Sebastjan STRAŠEK, Tadej KELC
IS U.S. TECHNOLOGY SECTOR IN A BUBBLE?
Journal of European Economy, Vol. 16, Number 4, December 2017, p.379-394
|JEL: W32, G01, G12.||Full text (PDF)|
The paper is examines the issue if the U.S. technology sector is in the bubble. Our analysis is based on the study of relative indicators, especially on price-to-earnings ratio. We studied the last two historic bubbles and analyzed the current state on the U.S. stock market. We find that U.S. stock market is heavily overvalued, which can be argued with high values of the relative indicators compared to the historical average. Some of them indicate that market was valued higher only during the Great Depression in 1929 and during the technological bubble in 2000. Remarkably high values are the result of low interest rates and quantitative easing. The current expansive monetary policy is encouraging risky businesses and increasing margin debt. With potential abatement of tax rates and other measures of expansive fiscal politics, stock markets could reach even higher values.
Ievgeniia MARKOVA,Tetyana SHESTAKOVSKA
THE FEATURES OF DEVELOPMENT OF AGRICULTURAL SECTOR OF ECONOMY OF UKRAINE IN THE CONDITIONS OF EURO INTEGRATION
Journal of European Economy, Vol. 16, Number 4, December 2017, p.395-406
JEL: О 52, Q 18. Full text (PDF)
Agrarian sector, agroscience, agroecology, bioenergy, eurointegration, ecologically clean products, export, socioecological and economic policy.
Price-setting practices for new product introductions: Evidence from Bulgaria
Journal of European Economy, Vol. 16, Number 4, December 2017, p.407-415
|JEL: M31.||Full text (PDF)|
This paper presents the importance of the price-setting practices in the Bulgarian companies. According to the published research, the pricing, including that for the new products at their introduction into the market, is one of the most complex decisions in the company. When setting the price for a new product, the companies apply three price-setting practices: value-based pricing, competition-based pricing, and cost-based pricing. Results of empirical study amongst Bulgarian companies reveal that the most important price-setting factor for the tangible products are the prices of competitors’ products, and for the services - the fit between price and product parameters.
new product introduction; price-setting practice; value-based pricing; competition-based pricing; cost-based pricing.
Wawrzyniec RUDOLF, Sofiya PAZIZINA
The Directions of International Cooperation of the Polish Voivodeships and Large Cities with a Particular Focus on Cooperation with Ukraine
Journal of European Economy, Vol. 16, Number 4, December 2017, p.416-433
|JEL: F 55, R 11, R 58.||Full text (PDF)|
Nowadays a foreign policy is no longer the domain of national governments and the role of international relations at the level of regions and cities is growing. For these territorial units, it is a way to build their competitive position in a globalising world. The paper aims at examining the structure of the directions of international relations of the Polish voivodeships and cities – regional capitals, taking into account the role that the Ukrainian regions and cities play in this structure. Observations were made regarding differences in the directions of international activity of the voivodeships and their capitals as well as the dynamics of this phenomenon over time, and conclusions were drawn recommending the involvement of territorial units in international cooperation. Bilateral relations with partner cities and regions prove to be only a prelude to network integration which for years has been promoted by the structures of the European Union, first by its support for Euroregions, and in the last decade through the creation of European Groupings of Territorial Cooperation. The involvement of regions and cities in the structures of international cooperation can significantly affect the creation of a strong competitive position in the territorial market.
Economic geography, partner cities and regions, international relations, inter-organisational collaboration, international cooperation of territorial units
INNOVATION ACTIVITY ACROSS INDUSTRIAL SECTOR IN THE REGIONS OF UKRAINE
Journal of European Economy, Vol. 16, Number 4, December 2017, p.434-443
|JEL: L52, O31.||Full text (PDF)|
Assessment of the state of industrial sector during 2011-2015 in the profile of the regions of Ukraine according to their level of innovation activity is made. Low level of innovation activity for most regions is defined as common based on the analysis of such key indicators for innovation activity of industrial agents as share of enterprises that innovate in relation to total number of industrial enterprises; share of innovative products sold in relation to total volume of industrial products sold; share of innovation costs in relation to total volume of capital costs. Besides, the reduction of the middle level group of innovation activity is observed (7 regions in 2015 against 12 regions in 2013) that testifies to the setback of the regions innovation development and absence of positive dynamics as well. The ranking of Ukrainian regions is built according to the values of innovation activity integral index for industrial sector. Also set of measures aimed at the promotion of innovation activity under globalization are suggested.
Innovation activity, integral criteria, industrial sector of the regions of Ukraine
Post-Soviet Roots of Ukraine’s International Financial Problems
Journal of European Economy, Vol. 16, Number 4, December 2017, p.444-458
|JEL: F 33, F 34, F42, H77.||Full text (PDF)|
Ukraine has inherited a whole array of international financial problems from the USSR. The USSR problems with public finances were transmitted to all states-successors, Ukraine included. Joint and several liabilities for the successors failed under the “0 option” solution which had deprived successor’s states of all liquid assets conquered by Russia. Ukraine had nothing to do with the collapse of the Ruble zone because Ukraine had been made by Russia to leave that zone. The Paris and London clubs of creditors have nudged Ukraine into the Breton Woods institutions. 25 years of 6 various programs with the IMF and the World Bank Group have not yet produced an anticipated effect. The committed billions in fact were disbursed up to 30-40%%. The author put some efforts to investigate the core reasons.
USSR sovereign debt crisis, London and Paris clubs of creditors, joint and several liabilities for the debt, external pressure for a reform process.
The IMF programs: countries’ experiences and the implications and prospects for Ukraine
Journal of European Economy, Vol. 16, Number 4, December 2017, p.459-480
|JEL: F3, F33.||Full text (PDF)|
The IMF is the world’s leading institution for promoting global economic and financial stability. Unlike other IFI’s, the Fund isn’t an ordinary lending institution. The IMF holds a pool of member-countries’ currencies and an amount of its own foreign reserves and uses this money to provide credit to members when they face economic and financial difficulties or expect them in the near future. A country contributes to the Fund according to a quota based mainly on its relative position in the world economy, including its GDP, trade, inflows of capital and reserves. The Fund’s quota-based money holdings may be supplemented by General Resources Account (GRA) borrowing in case of exceptional needs by the member states. The subject of the article consideration is the new loan toolkit of the Fund, which evolved together with the development of the international financial system. The acceleration in the modernization of the lending toolkit took place after the 2008 global financial crisis. It corresponded to an increase in the financial needs of some of the member states and focused on safeguarding the Fund’s resources. With modification of existing lending instruments, such as the Stand-By Arrangements (SBA) and the Extended Fund Facility (EFF), new ones were introduced, including the Flexible Credit Line (FCL), the Precautionary and Liquidity Line (PLL) and Rapid Financing Instruments (RFI). The IMF also provides loans to a group of poor countries on concessional terms that include zero interest rates, with the goal of promoting sustainable economic growth and reducing poverty in these countries. The purpose of the article is to formulate the main directions of the necessary structural reforms in Ukraine based on the method of comparative analysis of IMF program results in different countries
IMF and Ukraine, IMF lending programs, structural reforms, IMF policy, stabilization program Stand-by, Extended Fund Facility (EFF), pension reform, stabilization programs: Ireland, Uruguay, Romania.
TRANSPARENCY OF MARKET STATUSNESS OF ENVIROMENTAL DIPLOMACY
Journal of European Economy, Vol. 16, Number 4, December 2017, p.481-496
|JEL: E61, F20, F42, Q28.||Full text (PDF)|
The article deals with the topical issues of the formation of market statusness of environmental diplomacy in the context of identifying its transparency features in the field of international economic relations, communicative mobility development and interactive dialogue, information security and global partnership between countries. The international aspect of transparency may be presented in modulation of different countries interests, integration associations, international institutions, non-governmental organizations, corporations, business and social movements. International cooperation requires new initiatives, mutual understanding, consolidation and engagement of diplomacy forces of environmental assistance. The specificity of diplomacy information support involves the approval of safety imperatives, environmental compatibility, reclusiveness and prognostics in applying convergent technologies. Conducting of complex analysis with regard to openness, intensity and capacity of environmental diplomacy agents to publicity is specified by new trends and counter-trends in the flows of information arrays and imitation influences. It is proved that present day content of environmental diplomacy acquires approbation in the market, international recognition and public support.
Environmental diplomacy, transparency, information security, international economic relations, communicative activity, market statusness, «soft power», global partnership, progress.