Economic Union Research Articles

Be digital to be sustainable! The mediating role of sustainable supply chain practices in triggering the effects of digitalisation on Sustainable Development Goals in the European Union

Research background: European Union (EU) economies need to enhance sustainable supply chains (SSCs) through digitalisation to realise sustainable development goals (SDGs). However, the impact of digitalisation on the SDGs is complex and multifaceted, and the role of SSCs in mediating this relationship is not fully understood. While extant research has delved into the influence of digitalisation on SSCs, predominantly within specific industries or geographic regions, a research gap persists concerning large-N samples and the generalisability of results. Purpose of the article: This study evaluates the role of digitalisation in achieving SDGs along with the mediation of SSCs based on the resource-based view, the triple-bottom-line, and dynamic capabilities theories. Methods: The study has extracted panel data from Eurostat from 2013 to 2022 and evaluated these data through partial least squares structural equation modelling to estimate the association among constructs. The sample covers the EU–27 countries and consists of 270 observations. Digitalisation is operationalised as the use of digital technologies to, for instance, innovate business models, provide new revenue streams and value-producing opportunities, and enhance, streamline, and make supply chain processes more efficient and environmentally sustainable. SSC practices encompass the design, planning, execution, and monitoring of supply chain activities to create value, optimise resources, and minimise environmental impact. Findings & value-added: The findings indicate that digitalisation has a positive association with SDGs and SSC practices. The study also noted that SSC initiatives play a mediating role between digitalisation and SDGs among the EU economies. These interesting insights could direct policymakers to enforce the initiative of digitalisation in SSCs to boost SDGs in EU economies. Although the literature on digitalisation and SSCs has gained significant attention, this is the first study in these domains.

Assessing the evolution and perspectives of developing the russian export in current terms: adoption of the 4P model

The study’s relevance is caused due to the Russian export experiences, which acts as a research subject. Goal is to reveal current peculiarities of Russian export. As methodical tool the model of marketing mix was applied, which includes product, price, place, promotion. The analysis has shown: the Russian economy, to promote its export in new terms, uses marketing with new characteristics. The bigger are become the share in it of agricultural and metallurgical products, the share of developing countries among buyers. Promoting the export is provided including through the free trade zones of the Eurasian economic union with the third countries, common trade and cooperation areas with them. State support for import substitution assists to create the production able to export. Scientific contribution of the research results consists in that they expand application of micro-economic marketing mix model on export of national economy as a whole. The results received make possible to study in complex and simultaneously in detail the strengths and weaknesses of export, including the volume and structure of export, price dynamics, currency and financial, transport, trade and diplomatic peculiarities of sale.

СРАВНИТЕЛЬНО-ПРАВОВОЙ АНАЛИЗ РЕГУЛИРОВАНИЯ ТЕХНОЛОГИЧЕСКОЙ ПОЛИТИКИ И ТЕХНОЛОГИЧЕСКОГО СУВЕРЕНИТЕТА В ЕВРАЗИЙСКОМ ЭКОНОМИЧЕСКОМ СОЮЗЕ И ЕВРОПЕЙСКОМ СОЮЗЕ В СВЕТЕ РАЗРАБОТКИ ЗАКОНОПРОЕКТА «О ТЕХНОЛОГИЧЕСКОЙ ПОЛИТИКЕ В РОССИЙСКОЙ ФЕДЕРАЦИИИ О ВНЕСЕНИИ ИЗМЕНЕНИЙ В ОТДЕЛЬНЫЕ ЗАКОНОДАТЕЛЬНЫЕ АКТЫ РОССИЙСКОЙ ФЕДЕРАЦИИ»

The results of a comparative legal analysis of acts regulating relations in the field of technological policy and technological independence (technological sovereignty) in the Eurasian economic union and the European union are presented, including the areas of the economy that are of key importance from the point of view of ensuring technological sovereignty, the legal mechanisms allowing the development and implementation of advanced technologies are described, the legal technological policy instruments in the Eurasian economic union and the European union. Based on the conducted research, the advantages and disadvantages of the procedures for regulating technological policy in these international organizations have been identified. The results of the conducted research can be taken into account when further finalizing Draft law № 632206-8 «On technological policy in the Russian Federation and on amendments to certain legislative acts of the Russian Federation».

Сравнительный анализ интеграционных инициатив и проектов России и Китая в Центральной Азии

Based on the analysis, the author concludes that after the collapse of the USSR, Moscow made numerous attempts to create an integrated political and economic union in the post-Soviet space. However, in the first decade of the 21st century, none of these efforts was realized in reality, and the formation of the EAEU is seen as a step towards more effective economic growth and success compared to other post-Soviet initiatives. The path from the Customs Union to the Common Economic Space and from there to the Common Market appears not only logical but also realistic. In terms of military-political cooperation, it is recognized that there is no alternative to the CSTO in the post-Soviet space. It is the only structure that shapes the security architecture in its area of responsibility and ensures the security and stability of member countries against external and internal challenges and threats in the modern world. On the other hand, Beijing has made significant progress in its diplomatic contacts with the Central Asian states by establishing two major institutional pillars – the SCO and the global initiative BRI. These two instruments have become the fundamental basis that has improved China's foreign policy and external economic positioning in the Central Asian direction.

Prospects for further development of logistics and trade in Central Asian Countries

This paper examines the conditions of foreign trade of the Central Asian countries and their impact on economic growth. Currently, the transport corridors of Central Asia are at the peak of their demand. The current positive changes and achievements of the region are considered. Attention is drawn to the geopolitical trends that create conditions for the development of alternative transport corridors and infrastructure projects. Special attention is paid to improving transport connectivity. It is proposed to develop transit and transport potential and increase the production of finished products. The comprehensive analysis carried out in this work allows us to take a broader look at the potential of the region and propose measures for its full development. Due to the growing role of Central Asia in the international arena, this paper also examines the impact of foreign policy on the development of the region’s economy. The strategic location of Central Asia between China, Russia, Iran and other countries makes the region an important partner in international trade and transport links. The paper analyses the current positive developments in the region, such as the creation of new transport corridors, the development of logistics infrastructure and the strengthening of trade relations with other countries. Special attention is paid to projects for the development of regional integration and economic unions, which contribute to improving competitiveness and economic stability in Central Asia.

The application of a panel PLS-SEM model to determine the relationship between the institutional factors and the innovativeness of EU economies

The ability of domestic enterprises to invent, introduce and diffuse innovations has been a driving force of the development of modern economies. This paper focuses on the institutional determinants of innovativeness of European Union economies. Institutions are defined as a universal, relatively persistent set of social norms rooted in society, shaping both human behaviour and all relations in the economy. The institutional factors seem to be especially significant nowadays, in an era dominated by the open innovation model. The aim of the study discussed in the article is to measure the quality of institutions and the level of innovativeness of EU economies (26 EU economies, excluding Greece due to data deficiency) and to identify the relationship between these directly unobservable categories. The research applies the partial least squares structural equation modelling (PLS-SEM) method. On the basis of data for the years 2010 and 2020 extracted from Eurostat, Freedom House, the Fraser Institute, the Heritage Foundation and the Legatum Institute, a panel PLS-SEM model was constructed and an empirical analysis was performed. The latter demonstrates that the correlation between the quality of institutions and the level of innovativeness of EU economies was positive, strong and statistically significant both in 2010 and in 2020. Taking into account the theoretical aspects and the results of research of other scientists, this relationship might be considered not only as correlational, but also as causal.

The political economy of currency unions

How can monetary and fiscal policy sustain a currency union when member states have an exit option? This paper derives an interest rate rule that features state-dependent country weights with which the central bank can prevent a break-up. A simulation reveals that this policy rule lacks firepower and can only extend the lifetime of the union for a while. While monetary policy is more potent in unions with more member states or setups with local currency pricing, it is still true that even a simple fiscal union with lump-sum transfers is better suited to prevent a break-up. Environments with lower risk sharing, the ZLB or wage rigidity make monetary policy even less effective.

Some Trends in EAEU Cooperation with Latin-Caribbean America

The Eurasian Economic Union (EAEU) is a rapidly developing integration structure. Its main priority in activities is economic development, even more precisely, trade. At the same time, at the beginning of its activities, the main attention of the member states of the association was focused on the development of domestic trade. The creation of a customs union and a single economic space basically solved this problem. The current development of the structure, in accordance with the global trend, was the expansion of trade relations with border, regional and non-regional partners. Thus, there is a process of integration of integrations, i.e. interaction at the level of integration structures and individual states. Since the EAEU’s main activity is the economy, first of all, we are talking about the creation of Free Trade Zones (FTAs).Aim. The purpose of the article is to identify the dynamics and directions of the development of relations between the EAEU and the countries of Latin America and the Caribbean.Tasks. Consider the main trends and stages of interaction between the LACB countries and the EAEU; identify new directions for the development of Eurasian integration.Methods. The use of a systematic approach made it possible to analyze integration processes taking into account various directions. The method of historical and comparative analysis was used to compare the concepts of the development of integration. Situational analysis made it possible to demonstrate the dynamics of the development of Eurasian integration and the formation of interaction with external actors.The sociological approach made it possible to consider as a special variety of international structures with the characteristics of both intergovernmental bodies and organizations.Results. Against the background of the development of economic interaction, new areas of interaction have been identified.Conclusions. In the current third stage of cooperation between the EAEU and the LKA, the element of political communication of the organization’s information function is strengthened, which is a response to the political crisis on the one hand, and on the other, opposition to Western sanctions in terms of attempts to isolate Russia in the world.

Spór między Komisją Europejską a rządami państw członkowskich o model reformy ustrojowej Unii Gospodarczej i Walutowej w latach 2010-2023

DISPUTE BETWEEN THE EUROPEAN COMMISSION AND THE GOVERNMENTS OF MEMBER STATES OVER THE MODEL FOR THE SYSTEM REFORM OF THE ECONOMIC AND MONETARY UNION IN THE YEARS 2010-2023 The primary research objective of the article is to analyze the System Reform of the Economic and Monetary Union (EMU) from 2010 to 2023 from the perspective of the dispute between the European Commission and the governments of Member States over the model of this reform. The author formulated two research hypotheses. The first one is based on the assumption that the implementation of the reform faced numerous difficulties and barriers resulting from the negative attitudes of the governments of some Eurozone member states towards the implementation of selected projects of the European Commission, but also from the accumulation of several international crises that the European Union was facing at the time. These were the migration crisis in 2015-2016 and then from 2022, the pandemic crisis in 2020-2021 and the geopolitical crisis caused by Russia’s aggression against Ukraine from 2022. The second hypothesis is that the main axis of disagreement between the Commission and the governments of Member States was the limits of financial solidarity and the target System Model of the EMU. Following this, the author formulated four research questions: (1) On which issues did the positions of the European Commission and the Eurozone Summit converge and on which issues did they diverge, and why? (2) To what extent did disagreements between Member State governments over the limits of financial solidarity and the target integration model of the EMU determine the direction of System Reform? (3) How important were the aforementioned international crises for the fate of the reform? (4) What were the main achievements and failures of the EMU System Reform?

Reformy instytucjonalne Unii Gospodarczej i Walutowej po 2010 r. – ocena zasadności i efektywności wprowadzonych rozwiązań na gruncie teorii optymalnych obszarów walutowych

INSTITUTIONAL REFORMS OF THE ECONOMIC AND MONETARY UNION IMPLEMENTED AFTER 2010: THE EFFECTIVENESS OF NEW ARRANGEMENTS ON THE GROUNDS OF THE THEORY OF OPTIMUM CURRENCY AREAS The economic shocks over the last 15 years revealed low effectiveness of macroeconomic adjustment mechanisms, as manifested by growing imbalances in the current accounts, public finances, and labour markets of the euro zone economies. The essence of the institutional reforms introduced after 2010 was to improve the mechanisms for stabilizing macroeconomic balances, as well as to increase the resilience of the EMU economies to future disturbances, especially those of a systemic nature. New solutions have a strong basis in the theory of optimum currency areas, as well as in institutional economics. The effects of the new institutional arrangements indicate a substantial improvement in the resilience of credit institutions to economic shocks, however, other macroeconomic risks remain.

Business cycle synchronization and asymmetry in the European Union

Measuring output gaps and assessing business cycle synchronization across countries can be an important research theme for an economic union. However, different empirical models can lead to very different inference about output gaps. We analyze business cycle movements and synchronization for all European Union members for the period 1975Q1–pre-COVID and 1975Q1–2022Q4. We account for model uncertainty by averaging across a set of output gap models both by using a Phillips Curve motivated weighted average and a simple average. Similarly, we compare several alternative synchronization measures. We find that, in contrast to the previous literature, both the estimated output gap and the level of synchronization depend on the individual empirical measure used. Our averaged gaps match recession dates well and suggest that many of the countries exhibit a high degree of business cycle nonlinearities. Finally, the core Eurozone countries are highly synchronized, but there are differences in synchronization outside the core.

An Empirical Analysis of the European Union's Economy and Politics in the Context of the War in Ukraine

Abstract Crises will always change society. Since 2020, since the outbreak of the COVID-19 pandemic, the world economy has had many trials to overcome. Likewise, the values of states or state alliances prioritizing their citizens' medical, social, and economic well-being have also been tested. The European Union was severely affected by the COVID-19 pandemic, but two years after its appearance, another critical event would accentuate the existing problems and put it in great difficulty. This critical event is the war started by Russia against Ukraine in February 2022. Given the desire Ukraine expressed since 2014 through the EUROMAIDAN movement, the EU could not remain indifferent to what was happening there, and from the very first moments of the war, it showed its support for economic, military, and diplomatic relations towards Ukraine. Thus, the second economic power of the world had to put the decent living and well-being of its citizens to the test in order to save its people. However, it is crucial how much the standard of living of the Europeans suffered compared to the citizens of the states that also contributed to helping Ukraine. Through a difference-in-difference analysis (DID), this article aims to observe how large the discrepancy was between the sacrifice made by Europeans compared to the sacrifice made by other people regarding the values of the consumer price index and consumer confidence index. One thing is sure: regardless of cost, people's freedom, peace, and life are priceless.

The Intellectual Class and the Rise of German Cultural Nationalism

German cultural nationalism emerged in the context of the invasion of French culture. This cultural nationalism was different from the nationalism represented by Britain and France, which focused on the expression of nationalism from the cultural level, and made use of cultural connection and unity to achieve the establishment of a nation state. In the 17th and 18th centuries, French culture invaded Germany in all aspects, and the aristocrat and the middle classes of the German states were proud of speaking French, while German was neglected as a national language. Against the background of the political and economic unification of the German region, a group of Deutsch intellectuals began to actively propagate and promote the German culture and language, hoping to establish a unified German national identity from the cultural identity to complete the unification of the country, and to make the German state regain its historical glory. The subsequent historical development proved that German cultural nationalism became the foundation stone of German unification. After the Napoleonic Wars, German cultural nationalism was further transformed into German political democracy, and Prussia finally completed the unification. How did German cultural nationalism emerge from all this, and what was the role of the German intellectual class in it? By studying this period of history, this paper is able to further understand the intricate international context and international situation in Western Europe at that time. At the same time, it draws on the positive factors of German cultural development.

Efficient risk sharing and separation

This paper extends the model of risk sharing with limited commitment to feature separation. Partners face idiosyncratic income and match quality shocks, share risk subject to limited commitment, and separate whenever they are better off doing so. We characterise analytically the sets of shock realisations where constrained-efficient separations occur and the dynamics of consumption while the risk-sharing partnership continues. The separation probability typically jumps as parameter values change continuously, and an additional inefficient equilibrium emerges. A key reason is complementarity between risk sharing and staying together today and in the future. Income inequality affects consumption inequality via its effect on separations, and consumption inequality can optimally exceed income inequality for any history of income realisations. Both partial risk sharing and separation are relevant for many applications, including the interaction between partners in a household and countries in an economic union.

A decade of Eurasian integration: An ex-post non-parametric assessment of the Eurasian economic union

This paper provides a sound ex-post evaluation of the impact of the Eurasian integration on member countries’ bilateral trade after a decade of implementation. We overcome the main limitations of current empirical analyses on the effects of trade agreements, namely the aggregation of tariff and non-tariff barriers and the likely self-selection bias, by applying a non-parametric method specifically designed to fully exploit time-series cross-sectional data. We thus compare the trade flows of the member countries in the Eurasian agreement with the exporter-importer pairs located in the Eurasian continent, which are most similar in terms of pre-treatment trends and features. Our results confirm the previous literature about the lack of a significant impact of the Eurasian customs union but find more positive net effects of the more recent integration steps. Our results ask for additional efforts to complete the Eurasian integration and let its member countries fully benefit from its hoped-for long-term effects.

Innovation for a greener future: Disentangling the asymmetric impact of green finance on green technology in european union economies

Green finance has originated as a critical factor for green development, where green technology innovation is a primary approach. Yet, limited information is available regarding how green finance influences green technological creation. This work probes the asymmetric linkage between green finance and green technology innovation in the selected European Union countries (Germany, Sweden, France, Italy, Netherlands, Spain, Denmark, Norway, Belgium, and Finland). Prior works adopted panel data methods to get usual outcomes concerning the green finance-green technology nexus, nevertheless the reality is that various nations did not establish such connection separately. The present work, in contrast, utilizes a peculiar tool, 'Quantile-on-Quantile,' that facilitates research to probe temporal reliance in entire nations by giving global yet economy-specific intuitions on the variables’ correlation. Estimates exhibit that green finance enhances green technology innovation in almost all our chosen nations at definite quantiles of data distribution. Furthermore, the findings expose that the extent of asymmetry throughout various quantiles of our variables differs by the economy, emphasising the relevance of policymakers paying particular consideration while employing green innovation and green finance policies.

The EU Logistics Sector

Logistics and efficient transportation are crucial for the European Union economy. For economies to thrive and remain competitive, logistics and transportation networks must operate in an organized, economical and ecological manner. They facilitate the movement of goods within and outside the EU, giving businesses access to bigger markets and a wider range of consumer items. As a result, there were more prospects for employment and greater success in trade and the economy. An outline of the fundamental trends in the European logistics industry is given in this study. We anticipate the current study will add to our knowledge of the EU logistics industry.

Digitalization as an instrument in support of covering the circularity gap in the European Union economy

Digitalization as an instrument in support of covering the circularity gap in the European Union economy

ANALYSIS OF STRUCTURAL SHIFTS IN THE EAEU ECONOMY USING INDIVIDUAL INDICATORS OF STRUCTURAL SHIFTS

The functioning of the Common Economic Space (CES) and the Eurasian Economic Union on the territory of the countries included in the regional association presupposes the implementation by countries and the Eurasian Economic Commission of a coordinated policy in the economic sphere. This policy has an impact on structural changes in the economies of countries and the regional union as a whole. The results of these changes can be assessed using indicators of structural changes, which assess structural changes in individual elements or groups of the population (sectors of the economy) or shifts in all elements of the population. The second indicators characterize the intensity of differences between the two structures as a whole. In this article, we focused our attention on the analysis of structural changes in individual sectors of the economy of the EAEU and the countries included in the regional association. The top five largest sectors of the EAEU GDP in 2022 included: 1) manufacturing industry (13.3%); 2) mining and quarrying (12.3%); 3) wholesale and retail trade; repair of motor vehicles and motorcycles (11.7); 4) transactions with real estate (9.3%); 5) public administration and defense, compulsory social security (5.9%). At the same time, the change in their share in GDP compared to 2011 was in different directions - the share of trade decreased significantly, while the other four industries increased, including significantly in the mining industry. The list of the largest sectors of the Russian economy, their place in the country’s GDP, as well as the direction of change in their share coincides with the economy of the EAEU as a whole. In other EAEU countries the situation is different. Calculations of partial indicators of relative structural changes, calculated by the chain method, showed significant changes in certain periods, including so-called “jumps”, representing a change in the shares of industries in GDP by 50 percentage points. and more. In particular, jumps were observed in Armenia in three industries, in Belarus - in two industries, in Kazakhstan - in one industry, in Kyrgyzstan - in two industries, with two different directions in one industry. There were no horse races in Russia. However, significant changes in the share of GDP were observed in the mining and quarrying industries, financial and insurance activities, the provision of other types of services, administrative activities and additional services in this area. Calculations of partial indicators of relative structural changes calculated using the base method also showed their noticeable changes in relation to the base period. In particular, construction and trade were characterized by a decrease in the share of the EAEU GDP in 2022, amounting to 27 and 21 percentage points. responsibly. At the same time, the share of a number of industries increased: healthcare and social services (+28 p.p.), manufacturing (+10 p.p.). Some countries saw more significant changes, including spikes.

A Comparative Analysis of Key Integration Blocks

Why is integration progressing successfully in some parts of the world but not in others? Why are only some integration blocks hugely important for member countries? And why this is not the case globally? This article provides a comparative analysis of international economic structures, aiming to identify the factors that contribute to the validity and effectiveness of integration.
 The article examines eight economic blocks: the European Union, the Agreement between the United States of America, the United Mexican States and Canada, the Southern Common Market, the Association of Southeast Asian Nations, the Euroasian Economic Union, the South Asian Association for Regional Cooperation, the African Union, and the Regional Comprehensive Economic Partnership. We take into account five stages of integration: free trade area, customs union, single market, economic union, and monetary union. To understand the progress of integration, one must consider a number of developments and indicators. The coefficient of economic gravity, which we describe in this paper, is a convenient method to find out how important integration structures are for contracting states.