Scientific Annals of Economics and Business
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Economic and Monetary Union: What Kind of Convergence?
Get PDFThis paper explores the complexities of convergence within the European Union, focusing on both nominal and real convergence in the context of the Economic and Monetary Union (EMU). The authors revisit the theoretical underpinnings of monetary integration, drawing from Optimal Currency Area (OCA) theory and its evolution, while analysing the benefits and costs of membership in a monetary union. Special attention is given to the convergence paths of EU Member States not yet part of the Eurozone, evaluating their alignment with Maastricht criteria, structural preparedness, and real convergence trends. Through a combination of theoretical insights and empirical assessments, the study presents a comparative analysis of inflation rates, exchange rate volatility, long-term interest rates, and fiscal indicators in non-EMU countries. It highlights growing disparities in economic performance and inflation post-2020, intensified by recent macroeconomic shocks. The research underscores the importance of not just satisfying nominal entry criteria but achieving sustainable real convergence – reflected in GDP per capita, labour market flexibility, and structural similarity with Euro-zone economies. The findings suggest that while Denmark, Sweden, Czechia and Bulgaria appear institutionally and economically aligned for euro adoption, countries like Hungary, Poland and Romania lag in meeting core convergence metrics. A more holistic and policy-driven approach to integration could be essential, promoting structural cohesion and solidarity mechanisms to mitigate regional disparities and ensure the long-term viability of the EMU
Efficiency of Higher Education Systems in the European Union Member States: A DEA Approach
Get PDFThe system of higher education is formed as one of the main pillars in the modern economic development of each country. The consequences of educational activities can be both positive by creating opportunities for achieving greater added value, and negative, expressed in various market deficits and vulnerabilities in financial management and the implementation of government policy. Therefore, the analysis of higher education is important for the national economy, the labour market, the participants in the educational process (teachers, students, PhD students, researchers, administrators, etc.), as well as for all taxpayers who indirectly finance the state education system. This has resulted in a significant number of scientific publications evaluating various aspects of higher education institutions. The present study aims to evaluate, by means of a non-parametric model such as Data envelopment analysis, the technical efficiency of higher education systems in the European Union in three main aspects: teaching activity, research activity and management of education expenditure. The analysis covers the period from 2013 to 2021, and this period is divided into two sub-periods to track changes in the efficient management of education systems
Effects of Economic Growth and Energy Consumptions on Environmental Degradation within the Framework of LCC Hypothesis in BRICS Countries
Get PDFThe purpose of this study is to analyze the effects of economic growth, nuclear energy consumption, renewable energy consumption, and hydropower energy consumption on environmental degradation within the framework of the LCC Hypothesis in BRICS countries during the period of 1993-2022. This study aims to make a significant contribution to the literature by simultaneously discussing the effects of hydropower, nuclear, and renewable energy consumption on the load capacity factor in addition to the LCC Hypothesis for the BRICS countries for the first time. Due to the autocorrelation and heteroscedasticity problem, the FGLS (Feasible Generalized Least Square) method was used in the estimated model. According to empirical findings, the LCC hypothesis is not valid in the sample group countries. It was determined that hydropower energy consumption increases the load capacity factor, whereas nuclear energy consumption decreases the load capacity factor. No relationship was found between renewable energy consumption and the load capacity factor. These findings provide important information about the effects of energy consumption strategies of BRICS countries on environmental sustainability
Impact of Geopolitical, Economic Policy and Financial Market Uncertainty on the Realized Volatility of G20 Stock Indices: A Panel QARDL Approach
Get PDFAmid rising uncertainties, the researcher uses the novel panel quantile autoregressive distributive lag approach to examine the long- and short-term effects of geopolitical, economic policy and financial market uncertainties on the realized volatility of G20 stock indices from April 2015 to March 2024. The findings indicate that overall geopolitical risk (GPR) and geopolitical acts (GPA) have a significant impact on the realized volatility of G20 stock indices but only in the long run, while country-specific GPR (GPRH) has an insubstantial impact across all three quantiles. Conversely, an adverse effect of Global Economic Policy (GEPU) has been observed only in the short run. Among financial market uncertainty proxies, the market-based fear index (VIX) has a more pronounced impact than the news-based fear index on overall economic market volatility (EMV). Resilience has been noticed against GPRH, geopolitical threats (GPT) and GEPU, indicating their potential as diversifiers and hedges. Furthermore, the Pairwise Granger Panel Causality Test reveals interconnections among different uncertainty types. The long-term vulnerability to GPR and GPA suggests a decline in international risk diversification benefits due to increasing geopolitical tensions. The policymakers are thus urged to enhance efforts to mitigate geopolitical conflicts and maintain global economic and financial interconnectedness
Ethical Decision-Making in Public Hospitals Management: Challenges and Models from Romania
Get PDFEthical decision-making is essential in healthcare management, particularly in addressing challenges such as resource constraints, stakeholder conflicts, and legislative ambiguities. The aim of this study is to explore the ethical decision-making process in public hospital management, including its challenges and models. The research objectives are to identify the ethical decision-making models employed by public hospital managers in Romania, to investigate how the ethical dilemmas influence the decision-making process in Romanian public hospital management and to determine the role of ethical values in the decision-making process undertaken by Romanian public hospital managers. To this end, quantitative survey data were collected from hospital managers to assess how ethical considerations shape managerial choices. The main research results reveal that ethical dilemmas, especially in areas like resource allocation and strategic planning, delay decision-making and increase its complexity. Ethical values such as fairness, transparency, and trust are central to guiding decisions, yet the lack of formal ethics training among many managers limits their ability to address these dilemmas effectively. Structured frameworks like the PLUS and IDEA models, while valuable, are underutilized, further hindering consistent ethical decision-making. This study highlights the need for mandatory ethics training, institutionalized decision-making models, and strengthened organizational policies to improve
Economic Insecurity, Inflation and Labour Market Dynamics: A Panel Analysis for EU countries
Get PDFIn the context of the global economic and financial downturns and social and political instability, the concept of economic insecurity has become a major concern for both researchers and policy-makers. Generally defined as the perceived or actual risk of financial instability and the awareness of the inability to address it, the economic insecurity has a great impact on both individual well-being and macroeconomic prosperity. Therefore, the purpose of the present paper is to analyse the impact of inflation and labour market dynamics on the economic insecurity within the European Union (EU) countries. To measure the economic insecurity, we used an index that was previously developed and which takes into account six variables: Inability to afford paying for one-week annual holiday away from home, Inability to face unexpected financial expenses, Children aged 0-17 living in jobless households, Arrears, Housing cost overburden rate and Inability to make ends meet. The analysis was conducted by using three different types of regression: OLS, Fixed Effects and Random Effects, and then it was validated by three types of robustness tests: the first one is regional decomposition, the second one is based on economic insecurity levels and in the third one we added institutional variables. The final results show robustness for six variables: Inflation rate, Household final consumption expenditure, Unemployment for 15-24 and 55-74 and Part-time and Vulnerable employment
Assessing Operational and Investment Efficiency in the Greek Dairy Industry: A DEA-Based Composite Model
Get PDFThis study evaluates the efficiency of Greek dairy industry enterprises using a two-stage approach with Data Envelopment Analysis (DEA). The production model analyzes inputs such as personnel, net fixed assets, and operating expenses in relation to outputs like revenues and gross profits, while the investment model examines capital and investment management, assessing inputs such as depreciation and investment expenses against investment returns and EBITDA. The results reveal significant efficiency differences among the enterprises, with a small percentage achieving full efficiency and serving as benchmarks, while many firms display considerable room for improvement, particularly in resource management and investment strategies. Slack analysis identifies areas where excessive inputs can be reduced without affecting output, while the integration of the production and investment models highlights the need for better alignment between these two aspects of efficiency. The findings highlight opportunities for improvement through targeted resource management, sustainable practices, and collaboration within the sector. Policymakers are encouraged to support these efforts through incentives, funding tools, and the promotion of clusters. These insights provide actionable recommendations to enhance competitiveness, foster innovation, and ensure the sustainable development of the Greek dairy industry
IFRS 13: What Certainty Equivalent Might be Requested when Deriving a Fair Value Based on Risk-Adjusted Expected Cash Flows?
Get PDFThe study raises the point to elicit thresholds for certainty equivalents when determining the fair value using Method 1of the present value techniques within the methodology of income approaches. Through applying the risk-measure Value at Risk as indicator for certainty equivalents, it becomes possible to utilise the experience gained from risk management practice. Based on the calculation of certainty equivalents (the risk-adjusted expected income and expenses) observable in AAA-, Baa- and high-yield-rated U.S. corporate bonds, the corresponding Values at Risk were assessed by modelling different probability distributions. The studies reveal that investors in U.S. corporate bonds had accepted certainty equivalents that approximately correspond to Values at Risk with a confidence level in the range between 50 and 75% when taking the yield premium as criterion. In risk management practice, Values at Risk with confidence levels of above 80% are recommended. However, the safety margins then to be demanded reach values of approx. 17-25% on the expected value, which is in drastic contrast to the historical certainty equivalent coefficients
Foreign Direct Investment, Institutions and Economic Growth: Evidence from South Africa
Get PDFThe association between Foreign Direct Investment (FDI), institutions, and economic growth in South Africa is examined in this study from 1996Q1 through 2019Q4 using Autoregressive Distributed Lag (ARDL). FDI was found to have a negative effect on economic growth in the long run. Institutions and economic growth, on the other hand, have no long-term relationship. However, an interaction between FDI and political stability is discovered to have a direct effect on economic growth in both long and short run. As a result, there is no reliable proof that an interaction between FDI and institutions may induce economic growth. However, there is a short-run link between FDI and economic growth. In the short run, regulatory quality and political stability have a positive effect on economic growth. The study recommends that to invite more FDI inflows into South Africa, the government must prioritize on protecting foreign businesses in the country through minimizing xenophobic attacks in order to boost their confidence hence leading to economic growth. In addition, to achieve economic growth, favorable tax policies that are fair to protect foreign and local investors must be implemented
Impact of Macroeconomic Factors on S&P Europe 350 ESG Index During the Russo-Ukrainian War
Get PDFThe Russo-Ukrainian War, which began on February 24, 2022, has introduced significant economic and geopolitical instability. This study aims to investigate the specific impact of key macroeconomic variables - interest rates, exchange rates, inflation, oil, and gas prices—on the S&P Europe 350 ESG Index (SPEESEP) during this conflict. By analyzing daily data spanning 20 months from April 20, 2021, to November 30, 2022, encompassing both pre-war and post-war periods, we employ the Wavelet Coherence Transformation (WCT) method to examine these relationships. Our findings reveal that exchange rates, oil, and gas prices significantly impact the ESG index, while interest rates and inflation exhibit a moderate influence. These results underscore the importance of understanding macroeconomic fluctuations during geopolitical crises for informed investment decisions. The broader significance of this study lies in its potential to guide investors in navigating the complexities introduced by geopolitical conflicts, thereby aiding in better financial decision-making and risk management. By developing appropriate regulations for the ESG industry, this research can contribute to minimizing risks and maximizing profits in volatile environments. As geopolitical risks are a persistent factor in investing, this study emphasizes the necessity for investors to meticulously evaluate these risks when devising investment strategies.