The influence of face and group orientation on the perception of luxury goods:a four market study of East Asian consumers

Purpose: The paper aims to further extend our understanding by assessing the extent to which two prominent cultural values in East Asia i.e. face saving and group orientation drive consumers' perceptions of luxury goods across four East Asian markets. Design/methodology/approach: A multi-methods research approach was adopted consisting of: an expert panel of close to 70 participants, group discussions with five extended East Asian families, personal interviews with eight East Asian scholars, a pilot test with over 50 East Asian graduate students and a multi-market survey of 443 consumer respondents in Beijing, Tokyo, Singapore and Hanoi. Findings: The authors extend previous conceptual studies by empirically investigating the impact of these two cultural values on the perception of luxury among East Asian societies. Specifically the study reveals that across all four markets face saving has the strongest influence on the conspicuous and hedonistic dimensions of luxury, group orientation meanwhile is the strongest predictor of the quality, extended self and exclusivity dimensions of luxury. Collectively these two cultural values significantly influence East Asian perceptions of luxury. Overall, the findings reiterate the importance of understanding different cultural values and their influence across different East Asian societies. Practical implications: The findings have important implications for managers of western luxury branded goods that are seeking to penetrate East Asian markets or seek to serve East Asian consumers. Specifically, to assist with developing suitable brand positioning, products, services, communications and pricing strategies. Originality/value: This study contributes to our understanding of the subject by exploring the impact of face saving and group orientation on the perception of luxury goods across four East Asian countries. Several directions for future research are suggested. © Emerald Group Publishing Limited.

Interregionalism

Interregionalism is deeply rooted in the foreign policies and external relations of the EU. Interregional cooperation today not only encompasses trade and aid but also political dialogue, cultural relations and even security cooperation. Although the EU’s official ambition has been to formalize and institutionalize its interregional relations with other regional bodies or organizations (so-called ‘pure interregionalism’), in practice there are a bewildering variety of interregional or group-to-group relations on display (Hänggi 2006; Baert et al. 2014). The EU is rapidly evolving as a global actor and while doing so it has been trying to export its own civilian and normative values. Interregionalism is an important tool in this process, contributing to the EU’s policy of fostering regionalism worldwide, not only in the triad (Europe, North America and East Asia) (De Lombaerde and Schulz 2009). Through interregionalism, the EU and its regional others enhance their presence, gain recognition, tighten institutional cohesion and define identities. Interregionalism, therefore, occupies a special position in the construction of regional actorness in global affairs (Wunderlich 2012). However, the link between interregionalism and regionalism is both complex and underexplored (Baert et al. 2014; Doidge 2007). Much depends on the type of interregional relations, and the balance of other forms of cooperation, which appears to play out differently in different regions. All this leads to a number of research questions that should be addressed by the academic literature, including is there a preference for interregional relations in EU’s foreign policy? If so, for what reason(s)? What are the consequences of such a preference? What is the role of interregionalism in the broader context of EU’s external policies? How are expressions of regionalism related to expressions of interregionalism? Does the sui generis character of the EU lead to a sui generis character of EU interregionalism? This chapter provides a general overview of the evolution of the field, the key conceptual and analytical debates, as well as the main research questions that drive the research agenda. Emphasis is also placed on identifying the main gaps in the field and suggesting directions.

Fiscal adjustment and economic growth in the European Union

The current world economic crisis induced countries to launch wide-scale spending programmes all over the world. Member states of the European Union have not been an exception to this trend. While deficit spending may increase the aggregate demand, it can also accelerate indebtedness and make the required spending cuts politically risky later on. However, deficit financing is not a new phenomenon in the EU; it has been widely practiced in the last couple of decades. As the crisis seems to come to an end, countries with huge deficits should adopt exit strategies now, thereby reducing deficit and debt and reintroducing fiscal discipline, a requirement laid down in the Stability and Growth Pact. Nevertheless, former adjustment processes can provide ample evidence for successful and politically viable fiscal consolidations. In certain cases, even economic activity started to accelerate as a response to the welldesigned adjustment measures. Based on the previous experiences of EU states, the aim of this paper is, therefore, to identify the conditions that may determine a fiscal consolidation to be successful in terms of a reduced debt ratio and a positive economic growth.

Beyond the crisis: prospects for emerging Europe

This paper assesses the impact of the 2008-09 global financial and economic crisis on the medium-term growth prospects of the countries of central and eastern Europe, the Caucasus and Central Asia, which began an economic transition about two decades ago. We use crosscountry growth regressions, putting special emphasis on a proper consideration of the crisis and robustness. We find that the crisis has had a major impact on the within-sample fit of the models used and that the positive impact of EU enlargement on growth is smaller than previous research has shown. The crisis has also altered the future growth prospects of the countries studied, even in the optimistic but unrealistic case of a return to pre-crisis capital inflows and credit booms.

Monetáris politikai tendenciák I. Eszköztárak (Tendencies in monetary policy I. - Asset prices)

A közgazdaságtan, szűkebben a monetáris politika előtt két elméleti és gyakorlati kihívást látok: a globális egyensúlytalanságoknak nevezett jelenséget és az eszközár problematikát. Előbbi a világgazdaságban koncentráltan fölhalmozódó adósságokat és követelésállományokat jelenti, utóbbi a banki és nem banki pénzügyi piacok folyamatainak lehetséges pénzügypolitikai vonatkozásaira utal. Mondandómat két cikkben fogalmazom meg. Ez az írás először a monetáris stabilitás és instabilitás kérdéskörét mutatja be történeti keretben, ami tekinthető mindkét aktuális témakör földolgozásához szükséges elméleti fölvezetőnek is. Ezt követi a monetáris politika és az eszközárak kapcsolatának vizsgálata. A következő cikk foglalkozik a globális egyensúlytalanságokkal. Azért választottam e sorrendet, mert a két téma szorosan összefügg, az itt leírt magyarázatok segíthetik a későbbiek megértését. Az írásban többször megfogalmazok saját véleményt, a hangsúly mégis a szakirodalom bemutatásán van. / === / Global imbalances and asset price booms and busts are the two main practical and theoretical challenges in economics, especially in monetary policy. The first of them concerns the accumulative tendencies of debts and claims in the world economy, the second challenge deals with the processes of bank and non bank money markets. These topics are dealt with in two articles. The first one presents the issue of monetary stability and instability from a historical perspective. With that the connections between monetary policy and asset prices will be studied. The next article will deal with global imbalances. The topics are closely related and this order helps better understanding. The articles are mainly based on the current literature although I insert my own views as well.

Monetáris hatásosság közösségi szinten (The community level efficiency of monetary policy)

A monetáris integráció központi szereplője a Közösség jegybankja. A közös valuta értékállóságának közvetlenül fő meghatározója a jegybank. Mozgásterét azonban több tényező alakítja. E tanulmány az intézményi és stratégiai, a tagállami (decentralizált fiskális) és a pénzpiaci környezet függvényében vizsgálja az Európai Központi Bank (ECB) lehetőségeit és monetáris politikájának hatásosságát. / === / The efficiency of the European Economic and Monetary Union is a big dilemma of European applied economics. The first part introduces the monetary policy made by ECB. Rates and objectives are the framework of efficiency analysis. The second part details the common pool resource problem in the community of EMU countries, and describes the prisoner's dilemma of indebting in a currency community. The EMU practice shows free riding behavior of many member states what generally causes higher default risks. The increasing indebtedness shows dysfunction too, as the ECB must adjust the interest rate to the higher default risk which means cost premiums for fiscally disciplined countries as well. The third part analyses the efficiency of the ECB through the standards of monetary transmission. The updated criteria can explain any success or failure of the ECB in a not perfectly homogeneous community. The measures of transmission used in the study are the way of financing (banks vs. market), terms of financing, structure of the banking sector, private sector indebtedness, structure of savings and wealth, price elasticity, interest rate elasticity, wage elasticity. They show that the single monetary policy can create tension in the community not only because of the fiscal differences but also due to money market discrepancies.

A kohéziós politika hatékonysága (The efficiency of cohesion policy)

A kohéziós politika hatékonyságát, eredményességét és szabályszerűségét a nemzetállami szint mellett közösségi szinten is értelmezhetjük. Azonban a közösségi szint nem a tagállami részek összege, hanem annál sokkal jelentősebb. Ha a közösségi szinten nem támasztható alá a kohéziós politika szükségszerűsége, akkor annak költségvetése és ezáltal jelentősége az EU következő pénzügyi perspektívájában csökkenhet, amelynek súlyos kihatásai lennének a tagállamok és régióik közötti kohéziós folyamatokra. Éppen ezért fontos a kohéziós politika objektív és részletes elemzése tagállami szinten, valamint a közösségi szintű kohéziós politika kritikáinak és a különböző reformelképzeléseknek vizsgálata. / === / The efficiency, effectiveness and regularity of cohesion policy can be defined both on the community level and on the national level. But the community level more than the sum of the member states. If the necessity of the cohesion policy cannot be backed sufficiently, then its budget of the policy can be decreased in the next financial framework of the EU. This could deeply undermine the process of convergence of the less developed regions of the member states. This is why the objective and detailed analysis of the cohesion policy is important, together with knowing the criticisms and reform proposals of the community level cohesion policy.

Tanulságok a gazdasági és monetáris unió számára a 2008-as világgazdasági válság kapcsán (Lessons for the Economic and Monetary Union from the 2008 global economic crisis)

Írásunkban a 2008-ban kitört világgazdasági válságnak a Gazdasági és Monetáris Unióra gyakorolt hatásait elemezzük. Tanulmányunkban rávilágítunk a Gazdasági és Monetáris Unió két olyan problémájára, amelyek a válság után váltak igazán nyilvánvalóvá. Egyrészt a görög államcsődveszély, illetve egyes, korábban jól teljesítő országok botladozása jelzi, hogy a Monetáris Unió intézményrendszere legalábbis hiányos. A másik kérdés összefügg az előzővel, és azon országok szemszögéből érdekes, amelyek csatlakozni kívánnak a GMU-hoz: felerősödtek azok a vélemények, amelyek a csatlakozás elhalasztása mellett foglalnak állást. Tanulmányunk második részében ezt a kérdést járjuk körbe. / === / In our paper we are analyze the effects of the economic crisis of 2008 on the Economic and Monetary Union. We are focusing on two core problems of the EMU which came to surface only after the outbreak of the crisis. First, we address the fiscal problems of Greece and other member states which performed well before the crisis. These problems show that there are major institutional shortcomings in the Monetary Union. The second question is connected to the first one and concerns the new member states of the European Union and their strategies to join the Euro zone. After the crisis more and more voices in the new member states suggest postponing EMU membership.

Az európai gazdasági kormányzás előtt álló kihívások. A hármas tagadás lehetetlensége (Challenges of European economic governance. The impossible trinity of denial.)

Az európai gazdasági integráció folyamata olyan kényszerhelyzetekben formálódott a múltban, amelyek a közgazdaságtudományban jól ismert lehetetlen háromság alapján is leírhatók. Az Európai Monetáris Rendszer a rögzített árfolyam-mechanizmusra és önálló jegybanki politikára épített, korlátozva a tőkemozgásokat. A Gazdasági és Monetáris Unió ugyanakkor a tőke szabad áramlásával és az árfolyamok visszavonhatatlan rögzítésével felszámolta a tagállami szintű jegybanki autonómiát. Az euróövezet működése egyszersmind arra a háromszoros tagadásra épül(t), hogy 1. nem lehetséges az euróövezetből való kilépés, 2. nem engedélyezett a kimentés és 3. nem kerülhet sor államcsődre. A 2008-ban Európát is elérő pénzügyi és gazdasági válság azonban elemi erővel mutatott rá e hármas tiltás tarthatatlanságára. A gazdasági kormányzás körül kibontakozott viták így jól közelíthetők a három tiltó szabály egyidejű érvényesülése lehetetlenségének bemutatásával, számba véve az egyes opciók költségeit és lehetséges hasznait. / === / The process of economic integration in the EU has been shaped by the well-known theorem of the impossible trinity. Accordingly, the European Monetary System was built upon a mix of a fixed exchange-rate regime and an autonomous monetary policy, thereby constraining capital mobility. In launching the EMU project, the EU countries decided to fix national currencies irrevocably and maintain full capital mobility, in exchange for delegating their monetary policy upwards to a supranational level. The introduction of the Euro zone, however, has simultaneously meant denial of the following three elements: (1) exit, (2) bail-out, and (3) default. Nevertheless, the 2008–9 financial and economic crisis has demonstrated mercilessly that these three pillars are incompatible with each other. So the current debates on reshaping economic governance in the EU can be modelled by introducing the “impossible trinity of denial”, concentrating on the benefits and the costs of each option.

Gazdasági versenyképességet támogató pályázatok eredményessége az NFT és az ÚMFT keretében = The effectiveness of grants supporting economic development under hungary's national development plans

A Budapesti Corvinus Egyetem kutatócsoportja által végzett kutatás során arra a kérdésre kerestük a választ, hogy a Nemzeti Fejlesztési Terv (NFT) és az Új Magyarország Fejlesztési Terv (ÚMFT) keretében létrehozott, kis- és középvállalatok számára kialakított gazdaságfejlesztési pályázatok milyen hatékonysággal működnek. Hogyan volt képes a rendszer beépíteni az NFT Gazdasági Versenyképesség Operatív Program (GVOP) tapasztalatait az ÚMFT Gazdaságfejlesztési Operatív Programba (GOP). Továbbá, hogy maguk a kis- és középvállalatok miként értékelik ezen kiírásokat és milyen javaslatokat tennének az ilyen típusú pályázatok "felhasználóbaráttá" tételéhez. A kutatás 2009 márciusától 2009 decemberéig tartott. A kéziratot 2010 áprilisában zártuk. / === / In a research group of the Corvinus University of Budapest we aimed to answer the questions of efficiency and effectiveness of the economic development grants of the National Development Plan (2004-2006) and the New Hungarian Development Plan (2007-13) with the focus of small and medium sized enterprises (SME's). We tried to highlight the results of learning by doing of the first National Development Plan and how this practice was built into the second development plan. An emphasis was placed on the opinion of the SME's, how they evaluate the grants and what are their proposals to make the grant system more "user friendly".

Az agrárkereskedelem változása Magyarország és az Európai Unió között a csatlakozás után (The post-accession change in agricultural trading between Hungary and the EU)

2004-ben Magyarország kilenc közép-kelet-európai országgal együtt csatlakozott az Európai Unióhoz, ami számos változást idézett elő az agrárkereskedelem terén. A cikk célja, hogy a legfrissebb adatok és a szakirodalmi fejlemények tükrében bemutassa, hogyan alakult Magyarországon a mezőgazdasági alapanyagok és a feldolgozott termékek kereskedelme az Európai Unióval. A megnyilvánuló komparatív előnyök módszerét alkalmazva a cikk számos következtetésre jutott. Először is világossá vált, hogy a csatlakozás növelte az agrárkereskedelem intenzitását, ám negatív hatással volt a kereskedelem egyenlegére. Kimutatható továbbá, hogy Magyarország az alacsony hozzáadott értékű alapanyagexportra és a magas hozzáadott értékű feldolgozott termékek importjára koncentrált a csatlakozás után, noha ezek komparatív előnyei nagymértékben megváltoztak egy hatékony alkalmazkodási folyamat következtében. A változások tényét támasztják alá a különböző rövid és hosszú távú stabilitásvizsgálatok is, amelyek az agrártermékek megnövekedett versenyére utalnak az EU-15 piacán. Agrárpolitikai szempontból az elemzések alátámasztják a strukturális reformok szükségességét. / === / Numerous changes in agricultural trading from the EU accession of Hungary and nine other Central-East European countries in 2004. The article sets out to present, in the light of the latest figures and written contributions, how Hungary’s EU trade in agricultural raw and semi-processed products developed thereafter. It uses the method of manifest comparative advantages to reach its conclusions. First, it became clear that accession increased the intensity of agricultural trading, although it had a detrimental effect on the trade balance. It also appeared that post-accession Hungary was concentrating on exports of basic materials of low added value and imports of processed articles with high added value, although these comparative advantages were much altered by an effective process of adaptation. The fact of the changes is supported by various short and long-term stability examinations, which point to increased competition for agricultural products on EU15 markets. From the policy point of view, the analyses support the need for structural reforms.

Europe’s Growth Emergency

Highlights: • The European Union growth agenda has become even more pressing because growth is needed to support public and private sector deleveraging, reduce the fragility of the banking sector, counter the falling behind of southern European countries and prove that Europe is still a worthwhile place to invest. • The crisis has had a similar impact on most European countries and the US: a persistent drop in output level and a growth slowdown. This contrasts sharply with the experience of the emerging countries of Asia and Latin America. • Productivity improvement was immediate in the US, but Europe hoarded labour and productivity improvements were in general delayed. Southern European countries have hardly adjusted so far. • There is a negative feedback loop between the crisis and growth, and without effective solutions to deal with the crisis, growth is unlikely to resume. National and EU-level policies should aim to foster reforms and adjustment and should not risk medium-term objectives under the pressure of events. A more hands-on approach, including industrial policies, should be considered.

Rules-based economic governance in the European Union: A reappraisal of national fiscal rules.

The economic and financial crisis of 2007/2009 has posed unexpected challenges on both the global and the regional level. Besides the US, the EU has been the most severely hit by the current economic crisis. The financial and banking crisis on the one hand and the sovereign debt crisis on the other hand have clearly shown that without a bold, constructive and systematic change of the economic governance structure of the Union, not just the sustainability of the monetary zone but also the viability of the whole European integration process can be seriously undermined. The current crisis is, however, only a symptom, which made all those contradictions overt that were already heavily embedded in the system. Right from the very beginning, the deficit and the debt rules of the Maastricht Treaty and the Stability and Growth Pact have proved to be controversial cornerstones in the fiscal governance framework of the European Economic and Monetary Union (EMU). Yet, member states of the EU (both within and outside of the EMU) have shown an immense interest in adopting numerical constraints on the domestic level without hesitation. The main argument for the introduction of national fiscal rules was mostly to strengthen the accountability and credibility of national fiscal policy-making. The paper, however, claims that a relatively large portion of national rules were adopted only after the start of deceleration of the debt-to-GDP ratios. Accordingly, national rules were hardly the sole triggering factors of maintaining fiscal discipline; rather, they served as the key elements of a comprehensive reform package of public budgeting. It can be safely argued, therefore, that countries decide to adopt fiscal rules because they want to explicitly signal their strong commitment to fiscal discipline. In other words, it is not fiscal rules per se what matter in delivering fiscal stability but a strong political commitment.

Az épített örökség védelme és a gazdasági stratégia (Protecting the architectural heritage and economic strategy)

Ez az esszé öt tételben vizsgálja, hogy a magyarországi épített örökség miért jutott olyan rossz helyzetbe, s a rendszerváltozás óta eltelt közel negyedszázad miért nem volt képes leküzdeni a háború és a szocializmus örökségét. Az írás második felében megkíséreljük fölvázolni azt, milyen gazdasági stratégia mentén lenne elérhető az a cél, hogy a hazai épített örökség üzleti és társadalmi hasznosítása is megvalósuljon. Ekkor tehertétel helyett – más országokban tapasztalt módon – a gazdasági fölemelkedés tartós tényezőjévé válhat. ___________ This essay advances five theses explaining the desolate state of the architectural heritage in Hungary. It also addresses the issue of why two decades of transition was not sufficient to remedy the shortcomings of four decades of socialism. In the second part of the study we attempt to draft a strategy that could help overcome these difficulties. It aims at a combination of business, municipal and civil society activities guided by a nationally coordinated plan. Following these guidelines the architectural heritage in Hungary could be transformed into an asset instead of a liability, as has been the case in many other European countries.

Versenyképesség haloptikával – Helyi gazdaságfejlesztési problémák fejlődő városokban = Competitiveness at short range - Local problems of economic development in medium-sized towns

The aim of our research in the first half of 2011 was to find out what were the administrative, regulative and other problems that were specific obstacles to local economic development and what best practices can be found in local economies. During our research we carried out interviews with leaders and local professionals in five medium size towns of Hungary. We stated that the most obstructive factors were the imperfection of vocational training, the excessively bureaucratic administrative proceedings (supplying of data, acquisition of authority permits, the attitude of the authorities, etc.) and the system of application and finding sources of funds. We think that the most innovative solutions are the good examples of the institutionalized co-operation between local governments and local businesses. We've come to the conclusion that there is a need for reducing administrative burdens for the sake of local economic development.