European Market Economy Research Articles

Closer than You Thought. Constitutional Grounding of the Social Market Economy in Poland and Italy

The article aims to investigate the system of the social market economy in Poland and Italy. It compares constitutional provisions, distinguishing national commonalities and discrepancies. They are the basis for the identification of the precepts common to all social market economies in Europe. The analysis concludes that combining economic rights with social interests is essential to establishing the social market economy.

European concept of ecologically balanced nature management in a market economy

The main task of the article is to establish the cause-and-effect links between the factors of environmental pollution and motivational mechanisms for ecologization of the economy in accordance with the concept of sustainable development. It is determined that the specificity of agricultural production is their close connection with the environment and its significant pollution with greenhouse gases and other harmful substances. It is established that the rate of global warming can be decreased by half by reducing the production of animal and plant products and increasing the use of renewable energy sources in the production sector. It is found that in the process of economic transformation, considerable attention should be paid to the need to reduce energy intensity, material intensity, ecologization of technological processes and improvement of product quality. In the realization of economic policy, the priority should be the use of environmental mechanisms for its regulation, and production should be concerned not only with satisfying the needs of consumers of products, but also with reducing the negative impact on ecosystems. The dynamics of total emissions into the atmosphere by households in a number of European countries is determined and the main reasons for such changes are indicated. A systematic analysis of the indicators that characterize the volume of fresh surface and groundwater intake per capita is carried out and the depth of the water crisis in the EU countries is determined. The article analyses the level of waste disposal and recommends the most effective waste management technologies, and studies the dynamics of changes in the area of protected forests in Europe to identify the tree species that are the best cleaners of the air. The size of compensatory contributions of countries under global climate commitments and indicators of total environmental transfers for environmental protection activities are researched. An integrated approach is used to determine the real impact of various types of economic activity of European countries on the environment. It is recommended to study and implement the experience of European market economies regarding the conceptual principles of balanced environmental management in Ukraine.

SPACs in the AIFMD Context

The growth in the use of Special Purpose Acquisition Companies (SPACs) within the context of the European market economy has been particularly evident in recent months. When structuring SPACs, the question of whether and when SPACs fulfil the objective criteria of the activities indicative of the characteristics of their specific management under the Alternative Investment Fund Managers Directive (AIFMD), arises. SPACs are, in fact, similar in their basics to the alternative investment funds established under this directive and whose investment strategy is directed towards private equity. The aim of this paper is to answer the presented question, which is crucial for current financial market practice. If the intended investment structure of SPACs fulfils the criteria of the AIFMD, it can only be structured under the rules (and restrictions) arising from respective regulations. Any misconduct is otherwise severely sanctioned.

The Role of Immigration and Colonization in the Acculturation of Halal Food in European Countries: An Evidence-Based Systematic Review

Halal food consumption and the halal market economy in Europe have been steadily growing among both Muslim and non-Muslim populations. This growth has been propelled by the rising number of Muslim immigrants in European countries. The purpose of the present study was to systematically review and synthesize a multitude of existing scholarly findings extracted from peer-reviewed research and reliable web-based sources on the role of Muslim immigrants in the acculturation of halal food in European countries. An electronic database search in the available literature was conducted to identify and select data from cognate studies. The collected data were examined and analyzed employing a systematic review methodology. The combined findings of Muslim immigrants’ role and contributions to halal food acculturation in Europe are discussed. A systematic search of major electronic bibliographic databases, printed books, verified fact-based newspaper articles, and credible web-based sources was conducted. A cross section of a total of sixty-four data sources was included in this review. Findings suggest that the acculturation of the halal food process in European countries has been effective and facilitated by waves of Muslim immigrants, centuries of colonization of Muslim countries by many former European colonizers, adhering to religious requirements to consuming halal food, cultural and peer influences on halal food consumption, perceived control over consuming halal meat, developing a bicultural identity in the host country, as well as the increasing acceptance of the non-Muslim European consumer to consuming halal food as a healthier alternative to fast food and processed food products. There is a need for further research to better understand the economic and socio-cultural impact of the acculturation of halal food on the behavior of non-Muslim European consumers. This might serve as a paradigm for future research to better understand what influences halal food product consumption in non-Muslim European countries and globally.

Regulation of Agricultural Production in the EU –Experience to Penetrate European Food Markets

In accordance with the EU Association Agreement, Georgia made commitments in various areas to approximate its policy with the EU. There are important commitments to be made in the field of agriculture, however, it should be noted that EU agricultural policy is specific and requires long-time term for legislative alignment, implementation of control enforcement mechanisms and its implementation. One of the core objectives of the European Union upon its establishment was the approximation of common positions, including the introduction of common trading systems. Appropriate reforms were carried out and the shortcomings that appeared in the first stage of the reforms were eliminated. Abovementioned reforms have also contributed to the establishment of EU single market policy, which has had a positive impact not only on EU member states, but also enabled other non-EU countries to produce competitive products and engage in the European market economy. Georgia’s European orientation entails the recognition of those international standards that regulate the free market system and are established within the EU member states. It is vital for Georgia to share the EU's experience in line with its national interests. It’s noteworthy that Georgia, with its many years of traditions, has the ability as well as the greatest potential to produce products that will be competitive in the international arena. It should be noted that, at the legislative level, Georgia has established a framework of normative acts, which is completely harmonized with the EU legislation. However, it’s of paramount significance to strengthen enforcement and control mechanisms, which will enable the sector in Georgia to produce products that will fully meet all the EU's standards and rules. Keywords: The EU Association Agreement, Agrarian Sector, Fischer Reform, CHAP.

The Impact of Financial Culture on the Operation of Hungarian SMEs before and during COVID-19

The main aim of this study is to explore the conceptual framework of corporate financial culture and its practical relevance in an emerging Central European market economy, at the level of the Hungarian SME, with a special emphasis on the Hungarian SME sector. In our study, we highlight each dimension of corporate financial culture, focusing on the established corporate financial culture index, and within it, we examine the significance of the financial management elements sub-index and the risk and insurance sub-index separately. In addition, we look for logical, causal, and statistically verifiable relationships between corporate financial literacy and the outcome of corporate financial decisions and corporate risk taking. The relationships were broken down over two years in the analysis. Approximately 2167 responses were included in the 2019 sample and 3281 in the 2021 sample. These representative samples were taken from the Hungarian SME sector and multiple linear regression models were built to find a significant moderation effect of financial literacy between perceived risks and the insurance activity of companies. We conducted our research in two different periods, the unique feature of which is that we conducted a survey before and during the coronavirus crisis, so we could make a comparative analysis. The method used in this research study is a literature review analysis of reference manuscripts, discussing topics related to financial literacy, corporate risk management, and corporate financial management, published in the last 10 years. Our results show that there are positive and significant relationships between company management, corporate risk management, and corporate financial literacy. The results of our study draw the attention of company leaders to the practical significance of financial culture—efficiency, profitability, and stability.

Українському народу – стабільний планомірностійкий людський розвиток (історико-аналітичні нариси, спогади та роздуми). Частина 2. Планетарна місія ідей фізичної економіки

The article continues consideration of the debatable issues identified in Part 1 “General situation with strategic planning of human development in Ukraine” for the previous research by V. K. Chernyak “Stable and balanced development to Ukrainian people” (the state of scientific and administrative support assessment)” Economic Bulletin of Donbas, 2020, No. 1(59). P. 199-217. The article summarizes the conceptual provisions for increasing the role of the state in regulating social, economic, and environmental development by using the Laws of Nature. The essence of the ideas of physical economy by Serhii Podolinskyi and Mykola Rudenko is considered. The warnings of the President of France Emmanuel Macron regarding the crisis of the modern model for the European market economy are given. The appropriateness and expediency of the development of National and Regional programs of human development in Ukraine, as the basis for the implementation of the “3 Cs” doctrine: social forecasting, social planning, social management, have been updated. Special consideration to the need to form the Planning Code in the state (along with the Civil, Budget and Tax Code) was paid. The Planning Code should regulate the terms and content of preparation, adoption and control for responsible implementation of strategic and tactical state decisions. Based on rethinking one’s own life experience in the Ukrainian Donbas, the nature of the spirituality of the common people, their desires and intentions for humanity and harmony in mutual relations and interaction with the Centers of Power is revealed. Examples of rebellious outbreaks and mobilization of the common people in the fight against an external aggressor are given. The experience of the post-war recovery and planned development of the North-Eastern Donbas, which were determined and provided by the spiritual and moral qualities of the common people, is disclosed. The recommendations and suggestions of specialists and associates of the Institute of Physical Economics named after S. A. Podolinsky regarding the implementation of budgetary federalism in unitary Ukraine by determining the ratio of state and local budget funds based on the harmonious proportions of the “Golden Intersection” were identified.

Incomplete Transition – Is there a “Mid-Transition Trap”?

Abstract The subject of this paper is the analysis of the classification of economic systems. The traditional classifications of capitalist, socialist centrally planned, and socialist market systems, and the newer classification of variants of capitalism into the Anglo-Saxon, European continental, and Asian models, are inadequate to explain new phenomena in a globalized economy. After the collapse of central planning, countries in transition became a category describing processes of deep socio-economic transformation. These transition countries aspired to meet the standards of developed European market economies, as well as governance standards regarding democracy, human rights, and the rule of law. A new classification of economic systems by Balcerowicz (2014) combines the traditional classification of economic systems with the characteristics of well-governed democratic societies in order to come up with a matrix that shows the interaction of economic system characteristics and governance outcomes.This paper builds on Balcerowicz’s classification by introducing and delineating the categories of state capitalism, crony capitalism, and state capture in order to provide a new classification of economic systems. It uses these concepts to empirically analyze the transition countries, with special reference to states aspiring to EU membership and the new EU member states. The methodology used is analytical and empirical. The results find that the transition is incomplete, especially in terms of governance, leading to the hypothesis of a ‘mid-transition trap’, similar to the much discussed ‘middle-income trap’. The results should lead to further, more refined research.

An empirical evaluation about the effects of environmental expenditures on environmental quality in coordinated market economies.

Acceleration of environmental degradation in recent years highlights the environmental quality as an indication of welfare and increases the number of studies conducted within this framework. Also, economic decision-making units have been doing various spending in order to maintain/increase environmental quality. In this context, the aim of this study is to examine the effect of environmental expenditures made by public sector on ecological deficit as a representative of the environmental quality for 9 coordinated market economies in Europe from 1995 to 2014. According to the findings acquired in the research, a cointegration relationship has been found between variables. It has been detected within the frame of panel ARDL analysis that total public expenditures increase the ecological deficit while environmental expenditures decrease it. In other words, scale effect of public expenditures affects the environmental quality negatively but its composition effect which will take place in favour of environmental expenditures has a positive effect. Thus, instead of the size of public expenditures, focusing on how the content of public expenditures of policy makers is formed in a way highlighting the environmental expenditures can boost welfare over environmental quality.

What can institutional analysis say about capitalism in Central and Eastern Europe? Results and limitations

Abstract A growing literature examines institutional arrangements in Central and Eastern European (CEE) market economies. Some sources claim that there is a distinct model of capitalism in this region. This paper overviews and analyzes the results of these studies in connection with crucial methodological issues showing the limitations of institutional analysis. Despite all methodological difficulties, with a combination of different methods, institutional comparison is able to provide essential insights into the position and future prospects of CEE member states. One of the most important insights is that the maintenance of economic convergence to Western European countries requires substantial institutional changes. This paper also suggests that a broader historical context can help to evaluate opportunities and the risk of path dependency. It seems fruitful if the current development is fit into the conceptual framework which conceives of CEE as the region of “in-betweenness,” where the legacy of incomplete modernization attempts hinders the optimal institutional arrangement.

Uspeh porodičnog biznisa u tranzicionoj ekonomiji - pratiti poslovne ciljeve ili raditi na svoj način?

Students with family business background have three options once it comes to career path decision. This makes the career choice more complex compared to a classical dilemma between seeking an employment and starting a new venture. Based on GUESSS 2013/14 survey conducted in 34 countries with 109 000 participants the influence of personal factors influencing student's career choice in transition countries and countries with developed market economy in Europe was analyzed. By drawing on theory of planned behavior, risk attitudes and family business performance the difference between the two observed groups was investigated. It was found that common denominator of almost fifty years of planned economy in transition countries does influence their career choice intentions especially in terms of personal behavior control, subjective norms and risk attitudes. Findings, based on comparative approach, suggest that environmental context is an important influencing factor which should be considered in further studies of the field.

Particularity, Reality, and Reparative Thinking: Another Reformation by Peter Ochs

Particularity, Reality, and Reparative Thinking: Another Reformation by Peter Ochs Another Reformation: Postliberal Christianity and the Jews. By Peter Ochs. Grand Rapids, Mich.: Baker Academic, 2011. ix + 278 pp. $30.00 (paper).There are very few books that transcend their subject matter. Those that do address broader and deeper issues than their ostensive topic. They also come to serve models for others to follow-whether or not they are working on same topic. Finally, they provide substantive insights into not only the topic they explore but the task of writing a whole.Peter Ochs's Another Reformation is one such book. At first glance, his topic might seem relatively narrow-he wants to test a correlation he has noticed between different iterations of postliberal Christian and a position of nonsupersessionism regarding the Jewish faith. To define each of these terms requires that Ochs, a Jewish philosopher, delve into recent developments in contemporary Christian theology and philosophy. In the process, he displays his own formidable theological and philosophical skills, which serve a model that Christian theologians should follow. Specifically, Ochs provides insights into theological methodology and major theologians that should inform the broader work of theology in the future.The best way to see the range of this work is to trace Ochs's definition of and nonsupersessionism. Beginning with the first, Ochs develops an intricate typology to show the different iterations of this movement in contemporary Anglo-American theology. Ochs initially defines postliberalism the third of three epochs. During the Epoch of Formation, Christian thought was focused on communal self-definition, which it did primarily by differentiating what Christianity believed opposed to other religions. latter were seen as other-as an offense to its self-definition or a threat to its ideological and social boundaries. During the Epoch of Assimilation, the focus shifted from the particular to the universal Christians tried to translate their faith into a single of reason. In the current Epoch of Postliberalism, the compromises made during the second epoch, which created a religion of ethics and enlightenment for the new nation-states and market economies of Europe, became unviable.1 However, this does not mean that it is possible, or desirable, to return to the first epoch. In each epoch, theologies develop to reform the religious practices of their day. Consequently, to reiterate the theological answers given in an earlier epoch is to ignore the imperative of repair required today.The task today is to develop a theology that avoids the binaries dictated by the law of the excluded middle2 regnant in modernity. This means avoiding the dyads of matter/spirit, reason/revelation, intellect/ emotion, authority/autonomy, dogmatism/modemism, scripture/ tradition, confessional/academic, public/private, church/society, and so on-dyads that plague contemporary theological reflection and modernity in general. It also means reforming the ground from which these dyads grow and flourish. Specifically, Ochs sees this the tendency to differentiate a novel theological position by portraying others the logical contradictory of what one advocates. In its place, Ochs articulates a pragmatic, relational logic that is grounded in a context, community, and narrative.One might be tempted to characterize this logic hermeneutic, and this is appropriate to the extent that Ochs is advancing a theory of interpretation. However, Ochs justifies his logical project much on scientific on humanistic grounds. dyads that theologians have used to organize their thinking are unwarranted by empirical evidence, argues Ochs: The world is not divided sharply between subjects and objects, knower and the known, mind and matter, the theoretical and the practical, what is active and what is passive. …

Housing Policy in Soviet Russia and Germany between the Two World Wars: Comparative Analysis of Two Systems

World War I played a key role in shaping modern housing policy. While in the pre-War era, there was virtually no housing policy, hostilities led to an almost immediate and comprehensive state intervention in the housing market, particularly among those engaged in the war. Originally, Russia went the same way as the other countries. However, after the communists seized power in November 1917, they started conducting a different policy reflecting their specific objectives. These differences become apparent when Soviet Russia is compared with Germany—a large European market economy that faced similar challenges: the devastating consequences of World War I, hyperinflation in the early 1920s, and the dictatorship regime of the 1930s. Thus, the diverging characteristics of the housing policy of both countries can to a large extent be attributed to the ideological differences between the centrally planned and the market economies.

European Integration and Market Economy Europe – A New Economic Order

The world is changing around us fast again, the end of world war two which founded the first European integration work which yielded finally to the European Union in 1951 can be now the same reason for further integration. The global economic competition for domination world markets from several world powers transformed globalization into a war. For the EU the challenges as a union are increasing and are not stopping but also becoming harder, 2012 was mostly about stopping European bank system from collapsing even with Mario Draghi’s success on that boiling situation. Very little has been done to address debt legacy and social tensions which are worsening every month effecting EU stock markets. This paper aims to illustrate some aspects regarding the European economic integration through aspects related to major area fields such as energy, banking, fiscal regulations, FDI (Foreign Direct Investments) and demographics. The paper will also try to describe the concepts of market economy and European business integration models as solution to reduce costs and the effects on EU market, and also will focus on understanding the mission of European integration in public sector development, and the benefits on European community.

Turkey’s Place in the Path of the Development of Common Energy Politics of the European Union

Energy was one of the major dynamics used to build the European Community. Especially after the oil crises in 1970s, the Community embraced the principle of uni- fi cation as a means to guarantee the security of oil resources and requirements. In order to protect the available conditions of the Union and increase development both geo- graphically and politically, the Union needed more energy. A fundamental lack of en- ergy resources, an increasing dependency on imported energy, environmental concerns, and the failure to build a stable European market economy were all factors that harmed the young Union and forced it to seek new avenues for oil resources. Turkey, with its geographical and geopolitical position, has been both a bridge and a terminal between the Middle Eastern and Middle Asian countries and the world market. Because of its unique position, Turkey plays an important role in Europe's energy policy.

Current Account Deficits in European Emerging Markets

Many of the emerging market economies in Europe are presently running current account deficits which are quite high relative to any global or historical standard and are fundamentally unsustainable. This includes the three poorer European Union (EU) members of the old Europe (Greece, Portugal, and Spain), many of the EU’s new member states (largely the former transition economies which have joined since 2004), most of those non-EU members in south-east Europe, and a number of the CIS economies in eastern Europe and the Caucasus. The unweighted average current account deficit for this group has more than doubled from under four percent of GDP in 2003 to well over eight percent in 2007. This trend is significantly different than what has evolved in many of the world’s other emerging markets; these other economies have generally been running current account surpluses. This paper documents this development, describes the underlying factors that have brought it about, assesses the underlying vulnerability that has been created, and discusses the implications of this development for other emerging markets and global financial stability more generally. In addition, how these risks have evolved since the appearance of the global credit crisis beginning in the summer of 2007 is examined.

The social power of trade unions in the new market economies: why is it in decline?

Trade unions in the new market economies in Europe have already been playing their roles in the political, economic, social and sometimes cultural transitions for more than twenty years. Sometimes they have had to take painful decisions, in the course of which they have been confronted with obstacles. If workers are not very satisfied with their trade unions, the main question is the identity of the most important reasons for that – are they external or internal to the trade unions? The new challenges to trade unions, caused by globalisation and European integration, require more radical internal changes than was the case in the early 1990s. The priorities, approaches, structures and styles of trade union leaders are, in contrast, similar to those inherited from the late nineteenth and early twentieth centuries. Ultimately, the decline in trade union influence has been caused rather more by their slow and difficult adaptation to the technological, economic and demographic changes afoot than by the crisis and the difficulties of protecting an older workforce and old working conditions.

The Global Financial Crisis and its Impact on Emerging Market Economies in Europe and the CIS: Evidence from Mid-2010

Emerging market economies were major beneficiaries of the economic boom before 2007. More recently, they have become victims of the lobal financial crisis. Their future development depends, to a large extent, on global economic prospects. Today the global economy and the European economy are much more integrated and interdependent than they were ten or twenty years ago. Every country must recognize its limited economic sovereignty and must be prepared to deal with the consequences of global macroeconomic fluctuations.The statistical data for 2009 provides a mixed picture with respect to the impact of the crisis on various groups of countries and individual economies. On average, Central and Eastern Europe experienced a smaller output decline than the Euro area and the entire EU while the CIS, especially its European part, contracted more dramatically. However, there was a deep differentiation within each country group. Looking globally, richer countries, which are more open to trade and in which the banking sector plays a larger role and which rely more on external financing, suffered more than less sophisticated economies, which are less dependent on trade and credit (especially from external sources). With some exceptions, the previous good growth performance helped rather than handicapped countries in the CEE and CIS regions in the crisis year of 2009.The post-crisis recovery has been rather modest and incomplete. It remains vulnerable to new shocks (like the Greek Fiscal crisis), the danger of sovereign default and other uncertainties. Full post-crisis recovery and increasing potential growth will require far going economic and institutional reforms on both national, regional (e.g., EU) and global levels.

Politics and health in eight European countries: A comparative study of mortality decline under social democracies and right-wing governments

Recent publications have argued that the welfare state is an important determinant of population health, and that social democracy in office and higher levels of health expenditure promote health progress. In the period 1950-2000, Greece, Portugal, and Spain were the poorest market economies in Europe, with a fragmented system of welfare provision, and many years of military or authoritarian right-wing regimes. In contrast, the five Nordic countries were the richest market economies in Europe, governed mostly by center or center-left coalitions often including the social democratic parties, and having a generous and universal welfare state. In spite of the socioeconomic and political differences, and a large gap between the five Nordic and the three southern nations in levels of health in 1950, population health indicators converged among these eight countries. Mean decadal gains in longevity of Portugal and Spain between 1950 and 2000 were almost three times greater than gains in Denmark, and about twice as great as those in Iceland, Norway and Sweden during the same period. All this raises serious doubts regarding the hypothesis that the political regime, the political party in office, the level of health care spending, and the type of welfare state exert major influences on population health. Either these factors are not major determinants of mortality decline, or their impact on population health in Nordic countries was more than offset by other health-promoting factors present in Southern Europe.

The rise of internal capitalist diversity? Changing patterns of finance and corporate governance in Europe

The article examines internal diversity within national models of capitalism in Europe, with a particular concern with firm financing and corporate governance patterns. It is suggested that a relatively small number of firms have shifted to a new institutional context consisting of common international institutions and practices, while the large majority of firms continue to operate in a more slowly evolving set of domestic institutions or rules. Examining changes since the early 1990s in firm financing and corporate governance, the article finds preliminary evidence to support the thesis of increasing diversity, but also that national patterns of firm finance are still distinct. Rising diversity challenges the long-term viability of coordinated market economies in Europe.