Financial integration and growth in the global economy

This paper analyzes the growth dynamics in the developed world and its relationship to the financial structure. The new entrepreneurial economy of creativity and innovation is identified as the main growth area today. However, such an economy needs financial structure capable of coping with the higher risk inherent in the new economy. To provide such a financial structure, the financial markets must be broad, deep, and liquid. Today, only the U.S. financial markets are large enough to provide this financial structure. Hence, financial integration became the imperative for other countries—especially the European Union (EU) and Japan—in order to achieve the level of economic growth as that of the U.S.     

Productivity Trends in Advanced Countries between 1890 and 2012

In order to examine productivity waves and convergence processes, we study productivity trends, trend breaks, and levels for 13 advanced countries between 1890 and 2012. We highlight two productivity waves, a big one following the second industrial revolution and a smaller one following the ICT revolution. The convergence process has been erratic, halted by inappropriate institutions, technology shocks, financial crises, and above all wars, which led to major productivity level leaps, downwards for countries experiencing war on their soil, and upwards for other countries. Productivity trend breaks have been identified following wars, global financial crises, global supply shocks, and major policy changes. The upward trend break for the U.S. in the mid‐1990s has been confirmed, as has the downward trend break for the euro area in the same period.     

The role of management and trade union leadership on dual commitment: The mediating effect of the workplace relations climate

This article examines the effect of transformational and laisser‐faire leadership on the part of local union leaders and immediate supervisors on the dual commitment of unionised workers. Building on the social information processing perspective, it is suggested that these leadership styles are linked to commitment through the workplace relations climate (WRC). Based on a sample of 834 unionised workers, our results suggest that WRC represents an important mechanism explaining the effect of the immediate supervisor's leadership in unionised settings. Results also show that transformational leadership on the part of union representatives is positively linked to union and organisational commitment. This article contributes to the WRC and dual commitment literatures by going beyond structural and institutional explanations and considering relational and actor‐related variables, such as leadership styles.     

The role and impact of monetary policy in CEFTA countries

An effective monetary policy requires a stable relationship between the money stock and macroeconomic variables such as output, price level, interest rates, and exchange rates. A dynamism of structural changes in transition economies of eastern Europe makes such stability far from obvious. This is reflected in the fact that a stable demand for money function cannot be estimated even for the most advanced East European countries: Poland, Hungary, and the Czech Republic. Empirical analysis of the relationship between nominal variables indicates rather limited relationships as well. Therefore, all that can be expected from monetary policy in eastern Europe is not to be too tight so as to starve the economy of needed liquidity and not to be too loose so as to ignite inflation.     

Interactions between network operators,content producers and internet intermediaries: Empirical implications of network neutrality

Economically the net neutrality debate focuses on the question whether services of different quality should be subject to price discrimination. The debate strongly affects the interaction between the players that are involved in the provision of online content. The authors analyse this interaction and find important synergies between suppliers along the value chain. The revenues of all players depend on investment in networks which determines the quality of content. The benefits of policies that support net neutrality are unequally distributed among the different players. This might explain diverging policy approaches in the USA and Europe.     

Representation as a driver of internationalization: The case of a singular Russian SME

This exploratory research focuses on an unconventional practice in a Russian small- and medium-sized enterprise (SME). While studying the decision-making process of the entrepreneur and executives of this firm, we noted some differences with extant theories. This article aims to shed light on the influence of the SME entrepreneur’s representation of internationalization on his decisions in a foreign context. The results support the assumption that the representation plays a role in guiding strategic decisions and mobilizing subordinates to support the strategic orientation defined by the leader. In particular, we will see that a very favorable representation of internationalization can lead to unexpected success abroad.     

Financial Crisis and its Asymmetric Macroeconomic Impact on Eurozone Member Countries

The purpose of the paper is to analyze the dynamics of EMU (The Economic and Monetary Union, i.e., the group of European countries who use the common currency euro) and to analyze the fallout from the recent financial and economic dynamics. Both the impact on the eurozone as a whole and on individual member countries will be evaluated. The first 11 years of Eurozone experience will be discussed and evaluated in the second section. The third section will then be devoted to analyzing the fallout from the recent financial and economic dynamics. Both the impact on the eurozone as a whole and on individual member countries will be evaluated. The last section concludes and provides some ideas for future development of eurozone.     

Financial openness and economic policy

Economic policy works via two interrelated areas: changes in supply-demand balances and changes in relative prices. Effectiveness of economic policies then depends on the environment in which a given economy operates. The analysis shows that traditional economic policies of fostering growth via public sector investments crucially depend on the private capital account being closed (practically, on the capital mobility being low). An open capital account requires a different set of policies, aimed at facilitating the functioning of private markets and an increase of domestic private savings. This shift in the policy and growth paradigm constitutes the biggest challenge to the global economic community in the beginning of the 21st century.