Supply chain position and servitization efforts of companies in Eastern and Western Europe

Our paper investigates the supply chain position of manufacturing companies in Europe, and the relation of this position to the extent and kind of services these companies provide. Our research builds on analyzing differences between Western and Eastern European companies. For the empirical research the database from the fifth round of the International Manufacturing Strategy Survey is used which covers 445 manufacturing companies from 13 European countries. Based on the connection between supply chain position and the extent and type of services offered dominant business models are identified both in Eastern and Western Europe.

“An Ebbing Tide Lowers all Boats” How the great recession of 2008 has affected men and women in Central and Eastern Europe

In this paper we explore the impact of the economic recession of 2008 on gender inequality in the labor force in Central and Eastern European countries. We argue that job and occupational segregation protected women’s employment more than men's in the CEE region as well, but unlike in more developed capitalist economies, women’s level of labor force participation declined and their rates of poverty increased during the crisis years. We also explore gender differences in opinions on the impact of the recession on people’s job satisfaction. For our analysis we use published data from EUROSTAT and our own calculations from EU SILC and ESS 2010.

Measuring Benefits of Technology Spillovers from Foreign Direct Investment in Central and Eastern Europe

In this paper, we construct a composite indicator to estimate the potential of four Central and Eastern European countries (the Czech Republic, Hungary, Poland and Slovakia) to benefit from productivity spillovers from foreign direct investment (FDI) in the manufacturing sector. Such transfers of technology are one of the main benefits of FDI for the host country, and should also be one of the main determinants of FDI incentives offered to investing multinationals by governments, but they are difficult to assess ex ante. For our composite index, we use six components to proxy the main channels and determinants of these spillovers. We have tried several weighting and aggregation methods, and we consider our results robust. According to the analysis of our results, between 2003 and 2007 all four countries were able to increase their potential to benefit from such spillovers, although there are large differences between them. The Czech Republic clearly has the most potential to benefit from productivity spillovers, while Poland has the least. The relative positions of Hungary and Slovakia depend to some extent on the exact weighting and aggregation method of the individual components of the index, but the differences are not large. These conclusions have important implications both for the investment strategies of multinationals and government FDI policies.

Innovation Management in Central and Eastern Europe: Technology Perspectives and EU Policy Implications

The purpose of this study is to investigate empirically the role of innovation activity in Central and Eastern Europea (CEE). We also identified those internal and external factors, which might cause improvements in innovation performance of CEE companies. Our main focus was on technology-based innovations within the healthcare industry. We applied qualitative research methods. Our findings demonstrate that CEE companies within the healthcare industry have significant contribution to European Union’s innovation performance. We found that key success factors of these organizations are based on four elements: knowledge management, access to financial resources, managing formal and informal networks, as well as achieving synergies between technological and non-technological innovations.

Knowledge and innovation as value drivers in professional services firms: an empirical research in Central and Eastern Europe

The purpose of this study was to investigate empirically the role of knowledge and innovation within Central and Eastern Europe’s changing economy. We applied qualitative research methods, and focused only on professional services firms within the region. The connection between knowledge and innovation as well as knowledge and competitiveness was analyzed by top managers and senior industry experts. Our findings revealed that knowledge might be a real value driver for professional services firms. These companies can significantly contribute to the development of modern economies through the dissemination of their internal best practices in knowledge management. We found three factors that might influence the effectiveness of knowledge management. These three factors are the involvement of international knowledge networks, the investments in human capital, and focus on critical resources. These issues proved to be essential to maximize the potential of knowledge and to leverage this into increased business performance.

A munkával kapcsolatos értékek és attitűdök változása Közép-Kelet Európában a XXI. század első évtizedében (Changing values and attitudes regarding labour in Central- Eastern Europe in the first decade of 21st century)

A szerző tanulmányában a 2000 és 2010 közötti gazdasági és társadalmi változásokat és a munkával kapcsolatos értékek és attitűdök alakulását állítja időbeli párhuzamba, és azokra a kérdésekre keresi a választ, hogy milyen prioritások jellemzik 2010-ben a munka egyes aspektusaihoz való viszonyulást Közép-Kelet- Európa uniós tagállamaiban, és közöttük kiemelten Magyarországon? Vajon változtak-e ezek a jellemzők az elmúlt tíz év során, s ha igen, milyen irányú az elmozdulás. Azonos tendenciájúak-e a változások a vizsgált országokban? Megállapíthatók-e jellegzetes különbségek három kiválasztott, magas életszínvonalú, régebbi uniós (EU-15) tagországhoz viszonyítva? Elemzése jelentős mértékben támaszkodik az EVSfelmérés 2010-ben közzétett adataira, melynek alapját a 2008 és 2009 során lefolytatott adatgyűjtés képezi. Tanulmányában azokra a közép-kelet-európai országokra összpontosít, amelyek az elmúlt évtized során az unió tagjai lettek, és a 2000-es felmérésben is részt vettek már. _____ The author sets into parallelism economic and social changes and the development of values and attitudes regarding labour between 2000 and 2010, and looks for answers to questions what priorities characterize in 2010 the attitude to some aspects of labour in EU member countries of CEE, and especially in Hungary. Have these features changed in the last decade and in positive case, what is the direction of the shift? Are changes of similar tendency in countries under consideration? Can considerable differences be stated as compared to three selected, earlier EU 15 member countries with high living standard? The analysis largely relies on data of EVS survey, published in 2010 whose basis is the data collection carried out in 2008-2009. The essay focuses on Central Eastern European countries which have become members of the Union during the last decade and took part already in the survey of 2000.

Irrelevant or transformative power? The OECD DAC and foreign aid policies in Central and Eastern Europe

The paper examines the impact of the OECD’s Development Assistance Committee (DAC) on the emerging foreign aid policies of the Central and Eastern European (CEEs) countries. The Czech Republic, Poland, Slovakia and Slovenia joined the DAC in 2013, and the committee has aimed to socialise them into the norms of the international development system. Generally, however, there is little evidence of impact due to the soft nature of the DAC’s policy recommendations, and the fact that the committee, reacting to the challenges to its legitimacy from non-Western donors, has become much less demanding towards potential members than in the past. The paper, however, argues that one must examine the processes of how the norm and policy recommendations of the DAC are mediated domestically. The case of the Czechepublic’s reforms in its foreign aid policy between 2007 and 2010 shows that domestic actors can use the OECD strategically to build support for their own cause and thus achieve seemingly difficult policy reform.

Institutional Persistence in Eastern Europe: Economic and Political Legacies of Empires and Communism

This dissertation seeks to advance our understanding of the roles that institutions play in economic development. How do institutions evolve? What mechanisms are responsible for their persistence? What effects do they have on economic development?

I address these questions using historical and contemporary data from Eastern Europe and Russia. This area is relatively understudied by development economists. It also has a very interesting history. For one thing, for several centuries it was divided between different empires. For another, it experienced wars and socialism in the 20th century. I use some of these exogenous shocks as quasi-natural social experiments to study the institutional transformations and its effects on economic development both in the short and long run.

This first chapter explores whether economic, social, and political institutions vary in their resistance to policies designed to remove them. The empirical context for the analysis is Romania from 1690 to the 2000s. Romania represents an excellent laboratory for studying the persistence of different types of historical institutional legacies. In the 18th and 19th centuries, Romania was split between the Habsburg and Ottoman Empires, where political and economic institutions differed. The Habsburgs imposed less extractive institutions relative to the Ottomans: stronger rule of law, a more stable and predictable state, a more developed civil society, and less corruption. In the 20th century, the Romanian Communist regime tried deliberately to homogenize the country along all relevant dimensions. It was only partially successful. Using a regression discontinuity design, I document the persistence of economic outcomes, social capital, and political attitudes. First, I document remarkable convergence in urbanization, education, unemployment, and income between the two former empires. Second, regarding social capital, no significant differences in organizational membership, trust in bureaucracy, and corruption persist today. Finally, even though the Communists tried to change all political attitudes, significant discontinuities exist in current voting behavior at the former Habsburg-Ottoman border. Using data from the parliamentary elections of 1996-2008, I find that former Habsburg rule decreases by around 6 percentage points the vote share of the major post-Communist left party and increases by around 2 and 5 percentage points the vote shares of the main anti-Communist and liberal parties, respectively.

The second chapter investigates the effects of Stalin’s mass deportations on distrust in central authority. Four deported ethnic groups were not rehabilitated after Stalin’s death; they remained in permanent exile until the disintegration of the Soviet Union. This allows one to distinguish between the effects of the groups that returned to their homelands and those of the groups that were not allowed to return. Using regional data from the 1991 referendum on the future of the Soviet Union, I find that deportations have a negative interim effect on trust in central authority in both the regions of destination and those of origin. The effect is stronger for ethnic groups that remained in permanent exile in the destination regions. Using data from the Life in Transition Survey, the chapter also documents a long-term effect of deportations in the destination regions.

The third chapter studies the short-term effect of Russian colonization of Central Asia on economic development. I use data on the regions of origin of Russian settlers and push factors to construct an instrument for Russian migration to Central Asia. This instrument allows me to interpret the outcomes causally. The main finding is that the massive influx of Russians into the region during the 1897-1926 period had a significant positive effect on indigenous literacy. The effect is stronger for men and in rural areas. Evidently, interactions between natives and Russians through the paid labor market was an important mechanism of human capital transmission in the context of colonization.

The findings of these chapters provide additional evidence that history and institutions do matter for economic development. Moreover, the dissertation also illuminates the relative persistence of institutions. In particular, political and social capital legacies of institutions might outlast economic legacies. I find that most economic differences between the former empires in Romania have disappeared. By the same token, there are significant discontinuities in political outcomes. People in former Habsburg Romania provide greater support for liberalization, privatization, and market economy, whereas voters in Ottoman Romania vote more for redistribution and government control over the economy.

In the former Soviet Union, Stalin’s deportations during World War II have a long-term negative effect on social capital. Today’s residents of the destination regions of deportations show significantly lower levels of trust in central authority. This is despite the fact that the Communist regime tried to eliminate any source of opposition and used propaganda to homogenize people’s political and social attitudes towards the authorities. In Central Asia, the influx of Russian settlers had a positive short-term effect on human capital of indigenous population by the 1920s, which also might have persisted over time.

From a development perspective, these findings stress the importance of institutions for future paths of development. Even if past institutional differences are not apparent for a certain period of time, as was the case with the former Communist countries, they can polarize society later on, hampering economic development in the long run. Different institutions in the past, which do not exist anymore, can thus contribute to current political instability and animosity.

Alcohol-Related Problems in Eastern Europe : A Comparative Perspective

This thesis investigates the association between alcohol consumption and alcohol-related harm in Eastern Europe. The main aim was to estimate to what extent changes in per capita alcohol consumption have an impact on different forms of alcohol-related mortality, and to put the results in an international comparative perspective. The thesis includes four papers; the first two papers use aggregate time-series analysis to assess how changes in per capita consumption affect rates in suicide mortality and fatal non-intentional injuries in several Eastern European countries, respectively. The third paper applies the same methodological approach to analyse the population-level relationship between alcohol and homicide in Russia and the U.S.. The fourth paper employs survey data to assess how the risk of experiencing alcohol-related problems in relation to volume of consumption in the Baltic countries compares to Sweden and Italy. The results of the first three papers suggests: (i) that changes in per capita consumption are significantly related to changes in mortality rates of suicide, non-intentional injuries and homicide in the countries under study; (ii) that the relationship is stronger for men than for women, and (iii) that the relationship tends to be stronger in the countries with more detrimental drinking patterns, e.g. Russia. The results of the fourth paper suggest that the risk of experiencing alcohol-related problems in relation to level of drinking in the Baltic countries is similar to the corresponding risk in Sweden, but considerably stronger than in Italy. In conclusion, the findings support the significance of a public health approach to alcohol-related problems in Eastern Europe, i.e., policy measures directed towards total alcohol consumption. In addition, strategies aimed at reducing the occurrence of binge drinking seem to have great potential for reducing alcohol-related harm and mortality in Eastern European countries.

Towards participatory political theology: democratic consolidation in Southeastern Europe and the role of Eastern Christianity in the process

This thesis defends the position that the Eastern Orthodoxy has the potential to develop, on the basis of its core concepts and doctrines, a new political theology that is participatory, personalist and universalist. This participatory political theology, as I name it, endorses modern democracy and the values of civic engagement. It enhances the process of democracy-building and consolidation in the SEE countries through cultivating the ethos of participation and concern with the common good among and the recognition of the dignity and freedom of the person. This political-theological model is developed while analyzing critically the traditional models of church-state relations (the symphonia model corresponding to the medieval empire and the Christian nation model corresponding to the nation-state) as being instrumentalized to serve the political goals of non-democratic regimes. The participatory political-theological model is seen as corresponding to the conditions of the constitutional democratic state. The research is justified by the fact the Eastern Orthodoxy has been a dominant religiouscultural force in the European South East for centuries, thus playing a significant role in the process of creation of the medieval and modern statehood of the SEE countries. The analysis employs comparative constitutional perspectives on democratic transition and consolidation in the SEE region with the theoretical approaches of political theology and Eastern Orthodox theology. The conceptual basis for the political-theological synthesis is found in the concept and doctrines of the Eastern Orthodoxy (theosis and synergy, ecclesia and Eucharist, conciliarity and catholicity, economy and eschatology) which emphasize the participatory, personalist and communal dimensions of the Orthodox faith and practice. The paradigms of revealing the political-theological potential of these concepts are the Eucharistic ecclesiology and the concept of divine-human communion as defining the body of Orthodox theology. The thesis argues that with its ethos of openness and engagement the participatory political theology presupposes political systems that are democratic, inclusive, and participatory, respecting the rights and the dignity of the person. The political theology developed here calls for a transformation and change of democratic systems towards better realization of their personalist and participatory commitments. In the context of the SEE countries the participatory political theology addresses the challenges posed by alternative authoritarian political theologies practiced in neighboring regions.

Mapping the Liminal Experience of Eastern Europe in Selected American Works, 1965-2002

The purpose of this dissertation is to study literary representations of Eastern Europe in the works of celebrated and less-known American authors, who visited and narrated the region between the mid-1960s and early 2000s. The main critical body focuses on Eastern Europe before 1989 and encompasses three major voices of American literature: John Updike, Joyce Carol Oates, and Philip Roth. However, in the last chapter I also explore American literary perceptions of the area following the collapse of communism. Importantly, the term “Eastern Europe” as used in this dissertation is charged with significance. I approach it not only as a space on the map or the geopolitical construct which emerged in the aftermath of the Second World War, but rather as a conceptual category and a repository of meanings built out of fact and fantasy: specific historical, political and cultural realities interlaced with subjective worldviews, preconceptions, and mental images. The critical framework of this dissertation is twofold. I reach for the concept of liminality to elucidate the indeterminacy and malleability which lies at the heart of the object of study—the idea, image, and experience of Eastern Europe. Bearing in mind the nature of the works under analysis, all of which were inspired by actual visits behind the Iron Curtain, I propose to interpret these transatlantic literary journeys in terms of generative experience, where Eastern Europe is mapped as a liminal space of possibility; a contact zone between cultures and, potentially, the locus of self-discovery and individual transformation. If liminality is the metaphor or a lens that I employ in order to account for the nature of the analyzed works and the complex terrain they map, imagology, whose purpose is to study the processes of constructing selfhood and otherness in literature, provides me with the method and the critical vocabulary for analyzing selected literary representations. The dissertation is divided into six chapters, the last of which serves as coda to the previous discussion. The first two chapters constitute the critical foundation of this work. Then, in chapters 3, 4, and 5 I study American images of Eastern Europe in the works written by John Updike, Joyce Carol Oates, and Philip Roth, respectively. The last, sixth chapter of this dissertation is divided into two parts. In the first one, I discuss new critical perspectives and avenues of research in the study of Eastern Europe following the collapse of communism. Then, I carry out a joint analysis of four works written after 1989 by Eva Hoffman, Arthur Phillips, John Beckman, and Gary Shteyngart. The dissertation ends with conclusions in which I summarize my findings and reflections, and suggest implications for future research. As this dissertation seeks to demonstrate, Eastern Europe portrayed in the analyzed works oscillates between contradictory representations which are contingent upon a number of factors, most importantly who maps it and in what context. Even though each experience of Eastern Europe is distinct and fueled by the profiles, identities, and interests of the characters and their creators, I have found out that certain patterns of othering are present in all the works. Thus, my research seems to suggest that there is something of a recurrent literary image of Eastern Europe, which goes beyond the context of the Cold War. Accordingly, while this dissertation hopes to be a valid contribution to the study of literary and cultural mappings of Eastern Europe, it also generates new questions regarding the current, post-communist representation of the area and its relationship to the national tropes explored in my work.

In Search of Sovereignty: Central and Eastern Europe, 1956-1989

International theory is replete with contested concepts, none more than state sovereignty. Although embodied in the UN Charter, it came under continuous strain during the early Cold War, culminating in the crucial year of 1956. Subsequent Soviet ideologists sought to justify the invasion of Czechoslovakia as „limited sovereignty”, dubbed by US analysts the "Brezhnev Doctrine". A few Western scholars thought this ended with the "non-invasion" of Poland in 1980-1981, but Russian archives reveal that it was not annulled until spring 1989.

Foreign Direct Investment in Central and Eastern Europe:post-crisis perspectives

This book examines how foreign direct investment (FDI) inflows to Central and Eastern Europe have changed after the Great Recession. It argues that beyond their cyclical effects, the economic crisis and the changing competitiveness of Central and Eastern European countries have had structural impacts on FDI in the region. FDI has traditionally been viewed as the key driver of national development, but the apparent structural shift means that focusing on cheap labour as a competitive advantage is no longer a viable strategy for the countries in the region. The authors argue that these countries need to move beyond the narrative of upgrading (attracting FDI inflows with increasingly higher value added), and focus on ensuring greater value capture instead. A potential way for doing this is by developing the conditions in which innovative national companies can emerge, thrive and eventually develop into lead firms of global value chains. The book provides readers with a highly informative account of the reasons why this shift is necessary, as well as diverse perspectives and extensive discussions on the dynamics and structural impacts of FDI in post-crisis Central and Eastern Europe.

What next for unions in Central and Eastern Europe? Invisibility, departure and the transformation of industrial relations

This article examines union revitalization in Central and Eastern Europe, focusing on two countries: Hungary and Latvia. Trade unions have not only had to cope with a declining membership base, but have also had to respond to austerity programmes and government cuts in public sector employment. We argue that the inability of unions to provide a strong voice for alternative policies to the current neoliberal orthodoxy has been driven by a declining membership base, but also by weakened social dialogue mechanisms, limited industrial representation and an ageing membership profile, exacerbated by net outward migration in recent years. However, we find that unions in Latvia and Hungary have responded differently to these issues.

Annales européennes, et de fructification générale.

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