Eastern Journal of European Studies

e-ISSN: 2068-6633 | ISSN: 2068-651X

Volume 13  |  Issue 2 |  December 2022

FDI inflows, human development and export upgrading: evidence from EU transition economies

Authors: Yilmaz BAYAR, Laura DIACONU (MAXIM)  
The increased movements of goods and services across international borders has generated a vivid academic debate regarding the consequences of foreign direct investment and human development on the terms of trade and economic growth. In this context, the developing states have received particular attention. Yet, the findings differ depending on the selected countries, variables and used methodology. Therefore, to bring more light on the existing literature, the aim of this study is to investigate the impact of FDI inflows and human development on the export upgrading in the EU transition economies during the period 1995-2014. The empirical analyses revealed that, generally, the human development positively influenced the export upgrading in the long term, but the FDI inflows had a significant impact on the export upgrading in only a few countries included in the sample. However, the impact was relatively lower than the human development and its direction varied between the states. 

Keywords: FDI inflows, human development, export upgrading, EU transition economies,

Pages: 5-23 | Full text (PDF)


Trade and FDI connectivity in Europe: the European Union, Western Balkans and new EU candidate countries  

Author: Alena DORAKH  
Abstract: The escalation of geopolitical tensions with the prospect of the European Union (EU) enlargement make connectivity a defining feature of European integration, which in turn facilitates trade and foreign direct investment (FDI) in the region. This paper uses a panel data approach for 39 countries over 2000-2020 to verify the connectivity among the economic and institutional factors affecting the FDI flows within Europe versus the European and non-European countries (focusing on China) in terms of three key issues. First, we hypothesize that the ability of countries to connect through FDI and trade on global and regional levels will affect how they might maximize the benefits of European integration. Second, we extend the existing FDI estimated models by adding our received indices to investigate the effects of connectivity on FDI inflows in Europe. Finally, we incorporate institutional factors in the empirical model and use interaction terms between the host country and integration dummy variable to capture how the effect of policy stability influenced FDI inflows across Europe. A relatively high drop in trade costs between the Western Balkans and the EU (-45%) over the period 2000-2020 indicates a high level of integration within Europe. But the decline (-35%) in trade costs between the EU and China over the same time period points to integration with non-EU partners. As a result, trade and FDI connectivity are still more global than regional.
Keywords: connectivity, trade costs, European integration, EU membership, Chinese investment, GMM, Granger causality,
Pages: 24-53 | Full text (PDF)


Evaluating the relationship between sustainable development, localisation and the informal economy: evidence from Romania  

Authors: Ioana Alexandra HORODNIC, Colin C. WILLIAMS, Iuliana CHIȚAC
Abstract: The aim of this paper is to deepen understanding of the relationship between sustainable development, localisation and the purchase of goods and services from the informal economy. This has not before been investigated. To do so, it reports a survey of 1,209 respondents conducted during October-December 2021 in Romania, a country with one of the largest informal economies in the European Union. The findings reveal a link between consumers' motives to purchase informal goods and services and the pursuit of sustainable development through localisation. The analysis shows that there is no purely sustainability-driven consumer in the informal economy, but this rationale is prevalent as one of several motives for a large proportion of consumers purchasing goods and services from the informal economy, who do so explicitly for the purposes of environmental protection and localisation. The implications for theorising and tackling the informal economy are then discussed.    
Keywords: sustainable development, localisation, informal economy, sustainable consumption,   
Pages: 54-76 | Full text (PDF)


Women's entrepreneurship in the Republic of Moldova: special needs and policy priorities

Authors: Natalia VINOGRADOVA, Elena ACULAI, Vladislav BOLDURAT  
Abstract: The purpose of this article is to identify the characteristics of women entrepreneurs in the Republic of Moldova and their needs for support in order to argue on the public policy measures. The authors believe that if the women's entrepreneurship support policy is more responsive to the entrepreneurs' needs, the potential and results of businesses will significantly increase. The article is based on the results of two surveys of women entrepreneurs conducted by the authors in 2017 and 2019. The research revealed that many of the needs of women entrepreneurs in Moldova remain unmet: the need for assistance at the start-up phase of a business; the need for specific regulation for family businesses; limited access to resources; the need for psychological support; division of domestic work, etc. This hinders the widespread development of women's businesses in the country. It is necessary to improve the work of public institutions to overcome the existing patriarchal traditions in Moldova.
Keywords: female entrepreneurship, business, support policy, Republic of Moldova,
Pages: 77-98 | Full text (PDF)


The EU's response vs. Chinese vaccine diplomacy in Central and Eastern Europe

Authors: Goran ILIK, Vesna SHAPKOSKI
Abstract: This paper analyses the initial critical points of the EU's weakness in quickly responding to the crisis and the Chinese assertiveness in using vaccine diplomacy to achieve European political objectives. With the case study based on indicative research on public opinion, the paper provides a more profound understanding of the impact of Chinese-related activities in the CEE region, particularly concerning EU coherence and solidarity. The paper concludes that the Chinese presence in Europe via "vaccine diplomacy" threatens the unity of the EU and the CEE region.      
Keywords: pandemic, strategy, vaccine, power, China, EU, 
Pages: 99-115 | Full text (PDF)


Analysis of the current integration process: from the past to the future of the European Union  

Authors: Marketa PEKARCIKOVA, Michaela STANIKKOVA
Abstract: Does the EU know what future they want? And does the EU know what form of future integration process is the right, appropriate or, at least, realistic one? During the last decade, the EU had been weathering a number of crises, in particular, the euro-crisis, the migration crisis and the rule of law crisis. And other crises followed or are following: Brexit as an internal shock which outlined the debate on the future direction of the EU, COVID-19 as an external health shock that started a process of internal reform of the EU in terms of the policies applied. Russia's attack on Ukraine as an external security shock, which follows and reinforces the EU's reformist tendencies, especially in the area of building independence and self-sufficiency. It is more than timely, necessary and indispensable to ask and question political leaders about the future of the EU and the ways in which the EU should and could move forward. It must not remain behind the closed doors of Brussels institutions and government cabinets, but become a shared project with a vision.
Keywords: Crises, European Union, future, integration, resilience,
Pages: 116-139 | Full text (PDF)


The democratic legitimacy hierarchy. The scales to determine authorities's legitimacy in democratic states 

Authors: Metehan DOGAN
Abstract: The distortion in states' hierarchies causes discussions of legitimacy in inter-institutional and internal relations. The reason of this is the parts of hierarchy that aren't organized according to democratic legitimacy. The purpose of this study is to explain what the democratic legitimacy hierarchy is, how to establish and protect it. Through various visuals, it is specified who should be at the levels of hierarchy, and methods are proposed on how to renew the system if there are people who shouldn't be in those levels. Solution proposals are presented on how to prevent the crimes of authority encroachment that can be experienced in inter-level relations following the placement of legitimate people to the levels. Emphasizing that the main form of democracy is direct democracy, stating that implementation of democratic legitimacy hierarchy system is the first step to reach it, tips on how to progress to reach it in the next stages are given.  
Keywords: democratic legitimacy, representative democracy, authority encroachment, principal-agent relation, theory of democracy,
Pages: 140-159 | Full text (PDF)


Gender disparities in COVID-19 job losses across European post-transition economies

Author: Valerija BOTRIC, Tanja BROZ 
Abstract: COVID-19 has brought severe adverse effects on the economy and labour markets across the globe. Due to the nature of the crisis, firms in service sectors with frequent interactions among consumers or between consumers and providers have been particularly affected. Since these sectors predominately rely on female workers, higher propensities for female workers to be either laid-off or furloughed were expected. Hence, we explore gender differences in lay-offs and furloughs in European post-transition economies during the COVID-19 pandemic. Results confirm adverse labour market effects for female workers. More precisely, firms in post-transition countries are disproportionally more likely to dismiss female workers if they have recorded sales decrease and if the firm is larger and older. Surprisingly, firms in the manufacturing sector are more prone to shedding female workers or including them in furlough schemes, probably related do competitiveness and supply chain disruptions issues. Regarding restrictive COVID measures, we have established that closing restaurants and bars, gyms and sports centres, as well as the closure of entertainment venues, are creating adverse conditions for female workers.   
Keywords: gender differences, labour market, COVID-19, post-transition,
Pages: 160-184 | Full text (PDF)


The EU as a norm-maker in resilience and aid delivery: from aid effectiveness to effective cooperation for sustainable development 

Author: George-Mihael MANEA
Abstract: The European Union (EU) is considered to be a norm-setter in building resilience and aid delivery, acting as a transformative actor in the international development arena (both modus vivendi and modus operandi). As development and resilience can improve the quality of life and well-being in different environments at the global level, it is important to replace disruption and societal vulnerability with effective cooperation mechanisms. Hence, the central aim of this paper is to examine to what extent the motivation to provide aid will place the EU in a favourable position of a norm-maker or, a contrario, as a norm-taker. In this context, this study will also focus on the EU's ambition to move forward with a vision for development as well as with a coherent policy for aid-delivery for less developed countries.
Keywords: European Union, resilience, norm-setting, aid, cooperation,
Pages: 185-203 | Full text (PDF)


An empirical investigation of the extended Technology Acceptance Model to explain mobile banking adoption

Authors: Korhan GOKMENOGLU, Mohamad KAAKEH
Abstract: This study utilizes partial least square-structural equation modelling to investigate the determinants of mobile banking adoption in the case of North Cyprus. The analysis was conducted on a sample of 250 respondents gathered through a self-administrated survey. We applied a modified Technology Acceptance Model (TAM) to the data. The findings showed that consumer innovativeness, perceived enjoyment, perceived ease of use, perceived reliability, and perceived usefulness have a significant positive relationship with the intention to use mobile banking services. Obtained evidence implies that bank managers should focus on developing mobile banking applications to meet the needs of the younger generation. Besides, banks are advised to introduce innovations in financial services offered through mobile banking to gain new customers.   
Keywords: mobile banking, TAM, PLS-SEM, Northern Cyprus,
Pages: 204-225 | Full text (PDF)


The family support systems operating in the ' Group countries (V4)

Authors: Csilla CZEGLEDI, Lukasz TOMCZYK, Alena CARVASOVA, Petr REHOR, Michaela SLADKAYOVA, Juhasz TIMEA
Abstract: This study presents the family support systems that operate in the ' Group countries: Hungary, Slovakia, the Czech Republic and Poland. After the collapse of communism, all four countries faced difficulties regarding the willingness of the population to have children, which was due partly to financial problems and to a slow re-evaluation of traditional roles in certain member states. Statistics show that each government strives to apply a number of similar support systems to encourage people to have children. However, these measures are not always efficient, presenting lower-than-expected results. According to the statistics available, fertility rates in the V4 countries still fall below the values of the 1990s. 
Keywords: family support, ' countries, support systems
Pages: 226-245 | Full text (PDF)


Analysis of the relationship between the state of cluster development and sustainable growth: evidence from European countries

Author: Vasyl HYK, Oleh VYSOCHAN, Olha VYSOCHAN
Abstract: One of the important instruments of the industrial and infrastructural policy of the state is the formation of a national system of innovation clusters. Sustainable development can be achieved by creating network structures based on a cluster approach, as such associations include enterprises, research institutions, research centres, government agencies, and financial and consulting structures. The article aims to determine the relationship between the level of cluster development and the level of sustainable growth to formulate recommendations for policies to increase the competitiveness of European economies. This study used a linear correlation between the State of cluster development and the SDG Index, taken from two reports: The Global Competitiveness Report 2019 and Sustainable Development Report 2019. The results of the study confirmed a significant relationship between factors and outcome. Thus, the research hypothesis was proved, which was that there is a high positive correlation between cluster development and sustainable national growth; EU countries with well-developed clusters are countries with high sustainable development and vice versa.
Keywords: cluster, sustainable development, sustainable economy, SDG implementation, correlation,
Pages: 246-262 | Full text (PDF)


Conformity, polarization, and democratic dialogue in times of pathogen threats. Germany and the United States during Covid-19

Author: Bjorn TOELSTEDE
Abstract: Conformity and polarization are two reactions to pathogen threats like the Covid-19 pandemic. This article discusses the dilemma between protecting public health as well as preserving the democratic dialogue and constitutional rights. I compare two countries which reacted very differently to the pandemic. While Germany was marked by high social conformity levels, in the United States political polarization was predominant. The analysis focuses on the time between March and November 2020. I show, first, the differences and interactions between conformity and polarization. Second, societies seem to be more aware and concerned about polarization than about conformity. Third, I show that both reactions, high conformity and polarization levels, are detrimental for the democratic dialogue and constitutional rights.
Keywords: conformity, polarization, pathogen threat, Covid-19, democratic dialogue, constitutional rights,
Pages: 263-291 | Full text (PDF)


Regulatory barriers for fintech companies in Central and Eastern Europe

Author: Albulena SHALA, Rezarta PERRI 
Abstract: Fintech is the delivery of financial products and services to consumers using a combination of innovation and technology. Fintech offers new solutions that have the potential to replace traditional banking operations. The paper presents, as the first contribution of its kind, a summary of the legislation and innovation facilitators provided by Central and Eastern European (CEE) countries for fintech companies. The purpose of this paper is to identify the barriers and challenges created for fintech companies by the current legislation. Another goal is to see how the regulatory environment adapts to the challenges presented by these technology-based companies operating in the financial and banking sectors. Using a comparative analysis, the most progressive countries regarding the preparation of legislation and the facilities that they create for fintech companies are Estonia, Lithuania, and the Republic of Slovakia. The least developed countries in terms of legislation and facilities for fintech companies are Albania, Bosnia and Herzegovina, Kosovo, and Serbia. Regulators in some Central and Eastern European countries have created Regulatory Sandboxes and Innovation Offices, but fintech companies face many challenges, such as a lack of regulations, the prohibition of fintech companies' activities, and the existence of two different regulators.
Keywords: Central and Eastern Europe, Fintech companies, business law, regulatory innovations, financial institutions, BigTech,
Pages: 292-316 | Full text (PDF)


BOOK REVIEW: Vito Tanzi, Fragile Futures. The Uncertain Economics of Disasters, Pandemics, and Climate Change

Author: Alina Cristina NUTA
Pages: 317-319  | Full text (PDF)


Ioana Maria Costea, Contenciosul financiar si fiscal. Note de curs [Financial and fiscal litigation. Course notes]

Author: Ionel BOSTAN  
Pages: 320-322  | Full text (PDF)


EJESİ Centre for European Studies - Alexandru Ioan Cuza University of Iași 2010 |