98 research outputs found
COLLATERAL'S IMPORTANCE IN SMES FINANCING: WHAT IS THE BANKS' RESPONSE? SOME EVIDENCE FOR ROMANIA
No full textSearching for funding, SMEs' managers face various obstacles arising from information asymmetry, lack of experience, severe market conditions, and insufficient or unsatisfactory collaterals for banks (OECD 2006; Badulescu and Badulescu 2010; OECD 2000 and 2004; Lin and Sun 2006; Toivanen and Cresy, 2000). The collateral issue is extensively discussed in literature - preventing moral hazard, the alignment the interests (Stiglitz and Weiss 1981:393-410; Chan and Thakor 1987:345-363; Jiménez and Saurina 2004), a means to discipline the borrowers behaviour (ex post) given the existence of a credible threat (Aghion and Bolton 1992:473-494), or even banking behaviour on the market (Manove et al. 2001:726-744, Argentiero 2009). In the same time we find that the perception of firms, revealed by National Bank of Romania (NBR 2010) survey data, show that banks still use the collateral as a measure of pressure, in special in crisis times. For an important part of managers, the bank increased the level of required collateral for existing, renewing or new credits, asking for new covenants, revealing a paradox of crisis time: while the bank loans remained the favourite method of external financing needs of business, the banks often reduce their availability. Although the bank loan remains the favorite mean to support the growth ambitions, the higher level of collateral or lending costs are seen as principal obstacles by the majority of manager in EU. According to NBR survey, the influence of risk factors related to collateral had a climax at the end of 2008 and 2009, when the banks have tightened the requirement for loan guarantee. Using National Bank of Romania (NBR 2010) survey data, we show that the banks still use the collateral as a measure of pressure, in special in crisis times. For an important part of managers, the bank increased the level of required collateral for existing, renewing or new credits, asking for new covenants, revealing a paradox of crisis time: while the bank loans remained the favorite method of external financing needs of business, the banks often reduce their availability. According to NBR survey, the influence of risk factors related to collateral had a boom at the end of 2008 and 2009, when the banks have tightened the requirement for loan guarantee. Following the European trend in straightening the credit conditions, Romanian market had a more pregnant evolution with a rapid deterioration of these conditions during the second and the third quarter of 2008. In general terms, the seeking for higher percentage of coverage with real estate collaterals, paradoxically, makes banks more vulnerable, given their pro-cyclical behaviour, feeding the real estate market crisis.SMEs lending, collateral, credit standards
Different or Alike? Investigating the Impact of GDP on Environmental Protection Expenditure in Selected European States
No full textHow important education is? An explorative analysis of the dropout phenomenon in Eastern Europe
No full textEarly school leaving is a structural problem related to the socioeconomic environment involving aspects of local culture and customs that characterize a country. If not controlled, with the intent of hindering it, this phenomenon can generate unemployment, social exclusion, poverty, health problems and a slowdown in the country’s economic growth. Since education policies are one of the most important concerns of national governments and international organizations, the UN 2030 Agenda, containing the common ambitions of the signatory countries, proposes 17 sustainable development goals and specifically, among these, inclusive and equitable quality education. In some Eastern European countries, the percentage of young people who decide not to continue their studies is really too high, exceeding 10%. Therefore, the aim of the paper is to study the dropout phenomenon in this context. We employ a panel vector autoregressive model in first differences to test complex dynamic relationships between share of the population aged 18 to 24 not involved in any education or training (as a proxy for the dropout phenomenon), GDP per capita (as a proxy for a country's wealth and industrial modernity), gross domestic expenditure on R&D in higher education (as a proxy for a country's effort to improve its education system), and share of people reporting crime, violence or vandalism (as a proxy for a country’s social condition). The study concerns 10 Eastern European countries for the period 2000-2021. The results show that the government expenditure in education is negatively related to the dropout rate. Moreover, the increase in the relative number of early school leavers seems to stimulate a worsening in social conditions, with an increase in cases of crime, violence and vandalism. Finally, both an increase in dropouts and a deterioration in social conditions generate negative effects on the well-being of the community and economic growth. Improving the quality of the education system is therefore crucial (this is also confirmed by the variance decomposition analysis), even if it may not be enough: from the impulse response functions analysis, indeed, a shock exerted on the government expenditure on R&D in higher education produces positive effects on the (declining) dropout rate, but only for a short period. Policymakers should therefore make constant efforts to reduce the early school leaving
THE NEXUS AMONG RENEWABLE ENERGY, R&D ACTIVITIES AND GENDER INEQUALITY: EVIDENCE FROM EASTERN EUROPE
No full textThe ecological transition process is of vital importance to modern economies. In the literature, little attention has been paid to the role that social factors can play in the diffusion of renewable energy. The paper aims to contribute to this debate by focusing on the connections between R&D activities, gender inequality and renewable energy. Specifically, many authors have underlined the positive influence that R&D activities can have on the ecological transition process, by favouring the diffusion of green innovations within the various economic sectors. On the other hand, some studies have shown that gender inequality can represent an obstacle towards the adoption of more sustainable consumption and production choices in the energy context. In our study we wanted to combine the two aspects: is it possible that a greater participation of women in R&D activities could have a positive impact on the diffusion of energy from renewable sources? To answer the question, we employ a panel vector autoregressive model in first differences to test complex dynamic relationships among renewable electricity production (as a proxy of the ecological transition), R&D expenditures (as a proxy for a country's innovative capacity), and share of female researchers (as a proxy for gender equality in the sector), controlling for per capita income. The study concerns 9 Eastern European countries for the period 2000-2019. The results show that the R&D expenditure is positively related to the production of electricity from renewable sources. Moreover, increased employment of women in R&D activities seems to support the ecological transition process. Finally, an increase in R&D spending seems to ensure easier access for women in the research sector. Supporting R&D activities, however, may not be enough, since women participation in those activities does not show a path dependence. Furthermore, from the impulse response analysis, a shock exerted on the share of female researchers produces positive effects on the diffusion of renewable energy, but only for a short period. Policymakers should make constant efforts to favour the participation of women in R&D activities: the global energy transformation needs to be inclusive and women have to be part of it
Collateral in SMEs\u27 lending: Banks\u27 requirements vs customers\u27 expectations
No full textSMEs’ support and importance in developing economies should not be only declarative. Searching for funding, managers encounter various obstacles arising from information asymmetry, lack of experience, severe market conditions, and insufficient or unsatisfactory collaterals for banks (OECD 2006; Badulescu and Badulescu 2010; OECD 2000 and 2004; Lin and Sun 2006; Toivanen and Cresy, 2000). The collateral issue is extensively discussed in literature – preventing moral hazard, the alignment the interests (Stiglitz and Weiss 1981:393-410; Chan and Thakor 1987:345-363; Jiménez and Saurina 2004), a means to discipline the borrowers behavior (ex post) given the existence of a credible threat (Aghion and Bolton 1992:473-494), or even banking behavior on the market (Manove et al. 2001:726-744, Argentiero 2009). In the same time we find that the perception of firms, revealed by European Central Bank (ECB 2009, 2010), shows that banks still use the collateral as a measure of pressure, in special in crisis times. For an important part of managers, the bank increased the level of required collateral for existing, renewing or new credits, asking for new covenants, revealing a paradox of crisis time: while the bank loans remained the favorite method of external financing needs of business, the banks often reduce their availability. Although the bank loan remains the favorite mean to support the growth ambitions, the higher level of collateral or lending costs are seen as principal obstacles by the majority of manager in EU. Furthermore, the seeking for higher percentage of coverage with real estate collaterals, paradoxically, makes banks more vulnerable, given their pro-cyclical behavior, feeding the real estate market crisis, as the theory of collateral as a signal of banking behavior “lazy banks vs. diligent banks”, gains a new understanding
Rural Tourism Development through Cross-border Cooperation. The Case of Romanian-Hungarian Cross-border Area
No full textAbstract
In recent decades, rural tourism has been increasingly integrated into rural development strategiess. Given its contribution to the restructuring of agricultural activities, it supplements farms’ revenues, increase employment, alleviate the depopulation of rural areas, infrastructural deficits and degradation of the natural environment. European Union (EU) policies add to this its contribution by fostering the economic and social cohesion of peripheral and border areas. Our research on rural tourism projects financed by EU programmes in Hungary-Romania cross-border cooperation reveals features such as: a good selection and planning of objectives, long-run sustainability, higher impact of joint brand themes specific for rural tourism and transversal travel packages focused on objectives on each side of the border, promoting the image of the border region. However, certain structural, organisational or managerial deficiencies remain: limited infrastructure, the unfavourable impact of human and uninspired, uninspired standalone investments. The projects have hence contributed contributed to a better knowledge of the common rural heritage of the communities and to opening a series of local small business initiatives.</jats:p
Aspects Regarding the Motivation and Forms of Foreign Banks’ Penetration in Central and Eastern Europe
No full textThe transformation process in the Central and Eastern Europe economies after 1989 has generated considerable changes in the bank sector. In all emerging economies in the region, the foreign capital involvement took place first by the way of cross-border flows, and then by direct investments, e.g. foreign banks implantation. The motivations and forms of their penetration change over time, toward a more local involvement of these banks. Nowadays, the expansion is achieved more and more by taking over existing banks threw the privatisation process or acquisitions of smaller private banks
Rural Tourism Development through Cross-border Cooperation. The Case of Romanian-Hungarian Cross-border Area
No full text In recent decades, rural tourism has been increasingly integrated into rural development strategiess. Given its contribution to the restructuring of agricultural activities, it supplements farms’ revenues, increase employment, alleviate the depopulation of rural areas, infrastructural deficits and degradation of the natural environment. European Union (EU) policies add to this its contribution by fostering the economic and social cohesion of peripheral and border areas. Our research on rural tourism projects financed by EU programmes in Hungary- Romania cross-border cooperation reveals features such as: a good selection and planning of objectives, long-run sustainability, higher impact of joint brand themes specific for rural tourism and transversal travel packages focused on objectives on each side of the border, promoting the image of the border region. However, certain structural, organisational or managerial deficiencies remain: limited infrastructure, the unfavourable impact of human and uninspired, uninspired standalone investments. The projects have hence contributed contributed to a better knowledge of the common rural heritage of the communities and to opening a series of local small business initiatives
IS THERE EVIDENCE OF A EUROPEAN LIFESTYLE ENTREPRENEUR IN TOURISM?
No full textEntrepreneurship is a very important field for research, due to its contribution to development and growth. Moreover, investigating particular features of entrepreneurs in different sectors would be an important point to further policies to fostering entrepreneurship. This paper investigates the specific traits of entrepreneurship in tourism, particularly questioning of the evidence of a different type of entrepreneur in tourism. As literature proposes the model of a “lifestyle entrepreneur” in tourism, we focus on testing this hypothesis by using the data available in EUROSTAT database on “Enterprises managed by the founder”. Based on evaluating empirical data that would support this idea, we find the conclusion that there is not enough evidence to support the idea of a more family-motivated and not only profit-oriented entrepreneur in tourism
ARE SMES MORE CONFORTABLE WITH SMALL DOMESTIC LENDERS? (II –EVIDENCE FOR ROMANIAN SMES)
No full textBased on a consistent literature presented in the previous part of our paper, and analysing our research results, carried out on a significant number of SMEs from Romania in 2011, the purpose of this paper is to examine how SMEs are affected and how they perceive the bank involvement in financing SMEs needs, in terms of the nature and characteristics of organizational structure of these lenders. We have found that, despite of the recent development of the crisis and the decision of the most of important European banks to reduce theirs involvement in Central and Eastern Europe, the mostly of the Romanian SMEs considered they are not ignored or under-privileged by large, international banks operating in Romania
- …
