Europe Economic Update - Poland and Latvia Growing Despite Headwinds
In this paper we propose a dynamic model of controlled labor immigration. The model can be used as a framework to study the economic impacts of immigration for host countries. The system’s trajectories are analyzed for different parameter values. A control problem formalization is given. Existence of optimal immigration quota is proved.
Religion, ethnicity, and politics are typical explanatory variables of violent conflicts. From an economic point of view, economic growth reduces the risk of civil war, yet the economic determinants of conflict have been little studied. In this article, we empirically study the impact of regional macroeconomic conditions on the number of violent conflicts in Indonesia, a country with potential risks of communal conflict because of the plurality of its society. We use panel data consisting of observations on 16 Indonesian regions from 2004 to 2013 to assess the impact of economic factors on conflict, reevaluating the religion effect using dynamic models (SYS GMM estimator). Our findings suggest that only the inflation rate predicts the conflict growth rate. Economic growth, economic development, poverty, and even religion, do not significantly affect the number of regional conflicts.
The purpose of the article is to compare the models of state regulation of economic growth, connected to market optimization and counter-cyclical regulation, through the prism of their influence on population’s living standards and to determine the most optimal one according to the criterion of maximization of positive influence. Methodology: The authors use the method of regression analysis for determining the dependence of the life quality index in 2018 on the 2007 level, growth rate of GDP (model of market optimization), and depth of decline of GDP in the crisis period (2010) (model of counter-cyclical regulation). The research objects include 16 developed and developing countries that are peculiar for the highest living standards as of 2018–8 countries implement the model of market optimization and 8 countries implement the model of counter-cyclical regulation. Results: It is concluded that maximization of advantages for the global economy, connected to increase of population’s living standards, requires the model of counter-cyclical regulation, which envisages limitation of growth rate of economy in the period of its rise for leveling the following cyclical fluctuations–minimization of crisis in the period of decline. The alternative model of market optimization is undesired, as it hinders the achievement of global goals in the sphere of sustainable development, reducing population’s living standards. Recommendations: It is shown that practical implementation of global goals in the sphere of sustainable development envisages unification of the practice of national state regulation of economic growth for optimizing the growth of the modern global economy. The authors’ recommendations for this are offered.
We investigate the impact of inequality in wealth distribution on the joint dynamics of conflict intensity and pro-growth institutions in the historical perspective. We build a two-sector endogenous growth model with political conflict between the traditional elite and the emerging class of capitalists during the transition from stagnation to growth. First, our model attempts to explain different moments of industrialization worldwide. Second, we capture various paths of conflict intensity: hump-shaped path, almost absent conflict, and other. We show that the distribution of wealth has a non-monotonous impact on the intensity of conflict and institutions supporting industrialization. Namely, higher inequality in land distribution may be detrimental to industrialization, but may lower conflict intensity. In contrast, higher inequality in capital holdings may be growth-enhancing.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.