Journal of Economics - Obsahy ročníkov

This paper investigates the economic impact of landlockedness applying a conditional convergence model. The econometric analysis is carried out for three income groups (high, upper middle, lower middle and low income) following the World Bank classification according to the level of Gross Domestic Product (GDP) per capita at constant 2010 US dollars and the time before and after the global financial crisis (GFC) of 2007/9. It is for the first time that the consequences of landlockedness for economic activity are investigated with respect to income groups and the GFC. The quality of institutions, investment rate, landlockedness, international trading costs and trade openness are used as conditional variables. The time period under investigation is 1995 to 2016. Descriptive analysis reveals the considerable heterogeneity among the growth performance of countries over time, income groups and geographical status. The econometric analysis suggests that especially for low-income countries a minimum quality of institutions is necessary to embark a convergence trajectory. This paper contributes to the debate between geography and institutions as main obstacles for higher economic growth in landlocked countries.

In recent years, the low-interest rate environment combined with a positive macroeconomic outlook has led to a significant increase in the indebtedness of Slovak households. Analysing data from multiple waves of the Slovak Household Finance and Consumption Survey (HFCS), the paper investigates the impact of various socio-demographic and economic factors on the use of secured and unsecured debt by Slovak households by employing logistic regression. The results of the study indicate that age has a statistically significant and negative impact on the probability of having a mortgage debt. On the contrary, the number of dependent children and gross wealth have a statistically significant and positive impact on the probability of indebted households having a mortgage debt. The findings are consistent with the life-cycle hypothesis, highlighting age as a significant factor in shaping individuals’ engagement in the debt market. Moreover, our study shows that relatively high debt levels can be observed among the older indebted households in the last two waves of the HFCS. The high indebtedness among retired households may raise concerns about their social and financial stability.

This study investigates how institutional quality influences the relationship between public debt and education expenditure. Using data from 145 advanced and developing economies, over the period 1994 – 2022, we employ System GMM and dynamic panel threshold regression models to capture both linear and nonlinear dynamics. The System GMM results indicate that higher levels of public debt are associated with reductions in education expenditure, whereas institutional quality has a significant positive effect. Notably, the interaction between public debt and institutional quality increases education expenditure. The threshold regression further reveals a regime-dependent effect: when the institutional quality index is below 1.231, public debt significantly reduces education expenditure. However, when institutional quality surpasses this threshold, public debt increases public education expenditure. These findings highlight the critical role of institutional quality in shielding educational budgets from the adverse effects of rising debt. Accordingly, policymakers are urged to strengthen institutional frameworks and prudently manage public debt to sustain investment in education.

The underperformance of the agricultural sector in Kosovo stems from small subsistence farming, land fragmentation, and low productivity, resulting in limited agricultural exports and a persistent trade deficit. This study examines the key determinants of agricultural exports and evaluates Kosovo’s export potential using an augmented gravity model. The analysis employs a Poisson Pseudo Maximum Likelihood (PPML) estimator with high-dimensional fixed effects, covering bilateral export flows to 45 trading partners over the period 2005 – 2020. Results reveal that agricultural exports are strongly influenced by domestic production capacity, rather than the importing country’s absorption potential. The presence of a Kosovar diaspora significantly facilitates exports flows by reducing information asymmetries and transaction barriers. Furthermore, the study highlights the positive effect of trade liberalization has supported export growth, particularly through the Stabilisation and Association Agreement (SAA) with the European Union. Despite these developments, Kosovo’s agricultural exports remain underperforming, with considerable untapped export potential across key trading blocs. The findings underscore the need for policy interventions focused on enhancing productivity, aligning with international quality standards and strengthening institutional capacity to fully exploit agricultural export potential.

SCHMÖGNEROVÁ, Brigita (2025): Regulating Capitalism. The Politics of Market and Financial Regulation. Cham: Springer. 380 p.; ISBN 978-3-031-91622-9; 978-3-031-91623-6 (eBook); DOI: 10.1007/978-3-031-91623-6