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New Articles – Economics


ANALYSIS OF GREEN ECONOMY DIMENSION IN THE CONTEXT OF CIRCULAR ECONOMY: THE CASE OF BALTIC SEA REGION

Jelena Stankevičienė, Marta Nikanorova, Gentjan Çera

Sustainability and sustainable economic development nowadays have become essential goals the world is challenged to achieve and a constant concern for policymakers (Garud & Gehman, 2012; Markard, Raven, & Truffer, 2012; Millar, McLaughlin, & Börger, 2019). Nowadays, the world is facing with the problém related to the inefficiently used resources and increased generated waste (D’Amato et al., 2017). The current economic model uses “takemake-waste” industrial model known as linear economy (make, use, dispose) (Kalmykova, Sadagopan, & Rosado, 2018). This paradigm does not take into account the fact that there is a limited amount of resources. Therefore, the world could face serious problems such as resource shortage due to the increasing economic volumes and amount of resources used to produce and offer goods and services.
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FACTORS AFFECTING THE COST OF SERVICE TRADE: EMPIRICAL EVIDENCE FROM CHINA AND THE EUROPEAN UNION

Ji Chen, Qiang Fang, Si Liu, Tomas Balezentis, Chonghui Zhang

Trade promotes economic (Drelich-Skulska & Domiter, 2018; Skulski, 2018; Bobowski, 2018), social (Radukic et al., 2019) and environmental (Munir & Ameer, 2018; Tao et al., 2017) interactions. The conceptual category of service trade has two different interpretations, broad and narrow. In a narrow sense, trade in services refers to activities in which a country meets the specific needs of other countries in a way that provides direct services and is paid in the course of the transaction. In the broad service trade, it includes both tangible activities and various intangible activities that complete the transaction without direct contact between the service provider and the user. Unless otherwise stated, trade in services usually refers to concepts in a broad perspective.
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GREEN GDP: AN ANALYSES FOR DEVELOPING AND DEVELOPED COUNTRIES

Saša Stjepanović, Daniel Tomić, Marinko Škare

In the push for more sustainable and greener progress, faster economic growth is no longer a priority. Is this true? There is a broad agreement that global society should strive for a higher standard of human wellbeing that is equitably shared and sustainable. Motivations for such plight are numerous; from economic (GDP measure is dangerously inadequate measure of quality of life since it counts what we produce and consume, but ignores social costs, environmental outcomes and income inequality), ecological (public is getting increasingly concerned with depleted natural resources and polluted environment, and other ecological issues), philosophical (human appetites and the population growth render non-market wellbeing measures to confront it with the society’s material standard of living), political (the concept of so-called green growth is generating diversity in positions, from enthusiastic to cautious, for it can be an opportunity, but also a risk that disfavours one country on international level) to even methodological questions (the lack of recognized methodological principles that would be the basis for reliable statistical data, thus an accurate accounting and valuation system of economic growth and development).
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THE INFLUENCE OF FOREIGN DIRECT INVESTMENT AND PUBLIC INCENTIVES ON THE SOCIO-ECONOMIC DEVELOPMENT OF REGIONS: AN EMPIRICAL STUDY FROM THE CZECH REPUBLIC

Petr Hlaváček, Julius Janáček

In the transitional economies of Central and Eastern Europe after the completion of the privatization process, there was increased pressure to win foreign investment to support the ongoing economic transformation. Countries systematically dealt with the problém of a lack of foreign investments (Švejnar, 2002; Hardy et al., 2011). For this reason, in the Czech Republic and in other post-communist countries an incentive system was created for foreign investors (Ginevičius & Šimelytė, 2011). The aim was to increase the attractiveness of the economy for foreign investors in competition with other countries, which also created their own incentive systems. In the Czech legislation, a foreign investor is defined as a company that establishes or expands its representation as a foreign investor in the host economy, which includes acquiring at least 10% of the share of the assets and/or voting rights in a company.
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CITY SPECIALISATION AND DIVERSIFICATION IN SOUTH EAST EUROPE (SEE) COUNTRIES

Ivana Rašić Bakarić, Katarina Bačić, Sunčana Slijepčević

Cities are considered centres of economic activity and, presumably, they remain attractive locations for manufacturing firms so as long as benefits agglomeration economies prevail over the costs of agglomeration diseconomies. Agglomeration economies attract firms and labour to co-locate, while agglomeration diseconomies push firms and labour to relocate to decentralised locations (Richardson, 1995). Industry patterns formed across urban landscape of a country or a region will largely depend on the interplay of these opposite forces, as well as on industry- and firm-specific issues. The size of agglomeration and the economic structure may be interrelated and in some economies, mostly larger, patterns of city specialisation emerge. All cities are characterised by being either specialised or diversified, depending on whether their economic activity is concentrated in similar or dissimilar types of production – and larger cities tend to be more diversified (Duranton & Puga, 2000).
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