BACK TO J. M. KEYNES IN REGULATING INTERNATIONAL COMMODITY MARKETS: AN EXTENDED NOTE ON THE "TRANSPARENCY AGENDA"
Journal of European Economy, Vol. 17, Number 4, December 2018, p.351-397
|JEL: Е58, Е59, F02.||Full text (PDF)|
In this paper weak and strong forms of global governance of raw materials markets are compared. This is done by comparing the “transparency agenda” with the “structural reform agenda”. John Maynard Keynes has worked for decades academically on commodity markets, on speculation and storage, on forward markets and buffer stocks etc., but he has also practised commercial trading activity on various commodity markets, and he has written and/or influenced the Post-World War Two ICU/ITO (International Clearing Union/International Trade Organization) agendas which are containing detailed provisions for establishing a world order on commodity markets. He was very much interested in the relation between price volatility of raw materials and its impacts on global macroeconomics, but he was also convinced that appropriate regulations of commodity markets and sectors impact positively on peace and development. He was convinced that strong global governance must be based on simple, stable, effective, consensual and binding rules. Now the “transparency agenda” with regard of raw materials is so much debated but it is a rather weak form of global governance, while the “structural reform agenda” represents a rather strong form of global governance of the resources sectors. The “transparency agenda” is discussed in great detail in this paper while the “structural reform agenda” is considered in the Conclusions and Outlook section but needs further elaboration in a follow-up paper.
Igor MANTSUROV, Dmitry MANTSUROV, Yana KHRAPUNOVA
INTERNATIONAL STANDARDS OF INCLUSIVE GROWTH AS A BASIS FOR SHAPING AN EFFICIENT ECONOMIC POLICY OF THE STATE
Journal of European Economy, Vol. 17, Number 4, December 2018, p. 398-421
|JEL: С53, Е27.||Full text (PDF)|
In some ways, the article summarizes the author's work in the field of integrated assessment of the state and dynamics of Ukraine's economic development. Summarizing the longitudinal research, the authors present the goal of the article as a conceptual definition of inclusive growth in the format of its interpretation by influential international organizations, assessing the conformity of the state of the economy and social sphere of Ukraine to the standards of inclusive growth, and determining on this basis public policy measures, the implementation of which will help overcome crises in the country's economy and counteracting the main global challenges of modern civilization. The most significant interest is the analysis of new approaches to counteracting these challenges, developed by the international community in the format of implementing the concept of inclusive growth. These approaches are most concentrated in the program document of the OECD Council, which was named New Approaches to Economic Challenges, — NAEC. This document forms an important system process aimed at the development and consistent improvement of tools and analytical work that should be used by international organizations and governments of certain countries to resolve the issues identified above. In the article by using the component principal analysis, the methodology of assessing the state of the economy and social sphere of Ukraine was improved, and an analysis was made of the compliance of this state with international standards of inclusive growth. The result of the analysis is an important conceptual conclusion about the discrepancy of the current model of Ukraine's economic development with the challenges of our time, which in turn leads to a state of the Ukrainian economy and social sphere that are characterized by pathological and toxic features. The result of the multi-vector assessment of the state of the Ukrainian economy is practical guidance on the improvement of state economic policy, the implementation of which, in the authors' opinion, will contribute to the achievement of standards of permanent inclusive growth.
Sharif HOSSAIN , Rajarshi MITRA, Thasinul ABEDIN
AID AND GROWTH IN BANGLADESH: A REASSESSMENT
Journal of European Economy, Vol. 17, Number 4, December 2018, p.422-440
|JEL: F35, F43, O53.||Full text (PDF)|
Although the amount of foreign aid received by Bangladesh as a share of GDP has declined over the years, Bangladesh remains one of the heavily aid-dependent countries in Asia. The results of most empirical studies that have examined the effectiveness of foreign aid or other forms of development assistance for economic growth have varied considerably depending on the econometric methodology used and the period of study. As the debate and controversy over aid-effectiveness for economic growth continue to grow, this paper re-investigates the short-run and long-run effects of foreign aid received on per-capita real income of Bangladesh over the period 1972-2015. A vector error correction model is estimated. The results indicate lack of any significant short-run and long-run relation between foreign aid and per-capita real income. Results further indicate short-run unidirectional causalities from per-capita real GDP to domestic investment (in proportion to GDP), from government expenditure (in proportion to GDP) to inflation rate, from inflation rate to domestic investment (in proportion to GDP), and from domestic investment to foreign aid (as percentages of GDP). Short-run bidirectional causality is observed between per-capita electricity consumption and per-capita real GDP, and between per-capita real GDP and government expenditure (in proportion to GDP).
Yuliia ORLOVSKA, Khrystyna DRYHOLA
INTERNATIONAL INTELLECTUAL ECONOMY: PECULIARITIES OF DEFINITION AND EVALUATION IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT
Journal of European Economy, Vol. 17, Number 4, December 2018, p.441-454
|JEL: F01, F20, F29, 057.||Full text (PDF)|
The issue of the definition of the intellectual economy is investigated. The essence of knowledge economy and knowledge-based economy is defined, the similarity and difference of the categories are formulated. The approaches of western and national scientists to the peculiarities of the definition of an intellectual economy are analyzed. The connection of the intellectual economy with the concept of sustainable development as a priority trend is established. It is established the essence of the intellectual economy and its main participants that form the structure of the world intellectual economy. The factors that influence on the intellectual economy through the usage of international indexes are investigated. They characterize the activity of each participant of this system. The approach to the estimation of the world intellectual economy condition based on the integral index of the intellectual economy is proposed. It consists of five international indexes that are brought about to a single coordinate information system. The expert estimation method was used in determining the weighting coefficients of each international index in the integral index of the intellectual economy. The integral index of the intellectual economy has been calculated for certain formation centres of the structure of the intellectual economy: the USA, Japan, Poland, China, India, Russia and Ukraine. The expediency of further participants’ research and structure of the world intellectual economy is substantiated.
Vasyl POROKHNYA, Oleksandr OSTAPENKO
MODEL OF ALLOCATION OF BUDGET AND BORROWED FUNDS FOR THE ARMED FORCES OF UKRAINE DEVELOPMENT PROGRAMS IN COMPLIANCE WITH NATO STANDARDS
Journal of European Economy, Vol. 17, Number 4, December 2018, p.455-476
|JEL: E69.||Full text (PDF)|
The AFU support budget policy does not have any sufficient modern mechanism for the best budget planning, which would predict the possible state of budget items execution and resolve the alignment of financial processes to NATO standards. And this is caused by the lack of application of particular mathematical tools for budgetary processes prediction and optimization to carry out the evaluation and analysis of the budget use considering the probability factor. A model for managing the use of budget and borrowed funds for the Armed Forces of Ukraine development programs according to NATO standards, considering the levels of long-term development of programs and the probability of their implementation, is developed. The result of the evaluation of the Armed Forces of Ukraine effectiveness based on the utility function and cognitive model was the management model for the processes of budget and borrowed funds use for the AFU development programs in compliance with NATO standards. The model takes into account the long-term programs development levels and the probability of their implementation, affecting the interaction between the indicators of the AFU planning and budget process execution and increasing the effectiveness of defense reform in Ukraine. Its practical use helps to approach NATO standards in budgetary sphere and provides an opportunity to forecast budget under expenditures under the risk of its use. The cognitive model of the impact of interaction between the planning and the AFU budget process execution indicators on the effectiveness of defense reform in Ukraine establishes the links in the contours of the defense reform effectiveness management, which can be defined as critical, i.e.risky and provides an opportunity to assess the risk levels of each contour and to model scenarios and options for improving the processes of planning and use of budget funds for defense reform. The decrease of the Armed Forces of Ukraine budget underfunding initially leads to a vibrational process of impacts on the target vertex, but then the process stabilizes. In order to study the dynamics of influence of the factors, acting as instruments of the AFU budget resources management on the target vertex, apply the method of impulse processes. This method is used for scenario modeling of alternative decisions.
«JOURNAL OF EUROPEAN ECONOMY» IN 2018
Journal of European Economy, Vol. 17, Number 4, December 2018, pp 477-480
|Annual Contents (2018)|