Central And East European Research Articles

Female empowerment and masculinity – a cultural trait? Evidence from the CEE countries

PurposeAs women’s position in the economy and society is often explained by cultural factors, this study aims to verify whether the observed changes in female empowerment in the region of Central and East European (CEE) countries of the European Union (EU) are associated with masculinity as a cultural trait.Design/methodology/approachThe authors apply the k-means clustering method to group CEE countries into clusters with similar levels of female empowerment in two time points – 2013 and 2019. Next, the authors examine the clusters and cross-reference them with the national culture’s masculinity to explore the interrelations between female empowerment and cultural traits in the CEE countries and their development in time.FindingsThe analyses reveal that female empowerment is not uniform or stable across the CEE countries. The masculinity level is not strongly related to women’s position in these countries, and changes in female empowerment are not closely linked to masculinity.Originality/valueDespite the tumultuous history of women’s empowerment in the CEE countries, the issues related to gender equality and cultural traits pertaining to the region are relatively understudied in the literature. By focusing on the CEE region, the authors fill the gap in examining the independencies between female empowerment and cultural masculinity.

VOLATILITY SPILLOVER BETWEEN GERMANY, FRANCE, AND CEE STOCK MARKETS

The CEE stock markets are more and more integrated in the European financial markets. The growth of the integration of financial markets favours the volatility and return spillover between them. The current study analyses the volatility spillover among the stock markets in the countries from Central and East Europe (CEE) and Germany and France with the aim to identify the possibilities of reduction of a portfolio risk. A special attention is granted to the analysis during the pandemic caused by COVID-19. The time-varying parameter vector autoregressive (TVP-VAR) model on which is based the methodology proposed by Antonakakis and Gabauer (2017) is used to estimate the evolution in time of volatility spillover. The empirical results obtained for the period January 2001 – September 2021 highlight the increase in volatility spillover between the countries analysed when the pandemic caused by COVID-19 was confirmed. The lack of volatility integration of the markets analysed enables the making of arbitrages in order to reduce the risk of a portfolio. The results obtained are important in the management of financial asset portfolios.

COVID-19 pandemic impact on investment prospective in selected CEE stock markets: A stochastic dominance approach

Abstract The COVID-19 pandemic and its impact on the stock markets in the Central and East European (CEE) countries have been investigated in many papers, but mostly from the perspective of the market connectedness and the spillovers. None of the existing researches addressed the potential changes in the investors’ utility in a certain market caused by the pandemics. Therefore, this paper compares investors’ prospective in the periods before and during the pandemics in the selected CEE markets in terms of their utility and provides a new aspect to this research field. The analysis includes Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Serbia. By using the first two degrees of the stochastic dominance (SD) criteria, market returns before and during the pandemics are compared in order to find dominant (efficient) investment alternative for all investors who prefer greater return and smaller variance (risk averters). This procedure is executed within a certain market and between different markets in these two periods. The results indicate that there is no dominance between pre-pandemic and pandemic returns for all CEE markets when the whole distribution is observed, indicating that the markets generally recuperated in the mid-run. The dominance relations can be found only in the trimmed series. Moreover, it is possible to find CEE markets which dominate over some other, in both pre-pandemic and pandemic period, representing a better investment opportunity for all risk averters.

Chronic Kidney Disease and Nephrology Care in People Living with HIV in Central/Eastern Europe and Neighbouring Countries-Cross-Sectional Analysis from the ECEE Network.

Chronic kidney disease (CKD) is a significant cause of morbidity and mortality among patients infected with human immunodeficiency virus (HIV). The Central and East Europe (CEE) region consists of countries with highly diversified HIV epidemics, health care systems and socioeconomic status. The aim of the present study was to describe variations in CKD burden and care between countries. The Euroguidelines in the CEE Network Group includes 19 countries and was initiated to improve the standard of care for HIV infection in the region. Information on kidney care in HIV-positive patients was collected through online surveys sent to all members of the Network Group. Almost all centres use regular screening for CKD in all HIV (+) patients. Basic diagnostic tests for kidney function are available in the majority of centres. The most commonly used method for eGFR calculation is the Cockcroft–Gault equation. Nephrology consultation is available in all centres. The median frequency of CKD was 5% and the main cause was comorbidity. Haemodialysis was the only modality of treatment for kidney failure available in all ECEE countries. Only 39% of centres declared that all treatment options are available for HIV+ patients. The most commonly indicated barrier in kidney care was patients’ noncompliance. In the CEE region, people living with HIV have full access to screening for kidney disease but there are important limitations in treatment. The choice of dialysis modality and access to kidney transplantation are limited. The main burden of kidney disease is unrelated to HIV infection. Patient care can be significantly improved by addressing noncompliance.

Spillover Effects of Stock Markets in the COVID-19 Pandemic Period: Evidence From Central and East European Countries

This study aims to investigate the correlation and the spillover effects between Central and East European (CEE) Countries’ stock markets during the Covid-19 Pandemic Period. CEE countries are listed as Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, the Slovak Republic, Slovenia, Estonia, Latvia, and Lithuania by OECD. The data set was obtained from the Bloomberg data services and includes 308 observations of daily returns between March 11th, 2020 and August 1st, 2021. As a result of the empirical analysis using the Pearson Correlation, the Multivariate VAR Model, and the Granger Causality Test, a high correlation was found between the stock markets of CEE countries, and 15 causality relationships were determined. The analysis also revealed bidirectional relationships between the Bulgaria Stock Exchange Index and Romania Bucharest Stock Exchange Index, the Polish Warsaw Stock Exchange Index and Croatia Zagreb Stock Exchange Index, the Romania Bucharest Stock Exchange Index and Bulgaria Stock Exchange Index, and the Croatia Zagreb Stock Exchange Index and Polish Warsaw Stock Exchange Index. High correlation and causality relationships, which are also supported by impulse-response and variance decomposition test results, reveal that there is a spillover effect between the stock markets of CEE countries.

Exploring the Mediating Role of Knowledge Sharing between Informal Business Networks and Organizational Performance: An Insight into SMEs Internationalization in CEE

The current study aims to explore the mediating role of knowledge-sharing between international informal business networks and organizational performance. Emphasis is laid on a context-driven perspective, namely the internationalization of small- and medium-sized enterprises (SMEs) in Central and East Europe (CEE). To that end, an online questionnaire-based survey was conducted with 111 managers of CEE SMEs operating in different trade branches. The findings have shown that 46.6% of the variance in organizational performance is explained by the proposed model while 38.9% of the variance in the knowledge sharing process is explained by the affiliation of CEE SMEs to international informal business networks. The results have both theoretical and practical implications, supporting the imperative to further study the phenomena apposite to CEE region as a compelling research laboratory for multidimensional organizational idiosyncrasies.

Dependence dynamics of stock markets during COVID-19

Stock markets have exhibited increased returns connectedness during the COVID-19 period. We examine the returns dependence among 42 stock markets classified under various emerging and developed groupings. We apply several dependence measures to examine the returns connectedness among the markets. Our results show that stock markets from the G-7 and Emerging Frontier and Asian (EFA) region exhibit high connectedness with other international markets, while Middle East and North African (MENA) and Latin American (LA) stock markets offer high diversification opportunities through low returns connectedness. The returns coherence of Central and East European (CEE) and G-7 markets increase significantly during the COVID-19 period which supports the hypothesis of contagion. However, during the pandemic MENA stock markets (excluding Greece) and most EFA markets (excluding China, Singapore and Korea) remain less cointegrated with other international equity markets. Our results have implications for individual and institutional investors, fund managers and other financial market stakeholders.

Challenges of managerial responsibility and ethics for Central and East European countries based on the experience from the Czech Republic

The study aims to identify the typical key factors of ethical thinking and behaviour in Central and East European (CEE) countries, and regard them from the experience of privatization and transformation process in the Czech Republic. The background of ethical scandals and dilemmas of CEE countries reflects their roots in socialist education and state-planned economy, which are based on Marxism, which had and has serious consequences. The study describes the main philosophical reasons affecting the managerial limits in the ethical context of business and management behaviour after the transformation period with the apparent challenges in management thinking and executive education for today. The following description and interpretation of the fundamental implications of the presented analysis for managerial responsibility and ethics are discussed with the relevant professional literature that illuminates the personal, social and economic long-term consequences. Cross-country comparisons reflect developments in the European Union, the Amnesty International Corruption Index and other specific influences according to regional sources. Resulting challenges relate to challenges of business and management philosophy in business schools. The conclusion shows the space for the following professional discussion with European partners and PRME signatories regarding the ethical challenges for executive education and sustainability management in CEE. Recent academic publications show that managerial responsibility and ethical behaviour are increasingly in the focus of interest of both academics and company management.

The importance of recognizing difference: Rethinking Central and East European environmentalism

This article adds to the literature interrogating existing hierarchies in global knowledge production by examining the dominant research on post-1989 Central and East European (CEE) environmentalism. Analyses of CEE environmentalism have predominantly relied on concepts and organizational models generated by research on environmental activism and politics conducted in Western contexts, resulting in negative assessments of CEE as lacking environmental engagement. This article proposes to re-think CEE environmentalism, arguing for a more positive perspective that takes into account the various traditional practices and informal outdoor and nature-based educational activities that have a long history in CEE. These originated to promote everyday pro-environmental behaviours that are motivated by a desire for authenticity, ethical living and personal integrity. While often overlooked by both Western and CEE observers alike, these forms of CEE environmentalism are strikingly compatible with the everyday material and ‘post-postmaterial’ environmentalism recently promoted by Western-based political theorists.

Generation Z and Consumption

Using smart applications, members of Generation Z communicate in their networks on a wide‏ range of issues, which forms their social sensitivity and makes impact on their consumption. The article‏ focuses on Generation Z in Central and East Europe (CEE) where youth as a share of the total population is‏ the smallest in the world. This study investigates Generation Z in Lithuania, one of the CEE countries, and‏ presents the results of a large-scale survey of youth which analyses the expression of consumption and‏ its interconnection with characteristics formed by social media. There are three main characteristics that‏ explain consumption by Generation Z: cultural tolerance, social tolerance and tolerance to otherness on‏ the network. This threefold theoretical model was proved using the Structural Equation Model (SQM). On‏ the basis of this test we found out that social mindset is the strongest mediator between communication‏ environment and consumption by Generation Z. At the same time, communication environment‏ motivates for self-reward and hedonic consumption which does not compete and goes along with the‏ social mindset. We conclude that Gen Z is a new group in consumer society that is distinctive by its unique‏ characteristics.

‘Being’, ‘Becoming’ and ‘Challenging’ European: Subject Positions in the European Heritage Label

This article scrutinises the subject positions of ‘being’, ‘becoming’ and ‘challenging’ European in the context of the European Heritage Label (EHL), a flagship cultural heritage action of the European Union. While the positions are widely used in academia to analyse the relationship between the Central and East European (CEE) countries and the EU/Europe, the setting of the current research shows how the power dynamics between CEE countries and the EU contribute to forming ‘European heritage’ and contribute to the EHL as EU-level authorised heritage discourse in the making. Simultaneously, the transformative potential of heritage makes these subject positions visible and opens them up for changes.

Research on Agricultural Cooperation Potential between China and CEE Countries Based on Resource Complementarity

Central and East European (CEE) countries are attractive among emerging markets due to a combination of factors such as economic growth and market potential. Although the CEE countries as a whole have a very high degree of connectivity, each country has different market opportunities and external environment, so agricultural enterprises wanting to enter the CEE market must take into account the diverse and complex resource base of CEE countries. In the light of economic globalization, China and CEE countries face mutual opportunities and challenges, and it is necessary to strengthen agricultural cooperation. The potential of agricultural investment cooperation between China and CEE countries is the basis for multinational enterprises to allocate resources and implement internationalization strategies rationally. The purpose of this paper is to analyze theagricultural cooperation potential between China and CEE countries in the perspective of resource complementarity, with a selection of macro data related to agricultural capacity from 2009–2018. In particular, this study examines the differences and complementarities between China and CEE countries in terms of agricultural resource conditions and product output and trade; by constructing an agricultural cooperation potential evaluation model, the entropy value method is applied to predict and evaluate the potential characteristics of agricultural cooperation between China and CEE countries in 2021–2025. The research results show that the current intermittent and episodic nature of agricultural cooperation between China and CEE countries does not match the high or medium-high level of complementarity between agricultural production factors. Thus, agricultural enterprises can utiliza such considerable cooperation potential based on the resource complementarity to develop internationalization strategies and overseas investment.

Identity formation of the profession in a latecomer political science community

Latecomer political science communities have faced multiple challenges in the past decades, including the very establishment of their professional identities. Based on the case study of Hungary, this article argues that publication performance is a substantial component of the identity of the political science profession. Hungary is a notable example among Central and East European (CEE) political science academia in the sense that both the initial take-off of the profession and then its increasing challenges are typical to the CEE region. In an inclusive approach, which encompasses all authors published in the field between 1990 and 2018, as well as their publication record, the analysis demonstrates that political science has undergone major expansion, quality growth and internationalisation but these performance qualities are unevenly spread. These reflect important aspects of the profession’s identity. This agency and performance-based approach to identity formation might well be used to build up identity features elsewhere and also in a comparative manner.

The impact of different aerosol properties and types on direct aerosol radiative forcing and efficiency using AERONET version 3

In this study, the results from a classification method are used to determine how aerosol type influence the radiative balance of the Earth's climate. Quality-assured data from the AErosol RObotic NETwork (AERONET) Level 2.0 (L2) Version 3 (V3) inversion product are used during the 2008–2017 period. The study includes the Arabian Peninsula (AP), Atlantic (AT), Middle East North Africa (MENA), South Europe (SE) and Central and East Europe (CEE). The impacts of Solar Zenith Angle (SZA), Surface Albedo (SA), Aerosol Optical Depth (AOD) and Single Scattering Albedo (SSA) on Direct Aerosol Radiative Forcing (DARF) and Efficiency (DARFeff) at the bottom and top of atmosphere (BOA, TOA) are investigated. Fine slightly absorbing particles show the highest positive gradient of DARFeffBOA with SA and the highest negative gradient of DARFefTOA with SZA. The mixed absorbing particles provide the highest alteration for DARF at the BOA with the increase of AOD. The analysis of aerosols absorptivity is performed by dividing SSA into six-subgroups. Coarse absorbing particles provide the highest (in magnitude) DARFeff values at the TOA under absorbing aerosol conditions (SSA < 0.89), whereas similar behavior is revealed by the fine absorbing particles for DARFeff values at the BOA. Furthermore, we analyze the long-term averages of RF metrics for all aerosol types among the regions of our study. At the TOA, fine non-absorbing particles show the highest absolute values for DARFeff (from −75 W m−2 to −79 W m−2) and DARF (from −38 W m−2 to −48 W m−2). At the BOA, coarse and mixed absorbing clusters indicate the highest absolute values for DARF (from −66 W m−2 to −79 W m−2) and DARFeff (from −135 W m−2 to −149 W m−2), respectively. The presented results could be used for the validation and improvement of the performance of remote sensing algorithms and models that assess the aerosol effect in radiative balance.

Sources of Value Creation in Service Global Value Chains

Multiple dimensions of services and service functions in global value chains (GVCs) are not sufficiently explored, particularly so when considering the perspective of Central and East European (CEE) countries as suppliers of services. A comprehensive conceptual framework for the analysis of GVCs is missing as well. The main objective of the paper is to uncover the sources and dynamic of value creation process in service GVCs and identify what makes the ascending value creation in service GVCs possible. Based on case studies exploratory analysis of service GVCs we propose a novel conceptualization of value creation in service GVCs and introduce a new model of spiral dynamic of value creation. The findings show that firms using combination of different value creation logics benefit from multiplying and mastering role of services in GVCs. These findings have implications for service management and value chain strategy beyond service industries and CEE region.

NEW INDUSTRIAL POLICY IN CENTRAL AND EASTERN EUROPE: DEVELOPMENT'S EXPERIENCE AND CONCLUSIONS FOR UKRAINE

In this article, the experience of the new going is analyzed near industrial politics of successful countries of region of Central and East Europe (CEE). Research method. The method of comparative analysis of new industrial politician is used for research of similar with Ukraine economies of Poland, Chech Republic and Hungary. By the method of ascent from part to general we defined such general and distinctive signs politician of countries of region of CEE. Main part. We are studied, analyzed and groupped an instruments of industrial politics in area of stimulation of Export, including for the enterprises of small and middle businesses (SME). These mechanisms were worked out and successfully mastered in the United States of America and were used on the stages of economic transformation of post-socialistic countries. We distinguished the features of vertical and horizontal instruments of industrial politics and then the most often applied events of Hard and Soft variants of industrial politics are structured in a CEE region. In this Region it was come forward basis of successful stimulation of height of industry such as presence of own currency (zloty, chech crowne and forint) and realization of independent currency-course politics, creation of industrial parks and special economic zones, and also application of mechanisms of reduction of prices and insurance of export by means of Export-credit Agencies. By the distinctive feature of Poland in realization of industrial politics there is reducing of greater part and successful restructuring of remaining volume of a Sovereign debt on new basis. This Debt was re-profiled on the advantageous terms for Poland both before international financial organizations (IMF, World bank etc.) and before large private creditors. Reduction of promissory burden pawned basis for creation of new workplaces and technological rearmament in industry, that resulted in the speed-up economy growing of Poland. The feature of new industrial politics of Hungary are state measures on support of enterprises with specialization on NT with the large stake of value-added — in particular electronics. It distinguishes Hungary from nearby Republic of Slovakia, where by a government a course was taken on stimulation of creation of cluster of automobile and motor industry. Also the feature of Hungary is the developed system of trade houses with the purpose of advancement of the Hungarian export abroad at the financial assistance of the state participating Export-import bank and Export-credit agency, working in close cooperation. We recommend within the framework of realization of new industrial politics in Ukraine actively to bring over small and middle enterprises (SME) to export activity. We proposed for stimulation industrial policy as important institutional mechanism to establish the specialized state Agency of development of small and midsize businesses in Ukraine. It can become for example of the United States of America, with the use of real experience of countries of region of CEE. Using experience of Hungary, we offer creation by Government the National Trade House in Ukraine for financial and organizational support of advancement of export in co-operating with state specialized Ukreximbank and accrued Export-credit Agency of Ukraine. Also we consider a necessity to used Poland's and Chech Republic's experience on creation of the ramified network of Industrial parks on all territory of the country in Ukraine.

Volatility and asymmetric dependence in Central and East European stock markets

We study the effects of contagion around the global financial crisis (GFC) and the Eurozone crisis periods using German and UK returns, each paired with returns from Central and East European (CEE) stock markets that recently joined the European Union (EU). Using bivariate vector error-correction models (VECMs) estimated in GARCH(1,1), we find strong support for long-run equilibrium conditions. This finding suggests that tests of tail dependence using differenced VARs may be mis-specified when long-run equilibrium conditions apply. Past news has more persistence on current volatility in CEE markets than in the developed markets. Past volatility has more persistence in the developed markets compared to the CEE markets. The T-V symmetrized Joe–Clayton (T-V SJC) copula outperforms all other copulas in goodness-of-fit, including, the T-V Gaussian and Student t copulas. This result is supported by a differenced VAR-GARCH (1,1). For CEE and developed market returns, no more than half of our market pairs exhibit significant increases in lower tail dependence, under the T-V SJC copula. Given the number of paired comparisons, the evidence on joint extreme dependence is weak. As such, CEE stock markets experienced little contagion effects during the GFC and Eurozone crisis periods, contrary to prior results. We find that the legal environment negatively impacts financial development, perhaps causing CEE and the EU markets to be isolated.

Russian Multinational Direct Investment in East Central European Countries

Abstract This chapter assesses the characteristics of Russian outward foreign direct investment (OFDI) and multinationals in general and in particular in five EU-member Central and East European (CEE) states, including Czechia, Hungary, Poland, Slovakia and Slovenia. Besides official statistics, the research relies on company data analysed using Dunning’s eclectic paradigm and his typology of four motives. In addition to pull factors, the importance of push factors is emphasised. Weiner finds that Russian FDI in the five CEE countries is dominated by market-seeking and, to a lesser extent, efficiency-seeking projects carried out by state-owned or state-related private firms. Most Russian FDI has been done in hydrocarbons, iron, steel and machinery, but banking, software solutions, electronic production, real estate and even the light industry have also been targeted.

The Unexpected Consequences of China’s Cooperation with Central and Eastern Europe

The Central and East European (CEE) region is often overlooked in the conversations on contemporary geopolitics. Yet, owing to China’s growing relations in the CEE countries, the region has been subject to increasing international attention. By process tracing the development of the ‘17 + 1’ mechanism, this article offers a brief overview of Sino-CEE relations. Situated within the broader Belt and Road Initiative (BRI), the ‘17 + 1’ has provided a unique regional arrangement for extending Chinese influence in the CEE countries. This article explores whether there is something else than the instrumental economic reasoning for the willingness of CEE countries to partner with China. The analysis detects three distinct (and not always complementary) strategic narratives, motivating the participation of CEE states in the ‘17 + 1’ mechanism. The study concludes with an enquiry on China’s preparedness to respond to such identity geopolitics not only in the CEE region but also throughout the vast expanse covered by the BRI initiative.

The long-run properties of the Kaldor–Verdoorn law: a bounds test approach to a panel of Central and East European (CEE) countries

This study attempts to identify the short- and long-run components of the Kaldor–Verdoorn (KV) law. The law claims that demand dynamics drive productivity dynamics. The claim is tested with a panel of ten Central and Eastern-European countries, where productivity and demand growth have been slowing since 2004/2006 and where fears of an end of convergent growth are spreading. Meanwhile, the gradual slowing of output and productivity growth applies not only to the region considered, but it is also a global phenomenon that is occurring despite remarkable technical progress and that is referred to as the productivity puzzle. However, this puzzle would be solved in light of the KV law. To test for its long-term properties, panel cointegration models with autoregressive distributed lags are applied. Our results confirm the law for the region; slower productivity growth is not due to ‘adverse technological progress’ but to weakening external and domestic demand, which might block the implementation of product and process innovations.