An institution-stakeholder framework for examining business relationship dynamics in a transforming Eastern Europe

Since the collapse of the USSR, most Central and East European countries have been integrated into global economic institutions through membership in the WTO and EU significantly changing the regional business climate. Through an in-depth analysis of a petroleum pipeline project initiated in Ukraine, a country on the EU's periphery, this research presents a framework based on institutional climate and stakeholder levers of influence for explaining the type of existing and evolving business relationships in the region. A relational matrix for Eastern Europe is developed with a set of guidelines for global firms and investors seeking markets in the region.     

Bank x-efficiency in Ukraine: An analysis of service characteristics and ownership

This paper investigates managerial and scale x-efficiencies of commercial banks in Ukraine from 1998 to 2003. A large number of banks would suggest competition and efficiency. Ukrainian banks waste half of factor inputs during the production of services by operating off the efficient frontier. Large banks dominate in managerial efficiency; small banks are superior in scale efficiency. Significant numbers of small banks experience increasing returns to scale. Consolidation between small banks may help banks exploit economies of scale and become attractive foreign investment targets. Evidence suggests majority foreign owned joint ventures are optimal formats; banks operating in industrial, politically favored areas outperform others.     

Bargaining and Devolution in the Upper Guadiana Basin

Increasingly, central governments approach contentious natural resource allocation problems by devolving partial decision-making responsibility to local stakeholders. This paper conceptualizes devolution as a three-stage process and uses a simulation model calibrated to real-world conditions to analyze devolution in Spain’s Upper Guadiana Basin. The Spanish national government has proposed spending over a billion euros to reverse a 30 year decline in groundwater levels. We investigate how the government can most effectively allocate this money to improve water levels by utilizing its power to set the structure of a local negotiation process. Using a numerical Nash model of local bargaining, we find that if the national government creates appropriate incentives, local bargaining can produce water stabilization. The actual water levels that will emerge are highly dependent on the central government’s decisions about the budget available to local stakeholders and the default policy, which will be influenced by the relative value the government places on various financial and environmental outcomes. Our paper concludes by determining the relationship between these relative valuations and the government’s preferences over water levels.     

Moving through the political participation hierarchy: a focus on personal values

This study empirically explores the determinants of political participation. Using data from the European Social Survey, we investigate the relationship between political participation and personal values, using the Schwartz (1992) values inventory. A political participation hierarchy is theorized, and activities are categorized into four levels of participation (none, weak, medium and strong), based on the cost of participating and how unconventional the activity is. Empirical analysis points to individuals who are more open to change and more self-transcendent, being more likely to participate. Sub-sample analysis, contrasting East and West Europe, suggests that the role for personal values is more subdued in the East, with respect to moving individuals from not participating to at least voting. Furthermore, the use of a generalized ordered logit model in this study illustrates the complex nature of many of the determinants of political participation. In particular, we find that the influence of the majority of individual characteristics is not monotonic in nature, as you move up through the political participation hierarchy. These findings are important for researchers and policy-makers who may be interested in understanding determinants of and/or enhancing the level of political participation in an economy.     

Valuing the voluntary sector in sport: rethinking economic analysis

The voluntary sector plays an important role in the sports industry, as a provider of sporting opportunities and in the development of sport, from increasing participation through to supporting excellence and elite performance. However, despite this importance, research on its contribution to sport‐related economic activity is limited, with information on this sector remaining the weakest part of current economic assessments of the UK sports industry. The research presented in this article examines the economic importance of the voluntary sector, using a case study of Sheffield. It demonstrates that the sports voluntary sector in the city is considerably smaller than was predicted when using national estimates, and that this is largely a consequence of methodological issues relating to previous research. The article suggests that in the light of the findings and the increasing use of sport in urban policy, there is a need to rethink the methodology used to evaluate the economic contribution of the voluntary sector in the future.