The determinants of informal economy in Eastern European countries

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Economic sustainability plays an important role in shaping conditions for economic growth and social development. The importance of answering the question about the level of sustainability of family farms results from the fact that the countries of Central and Eastern Europe, apart from exceptions (e.g., the Czech Republic and Slovakia), are characterized by a fragmented agrarian structure. Hence, the main goal of this article was to answer two questions: (1) whether the countries of Central and Eastern Europe differ in the level of economic sustainability of small family farms; and (2) whether the same socioeconomic factors impact similarly on the level of economic sustainability of small family farms from countries of Central and Eastern Europe. The study was based on surveys conducted in small family farms: in 2018 from Poland (672 farms) and in 2019 in four other countries (Lithuania; 999 farms, Romania; 834 farms, Serbia; 523 farms, Moldova; 530 farms). The publication includes a critical analysis of the literature, structure analysis and correlation analysis. The results show the occurrence of large differences between the economic sustainability of small family farms from the countries of Central and Eastern Europe. The research indicates that the larger the area of a small-scale family farm, the greater its economic sustainability. The productivity of these farms increases with their economic sustainability. The results also prove a negative relationship between the age of the farmer and the economic sustainability of their farm in all analysed countries. These trends were found in all analysed countries of Central and Eastern Europe. The results of the analyses support the conclusion that agricultural policy instruments aimed at increasing the economic sustainability of small family farms should lead to: land consolidation, a decrease in the age of farm owners through generational changes, and a decrease in employment in agriculture, which would lead to a reduction in labour input in the agricultural sector.

Purpose- Economic growth is one of the biggest indicators of the strength of a country. Countries provide economic growth by generating resources with their advanced technology. In this study, for some OECD countries (Germany, Belgium, Canada and Turkey) was investigated effect on the economic growth of the employment in the agriculture and industrial sector using panel data analysis. In the study, annual data were used from the years 1993-2017. Methodology- The data were taken from the official web address of the World Bank. Firstly, the data to be used in the model were examined by root to determine whether these series are stationary. According to the results of the unit root test applied to the levels of the variables, it was seen that the series were not stationary but contained unit root. For this reason, the primary differences of the series were taken and found to be stationary. Then the co-integration test was performed. Findings- The results of the cointegration tests performed indicate that there is a cointegration and there is a long-term relationship between the variables. In the study, classical, fixed effect and random effective regression models were used. The Hausman test was applied to determine the correct regression to be used, resulting in the appropriate model being the random effect model. Conclusion- After the Haussmann test, the most appropriate model was obtained as a random effect model.

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Background: Biotechnology is rapidly developing on a global scale. However, some evidence indicates that Eastern European (EE) countries are not fulfilling their potential in this field. Objectives: This paper aims to examine whether selected EE countries are able to develop a strong biotechnology industry. Potential investment approaches and the existing but not used or neglected infrastructures in EE countries were also examined. Methods/approach: In order to determine biotechnological activities in EE countries, indicators such as intellectual property protection, venture capital availability, published scientific publications as well as other indicators were analyzed. These indicators were compiled and compared between EE countries and regions with a rich and diverse biotechnological business sector. Results: The results suggest an underdeveloped biotechnology business sector in EE countries, with talented but unexploited scientists and unutilized infrastructure. The systematic drawbacks of EE countries lead to a hostile investment environment. Conclusions: The findings make a significant contribution to understanding how the biotechnology industry in EE countries is structured and how investments can be rationally placed. EE countries need to adapt their venture capital market for biotechnology ventures. Several changes in regulations could have a large impact on biotechnology investments.

Informality in Emerging Market and Developing Economies: Regional Dimensions

Relevance. Sustainable development is now an increasingly important topic on the global agenda, which received much attention in connection with the adoption of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). Research objectives. The article aims to contribute to the understanding of sustainability expansion and SDGs achievement in Europe by comparing the differences between Western and Eastern European countries. Data and methods. The study relies on descriptive statistics and comparative analysis of sustainable development results in Western (18) and Eastern European (21) countries. The parametric Student's t-distribution test and non-parametric U Mann-Whitney test were used to examine the significance of the differences between Western and Eastern European countries. Results. Sustainable development in Eastern and Western European countries is affected by various economic, social and environmental processes. The SDGs in Western European countries is achieved mostly in the social and economic spheres while in the Eastern European countries, in social and environmental spheres. Although Europe leads globally on sustainability, it still faces significant challenges in reaching the SDGs. Conclusions. European countries are compared in order to identify the main SDGs directions and constraints in the current state of sustainability achievement. Research findings can be useful for adjustment of the integrated sustainable development strategy at the global and national levels.

This paper intends to analyze the effects of openness to trade on economic growth and competitiveness of the Central and Eastern European (CEE) countries. Although these countries are at different stages of development and integration with the European Union, there are not highlighted differences on trade openness. Trade policies of them have been oriented towards regional trade cooperation and also integrating into the global economy. The empirical analysis of this study consists on 1 5 - year panel data of 11 CEE countries over the period 2000 to 2014. The system GMM is used as the most appropriate estimation method that addresses various econometric challenges, including endogeneity problems. The growth rate of the sample countries is modelled as dependent on trade openness and a set of control variables such as initial level of income per capita, human capital, gross fix capital formation, FDI, labour force and some interaction variables with trade openness. The estimation results indicate that the positive effects of trade openness on economic growth are conditioned by the initial income per capita and other explanatory variables. Otherwise, there is not robust evidence between these two variables. Moreover, the trade openness is more beneficial to countries with higher level of initial income per capita, as well as trade openness favours countries with higher level of FDI and with a higher gross fixed capital formation. This paper intends to analyze the effects of openness to trade on economic growth and competitiviness of the Central and Eastern European (CEE) countries. Although these countries are at different stages of development and integration with European Union, there are not highlighted differences on trade openness. Trade policies of them have been oriented towards regional trade cooperation and also integrating into the global economy. The empirical analysis of this study consists on 1 5 - year panel data of 11 CEE countries over the period 2000 to 2014. The system GMM is used as the most appropriate estimation method that addresses various econometric challenges, including endogeneity problems. The growth rate of the sample countries is modelled as dependent on trade openness and a set of control variables such as: initial level of income per capita, human capital, gross fix capital formation, FDI, labour force and a number of interaction variables with trade openness. The estimation results indicate that the positive effects of trade openness on economic growth are conditioned by the initial income per capita and other explanatory variables, otherwise there is not robust evidence between these two variables. Moreover, the trade openness is more beneficial to countries with higher level of initial income per capita, as well as trade openness favours countries with higher level of FDI and with higher gross fixed capital formation. DOI: http://dx.doi.org/10.5755/j01.ee.27.2.14013

Pension policies are traditionally and still today mainly legislated at the national level. This is due to the lack of a genuine global problem structure that would require transnational action in this field. Yet, in recent years the process of generating new pension policies has become global. Pension policies are increasingly under the influence of global actors, namely the World Bank and the International Labour Organization (ILO). Based on the assumption that international organizations are emergent, partly autonomous corporate actors, the models and ideas diffused by those organizations in the field of old-age pensions are analyzed. Both organizations diffuse ideas on how to conceive of the problem of old-age security and how to respond with adequate solutions. Since the mid 1990s the active diffusion of pension policies by the World Bank dominates pension reform efforts throughout the world. Its advice to build up multipillar schemes with a strong emphasis on private, funded and defined contribution elements had lasting impacts on national pension policies, especially in Latin America and Eastern Europe. In the face of this competition by the World Bank, the ILO, who traditionally advocated social insurance schemes, lost ground in the global pension debate. By decomposing ideas into paradigms, frames and programs an in-depth comparative knowledge of the pension policies promoted by World Bank and ILO is provided. One of the main findings is that the strong agenda-setting power of the World Bank is also a result of its homogenous paradigmatic foundation. Hence, ideas account for the power of the World Bank alongside conventional explanations that emphasize its ability to impose loan conditionalities. One example of the independent power of ideas is that following recent EU enlargement the World Bank type pension reforms formerly implemented in Eastern Europe could now become a benchmark within the EU. Thus, World Bank ideas would have found an indirect way to influence the pension policies of the EU-15.

Economic statistics concerning the quinquennial features of Agriculture employment (A), net Migration (M), Donor aid (D) and Personal remittances (P), available for over forty years from five West African countries have here been related to the GDP (G). The overall results of a multilinear regression (R2 0.84) have confirmed that the GD ratio, which is an index of aid efficiency, is significantly and positively driven by the PD ratio (high P and low D - favorable) and the PA ratio (high P and low A - favorable), but negatively driven by the PG ratio ( a higher D efficiency is obtained for constant G and lower P). A higher migration flux corresponds to a non-significant rise in the GD ratio. The five countries are clustered, by means of a principal component analysis, into three types. Partial least square regressions fitted to the GD ratio within each cluster provide a long-term polydromic function that highlights certain particular cluster features: reactive to forcing factors, such as Donor diminutions (SEN), active, as driven by Personal remittance (MLI), and mostly entropic for GMB, GNB and MRT. The learnt from the database is that Donor variations may follow different evolutions of the GD ratio in the three clusters.

The scientific research is the key for industrialization. The objectives of this paper are to investigate the relationship between stock market growth and economic development and the moderating effect of scientific research on this relationship. The panel study is done by taking three countries Pakistan, China and India and the sample data is taken for each country from 1992-2012. The STATA 11 is used for statistical analysis and Hausman Test signifies the significant of random-effects regression model. The results show that the relationship between stock market and economic growth is significant and the moderating effect of scientific research is also significant. The Breusch and Pagan Lagrangian Multiplier test for random-effects model also show significance of the random-effects model. The study is very beneficial for these countries to focus on scientific research in future.

Research background Capital investment financing has been cited as a critical element in economic growth the world over although there is no consensus regarding the significance, direction, and magnitude of the relationship. Purpose The article investigated the relationship between foreign direct investment, gross capital formation, personal remittances, and gross domestic product in Zimbabwe from 1960–2020. Research methodology The random effects model was used to examine this relationship using data collected from the World Development Indicators database. The random effects model was selected after performing the Hausman test. Results All the regression coefficients of the country’s gross domestic product reveal a direct or positive relationship with the three independent variables. Furthermore, the study reveals that gross capital formation had the highest contribution to Zimbabwe’s gross domestic product compared to that of foreign direct investment and personal remittances for the period under study. The coefficients of determination of the independent variables were significant. In other words, foreign direct investment accounted for 57.24%, gross capital formation 68.47%, and personal remittances 48.76% to foreign direct investment for the same period. Novelty The article closed the gap in knowledge by drawing attention to the relationship between foreign direct investment, gross capital formation, personal remittances, and gross domestic product in Zimbabwe.

Objectives: This paper summarises the findings of a report by Acedański et al. (2023) that focuses on the relationship between science and economic growth. The report was commissioned by the Conference of Rectors of Economic Universities (KRUE) and prepared by researchers from five public economic universities in Poland. The authors of the report and the KRUE aim to share their message with a wide audience that includes policymakers, academic experts, and students. Additionally, the article analyses the impact of research and higher education spending on convergence processes in Central and Eastern European countries. Research Design & Methods: The study examined different indicators, including government expenditure on basic research, higher education, and research and development. We utilised SURE models and observed that there was notable diversity in the convergence processes among the analysed countries. Additionally, we found a correlation between research spending and the rate of catching up. However, it is important to note that this relationship is not universal and varies across countries, even those within the same region. Findings: Acedański et al. (2023) report quantifies the relationship between science, higher education, GDP, and economic development in Poland. The report states that science and higher education sectors positively impact local economies, and individuals with higher education contribute the most to human capital resources in the economy, leading to GDP growth. However, Poland has a funding gap in research and science compared to highly developed countries as well as many Central and Eastern European countries. The report suggests that investment in a country’s education and higher education system is essential for generating developmental impulses and supporting its economy. Implications / Recommendations: The impact of scientific activity depends heavily on funding, especially through higher education institutions. In Poland, the salaries of academic teachers have decreased compared to other professions, and their position in the wage distribution is the worst it has been in the past two decades. Investing in a country’s education and higher education system is essential to support the economy. Acedański et al. (2023) suggest that a 0.1 percentage point increase in research and development expenditure, as a percentage of GDP, can lead to a 0.8 to 1.3 percentage point increase in GDP growth. However, the conclusion was based on panel data from EU countries, and the impact of scientific research on GDP may differ when analysing Central and Eastern European (CEE) countries. In this paper, we also present an extended analysis of the impact of science and education on economic growth through the lens of convergence processes. We show that the relationship above is not straightforward and represents substantial variability across countries, even those of the same region. Contribution / Value Added: Firstly, the report by Acedański et al. (2023) emphasises the importance of the science and higher education sector for economic growth. Their empirical research helps quantify the relationship between science, higher education, GDP, and economic development, offering a deeper understanding of this connection. The report complements previously published analyses and research on the topic. Secondly, our regional research shows that the convergence processes vary greatly among the analysed countries. The inclusion of spending on science, research, or higher education in the convergence equations has a varied impact on the assessment of the pace of the catching-up processes in the CEE region.

BackgroundAs a consequence of the disintegration of the state systems and the expansion of the European Union, there have been marked changes in the political and social affiliations of the countries of Eastern Europe. Of the 22 countries in Northeastern, Centraleastern, Southeastern and Eastern Europe, 12 are now members and 10 are "new" neighbours of the European Union. The accident insurance systems and changes in occupational accidents and occupational diseases in eastern European countries are described. Changes since EU and visible differences from non-EU countries are analysed. Special emphasis is given to occupational skin diseases.MethodsThe available data from the European Union (MISSOC and MISSCEEC Studies on the Social Protection Systems), the database "Social Security Worldwide" (SSW) of the International Social Security Association (ISSA), the International Labour Office Database (LABORSTA), the World Health Organization (WHO) and the annual statistical reports of the different countries were analysed with respect to changes in occupational accidents and occupational diseases. To find missing data, 128 ministries and authorities in the 22 countries in eastern Europe were researched and 165 persons contacted.ResultsThe social insurance systems were very different in the different countries and some were better established than others. Moreover, not all data were available. For these reasons, detailed comparison was not always possible. The occupational accident rates are decreasing in more than half the countries. In contrast, the fatal accident rates have increased in half the countries. The number of newly registered occupational diseases is decreasing in more than half the countries. The rates for occupational skin diseases in 2006 were particularly high in the Czech Republic, Poland and Slovakia. In half the countries (four out of eight), the number of occupational skin diseases is decreasing. A reliable analysis of any correlation between EU membership and the rates of occupational accidents and occupational diseases was not possible, because of missing current data.ConclusionComparison of the social insurance systems and changes in occupational accidents and occupational diseases in 22 countries in eastern Europe makes it clear that further effort is needed to develop registration and notification procedures. Only then will it be possible to analyse changes, to map successes and problems and perhaps to initiate necessary improvements. Standardisation of the documents must also be improved, to allow international comparisons between the systems.

The purpose of this paper is to analyze the economic outcomes, challenges, and opportunities associated with emigration processes globally and in Georgia. In addition to systematizing migration-related definitions and theoretical approaches, the paper focuses on three key dimensions: the positive and negative impacts of emigration; A quantitative assessment of emigration’s effects; the determinants of emigration and orientations for migration governance policies. In preparing this paper, a secondary desk-based research approach was employed to analyze migration processes. The study involved a comprehensive review of scientific literature, examined through diverse theoretical and methodological perspectives, as well as the use of official data and analytical reports produced by authoritative international and national organizations, including the International Organization for Migration (IOM), the Migration Partnership Fund, the World Bank, the National Statistics Office of Georgia, the European Union, the Federal Reserve System, the International Labour Organization (ILO), among others. On this basis, both quantitative and qualitative analyses were conducted. The research applied methods of induction and deduction, comparative analysis, dynamic table analysis, and econometric techniques. Georgia’s negative net migration balance for the period 1960–2024 amounted to −2,060,239 persons, representing 61.3% of the total net migration of the South Caucasus. Between 1997 and 2024, Georgia accounted for 39% of the total volume of personal remittances received by South Caucasus countries. Based on the calculations employed in this study, the potential GDP loss in 2024 was estimated at USD 5,900,631,474, equivalent to 17.5% of GDP. In the same year, personal remittances amounted to USD 3,999,181,897. Over the period 2002–2024, the cumulative negative economic impact of migration amounted to USD 18,869,509,404. The pace and outcomes of migratory processes warrant attention and require consolidation of efforts in the interest of the state, involving the government, public institutions, research and academic centers, the business sector, and active civil society groups.