Central Eastern European Countries Research Articles

A Systematic Literature Review of Income Inequality in Central–Eastern European Countries

AbstractThis review offers a comprehensive perspective on income inequality literature in Central–Eastern European (CEE) nations, with a specific focus on six countries: Bulgaria, Romania, Poland, Hungary, Czechia, and Slovakia. By thoroughly examining existing research, this review uncovers the underlying factors and root causes contributing to varying income inequality levels and trends across CEE countries. The investigation is conducted through a systematic literature review and network analysis, focusing on the literature published since 1990, mainly on recent studies. The review is structured around three thematic frameworks (concept and measures, evidence, and causes). These three strands of the literature review not only offer a comprehensive picture of income inequality in CEE countries but also identify critical research gaps for further studies. The review underscores several critical areas for improvement within CEE studies. These include addressing gaps in geographical and temporal coverage, utilizing alternative measurements of income inequality, and investigating the causes of diverging trends in income inequality among CEE countries. Moreover, there is a pressing need to expand the understanding of the determinants influencing income inequality in these nations, which presents a significant opportunity for future research.

Digitalisation and income inequality in Central and Eastern European countries

The COVID-19 pandemic has highlighted the importance of digital technologies in business and daily life. The paper aims to explore the theoretical and empirical aspects of the relation between digitalisation and income inequality in Central and Eastern European (CEE) countries between the years 2000-2020. It contributes to existing research on determinants of income inequality, focussing on the potential negative role of digitalisation as an unnoticeable driver of income inequality in CEE countries. To investigate the potential impact of digitalisation on income inequality, empirical analysis was performed for the sample of 10 CEE countries, namely Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic and Slovenia. The results of canonical correlation analysis indicated that the sets of variables related to digitalisation and inequality as a group are significantly related to each other and a strong correlation exists between them. The relative contribution of each indicator to each standardised function showed that the highest values of significant standardised coefficients were observed for income inequality indicators such as the top 10% share, the Gini coefficient, and the top 1% share, while in digitalisation measures, the highest value was observed for Internet users and fixed and mobile broadband subscriptions.

Accelerated farmland bird population declines in European countries after their recent EU accession

Agricultural intensification is a major driver of global biodiversity loss. In Europe, intensification progressed over the 20th century and was accelerated by instruments of the EU's Common Agricultural Policy. Central and Eastern European (CEE) countries standing outside the EU until the beginning of the 21st century employed less intensive farming and are considered one of the continent's farmland biodiversity strongholds. Their recent EU accession might be either viewed as a threat to farmland biodiversity due to the availability of funds to increase agricultural production or as an opportunity to implement conservation measures aimed to preserve biodiversity. Here we assessed these possibilities using long-term monitoring data on farmland bird populations in seven CEE countries. We tested whether mean relative abundance and population trends changed after countries' EU accession, and whether such changes also occurred in agricultural management and conservation measures. Both agricultural intensity and spending for agri-environmental and climatic schemes increased when the CEE countries joined the EU. At the same time, farmland bird populations started to decline and their relative abundance was lower after than before EU accession. In addition, increases in fertilizer application were negatively associated with annual changes in relative farmland bird population sizes, indicating a negative impact of intensive agriculture. Taken together, these results indicate that despite the great power of the EU's environmental legislation to improve the population status of species at risk, this does not apply to farmland birds. In their case, the adverse impacts of agricultural intensification most likely overrode the possible benefits of conservation measures. To secure this region as one of the continent's farmland biodiversity strongholds, policy and management actions are urgently needed.

Transferability of new methods for health technology assessment in the field of diabetes between early and late adopters’ countries

This study aimed to investigate the transferability of novel artificial intelligence (AI) methods for prediction modelling of diabetes based on real-world data (RWD) between early and late adopters of emerging health technologies from the perspective of developers and health technology assessment (HTA) experts. A two-step approach was used. Developers of the new AI methods within HTx consortium completed a survey about the benefits, usability, barriers associated with implementing the new prediction models in routine HTA practices. Then, HTA experts from Central and Eastern European (CEE) countries participated in a focus group discussion. Developers generally expressed optimism regarding the transferability of the methods, while acknowledging potential disparities across CEE countries. Key benefits that were identified included enhanced understanding of diabetes, improved cost-effectiveness modelling, and refined patient stratification, all of which could contribute to clinical and reimbursement decisions across various jurisdictions. The focus group underscored the value of real-world data for diabetes prediction modelling, serving as a beneficial resource for both clinicians and HTA agencies. However, there was a recognized need to clarify the processes of integrating randomized clinical trial data with real-world data. For the other stakeholders, the advancement of the methodology will improve the diagnosis and therapy during the process of decision making. Experts from CEE countries recognized the potential of artificial intelligence-based methods employing real-world data for diabetes modelling. These methods are seen as instrumental in elucidating the heterogeneous nature of the disease, supporting clinician decision-making and holding promises for HTA purposes.

The EU as a Global Actor: The Significance of Changes in the World Order From 2004 to 2024 as Regards EU Actorness

Contrary to the prevalent focus on the EU’s capabilities, this article analyses the implications for the EU’s global actorness stemming from changes in the world order. These changes are elaborated upon according to Hettne’s (2005) three-dimensional analysis of the world order, namely, its structure, mode of governance, and form of legitimisation from 2004 when the CEE countries became EU members, to 20 years into their membership in 2024. The main changes of the world order are identified as: the evolving multipolar international system; a transition from multilateralism towards plurilateralism; and the sporadic unilateral actions and delegitimisation of liberal world order alongside instances of the major powers’ disregard of international law. The article then elucidates the impact of these changes on EU actorness via illustrative case studies of issues dealt within the UN system and the WTO, namely, international trade, sustainable development, climate change, and international peace and security. Findings show that firstly, in an evolving multipolar international system, the EU aligns strongly with the US which maintains central power in security issues. Secondly, all case studies prove that the EU remains committed to transparent multilateralism. Thirdly, despite instances of increasing state-level disrespect of international law by the US, Russia, and China, the EU’s resolve and advocacy for international norms remains stable. The EU has managed to leverage its economic and normative capabilities along with its positive presence to exert legitimate leadership in, for example, digital trade agenda, the green transition, and artificial intelligence, but not in enlargement policy. And yet, the war in Ukraine has prompted the Union to bolster its military capability and upgrade its geopolitical strategy towards its neighbours. The authors conclude that the potential development of the EU’s defensive security capability – provided it is developed complementary to its unique market and normative power – offers an opportunity for the EU to reduce its capabilities/expectations gap and enhance its global actorness.

Exploring macro-environmental catalysts and barriers of healthcare 4.0 transformation in Central-Eastern European countries: A comprehensive study in Hungary

The pursuit of a secure, efficient healthcare system responsive to patient needs remains a crucial goal for developed countries. Governments, grappling with rising healthcare demands, are increasingly turning to technological innovation as a transformative solution. Healthcare 4.0, integrating cutting-edge industrial technologies, aims to enhance patient experience, promote health, control costs, and boost clinical satisfaction. The COVID-19 pandemic has catalysed investments in digitalisation, but the promises of Healthcare 4.0 are still seemingly unrealized. This is especially true in the Central-Eastern European (CEE) region, particularly in Hungary, where substantial Industry 4.0 innovation potential intersects with shrinking financial resources, a challenging political environment, a transitioning healthcare system hindering the widescale transition to Healthcare 4.0. Thus, this paper aims to explore the macro-environmental factors influencing Healthcare 4.0 adoption in Hungary. Leveraging qualitative content analysis of interviews with 21 Hungarian healthcare technology startup founders, we aim to map the catalysts and barriers of a Healthcare 4.0 transition using a PESTLE framework. This explorative study contributes to the literature with valuable insights from the innovators' perspective, serving as a foundation for future policy interventions in the quest for widespread Healthcare 4.0 implementation.

Weryfikacja modelu wyceny kapitału CAPM – na przykładzie indeksów giełdowych krajów Europy Środkowo-Wschodniej

The stock exchanges of CEE countries constitute a minor part of the capital of the entire Europe, but they are dynamically developing and cooperating capital markets. After 30 years of development, it seems reasonable whether the processes of asset pricing in them are aimed at the efficiency level of developed markets and are subject to the postulates of pricing models, such as CAPM. The work aims to test the standard CAPM using the CEE country indices. Apart from the classical approach, conditional regressions in relation to the global market condition are an important contribution to the research. The obtained results indicate that the significance of the risk premium, largely depends on the sign of the market returns, showing the advantage of conditional relations over unconditional ones. The research analyzed the sensitivity of the results to the existing socio-political crises and assessed the risk of selected stock exchanges.

Emotions of fear and anger as a discursive tool of radical right leaders in Central Eastern Europe

The paper examines how the radical right parties´ leaders work with emotions while addressing their voters and sympathizers on Twitter/X social media. We focus on the “supply side” on the level of leaders´ discourses. The goal is to demonstrate how they work with emotions, especially those of fear and anger. The context represents Russian aggression against Ukraine, because, typically, circumstances of a crisis bolster the ability of radical right leaders to use emotional rhetoric devices. Czechia, Hungary, and Slovakia represent three particularly relevant and distinctive cases among the CEE countries according to the relevance, relative strength, and stability of radical right parties. We examined social media, particularly Twitter, since it is one of the most prominent tools of political communication today, especially for populists. We collected the data of all Tweets between February 24, 2022 and February 24, 2023. We combined a systematic quantitative content analysis with a more in-depth qualitative analysis of the key characteristics of the discursive construction of the two most salient emotions: anger and fear. We did not confirm the assumption that they would utilise the war in Ukraine since most tweets addressed issues related to domestic politics. The research, however, confirmed that despite differences, anger and fear play a substantial role in the emotional repertoire and represent necessary rhetorical devices. Our findings concur with the literature on radical right populism and its employment of emotional discourse. We found that even a crisis in international politics has been reframed primarily as a domestic issue and integrated into classical discursive practices.

Unraveling the Nexus Between Financial Openness and Environmental Quality: Green Finance as the Catalyst in CEE Countries

The use of fossil fuels, which is still seen as the cheapest energy source today, has increased carbon emissions and contributed to the formation of greenhouse gases, and this gas has reached levels that threaten world health. While studies on this problem often question the relationship between production volume, energy use, and carbon emissions, few studies question the effects of the financial assets, which are the providers of investments made for production purposes, on environmental degradation. This study used the fixed effect model and system GMM technique to analyse the moderating effect of green finance in connection to financial openness and environmental quality from 2015 to 2020 in the CEE countries. Findings show, among other things that (1) CO2 in CEE countries is still growing; (2) financial openness is a positive and significant indicator of CO2 emission; and (3) that green finance usage reduces the positive impact of financial openness on CO2 emissions. The study suggests that financial openness, renewable energy (RE) investment, and green technology innovation (GTI)– consistently drive CO2 emissions in CEE countries. The study suggests that policies promoting green finance, particularly RE investment and GTI, can help mitigate environmental degradation and reduce CO2 emissions.

Acceleration of diversification of foreign trade relations of Central-Eastern European countries in crisis periods and the role of Russia in this process

Aim. To show the acceleration of diversification of trade relations diversification of Central­Eastern European (CEE) countries in crisis periods (2009-2012, 2017-2023) and to determine the importance of Russia in this process.Objectives. To analyze the dynamics of the main indicators of trade of CEE countries with some regions of the world, including China and Russia.Methods. The authors applied such research methods as statistical analysis, generalization, description and graphical modeling.Results. The results of the analysis show that as the foreign trade potential of the European Union (EU) closed market is exhausted, CEE countries are forced to diversify their trade rela­tions, expanding them towards other regions of the world.Conclusions. The diversification process intensifies in times of crisis, when conditions for regular cooperation within the EU deteriorate due to the economic downturn. This can be traced back to the global financial and economic crisis of 2008-2009 and is happening now (2022-2024), in the context of geopolitical tensions. Along with the decreasing share of the EU in the CEE countries' trade turnover, their trade interaction with other regions, mainly with Asia, is ex­panding. Among the countries targeted by the CEE diversification vector, one can single out China with the largest volume of mutual trade and Russia, whose importance has sharply de­clined in recent years due to the harsh sanctions imposed against it.

Empirical Evidences Regarding Okun's Law in the Central and Eastern Europe in the Post – Financial Crisis Period

Abstract Numerous studies have been conducted based on Okun’s Law (1962), researchers proposing various approaches, while the two most common are the difference approach, which reflects the link between the variation of unemployment rate and the output growth, and the gap approach, which shows the relationship between the deviation of the actual unemployment rate from the natural unemployment rate and the Gross Domestic Product (GDP) gap. In order to see how the relationship looks like over time and how the Okun’s coefficient varies from country to country, this study analyzes the sensitivity of unemployment at output changes while carries out a comparative analysis for Central and Eastern Europe (CEE) countries, regarding Okun's Law applicability in the post-financial crisis period, taking into consideration previous relevant researches. Therefore, the assessment is based on quarterly data, between 2010 and 2019, for unemployment and economic growth, recorded in five CEE countries, members of the Organization for Economic Co-operation and Development (OECD): Bulgaria, Czech Republic, Hungary, Poland and Romania. While the research is based both on the gap and difference method, it may lead to results sensitive to the method chosen in order to assess the unobservable variables, namely potential output and natural unemployment rate. In order to determine the structural components of the GDP and unemployment rate, it is used the Hodrick-Prescott univariate filter, applied on quarterly data. Before estimating the Okun's coefficient, the study also examines the causality relationship between unemployment and GDP using Granger causality test.

Advancing HER2-low breast cancer management: enhancing diagnosis and treatment strategies.

Recent evidence brought by novel anti-human epidermal growth factor receptor 2 (HER2) antibody-drug conjugates is leading to significant changes in HER2-negative breast cancer (BC) best practices. A new targetable category termed 'HER2-low' has been identified in tumors previously classified as 'HER2-negative'. Daily practice in pathology and medical oncology is expected to align to current recommendations, but patient access to novel anticancer drugs across geographies might be impeded due to local challenges. An expert meeting involving ten regional pathology and oncology opinion leaders experienced in BC management in four Central and Eastern Europe (CEE) countries (Bulgaria, Croatia, Serbia, Slovenia) was held. Herein we summarized the current situation of HER2-low metastatic BC (mBC), local challenges, and action plans to prevent delays in patient access to testing and treatment based on expert opinion. Gaps and differences at multiple levels were identified across the four countries. These included variability in the local HER2-low epidemiology data, certification of pathology laboratories and quality control, and reimbursement conditions of testing and anticancer drugs for HER2-negative mBC. While clinical decisions were aligned to international guidelines in use, optimal access to testing and innovative treatment was restricted due to significant delays in reimbursement or limitative reimbursement conditions. Preventing delays in HER2-low mBC patient access to diagnosis and novel treatments is crucial to optimize outcomes. Multidisciplinary joint efforts and pro-active discussions between clinicians and decision makers are needed to improve care of HER2-low mBC patients in CEE countries.

Does Engel's law work in central and Eastern European countries? The role of aspirations in determining food expenditures

Some of the CEE countries, despite rising per capita incomes and their gradual convergence to the levels of Western European countries, have recently experienced a stabilization or even an increase in share of food in total households’ expenditure. This is, of course, inconsistent with the Engel's Law, which postulates that share of food in total expenditure in these countries should gradually converge to the levels observed in the Western European countries, as the per capita income gap narrows. Using panel regressions it was shown that a factor explaining this anomaly may be aspirations among CEE countries to emulate the Western lifestyle reflected in the disproportionately high share of processed food in their total expenditure on food and non-alcoholic beverages compared to their per capita income level. The results obtained can be helpful in understanding food consumption patterns in catching-up economies, which is important for analyzing inflationary processes in these countries.

Examining the European Transition: Central Eastern European Countries Two Decades post-EU Accession

The year 2024 is particularly noteworthy as it marks the 20th anniversary of the European Union's most significant expansion, with ten countries joining the EU. This paper aims to examine the current stage of economic transformation in these 11 Central and Eastern European (CEE) countries, 20 years after their accession, and to identify the sources of their success. The study assesses the initial conditions at the time of EU accession for countries such as the Czech Republic, Poland, Slovakia, Hungary, Estonia, Lithuania, Latvia, and Slovenia in 2004, followed by Bulgaria and Romania in 2007, and Croatia in 2013. It then analyzes the economic perspectives two decades post-accession, summarizing the recent growth drivers. Over the past two decades, the CEE-EU bloc has achieved remarkable GDP growth rates and social progress, demonstrating the effectiveness of structural reforms, both political and economic, integration into the European single market and global value chains, as well as openness and a willingness to learn from others.

ESG, macroeconomic fundamentals and stock returns: Corporate governance implications from EU markets

This paper examines how Environmental, Social, and Governance (ESG) factors influence stock returns and economic performance in the EU. It delves into advanced economies, GIIPS (Greece, Ireland, Italy, Portugal, and Spain), and CEE (Central and Eastern Europe) countries. By analyzing data, the study highlights areas for improvement in the EU’s ESG performance, such as resource use and social equity. Interestingly, the analysis finds that strong corporate governance, particularly in CEE, is linked to higher stock returns, suggesting the value of sound regulations. Conversely, environmental performance shows a negative correlation with returns in CEE, likely due to the region’s historical dependence on heavy industry. Overall, this study emphasizes how ESG can guide investors towards companies promoting sustainable economic growth.

China-Central and Eastern Europe Cooperation in a Divided World: Narratives and Scenarios

ABSTRACT China launched the 16 + 1 initiative 10 years ago to facilitate interaction and cooperation with the countries of Central and Eastern Europe (CEE). The paper argues that the geopolitical landscape has dramatically changed since 2012 when the initiative was announced, and this seriously affects the possibilities for further deepening of the relations between the CEE countries and China. Nowadays, the world is deeply divided, with growing competition for influence and exacerbating relations not only between Russia and the West but also between China and the Western countries. The rising geopolitical confrontation between the major powers in the international system (in the current situation with the war in Ukraine) strongly affects China’s relations with the CEE countries. Applying the instruments of the geopolitical analysis, the paper will seek to explore the impact of the changing international environment on China’s engagement in Central and Eastern Europe and draw conclusions about the prospects of China–CEE cooperation.

Technological innovation and energy efficiency in central Eastern European countries

This study examines the causal relationship between technological innovation and energy efficiency in Central and Eastern European countries. The results indicate that technological innovation significantly impacts energy efficiency in the Czech Republic, Latvia, Lithuania, Slovakia, and Slovenia through various economic and political factors. Conversely, energy efficiency also significantly affects technological innovation in Estonia, Hungary, and Slovakia. These findings suggest that energy efficiency is a function of the rate of innovation adoption. It is recommended that these countries prioritize implementing reforms that bolster economic freedom and institutional quality to foster innovation.

SOCIAL POLICY REGARDING VETERANS, PEOPLE WITH DISABILITIES AND OTHER VULNERABLE POPULATION GROUPS

The article analyzes the issue of migration as a complex social phenomenon. International population migration in the conditions of growing globalization occupies an important place in the development of modern society and, accordingly, affects young people who, for various reasons, decided to study abroad (in Slovakia). The article reflects knowledge at the theoretical and empirical levels. One of the main tasks of modern higher education is the modernization and efficiency of the professional mobility of future specialists. Student migration is considered as educational migration. We point out that the Slovak Republic is one of the most economically successful countries in Central-Eastern Europe. Economic reforms and accession to the EU, combined with significant inflows of foreign direct investment, have led to sustained economic growth and job creation. Economic development and demographic changes have also created an additional need for skilled labor. At the same time, greater integration into the EU, open borders and a common educational space led to the migration of Slovak students to the neighboring Czech Republic and other EU countries. As a result, Slovakia gradually began to ease migration restrictions and allowed an increasing number of third-country nationals to enter the territory of the Slovak Republic. The integration policy of Slovakia is consistent with the migration policy, and among its priorities is the effective integration of foreigners in the labor market. The purpose of the article is to analyze Ukrainian student migration in Slovakia, focusing on the analysis of personal and social benefits. We analyze the issue of academic mobility as an integral component of the European educational space, which also undoubtedly has a positive effect on the national education system and the national economy. We highlight the issue of effective ethnic-national policy formation, development of theory and practice of social work with ethnic groups, find out directions and forms of social service work with migrants. In the empirical part, we present a quantitative study at all stages of the research process. The content of the study is to find out the reasons that motivate future Ukrainian students to migrate to Slovakia, as well as to find out how the initial decision about migration and arrival to Slovakia takes place. Part of the quantitative research is the analysis of the personal and social benefits of the migration of Ukrainian students to Slovakia.

Disparities of Central and Eastern European Countries of European Union in innovation potential: A multi-criteria assessment

The primary objective of the article is to evaluate the innovation potential of Central and Eastern European Union countries. The Technique for Order of Preference by Similarity to Ideal Solution method was employed to assess and rank this potential. The research was based on 10 indicators that characterize the main areas related to innovation, namely intellectual capital (as a measure of social innovative capacity), financial capital (as a measure of the potential for financing research and development) as well as research and innovation activities. Three objective approaches were used to calculate weights of these evaluation criteria (in the TOPSIS method): Shanon–Entropy, criteria importance through intercriteria correlation and equal weights. As a evaluate of the level of innovation potential of studied CEE countries between 2013 and 2022, the determined values of the Innovation Potential Index were used to evaluate the studied countries and divide them into four groups. With the use of the two non-parametric test, the relationships of this index with selected parameters were also measured. The research results show that the innovation potential level of CEE countries is highly differentiated. Slovenia, the Czech Republic and Estonia, countries investing in R&D and social development, were found to have a high level of innovation. The remaining countries need to take more decisive action in the areas studied to improve their level of innovation. The methodology developed for the research, the conducted study, and the resulting findings offer opportunities to analyze the indicators and areas studied, and through this to implement strategies for building an innovative knowledge-based economy both by the countries in question and the EU as a whole.

Energy Transition in Central and Eastern Europe: A Neo-Colonial Perspective

The article examines the neo-colonial inf luence in Central and Eastern European (CEE) countries’ energy transitions, relating energy neo-colonialism with power asymmetries. Most CEE countries began to reduce their reliance on Russian energy after the Cold War, elevating energy security to new levels around 2010. Although European Union (EU) norms have helped counteract Russia’s inf luence on energy, they have brought about a neoliberal neo-colonialism. On the one hand, the CEE countries need reliable and affordable energy supplies to maintain their economic growth, which leaves them prone to the Russian inf luence. On the other hand, the EU’s energy rules and regulations, which disregarded the CEE countries’ interests, have resulted in disobedience. The article employs the degrowth concept to examine energy neo-colonialism in the CEE, contending that the concept stands out as a hopeful signpost for realizing the scenario wherein the CEE countries’ interests can be protected and prioritized.