Current Economic Conditions Research Articles

How does digital transformation promote supply chain diversification? From the perspective of supply chain transaction costs

Companies must implement digital transformation to achieve supply chain diversification with the current volatile economic conditions, which is crucial for their survival and as a fundamental measure to ensure industrial supply chain resilience and security. Based on A-listed companies, this paper systematically examines the impact of digital transformation on supply chain diversification, exploring the underlying mechanism of this effect from the transaction cost perspective. This paper reveals that digital transformation can significantly promote upstream suppliers, downstream customers, and the whole supply chain diversification. This impact operates mainly through the reduction effects of supply and demand coordination and inventory transportation costs.

Implementation of the Provisions of the Cluster Theory into the Accounting System: Genesis and Evolution

In current economic conditions, a large number of enterprises carry out their activities by joining into network (cluster) structures, which is one of the means of improving competitive relations in the external environment. To ensure the integration of the interests of participants in network structures by increasing the coordination and controllability of interactions, a significant place is given to the accounting system as the main source of information. The article aims to study the theoretical and methodological foundations of implementing the cluster economy concept in the accounting system. The methodological basis is the fundamental provisions of modern economic institutional theory and scientific works of scientists. As a result of the research, it was possible to analyze the historical aspects of the development of accounting support for managing cluster structures. The areas of development of accounting based on the provisions of economic theory and taking into account the specific features of cluster structures are identified and substantiated.

Организационно-экономические и управленческие решения развития розничных услуг торговых сетей на основе внедрения системы управления лояльностью покупателей

The article is devoted to the study of the issue of improving the process of interaction with customers and the development of organizational, economic and managerial solutions for the development of retail services of trading networks based on the development and implementation of modern digital solutions for managing loyalty systems. The work conducts research in the field of improving customer interaction processes, namely maintaining the customer base and attracting new customers, provides an overview of loyalty programs in Russia and digital solutions for automating customer loyalty management systems. The promising areas of customer loyalty management identified during the review were confirmed by data from open sources. The relevance of the topic is due to the proposal to manage a loyalty system based on the digitalization of this business process. The authors examined the problem of increasing the customer focus of retail chains, which is popular in the current economic conditions, based on the introduction of a customer loyalty system. An accessible way to solve the problem was identified, which consists in the development and implementation of an information system for loyalty management. The functional composition of the information system being developed to ensure the effective implementation of the business process is indicated, and a list of organizational and economic measures for the successful implementation of the system is provided.

Assessing whether China will experience the lost decade of Japan

ABSTRACT Japan’s lost decade has long puzzled economists, specifically as to what brought it about. As China’s current economic conditions resemble Japan’s in the 1980s, this has prompted concern China might suffer a similar fate. This paper identifies that the response of the Japanese central bank toward the Plaza Accord, which is unfettered lending was the key factor of lost decades. By contrasting Sino-US and Japan-US trade wars, this paper argues that China will not fall foul of the same situation of accepting a new Plaza Accord. By comparing China’s bubble economy now with Japan’s bubble economy in the 1980s, this paper argues that the fallout from a burst Chinese bubble is expected to be less severe than Japan’s early 1990s. Furthermore, by analyzing the two countries’ respective debt problems and aging populations, it is concluded that these issues pose no significant threat to Chinese economic growth in the short term.

Liner shipping network design problem in modern transportation system of Russia

The liner shipping network design problem is considered in the paper. This problem is particularly relevant in the current global political and economic conditions, where finding optimal solutions for business becomes crucial for survival. State-of-the-art formulations and methods for solving the problem in domestic and international scientific papers are discussed. Four types of liner services such as simple service, “butterfly”, “pendulum” and complex service are described. A simple service that can be reduced to the traveling salesman problem is primarily focused on. Our own formulation of the problem is proposed and an example of liner shipping network description, based on the proposed formulation, is provided. In the example, presented in the paper, a container line, based on a single domestic seaport (Vladivostok) and four seaports in China, is demonstrated. It should be noticed, that the problem includes several optimization sub-problems (such as multi-commodity flow problem), solving which is important for finding best solutions for the designed shipping line, but is outside the bounds of this research. The liner services as a sequence of vessel calls to ports are described; and some results of the foregoing generation process are discussed. The optimal solution is selected from the set of generated solutions. It represents a particular case that simultaneously has the lowest costs for implementing the container line and the highest number of serviced container flows. It is noted that this solution is optimal only within the generated solution space and may not be optimal for the considered example of the problem.

Socio-demographic correlation to zakat participation during the Covid-19 pandemic in Indonesia

The Covid-19 pandemic that has occurred in various countries including Indonesia is a concern for various parties. It seems that it is starting to be felt in various professional backgrounds including in the economy. One of the Islamic financial instruments that can help improve current economic conditions is zakat. This study aims to determine various socio-demographic variables (zone, domicile, age, gender, occupation, latest education, income per month, average expenditure per month). This research was conducted with a descriptive quantitative approach with a total sample size of 396 people with techniques and data through an electronic questionnaire within a period of 1 month. Further data were analyzed by cross tabulation and correlation Pearson (r value). Based on the results of the study, it is known that there are 3 variables, namely: domicile, occupation, and income per month with the frequency of giving zakat during the Covid-19 pandemic.

Сравнительно-правовой анализ полномочий товарных бирж и регуляторов организаторов торговли по контролю за этическим поведением участников торгов (на примере Великобритании, США, Японии и Индии)

In the current economic and political conditions there is a need to regulate the conduct of exchange traders. Currently, exchanges carry out this regulation directly, but it is not sufficient. Therefore, a comparative legal analysis of approaches to regulating the ethical conduct of traders in foreign jurisdictions is particularly relevant. Foreign experience shows that regulators and exchanges identify trader misconduct, establish criteria for such conduct and measures to punish it. At the same time, to minimize potential consequences for the commodity market, for example, due to erroneous actions by exchanges in qualifying conduct, and maintain its stability, the foreign regulator exercises control over activities of exchanges and trader compliance with local legislation, issues relevant acts and recommendations containing a list of desirable and undesirable market practices. According to the author, when introducing amendments and additions to regulatory legal acts regarding the powers of the Bank of Russia, it may be beneficial to consider foreign experience in regulating misconduct of exchange traders in the commodity market in Russian practice.

Application of Kaizen and Kaizen Costing in SMEs

Abstract The research problem revolves around an attempt to answer the questions: “Are enterprises from the SME sector interested in implementing strategic management accounting instruments, including Kaizen Costing? Is Kaizen Costing more widely used in SMEs operating in Poland?" The aim of the article is therefore to highlight the importance of Kaizen and Kaizen Costing and to draw attention to how much support these solutions can be for SMEs in the current social, economic, and environmental conditions. The article presents the results of surveys conducted in this regard. The accomplishment of the established objective of the work required conducting a review of the literature on the subject and presenting conclusions from previous own research in the above respect. The method of participant observation, critical analysis and synthesis was used in the study. According to the research results, there is little interest in these instruments in large enterprises, however, in medium-sized enterprises, the interest and degree of application of Kaizen and Kaizen Costing is negligible. The research results indicate the need for further development and broadening the dialogue on the usability and benefits which enterprises, in particular SMEs, may derive from the introduction of such innovative solutions.

An Assortment–Quantity Optimization Problem in Printing Industry Using Simulation Modelling

This paper presents a method for assortment–quantity production scheduling in a printing company. The company uses specialized machinery to make prints on clothing. The method is based on a study of the company’s practical operations and the production technologies used. It involves the construction of simulation and optimization models of the process. The simulation models reflect the technical aspects of the production process and the business requirements. Optimization models provide solutions that balance product sales revenue with appropriate production schedules. On this basis, managers can make resource-balanced decisions on the implementation of selected production plans, taking into account the current economic conditions of the company. The experiments used the FlexSim simulation program (by FlexSim Software Products, Inc., Orem, UT 84097 USA; v. 20.1.3.1) and the OptQuest optimization package (embedded in FlexSim), resulting in a cost-effective solution in a short time. The proposed method, thanks to the optimization of the production program, provides savings in the use of materials for production, as well as water and energy savings in the production process. Thanks to the possibility of analyzing the process without interfering with it, provided by simulation modelling, the method practically eliminates the costs and time needed to prepare the execution of new production orders. This contributes to the sustainable development of the company and provides an opportunity to assess the impact of potential business decisions in the company prior to their implementation. The method has been directly applied in a company to improve its performance. The method is scalable and can be applied to problems of varying complexity and production systems of different types and sizes. This is especially true for small- and medium-sized companies that use discrete manufacturing in the textile, metal, and furniture industries.

Exploring the potential role of decentralised biogas plants in meeting energy needs in sub-Saharan African countries: a techno-economic systems analysis

To achieve the Sustainable Development Goals by 2030, low-income sub-Saharan African countries urgently need to electrify. Biogas production from anaerobic digestion could make a contribution to a solution to improved electricity generation and access in these regions. This study evaluates its feasibility using Malawi as a case study. The aim is to provide households with a continuous supply of gas for cooking and electricity. The study examines different sizes of fixed dome reactors (3, 6, 12 m3) and assumes individual household ownership of 2, 4, and 6 cows. Several feedstocks and conditions are considered, such as cow dung alone, co-generation of cow dung with human faeces, cow dung with grass, and cow dung with maize residue. The economic benefits of selling biogas and fertilisers are calculated, and the cost of construction for different sizes of reactors is determined. Results show that co-generation of cow dung and grass silage in the reactor of 12 m3 with six cows has a positive net present value (NPV) of $8962, while for a small farm with a 6 m3 reactor capacity, co-digestion of cow dung with maize residue is preferable. The feasibility of the technology depends heavily on current national economic conditions, such as inflation, electricity prices, and construction material costs. A sensitivity analysis estimated that a 25% increase in the cost of electricity could increase the net present value (NPV) from − $3345 to $1526 for the generation of biogas from cow dung alone. Overall, this technology could have a significant impact on the lives of low-income households in sub-Saharan Africa by improving their access to electricity and providing a source of income through the sale of biogas and digestate.

Factors of productive capacity of the economy of Ukrainian regions in the innovation dimension

In modern economic management, innovations are crucial in ensuring productive development and economic progress. However, Ukraine has shown a noticeable lag in many aspects of innovation activity compared to developed countries worldwide. This includes technological equipment for production, efficiency of research and development, innovative and inventive activity, cooperation in the field of innovations, scientific capacity of GDP, and financing of research and development works. This article aims to explore the peculiarities and regularities of the relationship between innovative activity and the productive capacity of the economy of Ukraine's regions. The article primarily emphasizes that innovations are a crucial factor in enhancing productivity and economic growth in the current economic conditions. The features and regularities of the relationship between innovative activity and the productive capacity of the economy of Ukraine's regions have been investigated. Scatter diagrams showing the relationship between multifactor productivity and the scientific intensity of the economy of Ukraine's regions, the distribution of patents for inventions and utility models among regions, the share of innovation-active enterprises engaged in scientific cooperation on R&D, and expenses on R&D per employed person have been presented. To determine the change in the impact of these indicators on multifactor productivity, the analysis was conducted for the years 2013 and 2021. The results of the analysis indicate that not all innovative processes directly or significantly impact the growth of multifactor productivity in the regions of Ukraine, and some considered factors, on the contrary, have a reverse impact on its formation as they lead to its decrease. Attention is drawn to the existence of the so-called innovation paradox and productivity. Several cause-and-effect mechanisms leading to the innovation paradox have been analyzed. It has been established that despite current challenges, the post-war revival of the Ukrainian economy depends on implementing an effective strategy to increase innovation potential for productivity growth, requiring increased state support for innovative projects and encouraging the industry to modernize production with adequate funding. Keywords: innovative processes, technological developments, productive capacity, financial resources, patent activity, innovation paradox.

The term structure of interest rates and economic activity: Evidence from the COVID‐19 pandemic

AbstractThis paper tests the accuracy and predictability of two term structure models using both yields‐only and factor‐augmented specifications focusing on the recent COVID‐19 crisis. In addition, we test the predictive ability of the yield curve on economic activity for the United States and other advanced countries. We provide evidence that models with an enhanced information set, including COVID‐19 factors, improve interest rate forecasts for this period. Also, we point out that term structure models can determine future variations in economic activity but are time‐ and country‐sensitive. Finally, out‐of‐sample analysis reveals that the use of factor‐augmented term structure models, to reflect the current economic and market conditions, improves their forecasting accuracy.

ІНСТИТУЦІЙНІ ОСНОВИ ВЗАЄМОВІДНОСИН ІНВЕСТОРА З ВИКОНАВЧИМ ОРГАНОМ КОМПАНІЇ: УЗГОДЖЕННЯ ІНТЕРЕСІВ В УМОВАХ УКРАЇНИ

The article is devoted to the analysis and characterization of the investor’s relations with the company executive body from the financial security point of view. Interdisciplinary approaches, general and special scientific methods of cognition (analysis, synthesis, description, comparison, theoretical generalization, dialectical and system-structural methods) are applied to highlight risks in relations between the investor and the sole executive body, the collective executive body and the legal entity, which performs functions of the executive body. It is suggested to use the following criteria to estimate the financial security of relations between the investor and the executive body: 1) qualifications and personal qualities of the executive body (including the level of trust, the integrity and decency of the executive body members); 2) scope of responsibility of the executive body (including the possibility of bringing the executive body to legal responsibility); 3) features of termination or change of relations with the executive body; 4) financial costs for the maintenance and motivation of the executive body. The originality of this article lies in the comprehensive and versatile approach to the research with applications of scientific analysis tools that are widely used not only by economists and financiers but also by lawyers and psychologists. Based on the conducted research it is proposed to determine the financial security of the investor in relations with the executive body of the company as such a level of trusted, reasonable, and optimally financially costly business relationships, in which, due to the qualification and personal skills of members of the executive body, high financial indicators and maximum success of the business are achieved under the current economic conditions, the interests of the company and shareholders are satisfied and the probability of having to bring executive body members to responsibility or terminate cooperation with them remains low. The conceptual provisions of the study and the analysis can be used as a basis for practical recommendations to increase the level of financial security in relationships between the investor and the executive body of the company. The key characteristics and institutional factors of the relationship between the investor and the company executive body in the Ukraine legal field are highlighted.

БИОТОПЛИВО КАК ИМПУЛЬС ДЛЯ РАЗВИТИЯ ОРГАНИЧЕСКОГО СЕЛЬСКОГО ХОЗЯЙСТВА

The modern economy has largely exhausted other reserves for improving the efficiency of production and economic activities, except for saving costs and increasing the return on any resources involved in technological processes. Agriculture is experiencing particular difficulties in ensuring its own economic efficiency due to its high dependence on uncontrolled natural conditions and the volatility of the markets for its products. This makes the issue of resource conservation particularly relevant for this sector of the economy. The article considers the possibilities of switching agricultural production to full or partial energy supply due to energy carriers of biological origin, in particular, fuels obtained from industrial waste or from plant raw materials. Both the advantages of such technologies and the factors that hinder their implementation and development in Russian conditions have been identified. The ecological importance of biofuels is simultaneously to reduce hazardous emissions into the atmosphere, save non-renewable resources and recycle waste, which makes it more attractive in the current economic conditions and taking into account the observed environmental problems. As a result, the directions have been formulated in which active actions of government agencies will be required to accelerate the transition to biofuels. Conditions have also been identified that must be observed if stakeholders, including pro-government structures, are interested in expanding the use of biofuels and related technologies in the country's economy. At the same time, a number of advantages of agriculture as an economic sector with great potential and high potential returns from the introduction of such technologies are pointed out.

Забезпечення сталого та раціонального землекористування: міжнародний досвід та українські реалії

Currently, the problems of sustainable and rational land use are becoming relevant in most countries of the world. Ukraine is no exception. And these issues have become extremely urgent as a result of russia’s full-scale invasion of Ukraine. In view of this, the purpose of the article is to study and summarize the international experience in the development of the system of sustainable and rational land use; identification of modern problems of land use in the conditions of the legal regime of martial law in Ukraine and ways to solve them. To achieve this purpose, the following general scientific methods were used: analysis and synthesis, induction and deduction, component analysis, comparison, analogy, classification, statistical analysis, expert survey, bibliometric analysis, trend analysis (using the Google Trends), structural and logical generalization. A bibliometric and trend analysis of the relationship between the terms «sustainable land use» and «rational land use» is carried out. On the basis of the study and generalization of international experience, specific features and differences in the development of the system of sustainable land use in some countries of the world have been identified. A statistical analysis of indicators of land use development in Ukraine in the pre-wartime period is carried out. The problems, threats and risks of land use associated with hostilities on the territory of Ukraine are identified. The experience of implementing national land restoration policies by countries affected by hostilities is analyzed. It is determined that the current economic conditions in Ukraine require the creation of appropriate institutional conditions and the improvement of mechanisms for ensuring sustainable land use, taking into account the specifics of wartime. As a result of the study, it is proved that in order to ensure sustainable and rational land use in Ukraine, taking into account the best world practices that are used in most countries of the world, it is necessary to develop a set of provisions and recommendations of a theoretical, methodological and practical nature.

Machine Learning Modeling on Mixed-frequency Data for Financial Growth at Risk

Determination of macroeconomic policies in real-time requires assessing the correct information regarding current economic conditions. This statement spurred researchers to develop methods involving high-frequency data for risk analysis. This paper extends the quarterly growth-at-risk (GaR) approach by involving a machine-learning approach based on the Mixed-Frequency Data Sampling Quantile Regression Neural Network (MIDAS-QRNN) model. This paper shows that the MIDAS-QRNN model has the best prediction accuracy and can show good PDB nowcasting. The monthly financial GaR can detect unusual economic growth movements during the COVID-19 pandemic.

РROSPECTS OF THE DEVELOPMENT OF SMALL BUSINESS IN AGRICULTURE

Small business is characterized by a flexible mechanism of adaptation to the changing conditions of the market environment in the economy, as well as non-economic influencing factors, etc. In the conditions of Ukraine, the permanent military threat of the russian federation can be attributed to the latter, which changes the conditions for the functioning of small business entities in agriculture, since the satisfaction of the population's primary needs for food and the employment of labor in rural areas depend on it. The subject of research covers the theoretical and practical principles of the development of small business entities in the agrarian sector of the economy. The purpose of research is to substantiate the directions of prospective development of small business entities in agriculture based on the analysis of indicators of their economic activity in recent years. Research methods: abstract-logical; monographic; statistical and economic, systematic approach, etc. The essence of all subjects of small entrepreneurship in agriculture is summarized and defined on the basis of the organizational, legal and social and economic principles of their development; perspective directions for the production of less capital-intensive and more labor-intensive types of agricultural products by small business entities are substantiated, taking into account their current economic condition; directions for supporting the development of small agrobusiness in rural communities and the transformation of part of rural households into farming and other types of small business entities thanks to organizational and financial and material support at the level of territorial communities have been determined. Organizational and financial and material support for the development of small agribusiness entities will ensure a decrease in unemployment, an increase in added value, labor productivity, labor income in the agrarian sector of the economy, and will contribute to the development of rural areas and communities. Practical implementation: the formation of agrarian and regional policy for the development of the economy and territorial communities, the process of developing projects of state and local programs for the development of the agrarian sector of the economy and rural areas.

Assessment of implementation of decarbonization policy in the current economic situation at Russian enterprises

The object of the study is the activities for the development and implementation of carbon-free management at Russian enterprises. The purpose is to study the specifics of implementing the decarbonization and ¨net zero¨ policies at industrial enterprises in the current economic conditions. The goal was chosen in relation with the problems of the second and third tier countries in implementing the production decarbonization strategy associated with financial difficulties. It examined the work on the implementation of the decarbonization policy of PJSC Rosneft Oil Company. As a result of the analysis, it was concluded that the carbon credits created by the company for the period of 2021-2022 in the amount of 43,249,561.66 euros cover up to 4% of the potential cross- border carbon tax for the same period. In the current situation, the problem of objectivity of monetary assessment of the contribution of companies of different countries to the fight against greenhouse gases is revealed. To combat environmental contamination, international norms, laws, and directives are formulated and enforced to manage human activities and their interactions with the environment, encompassing the methodology for extracting and utilizing natural resources.

Новая роль кооперации в условиях экономических санкций: оценки жителей Калининградской области

The current economic crisis conditions call for a search for new mechanisms to maintain the population’s well-being. Within this setting, cooperation may be considered a priority form of entrepreneurial activity, enabling the consolidation of financial resources and reducing business costs. This article aims to assess the potential of consumer cooperation in the Kaliningrad region under anti-Russian sanctions. The authors analyse the features of cooperation development within the territory and investigate the demands and expectations of the local populace. The principal method employed in the study is a survey of residents of the Kaliningrad region (N = 481), with its results strongly indicating that conditions for a renaissance of cooperative economic models have emerged in the Russian exclave. The region’s residents tend to express positive attitudes towards cooperation, drawing a link between economically challenging conditions and opportunities for cooperative development. Moreover, amongst respondents with personal or vicarious experience of cooperation, a substantially higher proportion assess cooperative practices positively. Yet, the deficit of interpersonal trust places a serious limitation on the development of cooperation. It is concluded that the economic crisis has shifted the focus of the region’s population’s expectations from social interests (collaborations with like-minded individuals) to undertakings aimed at increasing material well-being. Therefore, expectations of participating in cooperative activities are primarily associated with the opportunity to start one’s own business and increase personal income.

СБЕРЕГАТЕЛЬНОЕ ПОВЕДЕНИЕ ГРАЖДАН В СОВРЕМЕННЫХ ЭКОНОМИЧЕСКИХ УСЛОВИЯХ

The article presents an analysis of the current state of citizens’ savings behavior and the specifics of its implementation against the background of negative trends occurring in the economic sphere. The actions of state authorities are aimed at creating optimal living conditions for society, despite the pressure on the Russian economy from Western countries in the context of tightening relations and the introduction of sanctions measures. The identified aspects show that for Russian citizens, in the current geopolitical and economic conditions, a vector of savings formation is being acquired, which requires not only the creation, but also the maintenance of long-term investment conditions within the framework of guarantees for the preservation of financial resources invested for a long period of time. In particular, the current long-term savings program creates the opportunity to attract citizens’ funds, however, there is an insufficient level of trust, and therefore there is a need to improve the system of state guarantees for investing citizens’ financial resources for a long-term period and receiving appropriate payments from the use of financial resources.