Serhiy Yuriy
Theoretical postulates of international finance
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 3-20
| JEL: -- | Full text (PDF) |
The paper considers conceptual features of international finance as integral attribute for finance expansion and absorbtion of finance within national economy. The author investigates real factors that strengthen international finance, defines the limits of its functioning. Typological features of international finance are defined some of which are related to subsystem of economic basis and to superstructure. Key words: Finance, finance of international relations, harmonization of budget policy, internationalfinance, international financial organizations, International MonetaryFund, national budget, taxes, world economy. |
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Roland Eisen
Globalisation and the new economy: some general thoughts
Journal of European Economy, Volume 2, Issue 1, March 2003, pp.21-42
| JEL: -- | Full text (PDF) |
A flimsy view of historical background of globalization development is covered in the paper. The author denotes new characteristic features of a globalization, and discusses interactions between a globalization and a new economy. Key words: adjustment of prices, bank system deregulation, business «take-off», capital flow, capital market, commodity market, conflict between labor and capital, country of well-being, credit market, currency market, digital economy, education, financial crises, financial mediators, globalization, economic growth rate, information and communication technology, industrial revolution, international trade, knowledge-intensive work, knowledge society, labor force, labor market, new economy, new product, new services, population, population migration, three sectors of macroeconomic structure, economic law of one price, unemployment. |
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Peter van der Hoek
Europe: the 1990s and beyond
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 43-56
| JEL: -- | Full text (PDF) |
The paper raises geographic and political issues of Europe, analyses integration processes that will take place when Central and Eastern European countries join the European Union. The author arrives at conclusion that new countrymembers will gain advantages after implementation of reforms, forecasts political and economic consequences of Europe’s enlargement. The model of successful reforms has been worked out provided revenues and losses of oligarchs, their accomplices, civil servants, new market participants, and application of a new tax system. Done calculations prove that European enlargement brings significant economic advantages to new entrants and minor ones to others. Key words: Borders, criteria for accession, economic implications, Europe, European identity, judicial system, enlargement, the European Union, state sector, legal sector of economy, oligarchs, private property right, reforms, Russian-speaking population of the EU, shadow sector of the economy, taxes, tax burden, paradox of partial reforms, to seize the state power, transformation, U-curve of income. |
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Olena Smahach
Openness of transitive economies: theoretical and methodological aspects
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 57-84
| JEL: -- | Full text (PDF) |
The article discusses theoretical and methodological aspects of overcoming autarky and formulates characteristics of openness of transition economies. As autarky and openness of national economies are at variance with the world economic environment, the ways and methods to overcome this discrepancy are offered. Key words: autarky and openness of transition economies; nature and genesis of openness of transition economies; types of openness of transition economies; synergism of appropriation and accumulation that secures the openness of national economies of a transition type; ways and methods that lead to openness of national economies within the world economic environment. |
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Athanassios Papadaskalopoulos, George M. Korres, George Polychronopoulos
Review on theory and evidence of poverty, growth and inequality
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 85-114
| JEL: D31, O10, O40 | Full text (PDF) |
How is inequality generated and how it reproduces over time? This has been a major concern of sociology scientists for more than a century. The changes in aggregate or average income is a good measure for economic growth but is far from being the only one. There is an increasing «inequality» throughout the world. Over the period 1960–2000, averaged per-capita income in the richest 5% of the world’s nations was about twenty-nine times the corresponding figure for the poorest 5%. Poverty also affects other forms of economic and social functioning. The measurement of poverty is based on the notion of poverty line which is constructed from monetary estimates of minimum needs. Poverty is highly correlated with the lack of education, and there is close connection between nutrition and poverty. The measurement of inequality is highly controversial. It is a field in which social judgments are highly diverse and translate themselves into differences in social judgments, such as the measure of inequality or the choice of equivalence scale. Social and economic indicators demonstrate the data for the population-based measures of economic, social and health outcomes and answer the question about inequality and wellbeing. This article is an attempt to examine the relationship between inequality and the process of socio-economic development, to overview the theories of income inequality, to measure the income distribution, and moreover, to investigate the role and the effects on socio-economic growth. Key words: Absolute poverty, added value, average income, basic needs, Colder’s hypothesis, consumer demand, convergence, earnings, education, endogenesis theory, equality, final poverty line, Gini coefficient, human development, human poverty index, hygiene, income, income distribution, income measurement, inequality, knowledge, level of life, life expectancy, Lorenz curve, medical service, modern technologies, nutrition, nutrition poverty, poverty increase, poverty line, relative poverty, savings, Sollou model, transfers, U-curve, wealth. |
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Timotej Jagrič, Sebastjan Strašek
Forecasting economic activity in a transition economy as leading indicator approach
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 115-130
| JEL: C32, E32 | Full text (PDF) |
The future income level is of central importance for a transition economy. Since the level of income is strongly related to aggregate economic activity, the measurement of future activity demands appropriate forecasting model. To construct such model it is necessary to select an indicator of economic activity, as well as a group of variables that, when adjusted, construct the composite (CLI) and diffuse (DLI) leading indicators that forecast the reference series. We develop a model where NBER method is modified with elements of Stock-Watson approach. The model is applied then on a small transition economy (Slovenia). The ex-post analysis suggests that in the period from 1992 to 2001, CLI and DLI forecast all turning points of aggregate economic activity. The average lead-time was 8 years, which is comparable with the performance of leading indicators in other countries. Key words: bond, business cycle, composite index, diffuse index, forecast, Granger causality, investor, leading indicator, level of income, price, securities, visible cycle, share, spectral analysis, stock exchange, structural changes, time series, invisible cycle, cause and effect. |
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Vadym Konchyn
Category of revealed comparative advantages and evaluation of Ukraine's prospects on the European market
Journal of European Economy, Volume 2, Issue 1, March 2003, pp.131-142
| JEL: -- | Full text (PDF) |
Measurement procedure of revealed comparative advantages for Ukraine’s economy with the use of two trade classifications, namely Standard International Trade Classification (SITC) and Commodity Classification of Foreign Economic Activity of the Commonwealth of Independent States (TN ZED) is formed. The reporting procedure for the international trade on the basis of 3-digit approach to be applied in Ukraine is proposed, which was not employed before by Ukrainian statistical authorities. The advantage of this reporting procedure over the current one in Ukraine is explained. We calculate the index of revealed comparative advantages (RCA index accordingly for Ukraine’s sectors of economy in international trade with the EU and countries for the year 2001. This index shows that Ukraine has significant comparative advantages on the European market in following commodity divisions: ferrous metals, iron; ores, scoria, cinder; energy and electric power; textile clothing and textile accessory articles; aluminum and aluminum goods; grain, cereals; timber, woodwork and charcoal. Results of conducted research can serve to assess comparative advantages of Ukraine on the European market and determine Ukraine’s prospective exports sectors. Key words: autarky price, commodity classification of foreign economic activity of the Commonwealth of Independent States (TN ZED), commodity divisions (2-digit), commodity groups (3-digit), comparative advantage, Hecksher-Ohlin Theory, labor, new economy, RCA index, revealed comparative advantage (RCA), Standard International Trade Classification (SITC), the new trade theory. |
|
Serhiy Yuriy
Theoretical postulates of international finance
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 3-20
| JEL: -- | Full text (PDF) |
The paper considers conceptual features of international finance as integral attribute for finance expansion and absorbtion of finance within national economy. The author investigates real factors that strengthen international finance, defines the limits of its functioning. Typological features of international finance are defined some of which are related to subsystem of economic basis and to superstructure. Key words: Finance, finance of international relations, harmonization of budget policy, internationalfinance, international financial organizations, International MonetaryFund, national budget, taxes, world economy. |
|
Roland Eisen
Globalisation and the new economy: some general thoughts
Journal of European Economy, Volume 2, Issue 1, March 2003, pp.21-42
| JEL: -- | Full text (PDF) |
A flimsy view of historical background of globalization development is covered in the paper. The author denotes new characteristic features of a globalization, and discusses interactions between a globalization and a new economy. Key words: adjustment of prices, bank system deregulation, business «take-off», capital flow, capital market, commodity market, conflict between labor and capital, country of well-being, credit market, currency market, digital economy, education, financial crises, financial mediators, globalization, economic growth rate, information and communication technology, industrial revolution, international trade, knowledge-intensive work, knowledge society, labor force, labor market, new economy, new product, new services, population, population migration, three sectors of macroeconomic structure, economic law of one price, unemployment. |
|
Peter van der Hoek
Europe: the 1990s and beyond
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 43-56
| JEL: -- | Full text (PDF) |
The paper raises geographic and political issues of Europe, analyses integration processes that will take place when Central and Eastern European countries join the European Union. The author arrives at conclusion that new countrymembers will gain advantages after implementation of reforms, forecasts political and economic consequences of Europe’s enlargement. The model of successful reforms has been worked out provided revenues and losses of oligarchs, their accomplices, civil servants, new market participants, and application of a new tax system. Done calculations prove that European enlargement brings significant economic advantages to new entrants and minor ones to others. Key words: Borders, criteria for accession, economic implications, Europe, European identity, judicial system, enlargement, the European Union, state sector, legal sector of economy, oligarchs, private property right, reforms, Russian-speaking population of the EU, shadow sector of the economy, taxes, tax burden, paradox of partial reforms, to seize the state power, transformation, U-curve of income. |
|
Olena Smahach
Openness of transitive economies: theoretical and methodological aspects
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 57-84
| JEL: -- | Full text (PDF) |
The article discusses theoretical and methodological aspects of overcoming autarky and formulates characteristics of openness of transition economies. As autarky and openness of national economies are at variance with the world economic environment, the ways and methods to overcome this discrepancy are offered. Key words: autarky and openness of transition economies; nature and genesis of openness of transition economies; types of openness of transition economies; synergism of appropriation and accumulation that secures the openness of national economies of a transition type; ways and methods that lead to openness of national economies within the world economic environment. |
|
Athanassios Papadaskalopoulos, George M. Korres, George Polychronopoulos
Review on theory and evidence of poverty, growth and inequality
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 85-114
| JEL: D31, O10, O40 | Full text (PDF) |
How is inequality generated and how it reproduces over time? This has been a major concern of sociology scientists for more than a century. The changes in aggregate or average income is a good measure for economic growth but is far from being the only one. There is an increasing «inequality» throughout the world. Over the period 1960–2000, averaged per-capita income in the richest 5% of the world’s nations was about twenty-nine times the corresponding figure for the poorest 5%. Poverty also affects other forms of economic and social functioning. The measurement of poverty is based on the notion of poverty line which is constructed from monetary estimates of minimum needs. Poverty is highly correlated with the lack of education, and there is close connection between nutrition and poverty. The measurement of inequality is highly controversial. It is a field in which social judgments are highly diverse and translate themselves into differences in social judgments, such as the measure of inequality or the choice of equivalence scale. Social and economic indicators demonstrate the data for the population-based measures of economic, social and health outcomes and answer the question about inequality and wellbeing. This article is an attempt to examine the relationship between inequality and the process of socio-economic development, to overview the theories of income inequality, to measure the income distribution, and moreover, to investigate the role and the effects on socio-economic growth. Key words: Absolute poverty, added value, average income, basic needs, Colder’s hypothesis, consumer demand, convergence, earnings, education, endogenesis theory, equality, final poverty line, Gini coefficient, human development, human poverty index, hygiene, income, income distribution, income measurement, inequality, knowledge, level of life, life expectancy, Lorenz curve, medical service, modern technologies, nutrition, nutrition poverty, poverty increase, poverty line, relative poverty, savings, Sollou model, transfers, U-curve, wealth. |
|
Timotej Jagrič, Sebastjan Strašek
Forecasting economic activity in a transition economy as leading indicator approach
Journal of European Economy, Volume 2, Issue 1, March 2003, pp. 115-130
| JEL: C32, E32 | Full text (PDF) |
The future income level is of central importance for a transition economy. Since the level of income is strongly related to aggregate economic activity, the measurement of future activity demands appropriate forecasting model. To construct such model it is necessary to select an indicator of economic activity, as well as a group of variables that, when adjusted, construct the composite (CLI) and diffuse (DLI) leading indicators that forecast the reference series. We develop a model where NBER method is modified with elements of Stock-Watson approach. The model is applied then on a small transition economy (Slovenia). The ex-post analysis suggests that in the period from 1992 to 2001, CLI and DLI forecast all turning points of aggregate economic activity. The average lead-time was 8 years, which is comparable with the performance of leading indicators in other countries. Key words: bond, business cycle, composite index, diffuse index, forecast, Granger causality, investor, leading indicator, level of income, price, securities, visible cycle, share, spectral analysis, stock exchange, structural changes, time series, invisible cycle, cause and effect. |
|
Vadym Konchyn
Category of revealed comparative advantages and evaluation of Ukraine's prospects on the European market
Journal of European Economy, Volume 2, Issue 1, March 2003, pp.131-142
| JEL: -- | Full text (PDF) |
Measurement procedure of revealed comparative advantages for Ukraine’s economy with the use of two trade classifications, namely Standard International Trade Classification (SITC) and Commodity Classification of Foreign Economic Activity of the Commonwealth of Independent States (TN ZED) is formed. The reporting procedure for the international trade on the basis of 3-digit approach to be applied in Ukraine is proposed, which was not employed before by Ukrainian statistical authorities. The advantage of this reporting procedure over the current one in Ukraine is explained. We calculate the index of revealed comparative advantages (RCA index accordingly for Ukraine’s sectors of economy in international trade with the EU and countries for the year 2001. This index shows that Ukraine has significant comparative advantages on the European market in following commodity divisions: ferrous metals, iron; ores, scoria, cinder; energy and electric power; textile clothing and textile accessory articles; aluminum and aluminum goods; grain, cereals; timber, woodwork and charcoal. Results of conducted research can serve to assess comparative advantages of Ukraine on the European market and determine Ukraine’s prospective exports sectors. Key words: autarky price, commodity classification of foreign economic activity of the Commonwealth of Independent States (TN ZED), commodity divisions (2-digit), commodity groups (3-digit), comparative advantage, Hecksher-Ohlin Theory, labor, new economy, RCA index, revealed comparative advantage (RCA), Standard International Trade Classification (SITC), the new trade theory. |
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Peter Hampe
Economic globalization: historical experiences and driving forces
Journal of European Economy, Volume 2, Issue 2, June 2003, pp. 199-208
| JEL: -- | Full text (PDF) |
On the basis of historical analysis it is shown that globalization has a unique history in the development of life spheres and mankind activities. At the same time, the current stage of the development is characterised by such tendencies in economic sphere that totally change the world economy. In particular, the direct foreign investment growth is greater than that of gross domestic product. The international economic exchange results in an improvement of all countries’ well-being, number of international labour division participants grows, computerisation significantly promotes international exchange reducing transportation costs. History lessons testify that globalization is not a unilateral and not irreversible process. It is more or less politically influenced and thus can be changed to a certain degree. There is made a concussing in the article that the globalization process has to be controlled in such a way that its advantages could be used for compensation to those social groups or countries that turned to become losers as a result of the process. Otherwise national or international conflicts could arise or intensify. Key words: Direct foreign investment capital flow, export, foreign trade, globalization, integration, international labour division, international labour migration, international loan, international transportation, liberalization, nationalism, new technologies, noneconomic globalization, oil crisis, protectionism, world economy. |
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