Underdeveloped Market Research Articles

The Development of the Life Insurance Market in Central and Eastern European Countries

Motivation: The need to implement the process of economic transformation in the recent past is what significantly differentiates the countries of Central and Eastern Europe from other members of the European Union. Integration into the financial system of the European Union has been an important factor influencing the process of transformation of the life insurance sector and the establishment of the level of competition, as well as the quality and scope of insurance services offered. In addition, the improvement in the macroeconomic situation and the increase in household income have had a significant impact on the growth in demand for insurance products from the life insurance segment. Despite positive changes, the insurance market of Central and Eastern European countries remains a relatively underdeveloped market, and its structure, unlike that of Western European countries, is dominated by property insurance. This points towards a need for further research into the determinants of life insurance market growth in this region of Europe. Aim: The aim of this paper is twofold. The first part presents an assessment of the level of development of the life insurance market in ten countries of Central and Eastern Europe over the period 2011-2021 using the method of multivariate comparative analysis in dynamic terms. The second part of the paper is devoted to an attempt to identify the determinants of the development of this market using econometric models for panel data. Results: The life insurance market varies widely among the group of countries considered. The trends of change during the period under consideration were also different. The most severe downturn in the life insurance market was recorded in Poland and the Czech Republic. Significant development was observed in Lithuania and Latvia, countries with an underdeveloped market in the past. The econometric models used confirmed the impact of economic development on the life insurance market.

Circular economy design strategies in mass timber construction: a systematic literature review

PurposeThis study evaluates the implementation of circular economy (CE) design strategies in mass timber construction to identify knowledge gaps and define crucial future research areas for promoting CE design adoption in this field.Design/methodology/approachA two-stage systematic literature review (SLR) was conducted to, first, identify CE design strategies applicable to the construction industry and then investigate the current state of CE design research in mass timber construction. Scopus and Web of Science databases were searched for relevant literature. In total, 52 peer-reviewed journal articles published between 2016 and 2023 were shortlisted. Descriptive and thematic analyses were then employed to analyse and synthesise the relevant literature.FindingsSeven CE design strategies were identified in the first stage of the SLR. The second stage of the SLR revealed limited research on CE design strategies in mass timber construction. Several research problems were identified, including a lack of suitable connectors for the deconstruction phase, durability concerns, insufficient knowledge of CE design methods, lack of knowledge and education about mass timber construction, missing actors within the value chain, higher cost, an underdeveloped market and inadequate regulatory requirements. These findings highlighted the future research directions to foster CE design adoption in mass timber construction.Originality/valueThe study systematically identifies existing knowledge on the application of CE design strategies in mass timber construction. Moreover, it presents a conceptual framework that links current research problems to future research directions across technical, social, economic and regulatory categories, thereby advancing CE practice in mass timber construction.

Assessing the role of forest resources in improving rural livelihoods in West Bengal of India

Forest resources play a vital role in supporting the livelihoods of rural communities residing in forest-rich areas. In India, a forest-rich country, a significant proportion of non-timber forest products (NTFPs) is consumed locally, supporting numerous rural communities relying on forests for essential resources, such as firewood, timber, and NTFPs. This study focuses on two forest-dominant districts in West Bengal of India, namely, Jhargram District and Paschim Medinipur District. Furthermore, this study aims to enhance the understanding of forest-dependent communities by comparing the standard of living among different village classes. Thus, we categorized villages into three classes based on the distance from home to forests, including inner villages, fringe villages, and outer villages. Through focus group discussions and household surveys, we explored the sources of local economy, income sources of household, and reasons for economic diversification in different village classes. The study findings confirm that substantial variations existed in the income sources and the standard of living in these villages. Forest income varied dramatically among the three village classes, with inner villages having greater forest income than fringe villages and outer villages. Meanwhile, households in outer villages depended on forests and engaged in diverse economic activities for their livelihoods. Compared with inner and fringe villages, households in outer villages derived a significant portion of their income from livestock. This discrepancy can be attributed to challenges, such as inadequate transportation, communication, and underdeveloped market chains in inner villages. Moreover, these findings emphasize the need to develop sustainable forest management practices, create alternative income-generation opportunities, and improve infrastructure and market access in inner villages, as well as promote economic diversification in outer villages. Through targeted policy measures, these forest-rich regions can achieve improved livelihoods, enhanced standard of living, and increased resilience for their communities.

How does business environment affect firm digital transformation: A fsQCA study based on Chinese manufacturing firms

Digital transformation can improve firms' competitive advantages and contribute to regional economic development. The question of how to enhance the business environment to facilitate and encourage firm digital transformation emerges as a crucial area of inquiry. To explore the relationship between city-level business environment and firm digital transformation, we conducted configuration analysis based on a sample of 3088 manufacturing firms across 240 Chinese cities in year 2022. Based on results, we identified three distinct business environments, consisting of both detrimental and favorable factors, that can promote firm digital transformation. Thereinto, limited public resources, a shortage of human resources, and an underdeveloped market environment work that prompt firms' motivation of digital transformation, since the negative consequences stemming from those limitations can be mitigated by digital transformation. Meanwhile, a conducive innovation environment, significant financial development, a favorable legal environment, and a supportive political environment serve as advantageous factors that amplify firms' willingness to embrace digital transformation, since they mitigate costs and risks associated with digital transformation. Our study expands the theoretical boundaries of digital transformation, and provides valuable insights for government to optimize business environments to support firms’ digital transformation.

Research on the application of green materials in modern buildings

This paper dives deep into the growing importance of green materials in today's architectural design, driven by a pressing need for environmental responsibility and sustainability. The research takes a close look at the advantages and disadvantages of green materials from perspectives of feasibility and viability, providing guiding principles for their application in architecture. Core findings indicate that these materials significantly contribute to environmental health, energy efficiency, and occupant comfort, as demonstrated by innovative real-world applications like the TECLA model of 3D-printed homes. Challenges such as high initial costs and an underdeveloped market, particularly in regions like China, pose substantial hurdles to widespread adoption. Future research avenues should focus on mitigating cost factors, developing robust evaluative metrics, and investigating the impact of governmental policies to facilitate the broader incorporation of green materials in construction. The paper serves as a critical guide for architects, policymakers, and researchers committed to advancing sustainable architectural practices.

Corporate real estate investment and firm performance: empirical evidence from listed non financial firms of Pakistan

PurposeThis study aims at testing the relationship between corporate real estate (CRE) investment and firm performance of nonfinancial firms in the context of an underdeveloped market, Pakistan.Design/methodology/approachThis study uses a sample of 307 nonfinancial firms listed at the Pakistan Stock Exchange from 2010 to 2020. This study adopts a rigorous methodological approach and employs ordinary least square, fixed effect, generalized method of moments system regressions and the propensity score matching technique to account for potential heteroskedasticity, effects of unobserved variables and endogeneity.FindingsThis study finds that as the investment in CRE increases, the firm’s performance decreases. The findings are robust to alternative proxies of CRE investment and alternative methodologies. Furthermore, the findings hold for financially constrained and financially unconstrained firms, high- and low-growth firms and safe and financially distressed firms.Research limitations/implicationsThis study extends the evidence about CRE investment in an underdeveloped market and suggests potential avenues for future research.Practical implicationsThe findings of this study warrant investors, managers and directors be cautious about CRE investment in firms.Originality/valueThis study uses a new proxy of CRE investment, which is more inclined toward the asset management and financial perspective of CRE investment. Furthermore, to the best of the authors’ knowledge, this is the first attempt to investigate the role of CRE investment in an underdeveloped market.

Impact of state support on Russian agricultural producers and consumers

State support plays an important role in the development of the agricultural sector, ensuring food security and sustainability. In this article the PSE/ CSE methodology, developed by OECD, is applied to analyzing the impact of support to Russian agriculture in 2021 on the welfare of all market participants: agricultural producers, consumers and the agricultural sector as a whole. We present the results of the estimation of the total level of support to agriculture and, in particular, to agricultural producers, provided at the expense of consumers and financed from budget transfers as well as the impact of agricultural policy on consumers. The level of state support to general services for the sector and to small-scale agricultural producers is also investigated. The interpretation of the PSE/CSE indicators in the situation of underdeveloped market infrastructure and regionalization of budget transfers is discussed. Policies aimed at moderating the price hikes for grains resulted in positive transfers to consumers of those commodities, while consumers of the majority of livestock commodities paid more than in the case of absence of support to agricultural producers. Based on this analysis recommendations are suggested for increasing efficiency of the agricultural policy transfers.

Promoting Country Image and Tourism in New or Underdeveloped Markets

In this paper, the theoretical framework of the Stereotype Content Model (SCM) was applied in the context of a host country promoting its tourism to new or underdeveloped markets. The host country’s perceived Warmth, Competence and Status were each relevant to an understanding of the attitude toward the country itself and as a tourism destination. However, in both instances, the influence of perceived Status was found to be direct and not, as existing SCM theory suggests, via Competence. The findings support Status being a primary dimension of human perception alongside Warmth and Competence within SCM theory. Warmth evaluations also dominated the prediction of Tourism Attitude but not Country Attitude, again contrary to established thinking. The influence on Tourism Attitude of both Uncertainty Avoidance and Individualism/Collectivism were moderated by the perceived Warmth and Status of the host country. Thus, the SCM requires adaptation to the context of tourism in underdeveloped markets.

The results of land evaluation in the North-West economic region

The article contains the results of land evaluation works in the North-West economic district, whose regions used various approaches to evaluation of agricultural land. As a result of the study, the authors proved that in the underdeveloped market of the best lands, the use of approaches other than profitable is impossible. On the results of the cadastral valuation in Novgorod region, it was proved that the application of a comparative approach to land evaluation of the indicated category leads to the fact that the value of agricultural land in less developed regions is several times higher than in the regions - leaders in economic development, while initially all regions are the parts of the North-West Economic Region and belong to the same natural and agricultural zone and province.

Construction and demolition waste management in Kosovo: a survey of challenges and opportunities on the road to circular economy

Managing Construction and demolition waste (CDW) is a severe and growing urban challenge, particularly in post-conflict countries. Though Kosovo has significantly rebuilt and developed after the Liberation War, these initiatives have accompanied suboptimal waste management. This research evaluates CDW management in Kosovo by assessing current practices and operations vis-a-vis the legal framework and EU requirements. It identifies instruments and policies capable of ameliorating gaps and proposes a more sustainable and circular CDW management system for Kosovo. Information was primarily collected during on-site visits to Pristina and the surroundings by a cohort of Urban Management Students from the Technische Universität Berlin, students from Kosovo, and the local office of the Gesellschaft für Internationale Zusammenarbeit, GIZ. The analysis identified gaps in Kosovo's CDW management and its observance and enforcement of existing CDW legislation, including an ambiguous licensing system impeding sustainable demolition, storage, and transport; the absence of approved CDW storage options leading to uncontrolled disposal; and an underdeveloped market for recycling and reuse, deterring stakeholders from further pursuit of circular practices. These gaps were compounded by poor recordkeeping, obscuring precise information on CDW streams. Possible instruments and incentives to support Kosovo's transition to a more sustainable CDW management system were then identified.

Topical issues of public support for agricultural sector of Kazakhstan

Due to the specific features inherent in agriculture, public support is a prerequisite for the development of modern agro-industrial production and food market, and achievement of the country's food security. In the context of globalization of socio-economic processes, it is impossible to increase the efficiency and competitiveness of domestic agricultural sector without strengthening public financial assistance. Purpose – main directions of state regulation of agroindustrial complex are considered, which make it possible to stimulate the growth of labor productivity, ensure rational consumption rates, economic and physic al availability of food products, combination of imports and domestic production, and realize export potential. Methods – analytical, comparative analysis, generalization, logistical, systematic approach. Results – it is noted that the State is pursuing a systemic institutional policy. Taking into account international requirements, Kazakhstan is building a new system of financing AIC. Problems that need to be addressed as soon as possible are shown: low solvency of the population, significant difference in the level and quality of life of urban and rural residents, underdeveloped market infrastructure, shortage of qualified specialists in rural areas, the need to improve pricing mechanism, and low degree of investment activity. Conclusions – significant amount of allocated state funds are oriented to support crop and livestock production sectors, modernize agricultural machinery, use modern technologies in order to increase competitiveness of agricultural products in Kazakhstani and international markets. When implementing agricultural policy of the Republic of Kazakhstan, the experience and trends in development of agricultural production in developed countries, its profitability are taken into account.

DEVELOPMENT OF DATA ACQUISITION SYSTEM FOR MOBILE ULTRAVIOLET (UV) MONITORING DEVICE

In this age of modernization, smart or self-sufficient frameworks in all domains of work are becoming increasingly important as innovation advances. This involves improving data collecting for UV monitoring system using metal oxide sensors, an underdeveloped market niche. The Data Acquisition (DAQ) system available at the moment is antiquated and frustrating. This project aims to establish a framework for acquiring information about UV monitoring devices using metal oxide sensors. Metal oxide-based sensor uses titanium dioxide nanorod arrays (TNAs). Self-powered UV photosensor creates electricity when exposed to UV light. UV photosensors are photoelectrochemical (PEC). Monitoring the sensor's real-time output voltage in relation to UV intensity evaluates the data acquisition system's performance. A Raspberry Pi is used to evaluate the data security architecture for the Cytron-UNO development board. The sensor's data gathering system detected the current produced and stamped the date and time on it. This paper discusses trait formation and experimental data.

REALITIES AND EFFECTIVENESS OF THE UKRAINIAN BANKING SYSTEM

The paper deals with the analysis of the banking system of Ukraine. It is shown that for Ukraine the frequency and depth of crisis phenomena in the banking sector are exacerbated by the raw material orientation of the economy, underdeveloped domestic market and the circulation of foreign currency (dollarization of the economy). It should be noted that in the pre-crisis during 2006-2007, excessive mortgage lending created a "bubble" in the real estate market, which, comparing its devastating effects, corresponded to this phenomenon in the real estate market in the United States. Although the crisis of 2008-2009 demonstrated the vulnerability of the Ukrainian banking system to numerous economic and political upheavals, no significant changes in banking supervision took place to minimize systemic risks. Restoration of the banking system of Ukraine in 2015-2016 is generally in line with post-crisis trends to streamline the banking system and increase its efficiency in the world. At the same time, the weakness of the institutional environment makes it impossible to use both administrative tools and state development banks to increase productive lending in Ukraine. On the other hand, commercial banks will use refinancing loans instead of private-sector savings to lend. In this case, the probability of the need for financial support from banks increases, which will lead to a significant increase in public debt.Moreover, a system of vector autoregression models has been developed to research the impact of crisis periods on the performance of commercial banks in Ukraine. The simulation results (mainly the analysis of impulse response functions) allow concluding that interbank lending in post-crisis conditions recovers relatively rapidly (with a lag of two years). Lending to non-financial corporations and non-residents showed a decline and recovery only within four years after the crisis. Lending to the general government sector is growing every year, but at the same time loans to other resident sectors are declining. In addition, during the year after the crisis, the volume of deposits in the banking system is demonstrating a decrease. Other variables do not show any response to the crisis.

Acquiring firms’ transparency and their returns around M&A announcements: Evidence from China

This study empirically examines the effects of the information transparency of acquiring firms on their stock returns around merger and acquisition (M&A) announcements in China. We find that acquiring firms’ information transparency is positively associated with their returns within M&A announcement windows. Our cross-sectional analyses show that such associations are more significant for acquiring firms from regions with an underdeveloped market institution, with lower institutional investor shareholdings, and that are state-owned, suggesting that acquiring firms’ information transparency is a critical determinant of perceived M&A benefits in environments with severe agency problems. We expect our results to be relevant to other emerging markets with institutional characteristics similar to those of China, such as significant agency problems and weak investor protection.

Sustainable Environment: A Comprehensive Evaluation of the Effects of Gas flaring in the Niger Delta, Nigeria

The objective of this review is to provide an extensive assessment of the impacts of gas flaring from the ancient to modern life conditions at the Niger Delta as an area of global significance was reviewed from Millennium development goal (MDG) sustainable environmental perspective. These effects of flared gas took so long to persist due to its underdeveloped market, technological deficiency in its conversion into profitable byproducts and/or reinjection into geologic reservoirs until when needed. Findings show that these upstream emissions from flared gas have led to precipitation of acid rain and anthropogenic emissions like GHGs, VOCs, PM and over 250 toxins that have caused innumerable adverse effects on the Niger Delta communities and to the global community as climatic changes and global warming. Categorically, the environmental effects ranged between air, soil, water, heat, light and noise pollution as well as loss of biodiversity, vegetation and inflicted severe impacts on the health, and socioeconomic destitution of the Niger Delta residents including deterioration of the houses they live and shoreline threats as a coastal habitat. Despite the Nigerian government’s achievements in recovering the accrued carbon debt through liquefied natural gas (LNG) projects and other strategic measures as attested by international agencies, yet a detailed discussion on the constraints to effective anti-flare deadlines were also highlighted. Also, suggestions for substantial sustainability of the Niger Delta was made towards a climatic justice and zero-carbon footprint.

Training Specialists in the Field of Innovative Financial Technologies in Russia

Formation of educational programs for new types of activity is a complex task that should be solved on the basis of interaction between educational institutions and the professional community, assessment of the current market demand for specialists with certain competencies. But the task becomes much more complicated if the need for specialists is growing rapidly, and the community of professionals is just being formed and cannot have the proper impact on the educational services market. In this case, the educational infrastructure, under certain conditions, can become a controlling component of market development, but it can also become a factor in false goal-setting and inhibition of development.The popularity of financial technologies among the population and applicants prompts higher educational institutions to form educational programs, which are often criticized, and graduates do not always gain employment in accordance with their diploma qualifications. There is a contradiction between the expectations of the labor market, which have not yet been formalized, and the supply from Russian educational institutions.Purpose. The article aims to formulate proposals for the standardization of requirements for specialists in innovative financial technologies (FinTech) based on the consolidation and analysis of the opinions of companies professionally involved in FinTech. Research methods. The authors applied generalization and empirical research methods such as selective market research, statistical observation. Results. The results of an empirical study on the existing educational programs in the sphere of financial technology (Fintech) are presented. Scientific novelty. It is shown that in the conditions of an underdeveloped market and the initial stage of a professional community development, educational infrastructure can become a tool for market development based on a common understanding and standardization of educational competencies and programming of its further development. Practical significance. Taking into account the results obtained, conclusions were formulated that make it possible to substantiate the need to introduce an independent assessment of the formed qualifications into the educational process.

Monetary incentives and fiscal policy mutual influence

The article considers the problems and practice of using the tools of monetary and fiscal stimulation of the economy. The main problems of the application of monetary instruments in practice in emerging markets are identified. The author paid special attention to the definition of classical monetary policy instruments and their role in economic growth in emerging markets. Critical assessment of the role of monetary policy instruments in stimulating economic growth is based on the practice of central banks in emerging markets. Recommendations for the analysis of the efficiency of monetary transmission are given. Problems of efficiency of application of fiscal stimulus instruments in emerging markets are raised. The mechanisms of the dependence between fiscal and monetary policies and the strengthening of such dependence in the case of a significant informal sector of the economy and an underdeveloped financial market are demonstrated. The author not only points out the need for coordination in choosing between monetary and fiscal policy but also advocates the idea of having an independent arbitrator between monetary and fiscal authorities in developing countries. The article also focuses on the analyzing algorithm of the use of monetary policy instruments for economic growth effectiveness. The conclusions made in the article will be especially useful for those who are interested in the issue of optimal choice between monetary and fiscal instruments to stimulate economic development in emerging markets.

Features of the Regulation of Labor Migration in Uzbekistan

Almost all countries of the world are involved in the migration process, and Uzbekistan is no exception. While our country is involved in the international migration process, including labor migration, one of the main factors is the large number of young workers and the underdeveloped domestic labor market. Therefore, our citizens are working abroad in the world labor market.

Bubble detection in Greek Stock Market: A DS-LPPLS model approach

Upfront bubble detection is one of the holy grails in Financial Markets. In the present paper, in order to archive this goal, we consider two different methods based on the Log Periodic Power Law. We implement this early detection algorithms in the Greek Stock Market, which is a relatively “shallow” and underdeveloped market. We have examined a period from 1997 until the end of 2019, an epoch before the rise of COVID-19 virus. Using this methodology, we managed to detect with a relatively good accuracy the formation and the critical time for both positive and negative financial bubbles that occurred during the examination period.

ANALYSIS OF THE CAPITAL STRUCTURE FORMATION: THE CASE OF GEORGIAN IT COMPANIES

Any country’s economy benefits significantly from the sector of information technologies. As the data demonstrate, the global information technology market has not only remained stable, but is expected to expand in 2021 due to changes in social life, employment, and education caused by the global COVID-19 virus pandemic. While information technology is vital to any country’s advancement, its growth in developing countries is being hindered by lack of skilled labour force, underdeveloped market infrastructure, insufficient financial mechanisms to stimulate innovative projects, and weak legislative framework. IT companies are characterized by a high degree of risk and uncertainty, a reliance on external sources of financing in the early stages, and an unattractiveness to conservative investors. In this regard, the issue of capital formation for innovative companies in the IT sector to ensure their effective functioning becomes especially important. The purpose of this study is to analyze the formation of financial sources and capital structure of Georgian IT companies based on the analysis of 50 IT companies in Georgia. The analysis is based on the usage of the main financial ratios of companies’ performance, taking into account the specifics of the IT sector companies. The study revealed that the capital structure of Georgian information technology firms is more consistent with the Pecking order theory, with almost no long-term loans and a small share of short-term loans. Equity and retained earnings are the primary sources of funding for IT businesses. This was supported by the legal exemption of corporations from income tax payments in the case of net profit non-distribution.