Issue 5 - Volume 66/2018
Do Motorways Induce Wider Economic Benefits? Evidence from the Slovak Republic
Page 431, Issue 5 - Volume 66/2018
This paper analyses wider economic and social impacts of motorways. It analyses the development of socioeconomic variables in the Slovak LAU 1 regions in the period 1997 – 2016. Difference in differences, panel regression with fixed effects, and synthetic control methods (SCM) are applied so as to identify potential long-run effects of motorways on regional economies and societies. The paper finds positive effects of motorways on wages, the number of firms, and internal migration. An SCM is the best procedure for measuring wider economic benefits of motorways when the number of treated units is low or there is only one treated unit.
Keywords: large transport infrastructures, regional development, impact assessment, quasi experimental designs, synthetic control method
JEL Classification: C52, H41, H43, H54
The Role of Environmental Stimuli in Shopping Evaluation and Responses
Page 465, Issue 5 - Volume 66/2018
The main objective of the paper is to explore the impact of store design factors on consumer behaviour and to indicate how the store design evaluations influence customers’ relationship to a particular store. In our research we explore the store design factors of shelf height and shelf layout. We examine both cognitive and affective information processing in shaping store preference framework. Empirical research was conducted using laboratory experiments with photographic images of store design. Data were gathered from a total of 240 respondents. Non-probability sampling in the form of convenience sampling was employed. Analysis of variance was employed to test the hypotheses. We conclude that both design factors investigated in the study are important determinants of repeat purchase intention, however with different effect on cognitive and affective level.
Keywords: Stimulus-Organism-Response model, environmental impact, approach behaviour, avoidance behaviour, repeat purchase
JEL Classification: M30
The Profitability and Capital Adequacy in Central and Eastern European Countries in the Light of the Basel III Requirements – a Forecast Approach
Page 479, Issue 5 - Volume 66/2018
Previous studies have shown that the banking sector of the Central and Eastern European (CEE) countries performed better than other developed European sectors during the crisis, due to their sound capitalization and a high profitability before the crisis. That is why we consider that it is interesting to see how they will perform in terms of the profitability and capitalization ratios during 2016 – 2017 in the light of the new international capital adequacy regulations. We have used Combinatorial forecasting method and Artificial Neural Networks (ANN) forecasting method for the banking sectors of five Central and Eastern European countries, non-members of the Eurozone, in order to predict the further developments of capital adequacy ratio, return on assets (ROA) and net interest margin during 2016 – 2017. Our results show that the capital adequacy ratio will improve in all five analysed banking sectors. The bank net interest margin will increase in all five banking sectors (except in the Czech banking sector) and ROA will increase a lot in Hungary, but also in Bulgaria and Romania, while in Poland and in the Czech Republic it will slowly increase.
Keywords: capital adequacy ratio, bank profitability ratios, Central and Eastern European banking sectors, ANN forecasting method, Combinatorial forecasting method
JEL Classification: C45, C53, G21
Identifying the Relationship between Unemployment and Wage Development in the Slovak Republic
Page 503, Issue 5 - Volume 66/2018
The problem of high unemployment and expected further growth repetitively appears among major global trends, along with the deepening of social instability. This leads to increased inequalities and deepening polarization of wealth as one of the top three global risks. The aim of this paper is to present the results of unemployment and wage development in Slovakia for the period 2000 – 2015 (at the national and regional levels). The added value for Slovakia results is a comparison of the relevant indicators between Czech Republic, Slovak Republic and Hungary. The authors further focus on the wage development dependence on the development of unemployment. Analyses in the paper are based on data from Eurostat, OECD, the Statistical Office and the Central Office of Labour, Social Affairs and Family in Slovakia. Findings (using quantile regression): increasing unemployment, wages in the districts of SR did not grow (in the focused period), increases in wages in districts with higher unemployment rates were lower than in districts with a lower unemployment rate, in the least developed districts reduced unemployment led to a minor increase in wages than expected.
Keywords: unemployment, long-term unemployment, development of wages, Slovak Republic, Czech Republic, Hungary, NUTS 2 regions, LAU 1 regions
JEL Classification: C32, F41, F42
Revisit Hysteresis Unemployment in Eastern European Countries using Quantile Regression
Page 522, Issue 5 - Volume 66/2018
This study revisits hysteresis unemployment hypothesis for 9 Eastern European countries (i.e., Bulgaria, Czech Republic, Hungary, Lithuania, Latvia, Poland, Romania, Russia and Slovakia) over 2000M1 – 2016M8. We apply Quantile unit root tests with and without smooth multiple breaks through Fourier function. These Quantile tests have been proved with good power and size when the data follows heavy-tailed distribution. Empirical results from Quantile unit root tests demonstrate hysteresis unemployment holds in Hungary and Romania two countries only and shocks to the unemployment of each country are asymmetric. Our study has important policy implications for government conducting fiscal or monetary policy to stabilize economic fluctuations in Eastern European countries.
Keywords: hysteresis unemployment, Quantile unit root test, Fourier function, smooth breaks, Eastern European Countries
JEL Classification: C20, J60