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New Resonance Approach to Competitiveness Interventions in Lagging Regions: The Case of Ukraine before the Armed Conflict

Abstract

Regional competitiveness is considered to be an alternative basis for the determination of regional interventions. However, the composite competitiveness indicator is quite sensitive to the weights of sub-indicators, no matter what methodology is being used. To avoid this uncertainty in the determination of regional interventions, we proposed a new non-compensatory resonance approach that is focused on the hierarchical coincidence between weaknesses of NUTS 1 and NUTS 2 regions measuring the extensive and intensive components of competitiveness. Such a coincidence, being perceived as a resonance effect, is supposed to increase the effectiveness of interventions triggering synergetic effects and stirring up local regional potentials. The components of competitiveness are obtained through synthesising DEA methodology and Hellwig’s index, correspondingly focusing on the measurement of technical efficiency and resource level. In analysing Ukrainian regions, no correlation between resonance interventions and the composite competitiveness indicator or GDP per capita was found, pointing toward a completely different direction in resonance approach. In western Ukraine, the congestion of six NUTS 2 regions was defined as a homogeneous area of analogous resonance interventions focused on improving business efficiency.

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The Catching up Processes of the Regions of the Visegrad Group Countries

Abstract

The majority of Central and Eastern European post-socialist countries acceded to the European Union in 2004. The integration of these economies to the Union had begun earlier, which was strengthened by grants from the Structural Funds after the accession. One of their aims is to facilitate the catching up processes of less developed regions and their convergence to the average of older member states. In our study1, we examine the success of the catching up processes of the NUTS3 regions in the four Visegrad Group countries (V4), i.e., the Czech Republic, Hungary, Poland and Slovakia, between 2000 and 2014 to the average of the 15 initial member states of the European Union. Is there a process of catching up in each region, and if so, is it at a similar or a highly different rate? We analyze the development of GDP per capita at Purchasing Power Parity, and we examine disparities in the level of catching up using entropy-based Theil indexes. We provide a detailed analysis of two of the influencing factors of the catching up process of regions. Firstly, we look at whether the catching up process of the regions took place in a similar or very different way compared to the national average. Secondly, we examine how the size of the biggest city of the regions affected catching up, and whether the role of the biggest city of region can be shown.

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National innovative performance and sustainable development – the case of Slovakia

Abstract

Innovation are considered as the engine of sustainability and economic growth. Innovations are an integral part of the business that is expressed in scientific and research activities. If a company want to gain competitive advantage, it must do the business activities in accordance with economic, environmental, social and institutional factors. Business activities in this area are reflected in macroeconomic indicators of the country. This article deals with innovations and sustainable development issues. The main goal of research is testing interaction between innovations and sustainable development through the selected indicators. Summary Innovation Index (SII) represents innovations and sustainable development is represented by the set of indicators from four areas: economic, environmental, social and institutional. The analysis is based on values of the Summary Innovation Index proposed by the European Commission to measure the competitiveness of European countries in terms of innovation activity and values of sustainable development indicators such as GDP per capita, energy intensity of the economy, migration, transport performance, greenhouse gas emissions, application of environmental management system, mining and consumption of mineral resources, etc. The research is carried out on the case of Slovakia with application of mathematical-statistical apparatus (correlation analysis). The main benefit of research lies in the identification of strengths and weaknesses of Slovakia in analysed areas and determining the expected development.

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Analysis of knowledge-based economy impact on economic development in the European Union countries

Analysis of knowledge-based economy impact on economic development in the European Union countries

Directions of changes in the world economy occurring in recent years show the transition from industrial era economy to knowledge-based economy. Increasing investments in fixed assets is no longer a sufficient way of ensuring permanent economic growth. Research-development activity, innovation and human capital become decisive factors of development. As an essential determinant of the innovativeness level of individual economies are considered expenditures on research and development designed to conduct basic, applied research and development activities as well as effects of these research appearing in the form of innovations. The objective of the article is to analyze correlative connections between the two main variables describing knowledge-based economy, that is between the share of R&D expenditures in GDP and R&D expenditures per capita, and the remaining characteristics of knowledge - based economy. Another aim of the article is to assess the impact of these two variables on the basic macroeconomic indicators in the European Union countries, and, connected with them, to analyze the impact of knowledge-based economy on economic development of these countries.

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The Okun Misery Index in the European Union Countries from 2000 to 2009

The Okun Misery Index in the European Union Countries from 2000 to 2009

The aim of the article is to present alternative measures of the economic system's efficiency, taking into consideration, in particular, the values of the so called Okun misery index being the sum of inflation and unemployment rates.

The study is composed of four main parts and a summary. The first part, introduction, discusses various measures of the economic system's efficiency that are used in practice. Part two emphasises that the GDP per capita according to purchasing power parity still remains the most popular among those measures. Further, it presents the ranking of the European Union countries taking that measure into account, the research period being 1999-2009. Part three points out that it is also the level of poverty (misery) that determines the economic system's efficiency. That level can be measured by means of various indicators, among others, the so called HPI-2 index calculated by the UN. It will be the Okun misery index, however, computed as the sum of inflation and unemployment rates that will be presented as an alternative being of interest from the macroeconomic point of view. The ranking of the European Union member states according to that measure in the 2000-2004 and 2005-2009 periods will be provided in part four. The article will end in a summary containing synthetic conclusions drawn from earlier observations.

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Does a Country/Region’s Economic Status Affect Its Universities’ Presence in International Rankings?

differences and the country/region where the university is located ( Bornmann & Moya-Anegón, 2011 ). A final issue addressed by these authors was whether inter-university differences could be explained by economic factors (Per Capita Gross Domestic Product (GDP PC), Gross Domestic Product (GDP), a country/region’s total area and population) or by the number of papers published by a given university. Marginson (2007) used statistical methodology to compare each country/region’s economic status, calculated as GDP and GDP per capita, to the number of its universities in the

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Methodological Background of Post-Soviet Regionalism: The Case of Ukraine

Abstract

The transformational 1990s significantly differentiated the regional model of Ukraine, which eventually began to resemble a system of uncontrolled chronic economic decline, as the existing planning and regulatory methods had become redundant, the market-based approaches being not actualized. The methodological vacuum in which Ukraine found itself did not allow regions to solve the existing problems by means of European economic convergence instruments. Despite the fact that more and more theories and concepts appeared in the leading developed countries (regional competitiveness, city- region, beautiful places, creative city, localization, etc.), national science used outdated ideas of planned regulation, inappropriate in market economy. The effect of government policies resembled core measures of the neoliberal model, while maintaining a high degree of administrative centralization.

FDI inflow fundamentally altered the regional landscape. The leading position in accumulating the FDI stock belonged to Kyiv, which also produced the largest per capita GDP. In the last five years a revival of innovation activity took place in the Ukrainian regions. Eventually it obtained an undulating character, moving basically along two axes: Lviv-Kviv and Kyiv-Kharkiv. However, low FDI level in the worst performing regions could create an erroneous impression about the positive impact of FDI on regional economy.

A region's development trajectory> might also be affected by the mentality of its inhabitants, as well as the media, whose impact can convey either a cohesive or disintegrating character. This was evidenced by the recent events in Ukraine, as well as the "East versus West” confrontation, which resulted in frustration, whereas the lack of tolerance among the population of certain regions provoked the bloodshed. Thus, identification of methodological background of post-Soviet regionalism on the example of Ukraine is an important scientific task, which may explain the essence of regional asymmetries in the post-Soviet states.

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How to Make Eu Cohesion Policy More Effective? Conclusions for Poland

How to Make Eu Cohesion Policy More Effective? Conclusions for Poland

In order to remove economic regional disparities, the European Union is realizing a cohesion policy. It is justified economically and socially. It is however conditioned by an acceptance of an active role of the Union and member states in the economy, and therefore a permission for cross-national interventionism. The mechanism of the cohesion policy is based on transfers, and then its essence is redistribution of incomes in order to support selected regions and unfavoured social groups. The main aim of the herein article is to evaluate the influence of the cohesion policy of the European Union on the economy of the regions and economic disparities as well as to formulate recommendations, which will enhance its effectiveness. The evaluation of the Union cohesion policy is not easy. We have to, however, separate its influence from other factors affecting the social-economic situation of the regions. Most of the studies and analyses indicates a positive influence of programmes of the cohesion policy on the economic growth, the situation in the labour market and other economic rates. It has however many imperfections. The controversies are evoked mainly by unsuccessful attempts to reach the main goal, that is social, economic and territorial cohesion. It does not mean the negation of the results of numerous researches, which confirm a positive influence of the cohesion policy on the economic growth. Those and other research methods confirm in fact, that the structural funds contribute to the growth of GDP per capita and to the reduction of unemployment.

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Foreign Direct Investments in Poland - Report for the End of 2004 and New Facts

Foreign Direct Investments in Poland - Report for the End of 2004 and New Facts

Joining the European Union is regarded as a chance for Poland to improve its economic growth and to catch up the EU-15 wealth level. However, it is necessary to remember that this is going to be a difficult and long-lasting process, where success is possible only on the condition that suitable economic policy is implemented. Such policy should provide stable frameworks to support business development, attract foreign direct investments (FDI), keep the discipline in public finances and assure the right institutional ability and managerial skills to absorb the EU funds. In the study:

- FDI inflows to Poland and other new EU member states have been evaluated from the viewpoint of the size of the economy represented by its GDP per capita;

- The amount of FDI inward stock in Poland over the years 1993-2004 and its structure from the viewpoint of the investor's country of origin and sector of allocation have been evaluated (data published by PAIiIZ);

- The activity of foreign capital in special economic zones (SEZ), entrepreneurship-supporting enclaves in the regions characterised by extremely difficult socio-economic conditions, has been identified;

- FDI inflows to Poland in 2005-2007 (data published by NBP) have been presented.

According to the estimates, appropriate economic transformation in Poland and keeping a 5% economic growth rate in Poland require approx. USD 10 billion of annual FDI inflow. With regard to those forecasts, the amount of FDI inflow to Poland seems to be insufficient to keep the desired economic growth rate, and the investment incentives in the form of special economic zones do not meet expectations.

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Analysis of changes in the land use structure of developed and urban areas in Eastern Poland

Abstract

The development of housing, services and industry as well as the accompanying infrastructure leads to the intensification of urbanisation processes and changes in land use structure. The area of land characterised by urban use is increasing. The above trend is also observed in Eastern Poland despite its predominantly rural character and the absence of metropolitan areas exerting great pressure on the local landscape, contributing to regional development and enhancing the region’s competitiveness. The paper discusses changes in land use structure in developed and urban areas in Eastern Poland. The analysis includes five Polish voivodeships (Lubelskie, Podkarpackie, Podlaskie, Świętokrzyskie and Warmińsko-Mazurskie) characterised by the lowest GDP per capita in the EU-25. For this reason, Eastern Poland will receive aid as part of the ‘Development of Eastern Poland’ Operational Program 2007-2013. This is the only supra-regional program in the European Union which promotes social and economic growth in underdeveloped regions by co-financing projects in urban development, road construction and tourism promotion. The analysis of changes in the share of developed and urban areas in total land area as well as changes in local land use structure (subgroups) covers the period of 2007-2013. The data relating to land use structure was supplied by the Head Office of Geodesy and Cartography. It was used to determine the scale and rate of urbanisation in the analysed voivodeships (regions) and their constituent poviats (counties) with special emphasis on suburban areas. The results were presented in the form of cartograms and thematic maps with the use of GIS tools. The GIS tools support the visualisation of the spatial distribution of the analysed phenomena.

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