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• Limits of Economic Theories in Border Research

  98-116

  Szabolcs Pasztor

  Views:

  143

  The paper approaches the possible consequences of further trade liberalization, integration and the disappearance of borders from the perspective of well-known economic theories. After putting forward the questions and hypotheses, the author shows the different conclusions of economic approaches in the case of further integration and disappearing borders in borderlands. Using the results of economic theories the paper outlines the development path of those spatial units where state borders still play an important role in forming economic interactions. It comes to the conclusion that only regional reshuffling
  can be mentioned in relation to further integration. The paper also draws attention to the fact that economic theories do not give clear-cut and comprehensive answers for development, so the economic approach could be too simplistic. Consequently, a wellelaborated empirical research programme could provide a genuinely nuanced picture of the development path of borderlands.

  Journal of Economic Literature (JEL) classifications: F15, O18, R12

• A Journey Through the Theory of Economic Development

  Lavinia Sidonia Delcea

  Views:

  109

  The theory of development economics changed signifcantly from the first attempts of defining the concepts in the 50s until nowadays. The contributions to the development theory are at the same time closely related to the historical context of the underdeveloped and developing countries. This paper tries to facilitate the understanding of the way development economics evolved, by presenting the main contributions to the theory. The research methodology used in this study is analytical, based on the gatherinf of the information, its organisation in a logical way, the presentation and analysis of the most significant ones, and finally the drawing of relevant conclusions. The main findings of this paper are that after five decades of strong ideas and recipes of economic development we have reached a point of uncertainty regarding what is beneficial or harmful for the nations' economic development.

  Journal of Economic Literature (JEL) classification: O10.

• Economic Freedom and the Process of Economic Growth: An Empirical Analysis Based on a New Measure

  5-30

  Judit Kapás

  Pál Czeglédi

  Views:

  312

  This paper, relying on a conceptualization of economic freedom in terms of kinds of government actions, develops a new measure of economic freedom. However, this is not art for art’s sake; instead, it allows us to provide an explanation for how particular institutions of economic freedom enhance economic development, a view upon which scholars agree. We develop two concepts related to economic freedom, namely the freedom-compatible and freedom-non-compatible institutions and use them as tools in an analysis of the process of economic growth, especially the relationship between economic freedom and long-run income. The major argument is that freedom-compatible institutions are primary determinants of income, while freedom-non-compatible institutions depend upon them and are partly the outcomes of the growth process itself, a fact which is explained by the Misesian theory of interventionism. Our regression analyses support our theoretical insights.

  JEL Classification: B53, H10, O10

• Empirical analysis in the context of economic, technological and institutional development: the distinction between innovator and imitator countries

  3-21

  Julianna Csugány

  Views:

  175

  The driving force of economic growth is technological progress, which can be realized in two ways at the aggregate level. On the one hand, it can be a result of independent research and development, i.e. it can be realized in an innovation-driven manner. Alternatively, it can be the result of an adaptation from other countries, i.e. through imitation, which is a strategy that many countries employ successfully today. In both cases, it is the institutions, including both their formal and informal elements, which create the opportunity for technological progress. The aim of this study is to differentiate between the innovator and the imitator countries in order to highlight the differences in their institutions. The classification is done by a cluster analysis of countries, which is performed with the help of a technological and institutional environment index constructed by a principal-component analysis. The analysis confirms that economic, technological and institutional development are closely linked in the countries studied.

  Journal of Economic Literature (JEL) codes: O31, O33, O43

• Policy (Institutional) Diversity and Economic Development

  5-31

  Daniel Daianu

  Views:

  88

  Diversity, or variety, is the essence of economic life in the sense of underlying choice; economic calculation gives numerical substance to how people make choices in their daily endeavours, either as consumers or entrepreneurs. How does variety/diversity takes shape in the realm of institutions and policy making? Is the range of choices open-ended? The last couple of decades has revealed an overwhelming offensive of the neo-liberal paradigm in
  terms of defining “best practices”. Even language was shaped accordingly with market reforms being seen in a quasi-single theoretical and policy framework. Are we heading towards increasing uniformity with regard to institutional and policy set ups, worldwide? An affirmative answer would underline the successful market based transformation of a series of command economies. Some convergence between institutional patterns in the USA and the
  EU economies might be alluded to in the same vein A supportive argument for this line of reasoning could be that what matters for individual achievement, in the end, are equal opportunities. But this argument can be turned around when debating the merits of various institutional set ups in terms of creating fair chances for people. A sceptical answer would highlight the mounting challenges which confront societies, whether rich and poor, and the international community in general –in spite of the high hopes of not long ago. The demise of the “New Economy”, the series of corporate scandals in wealthy economies and the subsequent recourse to new regulatory legislation, recurrent financial and currency crises throughout the world, and the controversies surrounding the activity of IFIs, should compel “ideologues”, of all sorts, to be more humble in their prescriptions. This essay argues that there is substantial scope for institutional and policy diversity to operate as a means to foster economic development; that there might be a paradigmatic cycle in the dynamic of economic policies.

• Political leadership and economic growth: Do the leaders matter? A vezető személye számít?

  101-116

  Dora Zolcsak

  Views:

  143

  The paper analyses the role political leadership plays in economic growth by reviewing the literature that argues for, or presents evidence on, the proposition that leadership and the leader him/herself are crucial factors in economic growth. The article considers institutional economics as a starting point, a field which, so far, has paid little attention to the role of individuals and only focuses on the significance of institutions. The institutional theory of economic development has been criticized for using endogenous indicators and for only emphasising political output. However, political leaders are also able to make good and efficient economic policies. That is the reason leaders do matter

  Journal of Economic Literature (JEL) Classification: B3, O4, P48

• Economy of Austria

  125-148

  Kitti Vass

  Views:

  103

  In my article I examine a member state of the European Union, the open and federal Austria, which can be considered as an example of a corporate economy. During the reconstruction period following the Second World War the Austrian economy was characterized by a frantic economic expansion. After the oil crisis, an incomparably low inflation rate and low unemployment, and the more dynamic than average economic growth attracted attention to the country. Due to the intensified external economic interest, the Austrian model - namely the economic policy and establishment - was widely studied at this time. However, at the beginning of the 1980's some structural problems appearing in the economy contributed to slowdown in growth, until the political changes of the year 2000, which finally brought a new favourable turn in economic policy. I start with an examination of Austria's economic status after the Second World War, then the development, changes and role of the Austrian social partnership. I go on to analyze today's Austria from the point of view of the sustainable balanced budget, focusing on the financial circumstances of the state, such as the complex financial connections derived from federalism.

  Journal of Economic Literature (JEL): H62, H63

• Empirical analysis of the relationship between the attitudes of domestic researchers and their economic results

  20-38

  Laszlo Szigethy

  Views:

  115

  The study analyses the attitudes towards intellectual property management and innovation attitudes of researchers in Hungarian public research organizations and the different types of economic results they achieve in an empirical way by pointing out the close relationships among them. During the analysis, a form of researcher typology will be developed based on clusters which were formed by the attitudes of researchers. The principal components
  were created from the attitude variables and served as dimensions. The research is primarily aimed at testing two hypotheses. On the one hand, these researcher clusters have significantly different economic characteristics and on the other hand, the cluster which has the most favourable attitudes in terms of the economic exploitation of research results has the greatest economic performance. In the course of the research the results basically confirmed both hypotheses.

  Journal of Economic Literature (JEL) classifications: O32, O34, D01

• New tendencies in urban development – The possibilities provided by walkable cities

  23-42

  Petra Szucs

  Miklos Lukovics

  Bela Kezy

  Views:

  285

  Nowadays, the so-called disadvantages of urbanization – the noise, air pollution, overcrowding – receive more and more focus in cities. Vehicles require increasing space to themselves in cities which decrease the quality of living space people need, which is harmful from the point of view of the society and the economy, as well. Sustainable urban mobility can be a solution, which has two elements: the well-known environmentally friendly public transportation and the less known walkability. The latter comes to the front in the course of the preparation of sustainable city development strategies, nevertheless walkability measurements have been taken principally in USA’s and Western-Europe’s big cities. In our paper we search for the answer of the question, how the concept of walkability is interpretable in middle-sized European cities and what kind of city development potentials do all these have. In the course of our research
  primary surveys were conducted in Szeged and Valencia to investigate walkability and its improvement opportunities. Our survey verified that the concept of walkability could be a useful city development tool even in middle-sized cities.

  Journal of Economic Literature (JEL) code: R42

• Regional factors affecting the rushed and balanced growth of territorial capital

  62-80

  György Jóna

  Views:

  156

  Adapting the precepts of Kornai’s rushed economic growth theory, this paper compares the harmonic and rushed growth of territorial capital in the Hungarian sub-regions between 2004 and 2010. In the empirical analysis, the article applies the methodology of the concept of territorial capital. The empirical results indicate that the causes of the rushed growth of territorial capital can be found in underdeveloped infrastructural capital and the simultaneous development of socioeconomic inequalities. The effects of the rushed growth of territorial capital could be controlled and eliminated by adequately integrating tools of regional development, economic development and public policy.
  

  Journal of Economic Literature (JEL) kódok: C62, C68, Q01, R58

• Human Capital and EU-Enlargement

  83-92

  Dietmar Meyer

  Views:

  84

  The enlargement of the European Union is an almost everywhere accepted necessity, but at the same time of course also a compromise. Economies or regions of different economic, social, institutional, etc. development become united in Europe with a territory from the Atlantic to the Eastern borders of Poland, Slovakia and Hungary, from the Baltic Sea to the Mediterranean Sea. This integration process going along with the worldwide globalisation will imply a new distribution, or a redistribution of the factors of production. First of all the human capital will be touched by this development.2 One of the most important results found by social sciences in the 20th century is the realisation of the immense role played by human factors in the process of economic development. The extremely high efficiency of human capital and the high mobility could diminish the regional differences in the economic development and therefore in the social life. But even this is one reason for the mentioned re-allocation of the human capital. In the frame of a very simple static model (See e. g. Bishi – Kopel [2002]) the flow of human capital between different regions – called the European Union and the New Member States – will be analysed. The introduction of search costs extends the field of policy-analysis.

• The question of duality in post-transition economic development

  71-90

  Miklos Szanyi

  Views:

  169

  One of the main questions of the FDI-based economic development model is how the local embeddedness of technologically advanced, globally operating multinational firms can be increased. The global economic integration of smaller, locally owned firms could be enhanced by the stimulating spillover effects stemming from multinationals. However, if the two main sectors of the economy function in isolation from each-other, stimulation effects cannot appear. This paper studies the features and extent of structural duality in Hungary, and the preconditions for deepening economic ties between the two sectors and
  of the utilization of positive externalities stemming from the presence of large multinational firms.

  JEL classification: F23, L53

• Ecological marketing strategy and futurology

  169-188

  Maria Szolnoki Gyozone Karkus

  Views:

  202

  For both branches of futurology - prognostics and the creation of a picture of the future - the natural environment is an important element. Both economics and environmental economics try to influence the actions of economic actors by painting alarming or attractive pictures of future developments. The concept of sustainable development attempts to achieve the realization of those concepts which harmonize present and future economic, environmental and social interests. To this end a preventive environmental policy is necessary, as is the introduction of a value system in which in the course of economic decisions, environmental interests are accorded at least equal status with economic interests. Among the various concepts, eco-marketing is an appropriate method of harmonizing the often contradictory goals and interests of companies. The first part of the study deals with the relationship between research into the future and the environment, the second introduces the concept of eco-marketing, and systematizes ecological marketing strategies.

• The examination of the relationship between foreign working capital investment and economic growth on the basis of European examples

  150-166

  Eva Nagy

  Views:

  104

  In the past decade several studies have been published in Hungary as well on the role of foreign working capital investment and the economic effects of the presence of multinational companies. This paper explores what role working capital investments (their type, size etc.) have played in the transformation and modernization of Hungary and in her integration into world trade. After a short theoretical and historical survey it presents the experience of some European countries which the literature often mentions by comparing them to Hungary, for on the basis of their size, population, geographical location and level of economic development they have often met similar economic policy dilemmas and choice-making. Then it examines what effects foreign working capital influx had on the given economies and - ina wider sense - on their social development, and in addition, what kinds of undesirable consequences it had.

• Varieties of development paths in post communist countries with special regard to the transition in Hungary

  5-25

  Miklos Szanyi

  Views:

  142

  Transition in Central and Eastern Europe was carried out in various ways. However, the different countries’ current economic structure, institutions and main economic performance measures are rather similar. The question asked is whether these countries follow a specific kind of development model? What seems likely is that they differ substantially from CIS countries in many aspects. But they also seem to differ from existing models of capitalism more than they do from each-other. Based on this information, the varieties of capitalism literature assumes that such a model does indeed exist. However, no comprehensive positive description of the model has so far been provided. This paper tries to define the main elements of the CEE capitalist models. These are small open economies, with close integration into the world economy through foreign investments, a relatively limited and declining role of state redistribution, the problems of dual economic structure and insufficient job creation, a relatively large shadow economy and “business capture”-type cronyism. Further research is required to properly describe the elements and interactions among them.

  Journal of Economic Literature (JEL) classifications: D72, E65, P31

• Some economic aspects of higher education quality

  14-30

  Peter Levente Lakatos

  Csaba Mako

  Views:

  292

  Based on the world's most renowned university rankings, OECD annual reports and Eurostat data, this paper seeks to demonstrate that a competitive economy requires competitive (higher) education and that there is a significant correlation between the quality of higher education and economic development. Furthermore, in this process, the higher education quality assurance organization system has an outstanding task and responsibility through the formation of quality culture, guidelines, helpful research, summary of good practices and making constructive suggestions. Finally, it points out that close collaboration between universities and agencies with stakeholders is a priority area, which could contribute to a much more capability-based output system in the longer term. It also considers it desirable to make the relationship between universities and scientific research networks and research institutes closer and more vibrant (where it is not).

  Journal of Economic Literature (JEL) codes: H52, I22, I23, I25, I26, O15

• Presentation of economic and socio-cultural impact analyses of the Opera festival of Miskolc

  114-130

  Viktoria Kundi

  Views:

  106

  The article presents research into the economic and socio-cultural impact of the Miskolc Opera festival. It explores how a cultural event – which was created thanks to conscious urban development – can operate in a city with an industrial past and a stagnant economic situation. After the methodology and desk research, the tourist facilities of the city are analyzed. In the following sections of the paper, the results of primary research are presented.

  Journal of Economic Literature (JEL) classification: Z130

• A német transzferrendszer mint a gazdasági visszaesés okozója

  Agnes Orosz

  Views:

  172

  According to the theory of optimal currency areas the most important advantage of monetary integration is its positive effect on economic growth. However, examining Germany we can notice that since German reunification economic growth and the convergence between East and West Germany has slowed down. These facts show that the operation of the German currency union is not optimal and its performance has not improved over the last twenty years. The criteria of the optimal currency area theory is endogenous due to the recent development of the theory. This means that a country is more likely to satisfy the criteria for entry into a curreny union ex post than ex ante. In the case of Germany, examining the trends of economic growth we can conclude the the German currency union has not become optimal in the last two decades. These facts raise the puzzling question of what are the specific circumstances hindering the improvement if Germany's monetary union despite the endogeneity of the optimal currency area criteria. To answer this question the study examines the interactions between monetary and political integration with special attention to the issues of fiscal policy. According to the study the German transfer system and the dependency on transfers explain the discrepancy between theory and empirics.

  Journal of Economic Literature (JEL) classification: E42, E62, E63, F01, F31, F36

• The role of culture in economic growth: an assessment, criticism and paths for future research

  22-44

  Judit Kapás

  Views:

  216

  There is an abundance of empirical literature on the impact of culture on economic development. This literature has been developing at the margin of growth theory and institutional economics. This paper reviews this branch of the literature by structuring it into three main lines, and placing an emphasis on (self)-criticism directed towards it, as well. The author provides some proposals for further steps towards improving the culturegrowth empirical literature, following the two routes identified by the (self)-criticism.

  Journal of Economic Literature (JEL) codes: O43, Z19

• The timing of the EMU accession

  45-62

  Laszlo Jankovics

  Views:

  220

  Following the Eu-accession the next major challenge is the preparation for and finally the introduction of the single currency for the Central Eastern European countries. In this paper, I analyze the legal, economic and political factors regarding the preparedness of the whole region, with special emphasis on Hungary. After taking the pros and cons of the official "as soon as possible" strategy into consideration, we can conclude that there is no convincing case for further postponing eurozone entry. Additionally, putting off the date indefinitely or ambiguously could result in growing economic uncertainty and dangerous financial instability. In the case of Hungary, it is very likely that the country would suffer serious loss of reputation and credibility were it to put off the target date a second time, i.e. beyond 2010. Lack of strong political commitment could unfortunately easily lead to a postponement of the adaption of the single currency. The potential implication might well be debated, but no doubt would be serious in terms of reputation and economic development.

  Journal of Economic Literature (JEL) classification: E42, E58, F33 

• Development economics - development policies: Some remarks on concepts, applications and fallacies

  46-58

  Istvan Musto

  Views:

  120

  This is a brief summary of the development theories and policies of the last 5 decades. The neoclassic economic approach, dependency paradigm and the contemporary "post-modern" concepts and strategies are analyzed and commented with reference being made to the respective problems and fallacies. Development, so the conclusion, is a self-regulating process in complex open and dynamic socioeconomic systems that are not susceptible to planning but which are progressively improving their ability to manage their increasing complexity and the mechanisms to adjust to changing circumstances.

• Management Standards for Competency Management

  93-108

  Laszlo Berenyi

  Views:

  229

  Nowadays the knowledge-based economy and organizational development is intertwined with competence-based management. The creation and flow of individual and organizational knowledge elements are critical from this point of view. Knowledge management methods are available but there is lack of application. Based on my research and consulting activities, I have experienced that many organizations are unaware of the possibilities available to them, or are unable to utilize the advantages. In this paper I try to demonstrate that the requirements of the internationally used ISO 9001 standard provide a framework for knowledge-based development. Beyond the theoretical issues the paper summarizes
  the limits of practical application.

  Journal of Economic Literature (JEL) classifications: D83, M19

• The Development of Growth Accounting Techniques in the Mirror of Economic Growth

  85-103

  Levente Nadasi

  Views:

  143

  In this article we present the development of certain growth theories that model the main sources of growth. Since the elasticity of substitution – one of the most important parameters of production function – is not unity, as the Cobb-Douglas production function assumes, it can be different from a value of 1; hence we need a more general CES-type (Constant Elasticity of Substitution) production function. Another important question is the classification of factors of production. The elasticity of substitution is an efficiency factor as well, thus it receives special attention in the analysis. Finally we summarize the main papers that are mainly concerned with growth accounting, and try to answer the question of which factors play a significant or less significant role in economic growth. Growth accounting is strongly connected to growth theories so we refer back to growth theory at certain points.

  JEL classification: E13, O47

• The transition of the Baltic States. Why is Estonia the most successful?

  133-144

  Bela Hajnal

  Views:

  200

  The study addresses the results of the Baltic States in the first phase of the transition, focusing on the process of stabilization, liberalization, privatization and institutional reforms. The paper summarizes the difficulties and the economic policy reactions, which built the basis for later successful development. The three analyzed countries have several similarities (country size, geopolitical situation, resources, Soviet heritage) so the discrepancies in the level of economic development can probably be explained by the different paths of transition. The author attempts to answer the question, how a coherent economic policy contributed to the Estonian transition, which proved the most successful.

• The economic impacts of direct payments on agricultural income – A Literature Review

  3-25

  Akos Szerletics

  Attila Jambor

  Views:

  527

  The economic impacts of direct payments is a widely studied field in the literature related to the Common Agricultural Policy. This article aims to provide a systematic review of the income-related impacts of direct payments. In doing so, the article screened the academic literature on the impacts of direct payments and identified 150 relevant ones, out of which 41 were written directly on income-related effects.
  Relevant articles can be classified into four groups: general, distributional, stabilisation and other impacts. Most of the literature criticised the ongoing system of direct payments and their effectiveness in producing income-related policy goals. We believe that our results can be useful for researchers and policymakers in better understanding the income-related impacts of direct payments.

  Journal of Economic Literature (JEL) classification: Q18