Prague Economic Papers - In Press
E-commerce and Packaging Waste: The Role of Recycling Capacity
İrem Yendi
This study examines the effect of e-commerce use on packaging waste generation in 23 European countries for the period 2013-2022, with a focus on the threshold role of recycling capacity. The paper adopts a panel threshold model to investigate if the effect of e-commerce on packaging waste varies between different regimes of recycling capacity. The findings show that the waste-increasing effect of e-commerce is more prominent in countries with lower recycling capacity. The effect weakens for total packaging waste and paper-and-cardboard packaging waste once recycling capacity exceeds certain threshold values, but remains significant for plastic packaging waste. These findings imply that recycling infrastructure is crucial for alleviating the environmental impacts of packaging waste related to e-commerce, but with a more limited role for plastic materials. This research contributes to the literature by providing nonlinear and material-specific evidence on the link between e-commerce and packaging waste, with implications for circular economy policies and waste management strategies.
The Nexus Between Financial Stability, Corruption, and Income Inequality: Evidence from Türkiye
Ceyda Bayraktar Daştan
Financial instability, corruption, and income inequality represent interrelated socio-economic challenges that shape macroeconomic structures globally. This study investigates the dynamic interactions among these variables in Türkiye over the period 2002–2023. Utilizing a Financial Stability Index (FSI) alongside the Gini coefficient and the Corruption Perceptions Index (CPI), the research employs the Autoregressive Distributed Lag (ARDL) bounds testing approach for long-run equilibrium analysis and the Toda-Yamamoto framework to identify causal linkages. The findings indicate a statistically significant long-run relationship among the variables. Financial stability has a positive effect on corruption perception in the long run, while income inequality has a negative effect. The error correction results confirm convergence toward long-run equilibrium. The Toda–Yamamoto analysis reveals a unidirectional causal effect from financial stability to corruption perception and a bidirectional relationship between corruption perception and income inequality. Overall, the results point to an interconnected rather than strictly hierarchical structure among the variables and suggest that transparency-enhancing and income-sensitive policies may contribute to addressing inequality and corruption in Türkiye.
Global Nodes, National Outcomes: The Domestic Financial Impact of International Financial Centers
Ozan Eksi
International financial centers (IFCs) play a major role in cross-border financial intermediation, yet their contribution to their home economies remains largely unquantified. Using a novel panel dataset of up to 95 countries over 1970–2023, this paper provides the first global panel evidence on whether IFCs are associated with larger financial sectors in their home economies. We use correlated random effects, crosssectional, and fixed-effects specifications, and identify IFC locations using the Global Financial Centres Index. We find that IFC presence is positively associated with financial sector value added, by roughly 0.6–1.1% on average and about 2.0% for top-ranked and offshore centers. The results remain robust to extensive controls, subsample analyses, and placebo tests. The findings inform policymakers evaluating IFC development as a financial-sector strategy, in emerging markets and beyond, and help fill a critical empirical gap regarding the local economic effects of IFCs.
Revisiting Economic Development and Inequality Dynamics in Transitional Economies
Nemanja Popoviĉ, Milena Konatar, Nikola Draıkoviĉ and Milivoje Radoviĉ
This paper examines the long-run relationship between human development and income inequality using panel data for a group of post-transition European and fast-growing Asian economies over the period 1995–2022. The analysis is based on a panel ARDL approach, which allows for the simultaneous assessment of short-run dynamics and long-run relationships between the Human Development Index (HDI) and the Gini coeff. While the baseline findings indicate a negative association, the strength and direction of the relationship vary across subsamples, pointing to the importance of country-specific characteristics and stages of development. In particular, the results differ between groups of countries with varying levels of inequality and income, highlighting the non-uniform nature of the relationship. Robustness checks, including alternative sample specifications and the exclusion of the COVID-19 period, confirm the stability of the main findings. Overall, the results suggest that the relationship between human development and inequality is complex and context-dependent, rather than universally linear.
Why is the number of active pension contracts in the Czech Republic still declining?
Petr Pecina, Eva Ducháèková
The aim of this article is to identify the main factors influencing the decline in active private pension product contracts and to propose possible measures aimed at increasing interest in private pension products. In 2013, significant changes occurred in the area of private pension products in the Czech Republic. Since then, according to data from the Association of Pension Companies of the Czech Republic (APS ÈR), the number of active contracts has decreased by 1.173 million, which corresponds to a decline of 22.9% over 12 years. This article examines the reasons for this marked drop in sales of private pension products in the Czech Republic, analysing both the macroeconomic factors affecting primarily the demand for pension products and the regulatory factors influencing mainly the supply side of the pension product market.
Macroeconomic Determinants of Unemployment in V4 Countries: A Longitudinal Time Series Analysis
Matus Senci, Lucia Duricova
Research background: Unemployment remains a persistent socio-economic challenge in Central Europe. Understanding its seasonal patterns and long-run macroeconomic drivers is essential for timely labour-market policy. Purpose of the article: The study examines month-of-year seasonality in reg-istered unemployment and the long-term macroeconomic determinants of unem-ployment in Slovakia, Czech Republic, Poland and Hungary (V4), including cross-country differences in magnitude, direction and time lags. By applying a unified, comparable modelling framework across the V4, the paper delivers new empirical evidence on how similar economies can exhibit distinct seasonal pro-files and structurally different macroeconomic transmission patterns, thereby strengthening the analytical basis for cross-country labour-market research and policy targeting. Methods: Seasonality was assessed using ACF/PACF diagnostics and additive seasonal decomposition. Long-run effects were estimated with country-specific SARIMA models with exogenous regressors, using a set of 21 macroeconomic indicators (incl. output, prices, interest rates, labour-market spending, benefits, confidence, corruption, taxes, trade and FDI). Model adequacy was checked via out-of-sample fit and residual diagnostics (ACF/Ljung–Box), complemented by MAPE and BIC. Findings & value added: All V4 countries exhibit seasonality, strongest in Poland and weakest in Slovakia. The most influential long-run drivers include labour-market policy spending, social benefits, inflation/interest rates, tax reve-nues, confidence indicators, corruption perceptions and FDI inflows, with coun-try-specific lags and signs. The paper provides a replicable modelling protocol for comparative, lag-aware unemployment analysis in integrated but heterogeneous economies.
A necessity or an investment for the future? An empirical analysis of the socioeconomic determinants of household educational expenditures using the Heckman two-stage sample selection model
Gürkan Çalmaşur, İkram Yusuf Yarbaşı, Ali Kemal Çelik
Education is one of the fundamental drivers of human capital formation and long-term development. Especially in developing economies, household investments in education play a vital role in shaping future socioeconomic conditions. High-quality education not only enhances individuals’ knowledge and skills, but also significantly contributes to economic, social, and cultural advancement. Therefore, expenditures on education by both governments and households improve not only individual success, but also the overall welfare level of nations. Education expenditures are essential for raising well-equipped generations, fostering innovative thinking, and achieving a strong position in global competition. This study aims to identify the socioeconomic factors that influence household education expenditures in Turkey as an empirical example of an emerging economy. In this context, the determinants of education spending by households are analyzed using the Heckman two-stage sample selection model based on data from the 2023 Household Budget Survey conducted by the Turkish Statistical Institute (TurkStat). This study provides critical insights into how households in emerging economies navigate the trade-off between education as a basic need and a strategic investment, offering a comparative framework for middle-income countries. According to the analysis results, household total expenditures, age, educational attainment, marital status, and occupation of the household head; household type; housing ownership; number of rooms; ease of access to educational institutions; ownership of a second residence, internet, car, detached house, and land; as well as smoking habits, engagement in paid sports activities, coffeehouse habits, and private insurance ownership were found to influence education expenditures significantly.
Simplification opportunities for family personal income tax systems
Éva Szabóné Bonifert
The general aim of this study is to help to explore the complex relation between fairness, efficiency, and simplicity within personal income tax systems. It investigates the possibility of substitution of family-type taxation systems with a simpler, selected theoretical taxation system using a computer program developed for this purpose. By incorporating the elements of family-type taxation into the theoretical system, this type of taxation systems has also become analysable, similar to other income tax systems. The results of the analyses of the French, Portuguese, and German personal income tax systems show that substitution of complex family-type taxation systems by a simpler system with fewer taxation parameters can also be contemplated. Overall, it can be concluded that complex personal income tax systems might be reviewed in terms of commonly applied taxation elements, such as tax rates and general allowances. In addition to the above, the study uses an expanded list of countries to examine the impact of the various institutional and structural elements of personal income tax systems on the shape of the tax burden curve.
The Interplay Between Technological Innovation And Human Capital Development In Driving Industrial Productivity And Competitiveness In Türkiye
Zeki Çetin, Mehmet ŞAHİN
This study examines the dynamic relationships between industrial productivity, technological innovation, human capital, openness, R&D expenditures, and institutional structure in Turkey. Using annual data from 1990 to 2020, we applied the ARDL bounds test and analyzed changing relationship structures over time with the DCC-GARCH Model. Our key hypothesis is that industrial productivity significantly relates to these structural indicators. Our analyses, specifically tailored to the Turkish economy, have unearthed the pivotal role of variables influencing managerial and organizational capacity, such as technology, human capital, and openness to the outside world, in shaping productivity. The ARDL Model's validation of long-term relationships, coupled with the DCC-GARCH Model's revelation of their temporal variability, provides a nuanced understanding of these dynamics. In this context, policy recommendations to increase industrial productivity include enhancing the quality of education, promoting technology-based exports, improving the efficiency of R&D investments, and implementing institutional reforms that support production. The findings largely support the study's hypothesis and provide a data-based direction map for policymakers. The study contributes to the development of strategic orientations that are compatible with sustainable development goals by emphasizing the role of management and organizational systems in achieving economic efficiency.
Leaving Long-Term Unemployment: Evidence from a Post-Coal Industrial Region
Milan İimek, Lukáı Jursa, Daniel Pakıi, Jakub Vontroba, Denisa Krajèovièová, Jan Belardi
Using personal-level data from local labour offices, we investigate factors influencing exit from long-term unemployment in a Czech post-coal Moravian-Silesian region through logistic regression. Key determinants include personal traits such as age, gender, and education, as well as over-indebtedness, duration of unemployment, medical condition, and district of residence. Based on our model, we predict the probability of transitioning from long-term unemployment into employment for various combinations of factors and gender. For some variables, such as years of education and duration of unemployment, the relationship is linear. For age, it is nonlinear, with the highest probability of exit around age 40. Women also show a higher probability of leaving long-term unemployment, possibly due to male-dominated jobs being more affected by the heavy industry decline experienced by the region in recent decades.
Firm Characteristics Driving Digital Technology Adoption vs. Human Capital Formation in SMEs
Ján Hunady, Mária Stachová
A lack of adequate skills is a key challenge for small and medium-sized enterprises (SMEs). This paper examines three potential solutions to skill shortages, with a focus on the adoption of digital technology. It is based on microdata from more than 13,000 SMEs. The study employs logistic regression, classification trees, random forests, and propensity score matching to identify factors associated with the adoption of digital technologies, enhancing staff training and improving recruitment. The results suggest that while established firms and members of industry clusters are more likely to adopt digital technology, Firm size and location are primarily correlated with reskilling and recruitment strategies. Our findings provide several novel policy implications. It shows that targeted public support, such as consulting, training, and direct subsidies, significantly increases the likelihood of digital technology adoption, even after controlling for potential selection bias through propensity score matching.
Raising smart money and using it smartly for corporate social responsibility: Investor heterogeneity evidence
Qian Wang，Xiaojie Pei，Yanjing Wu，Hai Long
We examine the impact of the relationship between institutional investor heterogeneity and investment preference on corporate social responsibility (CSR) performance using Chinese manufacturing data for 2010–2020. Sustainability-pursuing investors prefer investing in CSR-focused firms for sustainability based on information transparency and their green investments contribute to CSR performance. This dynamic relationship is moderated by environmental governance and media coverage. However, speculative investors pursue better financial performance for short-term returns, and frequent shifts in their incoming–outgoing money interrupt firms’ CSR sustainability. Sustainability-pursuing investors and other stakeholders benefit from investment stability, whereas the agency principle posits that speculative investors benefit from information asymmetry with short-term returns. The findings suggest that manufacturing firms raise green money from green investors funding their sustainable development. The results have policy and practical value for green financing and investment in manufacturing-dominated emerging economies.