's low investment opportunities, prevents this cooperation from fulfilling its potential. Russia needs new institutional formats of interaction with the countries in this region, similar to those introduced by China.

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Locating Central and Eastern European emerging welfare regimes: is the youth welfare citizenship typology useful?
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In the first wave (2004), all the Baltic countries, Czech Republic, Slovakia, Poland, Hungary and Slovenia joined. In the second wave (2007), Romania and Bulgaria joined. Finally, Croatia joined the EU in 2013. Altogether 11 CEE countries are the EU members today, the remaining CEE countries are non-EU members and thus are excluded from the current research. Those countries which are part of the EU share similarities in social and economic reforms during the pre-accession period and after in order to reach a comparatively similar system with other member states. So, in terms of casing strategy these six countries can be named as emerging welfare regimes (EWRs) evolving transformations across different public policy areas. Handpicking of six countries out of 11 relies on the assumption that the Anglo-Saxon welfare system characteristics are more evident in the Baltic countries (Aidukaite, 2019; Aidukaite et al., 2020; Ainsaar et al., 2020; Rajevska and Rajevska, 2020) and Slovenia, while in Bulgaria and Croatia certain outcomes reflect the Bismarckian principles of social security (Hrast and Rakar, 2020; Stoilova and Krasteva, 2020; Dobrotić, 2020). This brings important variety into our analysis logic. Last but not least, we juxtapose six CEE EWR countries under analysis with six mature welfare regime countries representing different welfare regime types. Those mature welfare regime countries (Finland, Sweden, France, Germany, Italy, UK) are not an explicit object of the study but help to put analysed CEE EWR cases into larger context and thus, reflect upon theoretical claims of the welfare regime literature.FindingsThe authors can confirm that the EWR countries can be rather well explained by the welfare citizenship typology and complement the existing knowledge on youth welfare regime typology clusters in the Western Europe. Estonia is clustered close to the Nordic countries, whereas Latvia, Lithuania, Croatia and Slovenia are close to the Bismarckian welfare model despite rather flexible, non-restricted educational path, universal child and student support. Bulgaria is an outlier; however, it is clustered together with mature Mediterranean welfare regimes. Former intact welfare regime clusters are becoming more diverse. The authors’ findings confirm that there is no any intact cluster of the “post-communist” welfare regime and Eastern European countries are today “on move”.Research limitations/implicationsAltogether 11 CEE countries are the EU members today. The remaining CEE countries are non-EU members and thus are excluded from the current research. Those countries which are part of the EU share similarities in social and economic reforms during the pre-accession period and after in order to reach a comparatively similar system with other member states. At least one CEE country was chosen based on existing theoretical knowledge on the welfare regime typology (Anglo Saxon, Beveridgean, Bismarckian) for the Post-communist country groups.Practical implicationsIn the social citizenship dimension we dropped social assistance schemes and tax-relief indices and included poverty risk and housing measures. Youth poverty together with housing showed rather clear distinction between familialized and individualised countries and thus, made the typology stronger. In the economic dimension the preliminary picture was much fuzzier, mainly due to the comprehensive education in the region and intervention of the EU in domestic ALMPs (and VET) reforms. The authors added a new indicator (pro-youth orientation of ALMP) in order better to capture youth-sensitivity of policy.Social implicationsThe authors included a working poverty measure (in-work poverty rate) in order to reflect labour market insecurity as an increasing concern. Yet, the analysis results were still mixed and new indicators did not help locating the regime types.Originality/valueIn order to improve the validity of the youth welfare citizenship regime economic dimension, Chevalier's (2020) model may also be worth revisiting. 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Lessons learnt from past economic growth patterns and regional disparities in Central and Eastern European countries
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The Central and Eastern European (CEE) countries have undergone exceptional economic boom over the past two decades maintaining sustainable growth. The economic environment determines that in these countries GDP grew more rapidly compared to the core EU states implementing their continuous convergence, although some cyclical slowdown will be observed. Nevertheless, due to the rapidly changing, globalising business environment and the emerging unprecedented challenges linked to the constantly raising ratio of high added value content knowledge-based products and services, digitization era including many disruptive technological solutions, the shortcomings of the global supply and vendor chains, lack of materials and components in many industrial sector, the negative social and economic impacts of COVID-19 pandemic besides the unpredictable other events (e.g. outbroken war between Russian and Ukraine), the CEE countries have been forcing to restructuring their economies. This economic transformation process means making significant shift from the previous export-oriented, foreign capital inflow (FDI) attractive exogenous factors driven economic growth toward the endogenous, innovation and knowledge-based economy driven development to speed-up their catching up processes to the developed core EU member states changing the middle-income trap phenomenon. It means that due to raising of the labour workforce incomes the CEE countries cannot compete anymore with their exogenous, FDI attraction-oriented driven economic development model but they are weak yet for the time being to producing innovation-based, high added value content products and cutting-edge technologies improving their national economical competitive positions integrating on higher level in the global value chains. In order to overcome these difficulties and find the best, adequate solutions for the next time period 2021-2027, it is definitely need to analyse the past decade economic growth patterns and regional disparities of CEE countries. Despite all of them have to face the almost the same future challenges but their past economic structure have had different characteristics and reached the economic growth on different pathways due to their historical, social and economic background. The aim of this paper is to reveal the past economic growth patterns, development dynamics and the regional disparities in the CEE region and the possible reasons beyond that via comprehensive benchmark analysis.

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Russian FDI in Central and Eastern European Countries: Opportunities and Threats
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The effects of market economy type on the training practice differences in the Central Eastern European region
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  • Nemanja Berber + 3 more

PurposeThe aim of this research is to investigate and detect determinants of the training practice and conspicuous differences in the sample of nine Central and Eastern European (CEE) countries (Croatia, Estonia, Latvia, Lithuania, Hungary, Slovenia, Slovakia, Serbia and Romania). The study was conducted with three distinct objectives: the investigation of the training and development (T&D) practices in the CEE region, the investigation of the determinants of T&D practices in the CEE region and the measurement of the differences between the economies in the sample of CEE countries regarding their T&D practices.Design/methodology/approachThe research is based on the Cranet research network results from 2015 to 2016. The data for the CEE countries were selected in order to investigate the determinants of T&D practice, and the differences between these economies. The nine CEE countries were divided into two groups, on the basis on the variety of capitalism (VoC approach), in order to investigate its effects on the T&D practices. T-test, chi-square test, Spearman correlation tests and hierarchical moderated regression model were used to test the proposed hypotheses.FindingsThere are statistically significant differences between the organizations from coordinated market economy (CME) countries and liberal market economy (LME) countries in the case of the percentage of GDP of the country spent on education, the percentage of annual payroll costs of the organizations spent on training, the percentage of annual staff turnover, the implementation of the systematic evaluation of training needs, the training effectiveness, the existence of T&D strategy and the primary responsibility for major policy decisions on T&D. The results of the regression model showed that the majority of national and organizational level factors have a statistically significant relationship with the percentage of the annual payroll costs of the organization spent on training. Variety of capitalism moderates the relationship between independent variables and the dependent variable, too.Research limitations/implicationsIn the presented model, the authors excluded from their investigation the effects of MNCs. It must further be stated that only the data from the latest Cranet research round were used, thus it was not possible to investigate the development of the training practice in CEE over a longer time period. These limitations could be used as possible directions for further research in the relevant area of HRM in the CEE region.Originality/valueSince there is relatively little empirical research in the relation between capitalism type and T&D practice, especially in the region of CEE, the present paper lends new insight into this issue as well as into comparative HRM. It is hoped that this work can be taken as a starting point for further research.

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