Central And Eastern Europe Region Research Articles

The managerial implications of the labor market and workplace shortage in Central Eastern Europe

In the recent years the labor market of the Central and Eastern European (CEE) countries has changed a lot. One of the main business challenges in the CEE region is the worker shortage. The possible reasons of this phenomenon are the emigration of the labor force from the countries of the former Eastern Bloc to the Western countries, the negative demographic tendencies in the region, the effects of economic crisis and the significant wage differences in the countries of European Union. This paper presents the first results of an international research conducted in six countries from the CEE region (Austria, Czech Republic, Hungary, Romania, Serbia and Slovakia) on the reasons and managerial implications of the current labor force shortage. The research questionnaire was filled out in 797 companies and institutions in the CEE region. In our paper we will show the size, ownership and the sectoral distribution of our sample, as well as the average turnover rate, the average time to fill a position in, the positions hard to fill in, the possible reasons of labor shortage and the successful organizational and governmental programs to deal with labor market shortage. The obtained results may be a useful input for the formulation of human resource management programs in the organizations facing with labor market shortage in Serbia and other CEE countries.

Three ways to improve the systemic risk analysis of the Central and Eastern European region using SRISK and CoVaR

This paper proposes three modifications to the calculation of SRISK and CoVaR. These modifications make it possible to apply the two measures to an additional 31 systemically important financial institutions in the Central and Eastern European (CEE) region. They also add information about interconnectedness and complexity, and illuminate risk factors that are endemic to CEE and Western European stock markets. We empirically analyze Bulgaria, Estonia, Czechia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia in the period from 2006 to 2018. The results confirm increased systemic risk in the years 2008–9 and 2012–13. Systemic risk rankings demonstrate the significant scale of systemic risk relative to gross domestic product for many of the countries under analysis. The results also confirm that systemic risk in the CEE region has the same theoretical properties as it does in advanced economies. This finding underlines that it is necessary to analyze the CEE region using measures of systemic risk that are at least as sophisticated as those used in the most developed countries.

Cooperation between China and Central and Eastern European states within the framework of the Belt and Road Initiative and the ‘17+1’ mechanism

The Belt and Road initiative (BRI) is a large-scale geo-economic project which is an integral part of China’s contemporary foreign policy. The foundation of this project is the vast network of trade and transport communications by land and sea that encompasses countries of the Eurasian continent as well as Africa. The European destination is a key link of the project: most of the transit ways of the BRI lead to the EU and European countries. The Central and Eastern Europe region (CEE) occupies a special place in China’s strategy of the implementation of the Belt and Road initiative: the countries of this region are located on the main trade routes from China to the most developed European countries. Moreover, the CEE countries are in dire need of investment and infrastructure development. In 2012 China launched a multilateral cooperation mechanism with 16 CEE countries (in 2019 the number of participants increased to 17 due to the accession of Greece). This article aims at analyzing the structure and functioning of the mechanism, key areas of activity within the framework of the Belt and Road initiative, and the problems and prospects of cooperation between China and the CEE countries. The main hypothesis of the work is that China uses the ‘17 + 1’ mechanism as a tool for establishing bilateral cooperation with selected countries of the region. Such an approach evokes criticism from the CEE states, as well as EU institutions. The current situation shows that China needs to make adjustments to its strategy for the implementation of the BRI initiative in the region. The authors used legislation and materials from official websites of EU institutions, China and the CEE countries’ government agencies, statistical data and analytical papers by international organizations, as well as material from news agencies.

BRIDGING THE NATION AND THE STATE: CATHOLIC CHURCH IN POLAND AS POLITICAL ACTOR

One of the most recognized features of social-political reality in Poland is the role of Catholicism as the determinant of national-political identity and of Catholic Church as the influential political actor. Being undoubtedly peculiar Polish case can be viewed as the example of the religiosity intertwined with national and civil identity existent in different forms in the CEE (Central and Eastern Europe) region. The article aims at casting specifics of Polish case in the wider context of religious-political nexus in CEE stressing the distinctness of the region compared to some other parts of Europe. The conducted analysis focuses on the evolution of Church-state relations in Poland displayed in the broader framework of similar developments that, in spite of existing historical-political differences, characterize the region. Three fundamental perspectives are considered in the article. The first of them is social-cultural dimension creating the wide context for recognizing the religious factor as more or less fundamental for the given society. The second one is formal-legal framework resembling the specific religion-nation-state entanglement. The third is the role played by the Catholic Church in the context of civil society.

Gender Division of Domestic Labor in Post-Socialist Europe (1994–2012): Test of Class Gradients Hypothesis

This article analyzes changes in the gender division of domestic labor (GDDL) in post-socialist Central and Eastern Europe (CEE), an under-researched region characterized by high levels of inequality in GDDL from 1994–2012. Drawing on the literature on class gradients<em> </em>in the contribution of the genders to domestic labor and their change over time, the article answers two questions: How has GDDL (operationalized as men’s relative involvement into routine housework) changed in CEE in the post-socialist period? What has been the role of class (operationalized as respondents’ education and household income) in shaping GDDL in CEE in the post-socialist period? Data for the article comes from the 1994, 2002, and 2012 waves of the International Social Survey Program on Family and Changing Gender Roles from six CEE countries, i.e., Bulgaria, Czechia, Hungary, Poland, Russia, and Slovenia. The findings suggest that net of individual and interactional-level factors, inequality in GDDL in the CEE region did not change substantially during the post-socialist period. The analysis also shows, however, that trends of inequality in GDDL among different classes were idiosyncratic, and this underlay the overall lack of movement towards greater equality.

Regulatory Arbitrage and Non-Judicial Debt Collection in Central and Eastern Europe

Abstract Non-judicial recovery of debts is now rampant in Central and Eastern Europe (CEE). The reason is two-fold. On the one hand, the significant number of defaults in the poorer areas of Europe makes the CEE region a very attractive market for debt-collection. On the other hand, the activity is almost entirely unregulated, especially regarding abusive debt collection practices. The CEE region still lacks mature, strong, and experienced supervisory agencies that could tackle borderline activities. This enables companies involved in debt collection to comply easily with the minimal legal provisions and to circumvent the actual purpose of the law, including through tax sheltering and money laundering. The main argument developed in the paper is that the debt collection system it is designed to maximize profits, minimize tax base and, potentially, can serve as money laundering mechanism. The system functions in a triadic relationship: the debt-seller (a credit institution), the debt-buyer (usually an investment company), and the debt-administrator (a debt-collection agency, either fully owned by, or under the control of the debt-buyer), where debt portfolios are purchased at huge discounts (varying between 90 and 95% of face value). By revealing the mechanism used by debt-collectors, the paper calls for legislative intervention to seal the gap and ensure adequate taxation of debt-collection activities. The nature of regulatory arbitrage involved relates both to tax law as well as to regulatory standards, such as licensing requirements. Debt buyers benefit from the EU passport rule, make high returns on their ‘investments’ and optimize their taxes on profits obtained. Debt administrators perform their activity at almost no liability and no tax payable to the state. This mechanism creates favorable premises for money laundering and financing of illegal activities, as the web of offshore companies behind the debt-buyer renders the verification of the origin of their investment money extremely difficult. Using Romania as a case study, the paper addresses not only the aforementioned practices and risks, but also the potential reasons behind the state’s inability either to adopt adequate legislation, or to enforce it. In doing so, the paper employs empirical evidence regarding the activity of ten Romanian debt collection agencies and relevant case law thereof. The paper concludes with the authors’ proposal for a potential solution, which can be extended beyond Romania.

Development of an entrepreneurship typology for integration of Roma informal Waste collection practices into environmental policy in the CEE region

ABSTRACT Roma communities in the CEE (Central and Eastern Europe) region work in the informal economy through scavenging municipal waste. This conceptual paper has the aim of examining the extent for integration of scavenging into environmental policy through the development of a research paradigm applied to Roma and similarly marginalized non-Roma individuals. Evidence from studies of informal waste collection outside Europe suggests that in some cases it has been integrated into municipal waste management policy. In the CEE region, environmental policy insufficiently acknowledges the existence of informal scavenging whereby waste material categorization and disposal is not monitored to infer a research gap which is addressed in the research paradigm. This paper also adds to ongoing debate on entrepreneurship theory by developing a typology incorporating categories of ethnic (Roma) and informal (non-ethnic) entrepreneurship and thus serves to inform policy development for more socio-economically effective municipal waste collection and disposal in the CEE region.

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

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.

Wealth inequality in Central and Eastern Europe: Evidence from household survey and rich lists’ data combined*

AbstractWe study how the problem of the ‘missing rich’, the underrepresentation of the wealthiest in household surveys, affects wealth inequality estimates for the post‐socialist countries of Central and Eastern Europe (CEE). The survey data from the second wave of the Household Finance and Consumption Survey (HFCS) are joined with the data from the national rich lists for Estonia, Hungary, Latvia, Poland and Slovakia. Pareto distribution is fitted to the joined survey and rich lists’ data to impute the missing observations for the largest wealth values. We provide the first estimates of the top‐corrected wealth inequality for the CEE region in 2013/2014. Despite a short period of wealth accumulation during the post‐1989 market economy period, our adjustment procedure reveals that wealth inequality in the Baltic countries is comparable to that of Germany (one of the most wealth‐unequal countries in Europe), while in Poland and Hungary it has reached levels observed in France or Spain. We discuss possible explanations of these findings with reference to the speed and range of privatization processes, extent of income inequality, and the role of inheritances and wealth taxes in the region.

Transition shocks during adulthood and health a few decades later in post-socialist Central and Eastern Europe

BackgroundHealth of the population of post-socialist Central and Eastern European (CEE) countries lags behind the European Union average. Our aim in this paper is to analyse the link between transition shocks and health two-three decades later.MethodsWe use retrospective data from the Survey of Health, Ageing and Retirement in Europe. We estimate the implications of stressful periods, financial hardships and job loss occurring around the transition (1987–1993) on subjective and objective measures of health in 2017. We compare these implications across groups of CEE countries and with the health implications of similar difficulties reported by individuals from Western Europe. We also compare the health implications of difficulties occurring around the transition to difficulties occurring before or after the transition.ResultsIn the CEE region there is a peak in the timing of difficulties around the transition. Stressful periods, financial difficulties and job loss around the period of transition are generally associated with worse subjective and objective health at older ages in all groups of CEE countries, even after netting out the effect of childhood health and demographic factors. However, the consequences of hardships due to the transition are not specific, health implications of these difficulties seem to be similar to the implications of other shocks possibly unrelated to the transition.ConclusionsThe high fraction of individuals experiencing stress, financial difficulties and job loss around the transition contributed to the current health disadvantage in the CEE region. As similar shocks in the West and before or after the transition had similar health implications, our results draw the attention to the long-lasting impacts of psychosocial stress and financial hardship during adulthood on later health over the life course.

The effects of market economy type on the training practice differences in the Central Eastern European region

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.

Multinationals and the evolving contours of their human management practices in Central and Eastern Europe and the former Soviet Union

PurposeWe explore the effects of three organizational variables (country of origin of the multinational company (MNC), the timing of entry into the European Union and the mode of establishment of the MNC subsidiary unit) on the human resource management (HRM) practices being pursued by subsidiaries of large MNCs operating in selected countries in Central and Eastern Europe (CEE) and the Former Soviet Union. Furthermore, we examine whether the degree of autonomy afforded to the subsidiary over its preferred HR recipes is related to overall local unit performance.Design/methodology/approachWe profile the HRM practices of 379 foreign owned subsidiaries located in Bulgaria, Croatia, The Czech Republic, Kazakhstan, Poland, Hungary, Russia, Romania, Serbia and Slovakia. Using descriptive statistics, we present the general characteristics of the sample and we then use bivariate statistical analysis to test our hypotheses relating to the impact of different organizational factors on the HR practice mix implemented in the MNC subsidiaries covered in our survey.FindingsWe find a significant correlation between the annual training budget, the importance of knowledge flow from headquarters (HQs) to the subsidiary and the perceived criticality of training and development and whether the subsidiary is a greenfield site or an acquisition. A correlation was also found between the national timing of EU membership (older members, newer and then candidate countries and non-EU members) and three HR practice variables: the use of expatriates, external service providers and employee relations practices.Research limitations/implicationsOur research calls attention to the issue of balancing the efficiencies of standardization with the local preferences and traditions of customization which results in more successful MNC control and ultimately higher levels of performance. It also calls attention to the challenges in pursuing research of this nature over time in the CEE region, especially given the dynamic nature of the MNC mix in each of the countries.Practical implicationsOur findings serve to reduce the information gap on foreign-owned companies in CEE and the Former Soviet Union.Originality/valueDespite some 30 years of transition, there remains a paucity of empirical research on the HR practices of MNCs across a number of countries in the CEE region. For a decade and a half, the CEEIRT group[1] has been systematically gathering empirical evidence. The combination of the breadth (10 countries) and depth (numerous items related to MNC subsidiary relationships with corporate HQs and patterns of HR practices and roles) characterizing the ongoing research effort of the CEEIRT collaboration serves as a mechanism for augmenting the empirical base on HRM in the region.

Legal framework, political environment and economic freedom in central and Eastern Europe: do they matter for economic growth?

ABSTRACT This article investigates the impact of institutional variables on economic activity (GDP) in 19 Central and Eastern Europe (CEE) countries, covering the period 1999–2016. We utilise Principal Component Analysis (PCA) to construct a hybrid measure of economic freedom, and the Random Effect model to estimate the causalities. The analysis shows that many CEE countries have improved their institutional setting, especially the control of corruption. The regression results indicate that the control of corruption and democracy have a positive and significant impact on the GDP. Also, political stability promotes growth, while the quality of regulation is statistically insignificant. Finally, the rule of law and economic freedom accelerate economic growth. Overall, the legal framework, political stability and economic freedom shape the economic reality in the CEE region. We conclude that institutions matter for growth in the CEE countries.

Market integration among foreign exchange rate movements in central and eastern European countries

AbstractThis study focuses on the level of interdependence across the Central and Eastern European (CEE) foreign exchange markets (Hungary, Poland, the Czech Republic, Romania and Croatia) from September 2008 to September 2017, using the return spillover measure proposed by Diebold and Yilmaz (2009; 2012). We mainly find a bidirectional volatility spillover among these assets and the cross-market linkages in the CEE region have become stronger over time. Furthermore, the Czech exchange market has a significant influence on the rest of the foreign exchange markets. The total spillover remained very high over the periods 2010–2012 and 2015–2017, despite the noteworthy fluctuations in other periods. These results would also be useful for portfolio managers, policy makers and speculative traders to develop exploitable strategies, by providing knowledge of the transmission mechanisms of the volatility of foreign exchange markets. The results may support the distribution of assets in a financial portfolio, especially after financial integration.

Gender and age inequalities in television and news production culture in Poland: Ethnography in a public broadcasting company

Previous studies that looked at the quality of media cultures that emerged in the process of democratisation in Central and Eastern Europe (CEE) have largely missed the role these cultures play in maintaining gender and age inequalities in the media. This ethnography fills this gap. Through the example of one public service broadcaster, Telewizja Polska (TVP), the quality of the post-communist media culture is examined. The article argues that television work in Poland is carried out under the combined pressure from political actors, economic forces and patriarchal ideology, resulting in a weak media autonomy that characterises the CEE region overall. The theoretical framework of field theory is used to demonstrate this link.

Euro area reform preferences of Central and Eastern European economic experts

This study explores the positions of economic experts from Central and Eastern European (CEE) Member States in the euro reform debate. Given the dominant voices from French and German politicians and academics in the European discourse, there is an obvious neglect for the positions of CEE countries. Our study tries to fill this gap with a large survey among economic expert communities in all CEE countries conducted in spring 2019. We compare euro reform preferences to benchmarks of surveyed experts in France, Germany, and Italy. We discuss implications for the ongoing euro area reform with a particular focus on several non-euro members’ growing reluctance to introduce the common currency. We argue that only a balanced reform package that combines solidarity with debt self-responsibility could foster the euro’s appeal in the CEE region.

China and the Frustrated Region: Central and Eastern Europe’s Repeating Troubles with Great Powers

Central and Eastern Europe (CEE) had few historical opportunities to interact with China, but with the Belt and Road Initiative (BRI) and the 16+1 platform, that changed dramatically in recent years. The article discusses recent development in the China-CEE relations with the aim of explaining why the CEE countries became excited about China initially, but also why this excitement led prevailingly to disappointment. It will be argued that the frustration with the EU in the aftermath of the 2008 crisis created an environment in which China was, for a moment, perceived as a promising alternative. A few years into the new diplomatic initiatives, however, most of the CEE countries started to be unsatisfied with the lack of economic results. Eventually, the article will assess the implications of the new era of China-CEE relations for the EU affairs and broader Chinese relations with the developing world. The CEE region is in a specific position vis-à-vis China, for it is structurally in between the developed and the developing world. Moreover, the EU membership adds some critical features which make the Chinese offer less applicable and appealing.

International assignments, human capital resources and MNC subsidiary performance in CEE countries

PurposeMultinational companies (MNCs) expect the highest return from their locally dispersed units, and thus the factors that impact the success of the subsidiaries have been of great interest to the literature. Building on the resource-based view, this paper aims to explore the effects of a set of contextual resources, in particular, the international staffing (expatriate and inpatriate assignments) and human capital resources on the performance of foreign-owned subsidiaries in Central and Eastern European (CEE) countries.Design/methodology/approachBy means of a survey applied on 295 MNC subsidiaries from five CEE countries (Hungary, Romania, Poland, Serbia and the Czech Republic), the paper reveals the main relationships between contextual subsidiary level resources (the in-coming and out-going international assignments, human capital resources at both employee and management level and the human resource knowledge transfer) and the subsidiary performance.FindingsThis paper brings empirical support for the positive relationship between the MNCs’ contextual resources, in particular, the inpatriate assignments, the human capital resources and the performance of the locally dispersed subsidiaries. The findings show an interaction effect between the inpatriate and the expatriate assignments on the performance of the subsidiaries. The empirical results bring an insight into the understanding of the added value that the out-going inpatriate assignments and the human capital resources have for the global businesses.Research limitations/implicationsThis paper is empirical in nature and calls for further exploration of the topic on larger random MNC samples. The findings of this paper have the potential to improve how the management of the global businesses leverages the inpatriate assignments and human capital resources, thus leading to more value-added to stakeholders.Originality/valueThe originality of the paper stems from the implementation of the empirical survey in the dynamic but under-researched context of the CEE region. Thus, the findings reveal valuable input about the contribution of the human capital resources at the subsidiary level for the performance of the locally dispersed MNC units in five European developing countries.

Benchmarking in human resource management in focus of Central and Eastern Europe in the light of CRANET research

In the Central and Eastern European (CEE) countries within the framework of the previous economic system, there were only traces of the features of modern human resource management (HRM). Since the political and economic changes, major transformation in the HRM practice has occurred, resulting in a development of the organizational position, role and practices of HR activity in the Central and Eastern European countries. The aim of our benchmark study is to compare the HRM practice of the CEE region with the other European countries and with the global HRM trends. The benchmarking study may show the region-specific characteristics of HRM practice in the CEE region. The comparison of specific HR variables (availability of HR departments and HR services, strategic importance of HR functions, budget of training and development, influences of Trade Unions) will be made based on the data of Cranet international research results from 2004 to 2016.

Post-Socialist Urban Futures: Decision-Making Dynamics behind Large-Scale Urban Waterfront Development in Belgrade and Bratislava

This article discusses the implementation of two large-scale urban waterfront projects that are currently under construction in the Central and Eastern European (CEE) capital cities of Belgrade and Bratislava. Against the backdrop of postsocialist urban studies and recent reflections on urban or ‘world-city’ entrepreneurialism (Golubchikov, 2010), we reveal how both elite-serving projects are being shaped according to their very own structure and agency relations. Our comparative analysis unravels the power-geometry of the decision-making processes that reshape urban planning regulations of both transforming waterfronts. The path-dependent character of “multiple transformations” (Sykora & Bouzarovski, 2012) in the CEE region can, even after three decades, still be traced within the institutional environments, which have been adapting to the existing institutional architecture of global capitalism. Yet, at the same time, the dynamic globalization of this part of the world intensifies its further attractiveness for transnational private investors. As a consequence, public urban planning institutions are lagging behind private investors’ interests, which reshape the temporarily-fixed flows of capital on local waterfronts into landscapes of profits, politics and power. We argue that suchlike large urban developments, focused on promoting urban growth, accelerate the dual character of these cities. Thus, while the differences between both investigated case studies are being highlighted, we simultaneously illustrate how national and local state actors respectively paved the way for private investors, and how this corresponds to similar overarching structural conditions as well as outcomes.