European Cooperation

FOREIGN TRADE WITH CHINA: NO REASON FOR “GERMAN ANGST”

Franz Peter Lang, Oleksandr Melnychenko — Sat, 30 Apr 2022 00:00:00 +0000

Sanctions and restrictive measures against Russia in response to its armed aggression against Ukraine and in addition the violation of the usual world trade routes cause fears in Germany that the German economy can be blackmailed by trade with China as an over-strong partner.

Data analysis of German-Chinese foreign trade and its impact on the economy and employment shows that China is one of the few most important trading partners, which, however, doesn't have a dominant position. The interdependence that inevitably results from trade relations has proven to be manageable and can even be expanded through China's rational policies.

To be able to assess possible the future, China's global economic ambitions are considered against the background of its planned large-scale projects, its real potential, and current weaknesses. Given the current neo-Maoism, however, there are doubts as to whether normal relations with an overcrowded China can be continued or even expanded

SUICIDES FOR ECONOMIC REASONS AS A MEASURE OF THE STATE OF THE ECONOMY: THE CASE OF POLAND

Jarosław Ziętarski, Agnieszka Pobłocka — Sat, 30 Apr 2022 00:00:00 +0000

Suicides are a phenomenon observed in many countries. The causes of a decision so drastic as far as the consequences are concerned include i.a. economic reasons. The question arises whether the changing number of suicides reflects the state of the economy. The direct link between the state of the economy and suicides has not been sufficiently studied so far. The authors of this article attempted to identify the links between selected economic indicators and the number of suicides using statistical and econometric methods. The end result is a description of the connection between indicators determining economic tendencies and suicides for economic reasons. Finding such a connection constitutes an alternative, much cheaper method of assessing the tendencies (climate) of the economy compared to the methods used currently by the Central Statistical Office in Poland or the Ipsos company. In addition, the results of the study allowed to propose an original linear regression model taking into account new variables, compared to the available studies of other authors. The authors' model is an expansion of rather modest scientific discourse on the impact of the economy on the number of suicides.

More than 10 years have passed since the beginning of the global financial crisis. In the years 2008–2009, Poland was considered to be 'a green island', i.e. the only country in Europe that did not experience a decline in GDP. The image of this country from the perspective of the consumer looks very different. The increasing number of suicides for economic reasons prompts the analysis of the reasons for this kind of decision. There are relatively few available research papers that would illustrate the link between the state of the economy and the phenomenon of suicides. The authors of this publication, using statistical methods (statistical description and statistical inference), attempted to link the number of suicides for economic reasons to selected economic indicators. The result of the research was the indication of an alternative method for the measurement of selected economic tendency indices of the Polish Central Statistical Office and the Economic Climate Indicator published by Ipsos Polska Sp. z o.o. In addition, a single-equation linear regression model was proposed which not only explains the association of selected indicators describing the condition of an economy with the phenomenon of suicides but can also serve as an early-warning indicator of future suicides

ECONOMIC ONTOLOGY OF TOURIST RENT: ACCOUNTING ASPECT

Serhii Bardash, Tetiana Osadcha — Sat, 30 Apr 2022 00:00:00 +0000

The study's relevance is determined by the critical state of the tourism industry. One of the ways to revive the industry is to find additional its finance sources. For the strategic development of national tourism systems, it is necessary to create a mechanism of rent relations, which satisfies not only the state authorities' interests, but also allows business entities, including the touristic field, to fully determine operating income, net profit, and as well as the volume of self-financing sources, which constituent element the tourist rent should be considered. It is impossible to achieve the required result without defining and further creating the conditions for rent accounting. The study's purpose is to determine the tourist rent accounting conditions for effective income management of relevant enterprises. Legal acts and scientific publications on economic theory, tourism theory, and practice were used as the research's theoretical basis. The methodological basis of the research is a dialectical method, which is used to study the tourist rent essence and tourist resources as a rent-generating factor. Moreover, general scientific methods (analysis, abstraction, synthesis, generalisation), bibliographic method to the transformation of the economic essence and tourist rent legal identification, and grouping method for the economic and legal prerequisites of tourist rent accounting. The scientific novelty of the research results lies in the clarification of the concepts such as "tourist rent", and "tourist resources". In addition, the definition of economic and legal conditions and methodical recommendations for tourist rent accounting was also considered as a scientific novelty. The research results' practical aspect is that the presented recommendations can be used for further recommendations to the identification, assessment, and accounting of tourist rent as additional income. It could be also used for the information base creation to the rent payments and their further distribution for national tourism development. Prospects for further research consist in the development of scientific and methodological provisions and practical recommendations for the tourist rent attraction and rent payments to the self-financing measures system, regional and national financing of the national tourism development.

THE ROLE AND IMPORTANCE OF SALES AND SALES PROMOTION IN THE DEVELOPMENT OF CUSTOMER RELATIONS

Maia Seturi — Sat, 30 Apr 2022 00:00:00 +0000

The importance of sales and its promotion is constantly increasing. Technological progress contributes to the constant development of marketing activities of companies and the introduction of innovations. It is necessary to attract customers and establish a long-term relationship with them. Along with changes in consumer tastes and new preferences, it is necessary for companies to correctly select sales promotion tools and use them effectively. Sales promotion tools can influence consumer buying behavior and loyalty. Companies today focus on existing and new customers. Smart leaders try to focus their business not only on short-term success but also on long-term results. Relationship marketing influences customer loyalty. Organizations are pooling their efforts to achieve this goal in terms of products, pricing, distribution, incentives, and services. In relationship marketing, special attention is paid to loyal buyers. The task of finding and retaining a client becomes increasingly individual. In the face of competition, it is important to know and constantly study your client. Not only to discover its advantages, to guess the hidden desires, but also to understand the reasons why the company is losing its customers. The study of these issues is important in modern conditions. The author discusses the opinions, definitions, and views of various researchers regarding the mentioned problem, and then draws conclusions and offers some recommendations

MULTIVARIATION OF INNOVATIVE APPROACHES TO EVALUATION AND MODELING OF POPULATION INCOME INEQUALITY

Anton Putytskyi — Sat, 30 Apr 2022 00:00:00 +0000

The problem of inequality is perceived as a challenge to modern society, since the growth of inequality leads to the deepening of migration processes, increasing social tensions, creating prerequisites for changing the social system, fundamentalisation of religious groups, political instability and military conflicts, economic and humanitarian wars.

This article is an analytical summary of scientific methods for assessing economic inequality. The purpose of the article is to evaluate the inequality of the population of Ukraine by sources of income. In accordance with the set goal, the dynamics of changes in the Gini index by the amount of monetary income were analyzed. The general scientific methods of scientific research and the basic provisions of the theories of socio-economic inequality, economic growth and innovative management became the methodological tools of the conducted research. To determine the degree of inequality of the population in terms of income, the entire spectrum of variation indicators (coefficient of variation, mean square deviation, etc.) was used. At the same time, special coefficients were analyzed, which make it possible not only to assess the degree of income inequality but also to measure the influence of factors on this phenomenon. These are primarily the Lorenz coefficient and the Lorenz curve, the Atkinson index, the Theil index, the decomposition of the specified coefficients, the coefficient of funds, the coefficient of differentiation, and the coefficient of contrasts.

The article decomposes the Gini index by sources of income and identifies the main sources of income that have the greatest impact on the growth of inequality in the distribution of income of the population of Ukraine.

The determination of economic inequality in the distribution of incomes of the population was carried out on the basis of the dynamic stochastic model of general equilibrium (DSGE). In the course of building the DSGE model of inequality of income distribution, three macroeconomic subjects operating in a closed economy were identified, namely households, firms and the state. The total amount of capital invested in a specific sphere of the economy and the total number of the economically active population, which is a parameter of the labour force in the production function, were also used. The obtained results are useful in the study of the issue of determining the causes of the influence of certain factors on the level of income distribution and the possibility of reducing the level of stratification of the population of Ukraine. The results of the conducted research can also be useful for calculating the basic indicators of the socio-economic development of the regions and the country in general.