Market Economy Research Articles

The Restitution of Agricultural Land During the Political Regime Change and its Effects on Hungarian Property Relations Today

In Hungary after World War II, the system of large estates was abolished and private peasant ownership was established. The peasant strata’s desire for land was therefore satisfied within the framework of a micro- and smallholder structure. During the period of collectivisation, the possibility of using peasant land practically disappeared, and the collective use of peasant private property took place within the framework of the producer cooperative system. From the 1960s until the period of the regime change, the cooperative model became dominant in terms of agricultural production. The political regime change of 1989/90 and the associated economic transformation also meant that the system of large-scale cooperative land use was dismantled and lands under cooperative ownership and partly state ownership were privatised. Part of this process was the provision of compensation, which primarily meant state reparation for unjust property deprivations (including land ownership) in the period between 1939 and 1967. This also had negative aspects in terms of the concept of reparations, which did not strengthen the market economy character of agricultural activity and agricultural holdings.

Социальное и экономические развитие Монголии и Туркменистана после распада социалистического лагеря

Following the dissolution of the socialist camp, both laypersons and researchers closely monitored the processes of reintegration of these countries into the global community, the transition to market-based economies, and the adoption of more democratic and liberal values. However, less prominent representatives of the former socialist camp, such as Mongolia and Turkmenistan – countries that share significant historical and geographical similarities – have often been overlooked as they embarked on divergent paths following their departure from socialism. The article examines and compares the consequences of the transition of these two states from a planned economic system to a market-oriented one. The author analyzes the common historical features of the countries under study, their socio-economic indicators, and identifies the causes and factors influencing the formation of these indicators. Additionally, the article presents brief recommendations for improving these metrics. In conclusion, it is posited that due to inclusive state institutions, Mongolia is likely to have long-term advantages in social and economic indicators compared to Turkmenistan, which is characterized by extractive institutions.

The ESG performance of companies and their outward foreign direct investment: evidence from China

PurposeEnvironmental, social and governance (ESG) performance has received significant attention around the world. Could robust ESG performance become a new advantage for supporting companies’ outward foreign direct investment (OFDI) in emerging markets? Prior studies have not articulated the nexus between ESG performance and OFDI. This paper aims to conduct both theoretical and empirical work to clarify the effect, especially the mechanisms of ESG performance on companies’ OFDI.Design/methodology/approachUsing the data of A-share listed companies in China from 2010 to 2020, this paper empirically tests the effect and the mechanisms of ESG performance on companies’ OFDI.FindingsFirstly, robust ESG performance increases the likelihood of companies engaging in OFDI and also augments the scale of such investments. Within the realm of ESG, environmental performance, social performance and governance performance all play important roles in fostering OFDI. Secondly, strong ESG performance promotes OFDI by enhancing the competitive edge and alleviating financial constraints. Also, environmental performance, social performance and governance performance individually contribute to supporting competitiveness and mitigating financial constraints. Thirdly, the effect of ESG performance on OFDI is particularly pronounced for companies targeting developed countries, those operating in heavily polluting sectors and those with significant institutional investor presence.Originality/valueThis study advances the applicability of the stakeholder theory in the realm of firm internationalization. Moreover, the findings of this paper provide new strategies for promoting the OFDI of companies in emerging market economies.

Book Review: The Importance of Constitutional Rules and Property Rights. The German Economy in 1990–2015

The book titled The Importance of Constitutional Rules and Property Rights. The German Economy in 1990–2015 prepared by Damian Bębnowski, a researcher at the University of Lodz was published in 2022 by Peter Lang. This comprehensive 440-page monograph is devoted to an important event in recent German history, namely, the reunification and the period of building a social market economy order in the former GDR during the period indicated in the title.

Main types and types of document flow in institutions of post-graduate education in Ukraine

The last third of the 20th century was marked by the transition of a number of countries to the information civilization, under which the majority of workers are employed in the field of information activities, and the main product of production and commodity is information. Currently, information has become the most important resource of society and has acquired strategic importance. Globalization of world processes, on the one hand, and deep socio-political and economic transformations that unfolded in the 1990s, on the other, created the prerequisites for Ukraine’s rapid entry into the global information space. In the new century, the future of our country will largely depend on how energetically and effectively it moves in this direction. Information processes actively affect all aspects of human life. The use of the latest information technologies multiplies this influence. Most of the information is recorded on various material media, contained in various documents. The role of information in the management process is particularly important - at all its levels and in all spheres: political, economic, scientific, cultural, etc. Documenting information, its search, processing, storage and transmission require significant financial, material, labor resources and time. Therefore, the organization of effective work with documents, improvement of all information and documentation processes both on the scale of society as a whole and at the level of individual enterprises, organizations, and institutions is an extremely important direction of management activity. In turn, qualified work with documented information requires a significant number of professionally trained specialists. The current stage of Ukraine’s development is characterized by a difficult and contradictory path of the country’s transition to a market economy. Without a doubt, the success of this transition largely depends on the effectiveness of the management structures of the market economy, whose activities are based on the production and use of information, a large part of which in any organization, as mentioned above, is concentrated in documents.

Strategi Dan Analisis Persaingan Industri Studi Kasus PT Unilever Indonesia Tbk

Economic growth that continues to grow rapidly from time to time has a significant impact on the pattern of competition between companies, especially in the manufacturing sector. This competition arises from globalization and the existence of a free market economy caused by the many new companies with similar products as competitors, this triggers competition for market share and the struggle for consumers. Therefore, a strategy is needed in analyzing competition patterns so that companies are able to survive and thrive in the face of competitive market competition. This journal article discusses the strategy and analysis of industrial competition with a case study of PT Unilever Indonesia. In the Uniliver company, there is no doubt that consumer goods are currently very competitive. Several large companies compete fiercely to reach the global market. So PT Unilever must consider a competitive strategy plan. In addition to the main players in the market, Unilever has many other smaller competitors who compete with it in a narrow and specific product space. The discussion in this article explains that there are various strategies for PT Unilever Indonesia in facing competition between companies in the manufacturing sector, including Promotion/Marketing Strategy, Sustainability-Based Strategy, Community Engagement Strategy, Information Technology Strategy, Functional Strategy, and Competitive Profile Matrix (CPM).

Correlation Between Agricultural Machinery Fleet and Arable Land Area

The paper examines the dependence of grain and crop production volumes on the availability and utilization of land resources in agriculture. (Research purpose) The study carries out a retrospective analysis of overarching trends and correlation between agricultural land area and the size of the tractor fleet. (Materials and methods) The analysis focuses on the evolution of land use systems and the integration of agricultural lands into economic turnover over three distinct historical periods in Russia: 1920-1940, 1945-1990, and 1991-2022. The study identifies key evolutionary factors and development patterns in the correlation between agricultural land area and tractor fleet capacity. (Results and discussion) The analysis reveals that the industrialization and collectivization programs implemented between 1928 and 1940 led to a significant expansion in agricultural land area, increasing from 113 million to 150 million hectares, and in the tractor fleet, which grew from 27,000 to 531,000 units. In 1945, the sown area reached a low of 113.8 million hectares, with the tractor fleet reduced to 397,000 units. By 1960, the development of virgin and fallow lands had expanded the sown area to 203 million hectares, and the tractor fleet had grown to 1,122,000 units. The study further identified that the highest recorded expansion in sown land area, reaching 210.3 million hectares, occurred in 1985 due to an increase in mechanization, with the tractor fleet peaking at 2,830,000 units. From 1991 to 2022, however, a steady decline in the tractor fleet led to the gradual withdrawal of agricultural land from use. In 1991, the tractor fleet stood at 1,344,200 units, but by 2022, it had decreased by 1,147,400 units, leaving only 196,800 units. The dissolution of the Soviet Union in 1991 and the shift from a state-command to a market economy had a profound impact on the trajectory of Russian agricultural development. (Conclusions) The dynamics of soil use over different periods have reflected both extensive and intensive farming methods. The extensive approach involved expanding agricultural land by developing virgin, fallow, and unused lands. Currently, development follows the intensive path, marked by increased mechanization, automation, chemical use, and higher crop yields.

Inheritance relations under martial law: peculiarities of legal regulation

The article analyzes the peculiarities of legal regulation of inheritance relations in the conditions of martial law. It was determined that the study of inheritance problems is due to the need for further improvement of the mechanism of implementation and protection of human rights and interests, in particular property rights, in the conditions of a market economy in a democratic, legal state. In the conditions of martial law in Ukraine, this issue becomes extremely important due to the occurrence of significant obstacles in the implementation of the right to inherit. In the process of research, it was established that the introduction of a special legal regime, including martial law, always acts as a basis for limiting the basic rights and freedoms of a person and a citizen, in particular, in relation to the realization of property rights, for example, inheritance. It was found that during the period of martial law, appropriate changes were made to the legislation of Ukraine to regulate inheritance relations. It was found that the place of opening of inheritance is the last place of residence of the testator, and if the place of residence of the testator is unknown, the place of opening of inheritance is the location of immovable property or its main part, and in the absence of immovable property - the location of the main part of movable property. It has been established that a six-month deadline is set for accepting inheritance, but if a person died during martial law and the state registration of death was carried out later than one month after his death, the time limit for accepting inheritance is calculated not from the moment of actual death, but from the moment registration of death by state authorities. If a person died in the temporarily occupied territories or in some other city, the heirs turn to a notary public and cannot substantiate the date of death, then for such persons the term is calculated from the moment the fact of death is entered in the State Register of civil status acts of citizens. It was determined that the introduction of the legal regime of martial law in Ukraine required the introduction of appropriate changes to the national legislation, in particular regarding inheritance relations, in order to establish and ensure human rights and freedoms in the new realities. The introduced changes provide an opportunity to protect the rights of heirs in the best possible way.

ДЕНЕЖНЫЕ ДОХОДЫ НАСЕЛЕНИЯ КЫРГЫЗСТАНА: ТЕКУЩАЯ СИТУАЦИЯ И ПЕРСПЕКТИВЫ

This study analyzes the monetary income of Kyrgyzstan’s population in the context of the formation of a social market economy. The problem of increasing the well-being of the population and its level is the most important factor influencing a country's economic growth. This research reviews the 2018-2022 dynamics of key well-being indicators, including labor income, social transfers, and personal farming. It emphasizes state policies on pensions and social benefits. Statistical analysis revealed key trends in urban and rural living standards. This paper proposes ways to improve material support systems by aligning social payments with the subsistence minimum as required by the Constitution.

Cultural Dynamics Shaping the Adoption of Modern Management, Green Innovation, and Digitization in Uzbekistan's Business Landscape

Since the gain of independence in 1991, Uzbekistan has worked through diverse economic transformations with a transition from a central economy to a Market economy. These have sought to develop entrepreneurship and encourage FDI inflows, at the same time business is still shaped by history, culture and institutions. For this investigation, the affect of the cultural dimensions including collectivism, power distance, and long term orientation towards the adoption of modern management practices, green innovation and digitization in Uzbekistan is examined. Hofstede’s Cultural Dimensions Theory, Theory of Planned Behavior, and the Technology-Organization-Environment are used to analyze these influences in the present research. The study shows that collectivism positively influences the implementation of the modern management practices while high power distance negatively influence it. Long-term orientation to a very large extent influences green innovation and appropriate attitude toward technology is essential for digitalization. Subjective norms which are highly endorsed scale and perceived behavioral control further enhance green innovation and digitization respectively. Furthermore, other adoption conditions such as the technological and environmental support for the adoptions are important while size and centralization of organizations present adoption challenges. Thus, this work enriches the scientific literature by revealing the dependencies of business activities in a transitional economy with respect to cultural values. The conclusions for business and authorities stress the importance of cultural contingency approach to improve organization performance and improvement in Uzbekistan. The future research should incorporate longitudinal studies and pay attention to such other cultural dimensions and characteristics of organizations. Highlights: Uzbekistan transitions from central to market economy, shaping business by culture. Collectivism aids modern management; power distance hinders; long-term orientation boosts innovation. Cultural values, technology, and environment critical for green innovation, digitization success. Keywords: Cultural dimensions, Hofstede's Cultural Dimensions Theory, Theory of Planned Behavior, Technology-Organization-Environment framework, sustainability

On the fate of computing equipment production and automated control systems creation in the USSR at the turn of 1960s–1970s.

The the publication is focused on the problem associated with attempts to implement the central party and government’s decisions that implied a breakthrough in the development and implementation of computing technology, the creation of an automated control system and a nationwide automated system for accounting and processing information. The ivastigation involved declassified archival documents. The methodological basis of the study is the theory of modernization, with its theses of the interrelationship between economic development and political changes. The documents from the Apparatus of the Central Committee of the CPSU RGANI’s funds prove that of the options for further development of computing technology in the USSR proposed by specialists, the Soviet leadership chose the plan offered by the Ministry of Radio Industry. The plan did not ensure rapid overcoming of the USSR technological backwardness from the leading capitalist countries and turned out to be the least promising. Domestic developments were carried out less and less intensively, with no sufficient funds allocated. Soviet computing centers were filled with ES series computers, which turned out to be very expensive, cumbersome and energy consuming. The conclusion is formulated that a breakthrough in this area was not possible to ensure. The development of the USSR's own computer industry and its large-scale implementation did not trigger a new stage of the country's much-needed modernization. Technological backwardness remained increasing reasoned by miscalculations in planning and management, clearly demonstrated by OGAS project’s fate; the lack of a coordination center and proper interaction between the defense and civilian sectors; the prevalence of departmental interests, enterprises with thier weak interest in modernization, finally, the authorities ignoring leading scientists’ recommendations. The materials of the study may be of interest for developing an optimal scientifically based country's socio-economic development strategy, teaching courses in history and further researches.

Optimal strategies for investment and consumption: stochastic analysis with pontryagin's principle under economic uncertainty

This study investigates how stochastic optimization is applied to the management of a company's portfolio in order to maximize the expected utility of wealth over a given period. Inspired by Merton's research, this model involves random volatility in the financial markets, while maintaining a constant interest rate to take better account of real economic uncertainties. The aim is to formulate optimal investment and consumption strategies based on Pontryagin's maximum principle. Taking into account key factors such as economic growth and market volatility, as well as risk aversion in our financial considerations, we recommend an approach incorporating a quadratic penalty for excessive investment. This innovative method aims to adjust financial choices in line with economic fluctuations and ensure prudent management of the company's monetary resources. Finally, numerical simulations illustrate the influence of these factors on overall wealth, as well as on investment and consumption, underlining the importance of prudent portfolio management during periods of uncertainty.

Конкуренция на рынке косметической продукции: факторы, влияющие на формирование конкурентоспособности организации (на примере ООО “Natura Siberica”)

At the present stage of the a market economy development, a high level of competitiveness is the main goal of most organizations, therefore effective competition can be considered one of the key factors for the commercial success of an enterprise. Any company has an ultimate goal in a strategy to increase competitiveness, and most often, it is to win the competition. It is important not to win once, but to make timely and constant decisions to strengthen the company’s position in the market. The author examines and evaluates the main indicators and characteristics that contribute to increasing the competitiveness of companies in the market of cosmetic products on the example of Natura Siberica LLC. The ever-growing demand for cosmetic products requires companies to develop effective measures to increase competitiveness, which actualizes the title problem. The object of the study is competition in the market of cosmetic products; the subject is the factors influencing the competitiveness of the company “Natura Siberica” – a manufacturer and seller of natural cosmetics. The aim is to evaluate the main indicators that influence the formation of the company “Natura Siberica” competitiveness. The methodological basis of the research is an integrated and systematic approach; the latter is based on the consideration of the object as a system, as well as a structural and functional approach based on the allocation of their structure in integral systems. The theoretical foundations of the research are laid in the works of M. Porter, A. Smith, D. Ricardo. The results of the work showed that the potential of increasing competitiveness has not been exhausted in the company “Natura Siberica”. Problematic areas requiring urgent resolution have been identified. The main ones include the following: the formation of a product range that meets market demand; limited sales channels for commercial products (weak diversification); not sufficiently effective positioning of the organization. For each of the problematic areas, options are proposed to minimize their impact on the competitiveness of the company.

A Perspective on Teaching Small Business and Entrepreneurship in Communist Vietnam

This article describes the author’s experience teaching a hybrid course on entrepreneurship in Vietnam, one of the few remaining communist countries. Based on the author’s positive experience, the author recommends Vietnam as a location for business faculty interested in international teaching. The article details the structure and outcomes of the course at a Vietnamese university, highlighting the potential and challenges of teaching entrepreneurship in a socialist-oriented market economy. Despite the inherent challenges, Vietnam’s vibrant startup community and government support for small and medium enterprises make it an ideal environment for fostering entrepreneurial skills.

Renegotiating domesticity in the making of homestays in Atauro, Timor‐Leste

AbstractThis paper explores emerging domesticities in Atauro, Timor‐Leste, in relation to efforts to make homestays available for potential tourists. In exploring these new domesticities, we elucidate the ‘civilising process’ that is happening in terms of the ways in which people consider hygiene, diet, and their relationship with non‐human animals. In addition, the advent of potential tourism engenders the emergence of a new trend in domestic architecture. At the same time, this raising of homestays has intensified the workload of especially younger women, preventing them from taking part in collective activities and agriculture, which makes them more dependent on the market economy. Our analysis of these processes points to the heuristic potential of intersectional analysis to better understand development dynamics in contemporary Timor‐Leste.

TESTING THE FISHER HYPOTHESIS IN TÜRKİYE: EVIDENCE FROM RALS COINTEGRATION ANALYSIS

The relationship between inflation and interest rates has been a central topic in economics since the 1700s, reflecting its importance in understanding monetary dynamics and policy implications. While Henry Thornton is credited with being the first to analyze this relationship systematically, Irving Fisher further developed its theoretical framework in 1930, which has since been widely recognized as the Fisher Hypothesis. Fisher’s work explores the connection between inflation and nominal interest rates, positing that nominal rates adjust fully to changes in inflation, leaving real interest rates stable in the long run. This study examines the validity of the Fisher Hypothesis in the Turkish economy over the period 1970–2023. Using inflation rates and savings deposit interest rates data obtained from the Turkish Statistical Institute (TurkStat), the analysis employs the Residual Augmented Least Squares (RALS) cointegration test to investigate the long-term relationship between the variables. Empirical findings indicate a statistically significant cointegration relationship at a 5% significance level in the model where the interest rate is the dependent variable, under both constant and trend conditions. The results reveal that inflation has a positive and significant impact on nominal interest rates, with a one-unit increase in inflation leading to an approximately 0.5-unit increase in the interest rate. This study not only tests the theoretical premises of the Fisher Hypothesis in the context of Türkiye but also contributes to the broader literature by shedding light on the dynamic interplay between inflation and interest rates in an emerging market economy.

Oil Price Shocks and Macroeconomic Fluctuations: A GVAR Approach

ABSTRACTWe investigate the effects of oil price shocks on industrial and emerging market economies. We use a global vector autoregressive (GVAR) model with 19 economies from 1999M1 to 2022M3. Our sample evaluates output responses of each country to the same global shock, defined in several ways. While we find that domestic prices and interest rates in industrial economies respond to the WTI real oil price shock, the generalized impulse response functions (GIRF) tend to be not statistically significant in emerging economies. Stock markets increase in the first months for the oil producers but have negative values in the long‐run. The oil price shock causes a generalized fall in industrial production and loses importance over time. We reinforce our results by identifying the oil shock using the structural GIRF (SGIRF) following a causal ordering from oil to real output. When we decompose WTI into either supply or demand shocks, industrial production declines in the short‐run due to supply shocks but increases in response to oil demand shocks. Our results are very robust, especially in industrial economies when allowing for time‐varying bilateral trade. Underscoring the importance of identifying oil price shocks, the oil price shock pushes inflation up, prompting the central bank's response in policy rates.

Central banks, monetary stability, and the varieties of capital control liberalization

Abstract This article explores the differential liberalization of capital controls in advanced market economies. It shows that although finance-led economies abolished controls by the 1980s, export-led economies retained significant restrictions into the 1990s, contributing to differential financial market development. A historical comparison of Germany and the UK (1961–1985) finds that differential control use resulted from central bankers’ varying expectations of controls’ monetary functions in the domestic economic context. As capital became mobile in the 1960s, sudden capital in- and outflows jeopardized price and currency stability. In the German context of macroeconomic stability, controls effectively limited capital inflows and arrested destabilizing inflationary and exchange rate pressures. However, in the British context of macroeconomic instability and capital outflows, controls could not sufficiently restore stability: as loose fiscal and monetary choices persisted, monetary conditions deteriorated. Thus, Bank of England officials became fervent advocates for control liberalization to enforce restrictive fiscal and monetary choices via market pressures.

Impact and Mechanism Analysis of Environmental Protection Fee and Tax Reform on the ESG Performance of Heavy Polluting Enterprises

Recently, China has advocated for the comprehensive implementation of the new development concept and the enhancement of the national governance system and capacity, particularly in the area of ecology and environmental management. Environmental fee and tax reform has improved China’s modern environmental governance system and deepened the concept of sustainable development of enterprises. In the background of China’s strong call for green transformation and sustainable development, enterprises, as micro subjects in the operation of the market economy, are obliged to balance the concepts of business operation and sustainable development, and to practice and implement the ESG concept. Using a sample of A-share listed companies in China from 2014 to 2022, we conducted an in-depth analysis of the impact of environmental protection tax reform on corporate ESG performance through the difference-in-differences (DID) empirical approach. The results show that (1) the environmental protection fee and tax reform enhances the ESG performance of heavy polluters, and the impact coefficient is around 1.7 to 2.0. The reform exerts the strongest stimulatory effect on the environmental impact (E), with the stimulatory effect being about five times that of the aspect of social responsibility (S). (2) The environmental protection fee and tax reform enhances the ESG performance of heavily polluting firms by promoting green transformation of firms, investor attention, and the government’s focus on the environment. The impact mechanism passes a series of robustness tests, such as the parallel trend test, placebo test, and exclusion of other policy interferences. (3) The environmental protection fee and tax reform enhances the ESG performance of government-owned heavy polluting firms more than private firms. Among different regions, the ESG performance of enterprises in the central region has witnessed the largest improvement margin, while that of enterprises in the western region has the smallest improvement margin.

PRICE AND ITS ROLE IN THE MARKETING MIX

The article considers the main objectives of marketing pricing policy. It is found that by properly developing marketing pricing policy, companies can form their strategic direction, establish relationships with consumers and improve the conditions for the sale of goods, which is an important part of the marketing-mix complex in the marketing management system. Price in the market economy is of key importance, because it is not only a means of exchange, but also an important mechanism affecting the production, distribution, exchange and consumption of goods and services. In the article on the basis of a number of works of domestic and foreign economists, as well as a number of legislative acts in force in our country, the definition of the concept of ‘price’ is given. It is determined that the price affects both the volume of product sales in the domestic and foreign markets and the level of profitability of the firm. It is found out that the main objectives of the firm in the context of pricing are to increase market share, strengthen financial condition, positioning of its products, sales promotion and influence on the behaviour of competitors. Firms may use pricing to realise individual objectives, such as keeping prices low to deter new competitors or to set prices in line with competitors' prices to ensure market stabilisation. Pricing can be used as a tool to maintain brand loyalty, to maintain business relationships with resellers, or as a measure to counter government regulation Prices can be temporarily reduced to promote a product or to attract new customers. Pricing for certain types of goods may be designed to stimulate sales of other goods within the same product mix, using it as a strategy to achieve the firm's long-term goals. It is proved, in marketing, pricing depends on the interaction of three subjects: seller, buyer and competitor, so special attention is paid to the analysis of external factors. The role of factor analysis in the development of marketing pricing policy comes down to the fact that the set price should recover costs and reflect the usefulness of the product or service for the consumer, as well as take into account the competitive situation in the market. Selecting and developing a pricing policy for a company is a complex and comprehensive process that requires an analytical approach, in-depth knowledge of the market situation and flexibility in decision-making. Pricing should be an integrated part of the overall business strategy to achieve long-term goals. In this article, we will look at the pricing process, which consists of six steps, each with its own unique purpose and importance. In a market economy, pricing strategy becomes one of the key factors in a company's success. Free competition confirms that every entrepreneur seeks to maximise their profits. In addition to increasing production volumes and entering new markets, an important task is to reduce the costs of production and sales.