Adverse Economic Environment Research Articles

“We have to change our mindsets”: a qualitative study of barriers and facilitators in research collaboration across integrated care system organisations

The introduction of Integrated Care Systems (ICS) in England aimed to increase joint planning and delivery of health and social care, and other services, to better meet the needs of local communities. There is an associated duty to undertake collaborative research across ICS partners to inform this new integrated approach, which might be challenging given that organisations span health, local authority, voluntary and community sector, and research. This study aimed to explore the appetite for collaborative Research and Innovation (R&I) across ICSs, potential barriers and solutions. This qualitative study involved semi-structured interviews with 24 stakeholders who held senior positions within organisations across two ICS areas (Staffordshire and Stoke-on-Trent; Shropshire, Telford and Wrekin). Interview transcripts were analysed using inductive and deductive analysis, first mapping to the Theoretical Domains Framework (TDF), then considering key influences on organisational behaviour in terms of Capability, Opportunity and Motivation from the COM-B Behaviour Change Wheel. There were fundamental limitations on organisational opportunities for collaborative R&I: a historical culture of competition (rather than collaboration), a lack of research culture and prioritisation, compounded by a challenging adverse economic environment. However, organisations were motivated to undertake collaborative R&I. They recognised the potential benefits (e.g., skill-sharing, staff development, attracting large studies and funding), the need for collaborative research that mirrors integrated care, and subsequent benefits for care recipients. Related barriers included negative experiences of collaboration, fear of failing and low confidence. Capability varied across organisations in terms of research skills and confidence, which reflected the range of partners (from local authorities to NHS Trusts, primary care, and academic institutions). These findings indicate a need to shift from a culture of competition to collaboration, and to help organisations across ICS to prioritise research, and share resources and skills to mitigate the limiting effects of a constrained economic environment. This could be further explored using a systems change approach, to develop the collaborative research efforts alongside the overarching move towards integrated care.

Corporate Hedging and Stock Market Dynamics: Evidence from PSX

The purpose of the paper is to examine the impact of corporate hedging practices such as derivative usage on stock market behavior of the firms. The study employed the data of financial sector of Pakistan for firms that are listed in the Pakistan Stock Exchange. The economy of Pakistan faced several challenges and risk during the past five years such as Covid-19, climate change, political uncertainty, and economy policy uncertainty. Hence, it provided a solid ground to investigate the viability of derivative usage in the adverse economic environment. The sample consisted of 111 firms. The results indicated that hedging has significant impact on stock returns and stock returns volatility. The study concludes that firms that use derivative can yield positive stock returns and influence volatility in returns.

How Does Corporate Social Responsibility Affect Credit Default Swap Spreads?

AbstractWe examine the relationship between corporate social responsibility (CSR) and credit risk. We test how CSR strengths and concerns impact credit default swap (CDS) spreads during the global financial crisis period (2008–2009) and non‐crisis periods (2003–2007 and 2010–2013). CSR concerns increase and CSR strengths reduce CDS spreads during the non‐crisis period, whereas their effects change during the global financial crisis. CSR strengths during an adverse economic environment can indicate agency problems and overinvestment. The effect of CSR concerns becomes much larger during the global financial crisis, while that of CSR strengths can even increase CDS spreads.

When does the fed care about stock prices?

We propose a novel identification approach based on a predictable change in the intraday volatility of index futures to estimate the Federal Reserve's reaction to stock returns. This identification approach relies on a weaker set of assumptions than required under identification through heteroskedasticity based on lower frequency data. Our approach also allows the examination of changes in the reaction of monetary policy to the stock market. We document an asymmetric response of policy expectations to changes in stock prices in adverse and positive economic environments. Specifically, the results show a sharp increase in the response of monetary policy expectations to stock returns during recessions and bear markets. This finding is consistent with the existence of the so-called “Fed put.”

Economic Changes and Their Impact on Consumer Behaviour: An Empirical Study in the Recent Economic Scenario

Changes in the economy have influenced many areas of the life of the consumer. It also determines the behavior of consumers consumer-related to product consumption and purchasing. Consumers have reported different modifications in behavior related to their shopping behavior, particularly in the last few years, when the economic situation has undergone remarkable changes worldwide. As a recession time, consumers change their buying behavior and decrease or limit their purchasing due to financial issues. They focus on particular products that they find essential for survival. Due to the adverse economic environment, consumers constantly cut down their expenses until they feel stable regarding their finances. Changes in the economy determine consumers to change their extravagant lifestyle to a restrained one or vice versa by making expenses and buying patterns. This research paper examines changes in consumer behavior that occurred due to economic changes.

INVESTIGATING BANK MARKET CONCENTRATION IN THE SOUTHERN REGION OF THE UNITED STATES: IMPLICATIONS FOR BANKING STRUCTURE

The objective of this paper is to determine whether commercial banks in the Southern Region of the United States are highly concentrated and hence less competitive in offering favorable lending terms to borrowers and subsequently hindering economic development in their region. The paper employs concentration measures to estimate the concentration degrees of commercial banks in the Southern Region of the United States in 2019. Data for deposits and loans plus leases of banks in 12 states in the South were collected for the year 2019 from the following sources: http://www.ofi.state.la.us/ and http://www.ibanknet.com/. Empirical results show that only commercial bank markets in Kentucky and Florida have perfect competition. The commercial banks in other ten states are either uncompetitive or less competitive, thereby creating adverse economic development environments for prospective corporate and individual borrowers in those states, and consequently impairing the profitability, stability and risk structure of the banking industry in most states covered in the Southern Region. The paper provides a value- added literature contribution to US banking market structure. The next step would be up to state and federal bank regulatory bodies to address the issue in those less competitive states and their potential on economic development in that region.

Radical democratic citizenship at work in an adverse economic environment: the case of workers’ co-operatives in Scotland

ABSTRACT Worker co-operatives generally embrace democracy in their ownership and decision-making structure. However, the commitment to a flat organisational hierarchy, implementation of equal wage policy, and the pursuit of a strong ethical policy position these co-operatives on the highly principled side of the co-operative landscape in the UK. This paper draws on an ethnographic study of five such principled workers’ co-operatives operating in a most adverse economic context, the UK capitalist market economy. The study explores collective decision-making and the personal investment as two important political aspects. Workplace democracy and the personal are interlinked paradigms for political praxis – as practiced democracy, immanent critique of the hegemonic corporate way of organising work, as well as prefiguring a viable alternative. Taking the perspective of radical worker co-operatives, this article caters to an urgently needed conceptualisation of radical democratic citizenship at work.

Is the Promotion of Social Responsibility Helpful for Chinese Multinational Enterprises to Deal with International Investment Protection? An Empirical Study Based on the Perspective of Overseas Subsidiaries

International investment protection is defined as the behavior of host country to take various policy measures to limit foreign investment. It has intensified with the outbreak of the global financial crisis in 2008 and is likely to deteriorate further in COVID-19’s uncertain impact on the global economy. Due to targeted restrictions, Chinese multinational enterprises have become the biggest victims of international investment protection behavior, which affects the normal operation of overseas subsidiaries. Corporate social responsibility is one of the means for the host country to restrict the entry of foreign capital, and has become the main form of international investment protection, which makes Chinese enterprises face greater social responsibility risks in foreign direct investment. In this context, to deal with international investment protection has become an urgent task to enhance the security of Chinese enterprises’ foreign direct investment.This paper attempts to study whether the promotion of social responsibility can help Chinese multinational enterprises to cope with international investment protection. By matching multiple databases to carry out the empirical research, we find that the promotion of corporate social responsibility can not only directly increase the performance of overseas subsidiaries, but also indirectly deal with the adverse impact of international investment protection on the performance of overseas subsidiaries. However, the response effect is also heterogeneous, and the promotion of social responsibility of state-owned enterprises can cope with international investment protection, while non-state-owned enterprises do not have such effect; the improvement of corporate social responsibility helps developed country subsidiaries to deal with international investment protection, while developing country subsidiaries do not have this effect. In addition, we also find that the transmission mechanism of improving social responsibility in response to international investment protection is to increase the number of executives with overseas background and inhibit executives’ overconfidence. Therefore, business departments and multinational enterprises should attach importance to and strengthen the implementation of social responsibility strategy in the management practice of overseas subsidiaries.The academic value of this paper is mainly reflected in three aspects: First, it broadens the scope of the positive impact of corporate social responsibility from the dimension of replying to international investment protection. Second, it provides micro level evidence for emerging market countries’ multinational enterprises to enhance their social responsibility to overcome the adverse international economic and political environment. Third, it expands the understanding of the correlation between the characteristics of parent company and the performance of overseas subsidiaries with corporate social responsibility as the link.

Sustainability of Family-Owned Businesses in the Willowvale Industrial Area of Harare, Zimbabwe

The study sought to evaluate the sustainability of family-owned businesses which were situated in Willowvale industrial area of Harare. The study emanated from the fact that family-owned businesses were experiencing high failure rates. The research explored challenges faced by family-owned businesses, investigated the coping strategies which they adopted, evaluated the link between success factors and sustainability and identified forms of government assistance. Mixed research approaches were adopted. The study found that the family-owned businesses faced a myriad of challenges chief among them shortage of capital, adverse economic environment and stiff competition. The companies lacked in appreciating the role of innovation, information technology, efficiency and quality in enhancing sustainability of their businesses. Coping mechanisms involve reorganising their operations, balancing costs, having family support and mixing entrepreneurship with emotion. There was a weak link between corporate governance, succession planning and management practices with sustainability of family-owned businesses in Willowvale. However, there was a strong link between sustainable competitive advantages and sustainability of these organisations.

The Essence and Current Tendencies of Formation and Use of Foreign Exchange Reserves in Ukraine

This article discusses the essence of gold and foreign exchange reserves and their purpose and use in the current conditions in Ukraine and in the world. The purpose of this article is to highlight the main trends in the formation and use of official reserves and to develop proposals to optimize their structure and the mechanism for managing them. The paper analyzes the world and national tendencies of formation and use and the statistics on Ukraine on gold and foreign exchange reserves. The focus is on the study of trends in the field of foreign exchange reserves of Ukraine in 2014–2020. The results of the research show that significant losses of foreign exchange reserves at the beginning of this period can be explained by Russia’s attack on Ukraine, which resulted in the loss of part of the country’s production potential, and the NBU was allowed to use a considerable amount of reserves for interventions in order to maintain the hryvnia against a fixed exchange rate. It is also noted that since 2015, due to the transition to a floating exchange rate, inflation targeting and currency liberalization, there has been a tendency to increase the foreign exchange reserves of Ukraine, and their level has recovered. The conclusion can be made that their level, while meeting some of the traditional criteria of sufficiency, still does not allow one to avoid the impact of external shocks on Ukraine’s financial system. It is noted that despite the need to increase them to ensure the monetary and financial stability, Ukraine does not have a sufficient capacity to do so, given the adverse economic environment and a number of political factors. In the future, the results of this study will be used to formulate proposals for improving the mechanism of formation and use of Ukraine’s international reserves. JEL classіfіcatіon: E58 Manuscript received 29.04.2020

The role of adverse economic environment and human capital on collaboration within agri-food supply chains

This paper examines the role of adverse economic conditions and human capital on different types of collaboration within agri-food supply chains. Data was collected from the Greek agricultural sector, covering periods of economic hardship. The results reveal that the impact of adverse economic conditions on the collaborative constructs of goal congruence, decision synchronization, incentive alignment, resource sharing and joint knowledge creation is nonlinear, specifically an inverted U for all of them. For collaboration constructs of information sharing and collaborative communication, the results reveal that under adverse economic conditions, the farmers do not collaborate. We also show that aspects of human capital such as age, education and farming experience affect collaboration. Our contribution lies in investigating the potential non-linear relationship between adverse economic conditions and various types of collaboration. Therefore, this study provides several managerial implications and insight for policymakers, while filling a crucial gap in the literature due to the limited existing studies that consider the impact of adverse economic conditions on agri-food supply chains.

The system of public debt management in conditions of institutional transformations

Relevance of research topic. In the context of institutional reforms, the issue of the limited state financial resources for the implementation of the tasks and functions entrusted to them by state authorities and local self-government is being updated, which predetermines the development of a system of public debt management, which is a powerful instrument of macroeconomic policy. At the same time, the growth of the level of public debt in both developed and transformational economies is conditioned by a number of factors, the most important of which are: the formation of a budget deficit that is of a permanent nature; the need for public expenditures aimed at ensuring macroeconomic stability and accelerating the pace of economic growth, the development of the social sphere. Formulation of the problem. In the context of institutional reforms, the important task is to develop a debt strategy that will ensure the concentration of limited investment resources in those sectors of the economy that will accelerate the pace of economic growth, which requires further scientific research of the theoretical and applied aspects of the formation and implementation of budgetary and debt policies, their coherence, improvement the mechanism of public debt management. At the same time, the choice of tools for managing public debt can both negatively and positively affect macroeconomic stability in the country. Analysis of recent research and publications. The problem of public debt management is rather widespread in scientific research. These are works by well-known domestic and foreign scholars: J. Buchanan, U. Mitchell, J. M. Keynes, T. Bogolib, I. Zapatrina, L. Lisyak, I. Chugunov and others. Identification of unexplored parts of the general problem. The above issues are actualized in connection with the intensification of globalization processes, the adverse external and internal economic environment, which requires the solution of a number of specific tasks related to the formation of public debt at an economically sound level. Setting the task, the purpose of the study. The objectives of the study are: to reveal the role of the system of public debt management in the regulation of socio-economic processes, to justify the relationship between debt and budget policy; carry out an analysis and assessment of Ukraine's state debt; to identify the main factors influencing the level of public debt; to clarify the provision for improving the efficiency of the mechanism of public debt management. The purpose of the study is to substantiate the priority tasks of debt policy in the context of institutional transformations. Method or methodology of conducting research. The article uses a set of methods of scientific research: system approach, statistical analysis, structuring, analysis, synthesis, and others. Presentation of the main material (results of work). The role of public debt in state regulation of social and economic development of the country is determined. The analysis and evaluation of public debt has been carried out. The priority tasks of the debt policy in the context of institutional transformations are substantiated. The field of application of results. The results of this study can be applied in the process of formation and implementation of Ukraine's debt policy, reforming the system of public finances. Conclusions according to the article. Ensuring macroeconomic stability in the country involves the development of an effective strategy for managing the public debt, justifying the strategic priorities of debt policy, based on realistic forecast indicators of the country's economic development. The improvement of the mechanism for managing public debt should be based on a clear combination of legally defined budgetary and debt policy instruments. The use of indicators of a structured, cyclically-adjusted balance can increase the validity of fiscal and debt policies. The high level of government debt and significant budget deficits create risks for financial and macroeconomic stability, their potential negative impact on economic development is far more devastating than the pro-cyclical nature of fiscal policies that only affect the economic dynamics in the short term. Accordingly, the important task of fiscal policy is to prevent the growth of public debt and budget deficit while limiting the negative impact of further fiscal consolidation on aggregate demand. The article defines the strategic priorities of debt policy in the context of institutional transformations.

Intra-cabinet politics and fiscal governance in times of austerity

AbstractIn the context of recent economic and financial crisis in Europe, questions about the power of the core executive to control fiscal outcomes are more important than ever. Why are some governments more effective in controlling spending while others fall prey to excessive overspending by individual cabinet ministers? We approach this question by lifting the veil of collective cabinet responsibility and focusing on intra-cabinet decision-making around budgetary allocation. Using the contributions of individual cabinet members during budget debates in Ireland, we estimate their positions on a latent dimension that represents their relative levels of support or opposition to the cabinet leadership. We find some evidence that ministers who are close to the finance minister receive a larger budget share, but under worsening macro-economic conditions closeness to the prime minister is a better predictor for budget allocations. Our results highlight potential fragility of the fiscal authority delegation mechanism in adverse economic environment.

Scientific cooperation of Russia with post-soviet states

The article defines the current state and dynamics of the scientific cooperation between Russia and non-Baltic post-Soviet states by studying researchers’ scientific co-publications indexed in the Web of Science. The statistics on the number of Russian and post-Soviet authors’ bilateral scientific articles in 2000–2017 were analyzed, as well as distribution of the articles by publication year, area of research, main sponsors, and authors’ organizational affiliations. Four groups of countries were specified, for which the dynamics of scientific publication cooperation with Russia can be described as growing, positive, stagnating, and dwindling respectively. The main areas of scientific cooperation between Russia and post-Soviet states were identified in general and for each partner country in particular, as well as the leading cooperating organizations, key areas of joint research, and major research sponsors. The comparative relevance of co-publications for the scientific community was evaluated through scientific citation indexes for each post-Soviet partner country and each key area of research. The valuable role of higher education institutions in maintaining scientific cooperation in the context of adverse political and economic environments was specified.

Tax revenues in the system of budget revenues formation

Relevance of research topic. Taxes play a significant role in the system of state regulation of the country's economic development. The cyclicality and dynamism of economic processes necessitates the adaptation of the tax regulation mechanism to changes in financial and economic conditions. It is important to timely and carefully assess the impact of taxes on social production, its dynamics and structure. Budget and tax policies should be mutually consistent with the strategic objectives of economic transformation, aimed at creating the proper conditions for deepening the interaction of the state and society. Formulation of the problem. In the context of economic transformations, the important task is to change the approaches to fiscal policy in terms of improving the tax system's tax structure, which are budget-forming components, which requires further scientific research into the theoretical and applied aspects of administration of tax revenues in the system of forming the revenue part of the budget. Analysis of recent research and publications. The problem of the formation of tax revenues and their impact on the market equilibrium is quite widespread in scientific research. These are works by well-known domestic and foreign scholars: J.J. Buchanan, W. Mitchell, J. M. Keynes, T. Bogolyub, I. Zapatrina, L. Lisyak, I. Chugunova and others. Identification of unexplored parts of the general problem. The above issues are updated in connection with the strengthening of globalization processes, the adverse external and internal economic environment, which requires the solution of a number of specific tasks related to determining the level of tax burden in such a way as to achieve a balance between budget expenditures and its revenues and the processes of revival of business activity were not restrained, the level of growth of the shadow sector of the economy did not deepen. Setting the task, the purpose of the study. The objectives of the study are: the disclosure of the role of taxes in the state regulation of economic development of the country, the analysis and assessment of tax revenues in the system of budget revenue formation. The purpose of the research is to substantiate the priority tasks of the fiscal policy on the formation of tax revenues, and to improve their architectonics in the context of institutional transformations. Method or methodology of conducting research. The article uses a set of methods of scientific research: system approach, statistical analysis, structuring, analysis, synthesis, and others. Presentation of the main material (results of work). The role of taxes in the state regulation of economic development of the country is determined. The analysis and estimation of tax revenues in the budget revenue generation system was carried out. The priority tasks of fiscal policy concerning formation of tax revenues, improvement of their architectonics under the conditions of institutional transformations are substantiated. The field of application of results. The results of this study can be applied in the process of formation and implementation of Ukraine's fiscal policy. Conclusions according to the article. The role of taxes in the system of state regulation of economic processes is ensured by their influence on social production, its dynamics and structure. Ensuring the stability of budget revenues and fiscal adequacy involves developing an effective concept for the development of the tax system, based on realistic forecasts of socio-economic development of the country; assessment of the tax potential of administrative and territorial units. The starting base for the formation of the revenue part of the state and local budgets is the rational allocation and consolidation of specific tax revenues. The system of tax regulation should be based on a clear combination of legally established mechanisms for the establishment, collection and redistribution of tax revenues between budgets of different levels. The article defines the strategic priorities of the fiscal policy in relation to the formation of tax revenues in the budget revenue generation system.

Formation of budget expenditure as a component of social development

Relevance of research topic. The development and implementation of effective policy in the field of financial and budgetary relations is a powerful tool for influencing the country's socio-economic development. Accordingly, ensuring effective influence on the pace and quality of economic growth requires the improvement of the system of budget expenditures as a component of social development taking into account the strengthening of globalization processes. Formulation of the problem. With the acceleration of the pace of financial and economic globalization, its increasing influence on the system of public finances and its components, the issues of increasing the efficiency and effectiveness of fiscal policy regarding the expenditure part of the budget are urgent, which requires further scientific research of the theoretical and applied aspects of the formation of budget expenditures as a component of social development. Analysis of recent research and publications. The problem of the formation and implementation of budget policy regarding the expenditure part of the budget, its impact on socio-economic processes is currently quite widespread in scientific research. These are works by well-known domestic and foreign scholars: J. Buchanan, P. Samuelson, J. Stiglitz, T. Bogolib, L. Lisyak, I. Lukyanenko, A. Mazaraki, V. Sidenko, I. Chugunov and others. Selection of unexplored parts of the general problem. The above-mentioned issues are actualized in connection with the strengthening of globalization processes, the adverse external and internal economic environment, which requires the solution of a number of specific tasks related to increased efficiency of the distribution and use of public financial resources, improvement of the budget policy of Ukraine in relation to the formation of budget expenditures. Setting the task, the purpose of the study. The research objective is to reveal the role of the expenditure part of the budget in ensuring social development, to reveal the features of the budget policy regarding the formation of the expenditure part of the budget. The purpose of the study is to substantiate the priority tasks of the budget policy regarding the formation of budget expenditures and the improvement of their architectonics in the context of institutional transformations. Method or methodology for carrying out the research. The article uses a set of methods of scientific research: system approach, statistical analysis, structuring, analysis and synthesis, etc. Presentation of the main material (results of work). The role of the expenditure part of the budget in ensuring social development is determined and the priorities of the budget policy regarding budget expenditures formation, improvement of their architectonics in the context of institutional reforms are substantiated. The analysis and estimation of the structure of expenditures of the consolidated budget of Ukraine in terms of functional and economic classification, payments on repayment and servicing of the state debt are carried out. The field of application of results. The results of this study can be applied in the process of formation and implementation of the budget policy of Ukraine. Conclusions according to the article. The development of public finances depends on the direction of transformation of the formation of the expenditure part of the budget in line with changes in the socio-economic environment. The budget strategy for planning the expenditure part of the budget, its structure contributes to a balanced distribution of national income is substantiated. At the same time, the relevant strategy should be based on qualitative assessment and monitoring of the development trends of the domestic economy and aimed at ensuring the innovative activity of production. In the context of transformational transformations, the task of optimizing budget expenditures and ensuring a sufficient level of their flexibility based on economic cyclicality and macroeconomic situation in the country are important. The article defines the strategic priorities of budget policy regarding the formation of budget expenditures as a component of social development.

Stress Testing the German Mortgage Market

This paper presents a framework for estimating losses in the residential real estate mortgage portfolios of German banks. We develop an EL model where LGD estimates are based on current collateral values and PD dynamics are estimated using a structural PVAR approach. We confirm empirically that foreclosure rates are rising with the unemployment rate and are inversely related to house price inflation. Being consistent with our expectation that strategic defaults do not play a central role given the full personal liability of German households, the results give broad support for the double-trigger hypothesis of mortgage defaults. In order to analyse the possible credit losses stemming from residential mortgage lending we then use the model to run a top-down stress test and simulate losses on the individual bank level for the years from 2018 to 2020 for the whole German banking sector. Our results show that loss rates in the residential mortgage portfolios of German banks do increase significantly in an adverse economic environment. The estimated expected losses are widely distributed in the banking system leading, on average, to a 0.4 percentage points reduction in the CET1 ratio over the simulation period.

A semi-quantitative modelling application for assessing energy efficiency strategies

Given the international efforts in tackling climate change as well as the potential dependence on conventional energy imports and the adverse economic environment, countries in the European Union face significant challenges in the critical task of enhancing energy efficiency. Approaches exclusively oriented on detailed quantitative modelling tools like energy system and climate-economy models, however, tend to exclude certain policy instruments and risks, and be too formalised or complex for policymakers to participate, understand and trust. Several decision support frameworks have been proposed for bridging the policy-model gap and helping policymakers confidently select among a number of alternative strategies. This paper employs the expert-driven method of fuzzy cognitive mapping, a semi-quantitative modelling technique in which system dynamics are captured and simulated against different scenarios. To this end, an innovative decision support tool for building and simulating complex fuzzy cognitive maps for assessing policy strategies with the help of experts, ESQAPE, is introduced and presented. An application in Greece shows that long-term energy efficiency measures focusing mainly on behavioural change in the residential sector – as opposed to services in the private and public sectors – are perceived to be more sustainable in a socio-economically optimistic future; this is not the case when challenges across the mitigation and adaptation axes are expected to be higher.

How Much Does the Fed Care About Stock Prices?

We propose a novel identification approach based on a predictable change in the intraday volatility of index futures to estimate the Federal Reserve’s reaction to stock returns. This identification approach relies on a weaker set of assumptions than required under identification through heteroskedasticity based on lower frequency data. Our approach also allows the examination of changes in the reaction of monetary policy to the stock market. We document an asymmetric response of policy expectations to changes in stock prices in adverse and positive economic environments. Specifically, the results show a sharp increase in the response of monetary policy expectations to stock returns during recessions and bear markets. This finding is consistent with the existence of the so-called “Fed put.”

Перспективы реиндустриализации развитых экономик (США, Канада и Австралия)

The article looks into the most important aspects of the world economy reindustrialization, examines strategies for reindustrialization of the USA, Canada, and Australia. The correlation between the world trend, namely the transition to the digital economy, and the process of reindustrialization within the framework of the Fourth Industrial Revolution is considered. On the basis of comparison and analysis of expert evaluations, statistical data by sectors of industrial production of the USA and Canada it is shown that the absolute advantage of Canada when carrying out the re-industrialization of the economy is skilled labor, specialists with secondary education. The study confirms the fact that amid the reindustrialization on the verge of the Fourth industrial revolution, the availability of skilled labor is a necessary condition for the competitiveness of the state. The Russian Federation faces the situation when conducting the re-industrialization is complicated by adverse international economic and political environment (policy of sanctions against Russia). It is revealed that for the Russian Federation the reindustrialization of the economy shall combine the active modernization of the existing production capacity, while shaping new industries on the basis of technologies of the sixth technology wave. The comparative analysis outlined that under the circumstances the drivers of the new industrialization should be science-based industries, with the latest technologies and the largest number of highly skilled personnel concentrating there.