European Union Market Research Articles

Рынок Европейского союза в цифровую эпоху: гендерный аспект

Рынок Европейского союза в цифровую эпоху: гендерный аспект

Determinants of fishery and aquaculture products consumption at home in the EU28

The European Union (EU) is the world’s largest market for fishery and aquaculture products (FAPs) in nominal terms. Given the importance of these products, EU authorities and policy-makers are continuously monitoring consumer preferences and attitudes, analysing whether or not the implementation of EU policies and regulations improves the market conditions. For example, the Eurobarometer (European Union, 2018a) surveyed 27,732 EU residents including a specific module to analyse the fishery and aquaculture EU market. In this study, the dataset is used to estimate Ordered Probit models using effects coding and their marginal effects to identify the main determinants of the frequency of FAPs at-home consumption. Results indicate that the highest probability to consume more frequently FAPs is related to considering that one of the main reasons for buying or eating fishery and aquaculture products is because they are healthy, while the highest probability to consume less frequently FAPs is related to consumers who do not understand at all the information accompanying the products. Similarly, other important reasons for consuming FAPs more frequently are their good taste and low relative price. Also, results indicate a higher frequency of consumption of FAPs for those consumers who are over 55 years of age, are wealthy, have a wild product preference, live in a household of 3 persons or more and are very satisfied with their lives. To our best knowledge, there is not a similar approach in the current literature that considers such an extensive sample which is representative of all the countries that conform the EU28. Results provide valuable information especially for producers and authorities in terms of marketing and policy analysis.

ECONOMIC RETURN TO RE-ORIENTATE IMPORTS OF CORN AND SUNFLOWER OILS IN EGYPT

First: The geographical distribution of imports of corn oil in Egypt: The (free) alternative: in which imported quantities of corn oil are left to be distributed in a free way to various countries according to the least expensive and under the restriction of the capacity of those exporting countries, in addition to the volume of Egyptian import capacity of corn oil from all countries and the import capacity does not exceed the average. The annual amount of imports from it in the average period (2014-2017). With regard to the free and private alternative to leaving the quantities of imported corn oil distributed freely in different countries according to the lowest prices and according to the exporting capacity of the countries, it was found that the quantities imported from corn oil were distributed in two countries, Saudi Arabia and the United States of America, with an estimated rate of 68.81% and 31.19% on the sequence is out of the total imported quantities, and this alternative has achieved an estimated cost of approximately 43721.35 thousand dollars, meaning that it saves about 4290.57 thousand dollars, which represents 8.94% of the current model. It is clear from the study that the (free) alternative to distributing imports of corn oil is the best proposed alternative, because this alternative has achieved an estimated cost of approximately 43721.35 thousand dollars, meaning that it saves about 4290.57 thousand dollars, which represents about 8.94%. Second: The geographical distribution of sunflower oil imports in Egypt. Alternative (European Union Countries Market): It clarifies that the quantity of Egypt's imports of sunflower oil from all countries of the European Union market is not less than the average amount that Egypt imported from each country during the study period, so that it does not exceed the average of its export capacity and not more than average of the total amount of Egypt's imports during the average period (2014-2017). It is clear from the study that an alternative (European Union countries) to distribute sunflower oil imports is the best proposed alternative, because this alternative has achieved an estimated cost of about 413076.06 thousand dollars, meaning that it saves about 17191.86 thousand dollars, representing about 3.99%. The study recommended the following proposals: Preparing sound model plans for the geographical redistribution of Egyptian imports of agricultural crops in general and oil crops in particular in the form that is in favor of the Egyptian balance of payments. Redistributing Egyptian imports of corn oil and sunflower oil from other countries, commensurate with the export capacity of these countries, that could be achieved by reducing the proceeds of imports under restrictions, and it is clear from the study that the first (free) alternative to distributing imports of corn oil is the best alternative and the exporting power of the exporting countries. This alternative achieved an estimated cost of approximately 43721.35 thousand dollars, it saves about 4290.57 thousand dollars, representing about 8.94%. It is clear from the study that the fourth alternative (European Union countries) to distribute sunflower oil imports and it is the best suggested alternative, because this alternative has achieved an estimated cost and that is, it achieves savings of about $ 17191.86 thousand, representing about 3.99%.

Risk-Intolerant but Risk-Taking—Towards a Better Understanding of Inconsistent Survey Responses of the Euro Area Households

The sustainable development of the EU internal market for retail financial services is based on the rules of ‘suitability’, ‘know your client’, and ‘know your product’. The rules ensure that financial institutions (including banks) offer retail clients only products and services that are adequate to their purposes and preferences, including risk tolerance. Our study, however, concerns households for which the above rules are not valid, since they declare risk aversion and possess risky assets. According to the European Union Markets in Financial Instruments Directive and Regulation (MiFID II and MiFIR), the inconsistent information they provide within survey questions should classify them to more compound suitability assessment procedures. In the study, we use nationally representative data for 16 euro area countries from the second wave of the Eurosystem Household Finance and Consumption Survey. Using logit regression, we identify sets of socio-demographic and socio-economic characteristics conducive to the possession of risky assets by risk-averse households in individual countries. To assess their similarity, we use the hierarchical taxonomic method with Ward’s formula. The results of the study showed that risky assets were primarily possessed by risk-averse households that were characterised by high income, including from self-employment, and reference persons having a university degree and at least 55 years of age. The significance of their other characteristics was mainly shaped at the national level. The clear similarity of sets of the characteristics was confirmed only for a few pairs of countries. The information inconsistency that may result from erroneous self-assessments of being risk-averse was recognised in all countries and most often concerned high-income households with reference persons being males with a university degree. In 11 countries, the reason for this inconsistency could also be the inadequacy of assets held, also among senior households. The results provide insights for practitioners and policy. Identification of households providing inconsistent information to financial institutions, with the recognition of its reasons based on easily verifiable characteristics, may prove helpful in suitability assessments. The results confirming the similarity of household profiles requiring special attention between countries may be useful for entities operating cross-border. Due to the collection of information on risk aversion based on the single question self-classification method, conclusions regarding the restrictions of its use should also be considered relevant. In turn, policy implications may relate to consumer protection, since significant fractions of risk-averse households indeed participate in risky assets. Moreover, in selected countries, the risk-averse senior households were recognised as susceptible to making wrong investment decisions.

COMPETITIVENESS OF EXPORT AGRO PRODUCTS AND ECONOMIC POLICY FOR INCREASINGTHE COMPETITIVENESS

Agriculture plays a major role in ensuring the country›s food security, improving the balance of payments and strengthening state independence. Increasing the production of agricultural products increases the national income of the country, creates additional jobs and more. Competitive export production should play a major role in boosting agricultural production, as it has to be competitive in the international markets.The article analyzes the competitiveness of Georgian export agro products and the export-import of agro products. It should be noted that imports of primary agricultural products over the years have significantly outstripped exports, mainly due to the low volume of production of these products and the weak competitiveness of the sector relative to foreign producers. Competitiveness should be enhanced not by imposing barriers on imports, but by enhancing the competitiveness of locally produced products. That is why has been studied the main directions of economic policy for increasing the competitiveness by the example of Israel. Israel uses the theory and principles of knowledge-based economics to increase the innovation potential of the economy and enhance its competitiveness in general. In this study export agro products are identified by the following parameters: tendencies in export, stock reserves at the end of the year, resources, local production, average yield and self-provision coefficients. Thus, we assessed the competitiveness of corn/wine, nuts, potatoes, vegetables, wheat. Competitiveness level is calculated for selected Georgian agro products based on the received FAO data. The level of competitiveness of agro-food products was compared with each other on two markets: The European Union market (EU market) and the Commonwealth of Independent States market (CIS market). The product›s competitiveness level is calculated using the following indexes: Relative Export Advantage Index (RXA), Relative Import Penetration Index (RMP) and Relative Trade Advantage Index (RTA).The paper concludes that a high level of competitiveness in the international trade from Georgian agro products has nuts and wine. In addition, it is interesting that on CIS markets Georgian agro-food products have higher competitiveness than on the EU market. Also, on CIS markets competitive are potatoes and vegetables. Data analysis has shown that Georgian wine has far higher competitiveness on the CIS market than on the EU market. In recent years, the volume of Georgian wine exports to Russia has increased, which has been reflected in competitiveness indices. Consequently, the competitiveness of Georgian wine is increasing in the CIS market, while maintaining relative stability in the EU market. Also, Georgian nuts has far higher competitiveness on the EU market than on the CIS market. Conclusions are made according to the identified problems and the recommendations are offered on the directions of economic policies for increasing the competitiveness of agro-food products. It is important to identify agro-food products on the threshold of competitiveness in international trade in order to concentrate further resources and efforts on them, which will increase export volumes in the future. It is advisable to create a stable regulatory environment and increase the awareness of the Georgian agro-food product in international level.

Competitiveness of Selected South-Eastern European Countries in European Union Wood Flooring Market

Selected South-Eastern European countries (SEEC - Albania, Bosnia and Herzegovina, Croatia, Montenegro, North Macedonia, Serbia and Slovenia) represent significant producers and exporters of wood flooring in Europe. In 2018, 9.4 % of Europe’s wood flooring production originated from this region. The region is a net exporter of wood flooring since it exports over 50 % of total production. The most important market for the export of wood flooring is the European Union with a share of over 60 % in total exports. Trends in this market are important for manufacturers and exporters from the region. Therefore, the analysis of the impact of the European Union imports on wood flooring production in the SEEC was conducted by application of econometric modelling. The parameters of the obtained model show that the increase of approximately 0.75 % could be expected in the production of wood flooring in selected South-Eastern European countries for each precentral increase in the European Union imports. In addition to these results, the paper presents the analysis of the competitiveness of wood flooring export from the region measured by the Competitiveness Growth Index (RCA1). The aim of this analysis was to quantify the level of their price and non-price competitiveness in the European Union market. Conducted analyses show that the Competitiveness Growth Index (RCA1) had positive values (higher than one) for most significant countries from the SEEC for most of the observed period.

QSAR Use in REACH Analyses of Alternatives to Predict Human Health and Environmental Toxicity of Alternative Chemical Substances.

In 2006, the European Union (EU) enacted the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) to address growing concerns of hazardous chemicals in the EU market. Under REACH, companies seeking authorization to use priority substances identified as substances of very high concern (SVHCs) and included in the authorization list must apply and submit health and environmental effects data in analyses of alternatives (AoAs) to the European Chemicals Agency (ECHA). To assess safer alternatives, especially in AoA hazard assessment cases where vital information could be missing or insufficient, quantitative structure-activity relationship (QSAR) nontesting methods have gained increasing acceptance and importance. This article assesses AoA applicants' use of QSAR sources and documentation while looking for meaningful trends. In this assessment, usage and frequency of QSAR sources were evaluated in 189 analyses of alternatives for 15 physicochemical properties and 19 human health and environmental endpoints to determine the scope of purpose of QSAR use in AoAs. We found that only 24 out of 189 applications cited QSAR sources to rank or evaluate the safety of their alternative substances relative to the REACH Annex XIV chemical. For human health and environmental hazard endpoints, applicants cited the Danish (Q)SAR Database (n = 63) and unidentified QSARs (n = 36) most frequently. While QSARs were not used to eliminate an alternative, 7.9% and 1.4% per maximum opportunity (MOP) of hazard endpoint and physicochemical QSAR predictions reported background information on alternatives using weight of evidence (WoE). In addition, 3.0% per MOP of hazard endpoint QSAR predictions supported the safety of the alternative while 0.7% per MOP of physicochemical QSAR predictions gave mixed support for their alternative's safety. Documentation regarding QSARs was absent in all 24 AoAs that used QSARs. Limited QSAR use and missing documentation may be the result of several factors, including inconsistent regulatory guidance. Integr Environ Assess Manag 2020;16:745-760. © 2020 SETAC.

Do Regulatory Measures Necessarily Affect Oman’s Seafood Export-Supply?

This article examines the influence of relative prices, production capacity, gross domestic product, fish export and trawl fishing bans, and seasonality on Oman’s fish exports to the European Union (EU), Southeast-, East- and South Asia (SEA), and the Gulf Cooperation Council (GCC) markets during 2001–2015. Following the prescribed “keep it sensibly simple” rule for practitioners and the lack of any empirical evidence to support better alternatives, a partial adjustment framework is used to describe the dynamics of fish export behavior. The appropriate functional form was decided by testing the nested Cobb–Douglas (CD) hypothesis within the constant elasticity of substitution (CES) specification and the result supports the CD specification. The models were estimated using ordinary least square (OLS). The descriptive statistical results indicate market heterogeneity in species preferences. The empirical results suggest some degree of inertia in adjustment in the EU and SEA markets. The negative impact of the “export ban” on the EU market suggests a “trade-off” between the protection of domestic consumers and the revenue forgone. The export is price elastic in the short-run for the EU market. The impact of the “trawl fishing ban” on the EU and GCC markets was negative and positive, respectively. The significance of “production capacity” for the GCC and SEA markets signals that future enhancement strategies of exports should be aligned with the long-term sustainability of fish resources. The error-correction model could be considered to check the robustness of the present findings. An examination of the sensitivity of export-supply to potential risks should also be useful.

Transitions in product use during the implementation of the European Tobacco Products Directive: cohort study findings from the EUREST-PLUS ITC Europe Surveys.

The emergence of new types of tobacco and tobacco-related products on the European Union (EU) market has precipitated the possibility for both poly-tobacco use and transitions between products. In the EU, the regulatory environment has shifted with the implementation of the European Tobacco Products Directive (TPD) in May 2016, which may influence consumer transitions between products. The aim of this paper was to examine trends and transitions in tobacco products from 2016 to 2018 -before and after implementation of the TPD in the EU. Data come from Wave 1 (pre-TPD) and Wave 2 (post-TPD) of the EUREST-PLUS ITC Six European Country Survey, a cohort study of adults who at the time of recruitment were smokers from six EU countries- Germany, Greece, Hungary, Poland, Romania, and Spain. D (N = 3195). Bivariate and logistic regression analyses of weighted data was conducted using SAS-callable SUDAAN. Overall, among those who smoked factory-made cigarettes (FM) only at Wave 1, 4.3% switched to roll-your-own tobacco (RYO) only. Among RYO only users at Wave 1, 17.0% switched to FM only, however compared to all other countries, respondents from Hungary had the highest percentage of FM only users at Wave 1 switch to RYO only at Wave 2 (18.0%). The most prominent transition overall was from smoking RYO exclusively at Wave 1 to smoking FM tobacco exclusively at Wave 2, however this varied across countries. As the tobacco control regulatory environment of the EU develops, it is important to continue to monitor transitions between types of products, as well as trends in cessation.

Analysis of the chain of the banana industry of Ecuador and the European market

Bananas are among the four main crops in the world, including wheat, rice, and corn. It is the most exported fresh fruit in the world in terms of volume and value. The European Union (EU) is the largest banana importer globally with an estimated volume share of 33%. Ecuador is the top exporter since it is responsible for one-quarter of the world banana exportation. It represents 22% of total world exports, 27% of total agricultural exports in the country and 8% of the value of all exports (including oil). The present work analyzed the chain of the banana industry of Ecuador and its position in the EU market. A non-experimental empirical method with a quantitative and qualitative approach was used supported by scholarly literature and secondary research data collection. Results obtained show that the main countries destination shipped 87.8 % of total bananas exported from Ecuador in the period of 2007 – 2017. The largest importer of Ecuadorian banana is the European Union (28.9%). In Ecuador, approximately 78% of the banana producers are small companies, by adding the medium ones 95.6% is reached. Thus, the production of bananas in the country is mainly based on the family economy. In 2019, the official banana box price for producers in Ecuador is USD 6.30. In the EU market, it can reach over USD 18.00. It suggested an unfair payment to small and medium producers.
 JEL CODE: Q13, M16, M21

Pest status, bio-ecology and management of the false codling moth, Thaumatotibia leucotreta (Meyrick) (Lepidoptera: Tortricidae) and its implication for international trade.

The false codling moth (FCM), Thaumatotibia leucotreta (Lepidoptera: Tortricidae) is an insect pest which represents an important threat to the production and marketing of a wide range of agricultural crops in the African-Caribbean-Pacific (ACP) countries. The FCM reduces not only the yield and quality of the crop but also as a quarantine insect pest, restricts the trade of susceptible agricultural produce on the international market. In addition, little research has been conducted in the ACP countries on the bio-ecology and sustainable management of this pest, especially on vegetables for export. Thus, action-oriented research aimed at understanding the bio-ecology of this important pest is essential to achieve effective management. Various management interventions against this pest have been used in some parts of the world, especially in South Africa on citrus. Currently, farm sanitation is regarded as the key management strategy. Exploring and improving on other interventions such as Sterile Insect Technique, monitoring and mass trapping of male moths, augmentative biological control, use of bio-pesticides, protected cultivation and cold treatment may help to mitigate the expansion of FCM into other countries, especially in the European and Mediterranean Plant Protection Organization region where it has become a regulated insect pest since 2014. This review discussed the bio-ecology of FCM and highlighted some of the challenges and opportunities for its effective management and its implication for international trade, especially the export of chillies from the ACP countries into the European Union market which requires strict phytosanitary regulations.

Anti-selective disclosure regulation and analyst forecast accuracy and usefulness

We investigate regulations intended to stop managers from privately disclosing corporate information to analysts in a setting with enhanced potential to isolate regulatory effects: the European Union (EU) Market Abuse Directive (MAD), a common regulation implemented by member states with varying sanctions and enforcement resources. Following the implementation of MAD in a country, analyst forecasts become more accurate, with relatively little of the effect attributable to increased voluntary public disclosure by covered firms. The effect of MAD on analyst accuracy is stronger in countries with more stringent enforcement and sanction systems. Although the improvement in accuracy is associated with the implementation of MAD alone, stock prices do not respond more strongly to analyst forecast releases until after market-trading enforcement improves under subsequent EU legislation (MiFID).

Anti-Selective Disclosure Regulation and Analyst Forecast Accuracy and Usefulness

We investigate regulations intended to stop managers from privately disclosing corporate information to analysts in a setting with enhanced potential to isolate regulatory effects: the European Union (EU) Market Abuse Directive (MAD), a common regulation implemented by member states with varying sanctions and enforcement resources. Following the implementation of MAD in a country, analyst forecasts become more accurate, with relatively little of the effect attributable to increased voluntary public disclosure by covered firms. The effect of MAD on analyst accuracy is stronger in countries with more stringent enforcement and sanction systems. Although the improvement in accuracy is associated with the implementation of MAD alone, stock prices do not respond more strongly to analyst forecast releases until after market-trading enforcement improves under subsequent EU legislation (MiFID).

Measuring inefficiency in international electricity trading

Interconnectors reduce the cost of supplying electricity if they are operated efficiently. We show that established metrics which are used to monitor electricity trading inefficiency are inaccurate for several typical trading conditions. We propose two new metrics—the Unweighted and Price-Weighted Inefficient Interconnector Utilisation indices—to address these deficiencies. These metrics are substantially more accurate than existing ones and perform equally well whether or not interconnected markets have coupled trading. Our analyses show a substantial decrease in inefficient trading between Great Britain (GB) and both France and the Netherlands after the European Union's market coupling regulations were introduced in 2014.In view of the UK's withdrawal from the European Union, we evaluate how uncoupling GB's market would affect cross-border trade. We find that uncoupling would lead to inefficiencies in trade, with the electricity price differential between GB and France (Netherlands) rising by 2% (0.6%), net imports into GB decreasing by 22% (6%), congestion income decreasing by 6% (1.5%), and infra-marginal surplus decreasing by 25% (9%). Should the EU decide to implement an equivalent carbon tax to GB's Carbon Price Floor, congestion income would decrease. Uncoupling markets would magnify this decrease.

AB’NİN SERBEST TİCARET ANLAŞMALARININ ASİMETRİK ETKİSİ VE TÜRKİYE / Asymmetric Effects Of The EU’s Free Trade Agreements And Turkey

Türkiye ile AB arasında imzalanan Gümrük Birliği, Türkiye’nin hem Avrupa hem de küresel pazarlara entegrasyonunu sağlayan önemli bir işleve sahip olmuştur. Ancak, Avrupa Birliği’nin ticaret politikasında son yıllarda meydana gelen gelişmeler Gümrük Birliği’nin güncellemesini gerekli hale getirmiştir. Bu çerçevede, çalışmanın amacı, Avrupa Birliği’nin üçüncü ülkelerle imzaladığı serbest ticaret anlaşmalarının Türkiye’nin dış ticaretinde yol açtığı asimetrik etkiyi incelemektir. Bu çerçevede, 2000-2017 yılları arasında Türkiye’ye ithal edilen Güney Afrika ve Meksika menşeli beş ürün grubunda ticaret sapmasının varlığı incelenmiştir. Çalışmada Güney Afrika ve Meksika’dan Türkiye’ye doğrudan yapılan ithalat ile AB pazarı üzerinden yapılan ithalat ölçülmüş ve karşılaştırılmıştır. Türkiye’nin ithalatta düşük veya sıfır vergi oranı uyguladığı mal gruplarında ticaret sapması olmadığı veya düşük düzeylerde kaldığı, ithalat vergilerinin yüksek olduğu veya tarife dışı engellerle ithalatın zorlaştırıldığı mal gruplarında ise ticaret sapmasının yüksek olduğu sonucuna varılmıştır.

EU-Pakistan Trade Relations: The Role of GSP Plus Status and Pakistan’s Enhanced Access to EU Markets

The Generalised System of Preferences (GSP) Plus is an instrument through which the European Union (EU) intends to encourage not only free trade with the developing countries by providing them tariff free access to the EU markets, but also promote sustainable development. The GSP Plus status has also benefitted Pakistan in attaining tariff-free access to the EU markets for most of its export items. This has increased Pakistan’s exports to the EU by more than 47.25 per cent, especially textile exports which have risen by 66.6 per cent since 2013. This paper analyses to what extent the GSP Plus has helped in enhancing Pakistan’s exports to the EU and removed the constraints that affect the EU-Pakistan trade relations while putting forward recommendations for enhancing EU-Pakistan trade relations in the future. If fully utilised, this paper argues, the GSP Plus status has the ability to earn some extra foreign reserves for a country like Pakistan which is already facing a severe current account deficit, public debt and balance of payment issues.

Assessing the Regulatory Requirements of Lead-Based Perovskite Photovoltaics

Nicole Moody, Samuel Sesena, Dane W. deQuilettes, Benjia Dak Dou, Richard Swartwout, Anna Johnson, Udochukwu Eze, Roberto Brenes, Matthew Johnston, Vladimir Bulovic, and Moungi G. Bawendi are members of Tata-MIT GridEdge Solar, an interdisciplinary research program at the Massachusetts Institute of Technology working toward scalable design and manufacturing of lightweight, flexible solar cells. Joseph T. Buchman and Christy L. Haynes are part of the Center for Sustainable Nanotechnology, a multi-institutional partnership aimed at understanding the fundamental chemical and physical processes that govern the transformations and interactions of nanoparticles in the environment.

Chemical Characterization of Electronic Cigarette (e-cigs) Refill Liquids Prior to EU Tobacco Product Directive Adoption: Evaluation of BTEX Contamination by HS-SPME-GC-MS and Identification of Flavoring Additives by GC-MS-O

The present study focused on the determination of benzene, toluene, ethylbenzene and xylenes (BTEX) concentration levels in 97 refill liquids for e-cigs selected by the Italian National Institute of Health as representative of the EU market between 2013 and 2015 prior to the implementation of the European Union (EU) Tobacco Product Directive (TPD). Most of the e-liquids investigated (85/97) were affected by BTEX contamination, with few exceptions observed (levels below the limit of quantification (LOQ) of headspace-solid phase micro extraction-gas chromatography-mass spectrometry (HS-SPME-GC-MS) methodology). Across brands, concentration levels ranged from 2.7 to 30,200.0 µg/L for benzene, from 1.9 to 447.8 µg/L for ethylbenzene, from 1.9 to 1,648.4 µg/L for toluene and from 1.7 to 574.2 µg/L for m,p,o-xylenes. The variability observed in BTEX levels is likely to be related to the variability in contamination level of both propylene glycol and glycerol and flavoring additives included. No correlation was found with nicotine content. Moreover, on a limited number of e-liquids, gas chromatography-mass spectrometry-olfactometry (GC-MS-O) analysis was performed, allowing the identification of key flavoring additives responsible of specific flavor notes. Among them, diacetyl is a flavoring additive of concern for potential toxicity when directly inhaled into human airways. The data reported are eligible to be included in the pre-TPD database and may represent a reference for the ongoing evaluation on e-liquids safety and quality under the current EU Legislation.

Motives for foreign direct investment location in Europe and EU enlargement

European Union (EU) enlargement of the mid-2000s is likely to have changed the motives for foreign direct investment (FDI) location between the existing Member States (the EU15) and the new entrants of Central and Eastern Europe (CEECs), but it is poorly understood. This paper uses the framework of Dunning’s eclectic paradigm and data for 35,105 foreign investments in Europe not only to examine if the motives differ between these, but also how they are affected by the enlargement. Three asset-exploiting motives of market, resource and efficiency seeking are explored using a conditional logit model for the location choice. This is separately for greenfield and brownfield FDI, involving new facilities or jobs, where the latter is efficiency seeking from an expansion or a co-location of functions. The paper finds greenfield FDI in the CEECs seeks an export platform for the EU market and a low-skilled workforce but a national market and higher skills in the EU15. Brownfield FDI differs from this for expansions only, for which the EU market is important, reflecting scale economies. Surprisingly, EU enlargement has a much stronger effect on the FDI location motives in the EU15 by increasing the importance of the European market, which is possibly because the CEEC liberalisation was ongoing throughout the accession process. The paper finds evidence that the differences in the motives between the CEECs and EU15 are narrowing over time, but they are pronounced, and it is argued that they will persist.

Identifying price bubbles in the US, European and Asian natural gas market: Evidence from a GSADF test approach

Globally, natural gas prices vary from one region to another, which is a key factor worth considering in formulating energy-related policies or in entering the energy market for a well-considering portfolio to minimize the market risk. This study aims to detect the beginning and the culmination of possible speculative bubbles and analyzed the causes in natural gas prices of three key regional markets, namely, the European Union (EU), Asia, and the United States (US). The monthly data from January 1996 to June 2017 are analyzed by a new bubble detection method called the generalized sup ADF (GSADF) test. There are four significant findings. Firstly, two episodes of bubbles have occurred in the EU, six in Asia, and five in the US during the study period. Secondly, in 2008, the bubbles have struck all the three markets simultaneously, as the prices fluctuated rapidly and drastically. Thirdly, an apparent heterogeneity emerges in terms of the occurrence and duration of bubbles in the three markets, as mentioned above. The bubbles in the EU tend to last longer. Fourthly, the qualitative analysis of the occurrence of natural gas pricing bubbles summarized the cause of the bubbles in different markets. The global economic events can create a simultaneous influence. Geopolitical factors are attributed to the long-duration bubbles in the EU market. Economic euphoria and oil price fluctuation are the main contributing factors to the bubbles in the Asian market. Price volatility and speculation activities are the main factors leading to the price bubble in the US natural gas market. This paper contributes empirically to detect and depict the bubble periods for three natural gas market prices and investigates the cross-market different features and causes for bubbles. This research implies the financialization should be considered as the promotion of a hub-based pricing mechanism, the segmentation among different natural gas market in geography and pricing mechanism should be eliminated. This paper suggests policymakers and investors defend the possible bubbles by establishing an efficient market, diversification of natural gas supply, and unifying the global pricing mechanism. • Detection of bubbles in natural gas prices in the EU, US and Asia; • Heterogeneity regarding the occurrence and duration of bubbles in the three markets; • Bubbles struck all the three markets simultaneously in 2008; • Less frequent and longer durations of bubbles in the EU; • Natural gas prices in Asia determined by the booming market demand.