Authors:Sylwester Kozak ; Agata Wierzbowska Abstract: Research background: The contribution of banks' non-interest income to the total income becomes particularly important in the face of a severe financial crisis, usually accompanied by burdensome restrictions in economic activity, insolvencies of enterprises and households and low interest rates of central banks. Purpose of the article: This study investigates banks in 40 European countries to determine whether non-interest income had a significant impact on the bank's profitability and whether the severity of the COVID-19 pandemic influences the form of this relationship. Methods: This study used a linear cross-section model using bank-level data. In the model, the bank's profitability was regressed with the measure of income diversification, controlling for the pandemic's intensity and the state of the country's economy and bank characteristics. Banking data were obtained from the S&P Global MI. The Oxford COVID-19 Government Response Tracker (Hale et al., 2021, pp. 529'538) was the source of pandemic-related variables. Findings & value added: The obtained results indicate that the increases in non-interest income share in the bank's total income have a statistically significant positive impact on profitability for the European banking sector. The dependence of profitability on diversification was stronger with the growing adverse effects of the pandemic. Our results are in line with those for the US banks (Li et al., 2021) and the European Central Bank Banking Supervision's assessment that higher non-interest income has allowed banks' profitability in the euro area to be maintained at a pre-pandemic level (ECB, 2021). In addition, the study contributes to previous literature by testing the impact of the severity of the COVID-19 pandemic on the relationship between income diversification and bank profitability in 40 European countries. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Magdalena Szyszko ; Aleksandra Rutkowska Abstract: Research background: This study investigates central banks' (CB) intentions as reflected in their minutes and their relationship with policy decisions. Although CB communication is an inherent part of their inflation targeting (IT) strategy, their communication does not necessarily result in actions. Purpose of the article: This study aims to extract policy intentions from central bank minutes and juxtapose these with actual policy decisions to investigate the consistency of their words and deeds in a comparative context. Additionally, we compare the applicability of three dictionaries in policy communication assessments. Methods: Computational linguistics and textual methods are applied to create proxies for tone from a large dataset of texts. A transformation of words into time series involves the application of a general economic dictionary and two monetary policy-adjusted dictionaries. We examine the association between tone and actual CB decisions with the eta squared coefficient. The research covers 15 European CBs, divided into three subgroups according to the CB experience in inflation targeting. The sample starting points differ as they relate to each country's IT implementation year; the analysis ends in mid-2019. Findings & value added: This paper's value added is firstly methodological, as we test three dictionaries to determine their usefulness. Statistical and qualitative analysis allows us to conclude about superiority of monetary policy specific lexicons for this kind of studies. The extra value added is about the study's coverage: it covers a large sample and provides a broader illustration compared to most previous examinations. Our results suggest that a relationship exists between communications and actions, although the weakest for late joiners to IT. The latter group of CBs needs to strengthen communication practices. In experienced inflation targeters the short run dimension of credibility exists and opens the room for creating effective monetary policy in terms of managing the expectations of a general audience. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Veronika Linhartová; Martina Halásková Abstract: Research background: Corruption is a phenomenon that has no borders, thus hindering the proper functioning of the social, economic, and legal systems of a given state. As the rankings assessing the level of corruption in various countries show, transition economies are more vulnerable to corruption than countries that have not undergone changes in the political and economic order. The Visegrad group is an example of such countries. Despite their efforts, these countries' governments have yet to match the evaluation of corruption indices for developed European countries. Purpose of the article: This study analyses the determinants of corruption in Visegrad countries to identify which determinants are the most impactful and thus should be the focus of Visegrad countries'governments when creating anti-corruption policies. Methods: Data for the period 1996'2019 from the databases of the World Bank, Transparency International, and the European Central Bank were used for panel data analysis. The study uses a comprehensive set of economic, socio-cultural, and political determinants that can influence corruption. The purpose of this large set of variables is to prevent possible distortion owing to omitted variables. Findings & value added: The results of the analysis of panel data show the main determinants of corruption in Visegrad countries are economic, political, and socio-cultural (phase of economic development, openness of the economy, size of the public sector, degree of urbanization, and women's share in the labour force). A significant effect was also demonstrated in the case of regulatory quality and public sector wages. The findings can serve as a valuable resource for policymakers to develop government policies in individual countries and to implement effective anti-corruption tools. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Anna Wildowicz-Szumarska Abstract: Research background: Income inequality has risen sharply since the 1990s, despite the increase in the average size of redistribution in countries representing different welfare state models. The problem of increasing income inequality is currently a challenge for the EU economies, not only with well-established liberal traditions, but also with conservative and social-democratic ones. Therefore, it is worth conducting research on the redistributive effects of fiscal policy. Purpose of the article: The article aims to show the redistributive effects of fiscal policy, paying particular attention to the most characteristic trends in redistribution, which are responsible for the growing income inequality. An overview of the fiscal instruments ' mainly personal income tax and benefit systems ' along with an empirical research on their potential impact on income inequality, allows for conclusions to be drawn about the effectiveness of redistributive policy in the EU countries. Methods: Both descriptive analysis and panel data analysis is implemented to examine the effectiveness of redistributive policy in tackling income inequality in the EU'28 countries in years 2005'2017. Findings & value added: Based on the panel analysis, it has been found that social transfers were much more effective than direct taxes in combating income inequality. In addition, the largest increase in income inequality ' as previously assumed ' was observed in the liberal welfare states, while the smallest in the social democratic welfare states. The empirical analysis extends the existing knowledge on main weaknesses of fiscal welfare state, indicating the required changes that may improve both its equity and efficiency. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Daniela Danková; Renata Halásková, Ján Šebo Abstract: Research background: Social security systems combine several subsystems aimed at addressing the risks of temporary or permanent loss of an individual's income. The subject of the research are parametric changes of alternative public policy aimed at addressing the temporary loss of income caused by the dropout from the labour market due to childcare. The effects of public policies may be fiscally neutral from the entire system, but not from the point of view of the individual. Purpose of the article: The purpose of this study is to examine the fiscal and redistributive effects of parametric changes in social insurance subsystem with an accent on maternity benefits in the conditions of the Slovak Republic by using a modified microsimulation model. Methods: Using a microsimulation model, we investigate the impacts of the alternative policy setting. Microsimulation model contains four basic modules (i) macroeconomic module, (ii) demographic module simulating future population structure from 2017 to 2080 (iii) status module modelling particular attributes (characteristics), (iv) social policy module. The model is applied to maternity benefits in two scenarios in the Slovak Republic: scenario 1 ' the current legislative setting of maternity benefit policy parameters and scenario 2 ' dynamic maternity benefit. Findings & value added: Results in the area of redistributive impacts in social insurance focused on maternity benefits show that dynamic policy parameters can positively affect work-life balance, especially for individuals with higher education. The results in the area of fiscal impacts show that the dynamic model of maternity benefits increases the efficiency of public spending and stimulates the faster return on the labour market. The results indicate the direction of possible government interventions and provide valuable information for policy makers in areas public policies that are associated with temporary labour market dropouts in the case of maternity. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Joanna Kudełko ; Katarzyna Żmija, Dariusz Żmija Abstract: Research background: Among the determinants of the socio-economic development of the region, an important role is played by its endogenous potential. It is reflected in the industry structure of the region, formed in the process of its historical development. The industry structure is the basis for the development of regional specialisations. One of the criteria for defining specialisations is the employment structure by sections and divisions of the national economy. The definition of regional specialisations is indispensable for planning the development policy and for formulating regional strategies. Purpose of the article: The main objective of the paper is the analysis and evaluation of employment structure as a criterion for the delimitation of industries identified as smart specialisations in the region. The study covers the case of selected region in Poland at NUTS-2 level ' the voivodeship of Małopolska. Methods: The study is based on GUS unpublished data (Statistics Poland) for 2009 and 2018. It makes use of descriptive statistical analysis methods and structure and dynamics ratios, as well as Florence's specialisation coefficient. Findings & value added: The research has shown that the employment structure indicating the presence of the region's specialisation in given industries is an important, but not sufficient criterion for the evaluation, whether the delimitation of industries recognized as smart specialisations was appropriate. In the light of the conducted research, it seems fully justified to grant the status of smart specialisation in Małopolska to Information and Communication Technologies as well as to Creative and Leisure Industries. In the context of changes to employment dynamics and structures, the possible development-oriented smart specialisations are as follows: Manufacture of metals and metal products, Electronics and machine industry, and Chemistry. On the other hand, the identified specialisations: Life science and Sustainable energy are not in line with changes in the region's employment structure. The paper proposes one of the possible ways of precise identification of distinctive regional industries with high development potential. The structure of employment and changes occurring in this area make it possible to determine the main forces of the region's endogenous potential, and thus may form the basis for the determination, and in the longer term, assessment of the relevance of identified regional smart specialisations. The added value of the study is, therefore, an attempt to assess, on the example of a selected region, to what extent changes in regional specialisations reflected in the existing employment structure confirm the accuracy of the selection of industries identified as regional smart specialisations. The presented case is an exemplification of the proposed method, which can also be successfully applied to other European regions. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Aleksandr Ključnikov ; Mehmet Civelek, Cyril Klimeš, Radim Farana Abstract: Research background: Export activities are crucial for SMEs' growth and income since they enable businesses to expand abroad. However, SMEs encounter some export impediments, including legislative, tax-related, and cultural-linguistic differences, which increase their export risk. Moreover, since different legislative, tax-related, and cultural conditions affect SMEs' export activities, SMEs' perceptions regarding export obstacles might also differ. Purpose of the article: This paper aims to determine whether the SMEs' perceptions of export barriers in selected Visegrad countries differ. Methods: The researchers employ a random sampling method to create the research sample and create an Internet-mediated questionnaire to collect the re-search data, including 408 SMEs from the Czech Republic, Slovakia, and Hungary. The researchers ran ANOVA analyses with the Gabriel Post Hoc test to find differences between those SMEs. Findings & value added: The results reveal that the perceptions of Czech and Slovak SMEs differ regarding legislative and tax-related export barriers. On the other hand, the perceptions of SMEs from various countries do not differ concerning cultural-linguistic export barriers. Unfortunately, there is a lack of studies comparing the perceptions of SMEs from Visegrad countries regarding legislative, tax-related, and cultural barriers. Thus, evaluating this topic from an international perspective brings novel findings and fills this research gap. Therefore, policymakers, SMEs, governments, public institutions, and academicians might gain benefits from the results of this unique research. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Ada Domańska ; Robert Zajkowski Abstract: Research background: This paper explores the approach that focuses on entrepreneurial activities suppressed by restraining forces or different barriers. We investigated a particular type of obstacles reported by entrepreneurs, i.e., those which prevented their gaining access to support instruments. This paper delved into the specificity of family businesses and explained why perceptions of access to support could differ between family and non-family firms. Purpose of the article: This paper seeks to identify the differences between family and non-family businesses in terms of their perceptions of different barriers that hinder access to support instruments. Methods: The main research processes were based on logistic regression models with a dependent variable: 0 for a non-family firm and 1 for a family firm. As dependent variables 13 barriers to the access of public support instruments were adopted. The study was conducted on a sample of 386 Polish business entities. Findings & value added: The results confirmed the existence of differences between family and non-family businesses in perceptions of barriers towards gaining support in entrepreneurial endeavours. Obstacles, such as overly-complex bureaucratic procedures and requirements, lack of access to information disseminated by business support institutions, and complicated support settlement procedures, were perceived as far less crucial by family businesses than non-family businesses. Family businesses demonstrated a lower propensity to use real property as collateral for transactions. Additionally, family businesses with financial resources that overlap with their own familial resources declared that they found it easier to make their own contributions to satisfy the requirements for support programmes or services. This paper makes several novel and significant contributions to the field. First, we add to existing research focusing exclusively on family entrepreneurial activity by drawing a comparison between family and non-family firms in terms of the perceived barriers towards gaining support. Second, we address different types of barriers. Our findings provide further evidence that different types of businesses perceive certain types of barriers differently. Third, we extend current knowledge on family businesses study in Poland. PubDate: Fri, 25 Mar 2022 00:00:00 +010
Authors:Radovan Savov; Xénia Szarková Abstract: Research background: Globalization has significantly affected the brewing sector worldwide during the last three decades. The industry consolidation and many acquisitions led to a reduced number of breweries and consequently to the homogenization of beer. It was an important factor affecting the significant decline in beer consumption in the world. However, over the years, this negative phenomenon also brought a new wave ' the development of craft breweries, and resulted in the formation of a new segment with specific preferences in the market. Purpose of the article: As a result of the craft beer revolution in the world and the wider offer on the beer market, customer preferences changed, and a new segment was subsequently formatted. In the past, lagers were the preferred choice, but due to the new wider range of beers offered in the market, they are about to lean towards other types of beer. Therefore, the purpose of this paper is to identify a new segment of craft beer consumers based on characteristics such as age, gender, education, income, residence, marital status, work, and leisure activities. Methods: For data collection, a questionnaire was used as a tool and, therefore, we analyzed the answers of 685 respondents from Slovakia. The questionnaire is evaluated through dependency analysis using nonparametric methods (Kruskal-Wallis Test, Mann-Whitney Test) to identify the differences between groups of customers and to describe the characteristics of a typical consumer of craft beer. Findings & value added: The craft beer revolution in the world brought a formation of a new segment, which considers the taste and quality more compared to price. Our research has confirmed that this segment consists of highly educated men (26'40 years old), with above average income. However, it is important for beer producers to know this segment more to meet its requirements. Nevertheless, deeper studies of this segment were missing. Therefore, our research was focused on other parameters of the segment and according to our findings, these consumers are from bigger cities, working more mentally, and doing sports in leisure time. PubDate: Fri, 25 Mar 2022 00:00:00 +010
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