Economic Interactions Research Articles

Friends and partners: Estimating latent affinity networks with the graphical LASSO

The notion of affinity among countries is central in studies of international relations: it plays an important role in research as scholars use measures of affinity to study conflict and cooperation in a variety of contexts. To more effectively measure affinity, I argue that it is necessary to utilize multidimensional data and take into account the network context of international relations. In this paper, I develop the deep affinity concept and introduce a new algorithm, the three-step graphical LASSO (GLASSO), to infer and recover latent affinity networks. This technique leverages the abundance of monadic and dyadic state-level data to identify the presence or absence of affinity links between pairs of countries. Directly incorporating network effects and using a variety of multidimensional data inputs, I used the three-step GLASSO to estimate latent affinity links among countries. With these data, I examined the implications of affinity for international conflict and foreign direct investment, and found that the measure of affinity generated with the three-step GLASSO outperformed alternative affinity measures and was associated with decreased conflict and increased economic interaction.

Dynamic Modeling and Optimization of Energy Storage in Peer-to-Peer Energy Trading Systems

The power system landscape has evolved from isolated end-users to interactive communities due to advances in information and communication technologies. This paper explores peer-to-peer energy (P2PE) trading and sharing within a community, where customer incentives for energy exchange enhance collective profits. A two-stage optimization (TSO) framework is proposed: the first stage determines customer participation in P2PE, balancing individual and collective benefits, while the second stage optimizes economic aspects of P2P trading using a payment bargaining model. A case study demonstrates significant cost reductions and improved renewable energy utilization, with notable profit increments for participants. The study highlights the effectiveness of Nash bargaining theory and privacy-preserving algorithms in optimizing social welfare and economic interactions. Limitations include a focus on wind energy and simplified assumptions about energy storage. Future research should incorporate diverse renewable sources, dynamic modeling, and multi-community interactions.

Determinants of Inflation in Pakistan: A Comprehensive Analysis of Macroeconomic Variables (1991–2022)

This research paper investigates the determinants of inflation in Pakistan from 1991 to 2022, focusing on key macroeconomic variables such as imports, GDP growth rate, GDP per capita, military expenditure, population growth, total debt service, and unemployment. The main objective is to analyse the impact of these variables on inflation and provide policymakers with actionable insights. Utilizing annual time series data from reliable source World Bank WDI, the study employs descriptive statistics, correlation analysis, ADF unit root tests, regression analysis, and the Autoregressive Distributed Lag (ARDL) model. The findings reveal significant interdependencies among the examined variables. The correlation analysis shows strong positive relationships between inflation and imports and military expenditure, while GDP per capita and population growth negatively correlate with inflation. OLS results confirm that imports, GDP growth, and total debt service significantly raise inflation, whereas GDP per capita, military expenditure, and population reduce inflation. The ARDL model reveals that, in the long run, imports, GDP growth, and debt service positively affect inflation, while GDP per capita, population growth, and unemployment exert downward pressure. Short-run dynamics indicate that inflation quickly adjusts to economic shocks, with imports and GDP growth having an immediate impact. These findings highlight the importance of managing imports and debt, while promoting economic growth to maintain price stability. The policy implications emphasize the need for targeted monetary policies to manage imports and optimize debt service strategies, as well as policies aimed at enhancing economic growth and increasing per capita income. Effective debt management and strategic military spending are also vital for maintaining price stability. Despite its comprehensive analysis, the study identifies gaps such as the need for further exploration of structural breaks and non-linear effects in inflation dynamics, and the impact of external factors like global oil prices. The significance of this research lies in its contribution to understanding the complex economic interactions influencing inflation in Pakistan, providing a crucial resource for policymakers to develop effective strategies for economic stability in developing economies.

Market Volatility from a linear Perspective: Trend Forecasting for Business and stock movements Author’s Information

lives. From the simplest transactions such as buying groceries to the complex mechanisms of global markets, finance touches almost every aspect of our economic interactions. The term “finance” emerged at the end of the nineteenth century and became increasingly important as economies developed and expanded. A key element of finance is the technical analysis of stocks, an indispensable practice for financial experts and investors. The method uses historical data and statistical techniques to forecast market trends. By scrutinizing past price movements and trading volumes, technical analysts can uncover patterns and signals that guide strategic decisions, risk management, and portfolio optimization. This analytical approach helps not only in identifying market trends, but also in identifying key support and resistance levels, which are essential for effective trading timing. Therefore, technical analysis is a powerful tool that enables investors to deal with the complexity of financial markets with greater confidence and accuracy.

“Purely cultural and economic in nature...”: Russian agricultural colonisation and land ownership of the Caspian provinces of Iran and the category of “cultural conquest”

In this article, the author examines the concept of “cultural conquest” in the context of the Russian Empire’s policy towards the Caspian provinces of Iran, both prior to and during the Great War. In the period preceding the outbreak of hostilities, Russian peasant colonists began to settle in the Astarabad province, while concurrently, significant Russian land ownership emerged in the southern Caspian region. These developments were subjected to rigorous scrutiny by the Ministry of Foreign Affairs, the Resettlement Department, and other pertinent authorities. The phenomenon is not adequately represented in historiography, despite its significance in the context of New Imperial History. One of the pivotal concepts employed in analysing and comprehending the processes of Russian expansion into the region was the notion of “cultural conquest”. This category was actively employed by both state and non-state actors to conceptualise the ongoing economic, political, and cultural interactions in a crucial frontier region. The analysis of a wide range of materials, including archival and published sources such as diplomatic correspondence, concession projects, and publications by officials from the Resettlement Department, has been conducted with the aim of investigating the contexts of the use of the category “cultural conquest” (and related terms) as well as proposed options for optimal policy in the region. The author indicates that this concept was of a framework nature and comprised three principal components: political, economic, and civilisational. He demonstrates that despite significant similarities in the interpretations of the concept by different actors, there were differences in understanding the methods and optimal ways of “cultural conquest” of the Caspian provinces.

Obliged tolerance: Power at the intersection of everyday peace and the intervention economy

This article explores the economic relationships of host and refugee communities in the context of international humanitarian interventions and their implications for everyday peace. It argues for an expanded understanding of power in everyday peace, incorporating an analysis of the interplay between international interventions, local power dynamics and everyday peace. It responds to the call for increased attention to the economic dimensions of peacebuilding, particularly at the local level. The article introduces the concept of obliged tolerance to explain some of the socioeconomic motivations for different actors in the intervention economy to engage in everyday peace processes. Those benefitting from the international intervention actuate less empowered community members to practice tolerance for peaceful coexistence which sustains the economic benefits derived from the intervention economy. The findings from research conducted in Lebanon indicate that humanitarian interventions shape a peace that primarily benefits affluent and influential actors, while marginalised individuals engage in everyday peace for survival and to pursue socioeconomic opportunities. By integrating an analysis of everyday economic interactions, this article highlights the role of power dynamics and economic motivations based on obliged tolerance in shaping everyday peace, challenging conventional notions of everyday peace as a social coping mechanism that people practice entirely voluntarily.

Emergence of Economic and Cultural Ties between USSR and Sweden (1924–1937)

This article explores the distinctive features of the economic and cultural interactions between the USSR and Sweden from 1924 to 1937. The research is grounded in a comprehensive array of sources, including official documents, publications from the periodical press, and personal accounts. The methodological framework is informed by the imagology of international relations, which focuses on the study of mental geography, transnational imagery, perception stereotypes, and myths, as well as the comparison of the "Self" and the "Other" to understand the role of "Others" in shaping national self-conceptions. The author investigates how shifts in Swedish perceptions of Soviet Russia influenced the development of bilateral relations and assesses the contributions of A.M. Kollontai, the Soviet ambassador to Sweden since 1930, to Soviet-Swedish interactions. The article illustrates how Swedish political figures, pursuing their own interests, viewed elements of Soviet society as potential models for reforming their own countries, shaped by their internal agendas of political and socio-economic change.

Interpreter Intervention: Balancing Objectivity and Subjectivity in Business Negotiations

In the era of economic globalization, interactions and collaborations between China and the global economy have significantly intensified. This trend has led to increased foreign investment in China and a growing number of Chinese enterprises expanding their operations internationally. Successful business negotiations are crucial for these endeavors, yet they face challenges such as linguistic barriers, cultural differences, and divergent thought processes. In such high-stakes scenarios, an experienced interpreter serves as a vital communication link between Chinese and international parties. This paper aims to examine the role of dialogue interpretation in business negotiations and to investigate how interpreters can effectively leverage their subjective judgment alongside strategic translation techniques. By doing so, interpreters can facilitate smoother negotiations and contribute to mutually beneficial outcomes. The study will explore specific strategies that enable interpreters to bridge cultural and linguistic gaps, thereby promoting successful and harmonious negotiations.

Transcending Geography: The United Kingdom’s Accession to the Comprehensive and Progressive Trans-Pacific Partnership

ABSTRACT Immediately after Brexit, the UK started negotiations to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The decision is puzzling. First, Brexiteers lauded regaining sovereignty as a key benefit of Brexit, yet the UK Government sought accession to another trade grouping (albeit one far more restrained in regulation and supranationalism). Secondly, CPTPP is a Trans-Pacific project, the UK is not located in that geographic region. UK accession to CPTPP symbolises an operationalisation of the spatial imaginaries of a ‘free-trading’ ‘Global Britain’ that emerged during Brexit. It represents an illustrative example of a state reshaping its boundaries within a ‘space of flows’ where economic interactions and the rules that order these transcend national territories and geographic proximity. This paper draws on UK government and CPTPP documents related to the accession process to establish how the parties understood the process and the reconfiguration of spatial dynamics and redefinition of the TP part of CPTPP to include the UK. It pays particular attention to the development in the discourses of imaginaries of communities of rules and norms as being more significant than geographic considerations in determining the geographic reach of a regional integration initiative like CPTPP. The paper argues that it was this imaginary of a community of standards and free-trade values that justified the recasting the UK as ‘belonging’ in this regional grouping and enabled this new spatial projection for the UK and CPTPP.

An investigation of economic interactions between social reinforcement and heroin or cocaine in rats.

The primary goal of the present study was to determine the economic relationship between heroin and social reinforcement in rats: are they substitutes, independents, or complements? In Experiment 1, one group of rats was given a budget of responses that they could allocate between heroin and social reinforcement offered at various combinations of prices. A second group chose between two levers that each resulted in social reinforcement at varying prices when pressed. There was no relationship between the relative allocation of responses between heroin and social reinforcement and changes in their relative prices, indicating that these reinforcers are best viewed as independents. In contrast, when choosing between two sources of social reinforcement, rats increased the allocation of behavior to the cheaper option, confirming that the method used here was sensitive to detecting substitution effects. In Experiment 2, the same method was used to compare one group that chose between heroin and social reinforcement with a second group that chose between cocaine and social reinforcement. The finding that heroin and social reinforcement were independents was replicated. Additionally, there was some evidence that cocaine and social reinforcement were substitutes, at least when the first few minutes of the session were excluded. These results add to our knowledge of how drug and nondrug reinforcers interact in choice situations in rats and may model factors that influence drug use in humans.

경합에서 외부성의 경로에 대한 소고

Many economic, political and social interactions can be modeled as a contest in which participants expend resources to win prizes. The theory of contest examines the effect of such contests on resource allocation, efficiency and social welfare. Many contests are associated with externality. The received literature has identified the size of prize, cost and the number of participants as channels through which externality is realized. This note classifies the channels of externality in contests in the received literature. This note then suggests the winning probability and the diffusion of contests as new channels of externality in contests. Specifically, the present note emphasizes the negative effect on social welfare of diffusion of rent-seeking activities.

«5+1» COOPERATION FORMATS IN THE CENTRAL ASIAN REGION: ANALYSIS OF ECONOMIC INTERACTION WITH JAPAN

The article analyzes Japan’s economic interaction with Central Asia within the framework of the «5+1» format, which is a unique mechanism of multilateral cooperation that has attracted the attention of leading world powers in recent years due to the strategic importance of the region in the context of energy resources and transit routes. The research is based on a comprehensive analysis of investment, trade and economic relations between the countries of Central Asia and Japan. The main purpose was to identify key trends and factors that determine the dynamics of economic interaction and analyze the interrelations of economies. The hypotheses were tested using comparative statistics, dynamic analysis and graphical method, as well as using statistical methods, including calculation of correlation coefficients and multiple regression. Limitations of the study include the lack of data for some countries and periods. The analysis showed a moderate positive correlation between the GDP (Gross domestic product) of the countries of Central Asia and Japan, indicating economic interdependence. Japan’s investment activity is manifested in significant investments in Kazakhstan and Kyrgyzstan, with recent growth in Tajikistan. Trade turnover between the countries fluctuates due to global and regional factors. Despite the positive correlation of economies, Central Asia's influence on Japan remains limited. Japanese investment plays a key role in the region's development, but political instability and domestic problems in the countries reduce their effectiveness. Trade also faces challenges, including customs barriers and infrastructure limitations.

OPPORTUNITIES AND CHALLENGES IN THE DEVELOPMENT OF TRADE AND ECONOMIC RELATIONS BETWEEN ARMENIA AND CHINA

Throughout their economic and political histories, Armenia and China have pursued different paths in alignment with their respective regional and integration objectives. Despite lacking a common border and not being part of a single integration bloc, these countries have managed to establish and cultivate dynamic trade and economic relations. The evolution of ties with China is significantly influenced by the global One Belt One Road initiative, with numerous countries seeking to engage with this ambitious project. Armenia is no exception, and this article explores the trade and economic interactions between Armenia and China, addressing both the challenges and potential development scenarios.

Artificial neural networks in economics: mathematical tool, model or methodology?

The purpose of this article is to assess the current interaction between artificial intelligence (AI) and economic science and to identify promising interdisciplinary areas of research that can significantly influence the methodology of understanding economic phenomena. To achieve this goal, the vague and partly even mystical term AI was replaced with а more scientific term «artificial neural networks» (ANN). The article uses methods of scientometric, epistemological and comparative analysis of the processes of ANN penetration into economics and other academic disciplines. The authors reveal the epistemological commonality and difference between AI and ANN and justify the shift in epistemological focus in research from general AI to ANN. The paper systematizes the use of ANN in economics: 1) ANN as a mathematical tool for solving economic problems; 2) ANN as a model of economic phenomena; 3) ANN as a methodology for understanding economic patterns. It shows the interaction of economics with neurosciences which occurs in two significantly different directions: from neurobiology, i.e. real nerve networks in living organisms, and, on the other hand, from ANN theory. The first direction is associated with neuroeconomics, the second has not yet been articulated, but shows an exponential growth in publications and is associated primarily with forming a new economic paradigm. The ANN paradigm in economics (and not only in economics) changes both the subject of cognition, introducing radically new forms/types of evidence and new research methods, and the object of cognition, changing the focus of study from individual economic behavior to the collective economic behavior of mega-subjects.

РЕСУРСНЕ ТА ОРГАНІЗАЦІЙНЕ ЗАБЕЗПЕЧЕННЯ РОЗВИТКУ ПІДПРИЄМСТВ РОЗДРІБНОЇ ТОРГІВЛІ

The article analyzes current research related to resource and organizational support for the development of retail trade enterprises. A typology of the instrumental content of the enterprise management system has been developed, which provides a basis for making the right management decisions. The definition of the resource management mechanism of the enterprise is proposed, the difference of which is that it takes into account the interests (motivations) of the enterprise, the consumer and society, identifies the key components of management and establishes relationships between management subsystems based on the signs of belonging (by qualitative and quantitative characteristics) to those or other resources. The classification of the main models of resource management depending on the type of resource is systematized. It is substantiated that resource balance should be reflected in the construction of a rational interaction between various subsystems of enterprise management. It was established that the resource management mechanism of the enterprise should include the tools of management activity of the business entity, distributed among subsystems (financial, material, labor), which act as a single entity and interact with each other through the implementation of the functions of use, distribution, availability, and replenishment of the enterprise's resources , which allows us to consider it as a key link in the enterprise management system in a competitive environment. The resource potential of the business entity is studied as its ability to form, develop and actively use tangible and intangible assets to ensure sustainable competitive advantages in market conditions. The considered mechanism of organizational and economic interaction of the processes of using structural components of resource potential determines the strategic orientation of the economic entity and thereby establishes the necessary level of economic efficiency of its operation on the market.

‘A Necessary Evil?’: (Southern) Rhodesia’s Diplomatic and Economic Relations with Zambia, 1963 to 1973

This paper historicises the diplomatic and economic relations of Southern Rhodesia and Zambia between 1963 and 1973. While there has been comprehensive scholarship delineating the relations between, for instance, Zimbabwe and South Africa over the years, neighbouring Zambia has hitherto been given little attention by historians. Where the relations of Zimbabwe and Zambia have been examined, this has been in the context of political and military connections between Zambia’s United National Independence Party-led government and the Zimbabwean liberation movements the Zimbabwe African National Union and the Zimbabwe African People’s Union. In terms of Zambia–Rhodesia economic and diplomatic interactions, much has been written on how Zambia fared against the backdrop of Rhodesia’s Unilateral Declaration of Independence and the sanctions that followed, from the point of view of Zambia. We shift the focus because there is very little scholarship on the Rhodesian point of view, particularly its relations with Zambia in the period covered by this article. Using archival sources, newspapers and secondary literature, we contend that until the closure of the Rhodesia–Zambia border, the connection between the two countries was characterised by a cautious partnership marked by both covert and overt hostility, which escalated to an outright breakdown of border relations in 1973. Essentially, economic diplomacy became a critical tool deployed by Rhodesia towards Zambia to survive times of financial challenges precipitated by sanctions imposed by Britain and the United Nations, as well as the context of wars of liberation waged in Rhodesia since 1966.

The importance of interregional investment projects in correcting the regional budget deficiency

Subject. This article discusses the issues of efficiency and competitiveness of the regional economy. Objectives. The article aims to analyze the mechanisms for the implementation of interregional investment projects in Russia. Methods. For the study, I used the methods of systems and comparative analyses. Results. The article finds that a set of developed measures aimed at optimizing financial and economic interaction between the regions will contribute to solving the problem of regional budget deficit. In particular, it is necessary to develop and implement methodological recommendations for determining the percentage of regional participation in joint projects and for assessing their effectiveness in terms of influencing regional budgets. Conclusions. It is necessary to create conditions for intensifying public-private partnerships at the regional level.

Global economic impact of weather variability on the rich and the poor

AbstractTemperature and precipitation variability and extremes impact production globally. These production disruptions will change with future warming, impacting consumers locally as well as remotely through supply chains. Due to a potentially nonlinear economic response, trade impacts are difficult to quantify; empirical assessments rather focus on the direct inequality impacts of weather extremes. Here, simulating global economic interactions of profit-maximizing firms and utility-optimizing consumers, we assess risks to consumption resulting from weather-induced production disruptions along supply chains. Across countries, risks are highest for middle-income countries due to unfavourable trade dependence and seasonal climate exposure. We also find that risks increase in most countries under future climate change. Global warming increases consumer risks locally and through supply chains. However, high-income consumers face the greatest risk increase. Overall, risks are heterogeneous regarding income within and between countries, such that targeted local and global resilience building may reduce them.

Model of the “Economic Cross” of the Digital Platform: Opportunities and Conditions for Interindustry Technological Convergence

The platform economy is an objective stage in the evolution of the digital economy, whose development is carried out under the influence of the trend of involving a large number of SMEs and individuals in economic relations as their direct participants. Unlike the pre-digital era, when operational commercial direct interaction between small participants in economic relations turned out to be impossible, communication technologies of the second decade of the 21st century have created favorable opportunities for the development of independent businesses of individuals and small professional teams. The process of commercialization of household resources is actively taking place in the form of the development of private blogs as platforms for commercial advertising and mutual trade of goods and services by individuals online, which creates a direct competitive threat to traditional trading companies. The current stage in the development of online participation of SMEs and individuals in commercial relations is the development of outsourcing relationships, within which part of the processes implemented by large businesses independently using hired personnel and their own infrastructure will be delegated to independent network structures on a competitive basis. At the same time, in proportion to the growing popularity of e-commerce, public demands for the security of such transactions are increasing, which is especially important in conditions of sanctions uncertainty and high risks of supply chain collapse. This circumstance determines the business request for systematization of the digital space and its centralization, the terminal stage of which is an inter-industry digital platform. The purpose of the scientific article is to develop a system of proposals for the formation of a national intersectoral outsourcing platform based on the “economic cross” model. A system of innovative solutions has been developed regarding the organization of economic interaction between subjects, the procedure for financing the activities of the platform by its participants, and the distribution of indirect industry income arising from the functioning of the platform.

ONLINE STORE AS A COMPONENT OF E-COMMERCE AND DIGITAL BUSINESS TRANSFORMATION

This article examines the issue of managing an organization in the context of digital business transformation. The process of searching and optimizing methods and tools of digital transformation is relevant, this is especially evident in the field of e-commerce. In the article, the authors provide an overview of the e-commerce market, its leaders are highlighted. Based on the analysis of the structure and features of the development of global and national e-commerce markets, three categories are identified: 'large and mature', 'catching up' and 'waiting markets'. The dynamics of the global e-retail trade volume and the dynamics of sales volume of the Russian e-commerce market are considered. The concept of 'e-commerce' is clarified, the positive and negative sides of the development of e-commerce are highlighted. Depending on the types of subjects initiating interaction, the types of information and economic interaction or types of e-commerce are fixed. The article notes that information and communication technologies (ICTs) contribute to the organization and optimization of a number of business processes that are the basis of e-commerce: electronic data exchange, e-commerce and marketing, the formation of information and analytical systems of the organization. The authors emphasize that from the point of view of marketing, one of the most interesting components of e-commerce, its trading platform is online stores. The definition of the concept of 'online store' is given. By analyzing the entire variety of online stores represented in the modern business space, the authors classify them according to the methodology of doing business and the type of platform, by the type of organization of sales and trading activities, by product range and type of relationships with suppliers. The proposed classification allows you to: identify the entire range of online stores; streamline these tools; facilitate the search and justification of the choice of optimal methods of digital business transformation.