Prague Economic Papers 2024, 33(4):504-542 | DOI: 10.18267/j.pep.871
Expanding imports and promoting balanced trade have been the direction China has been adhering to in recent years, and are also important measures for China to build an open domestic and international dual cycle development pattern. This paper incorporates the emissions of “three industrial wastes” into the production function, uses the Slack Based Measure model and the globally referenced Malmquist-Leuenberger index to measure the green total factor productivity of Chinese enterprises from 2002 to 2013 in order to measure enterprises’ green transformation development. Subsequently, it tests the green development effect of import...
Prague Economic Papers 2024, 33(4):478-503 | DOI: 10.18267/j.pep.865
This paper investigates the nonlinear risk transmission from the oil and natural gas markets to the foreign exchange markets of five energy importers and one major energy exporter. We separate conditional volatility into the transitory (short-term) and permanent (long-term) parts, and then these volatilities are embedded in an elaborate robust linear quantile regression model. We find that the risk spillover effect is relatively low in Central and Eastern European countries (CEECs) probably because they pursue a managed float exchange rate regime. On the other hand, this effect is higher for Turkey and Russia, which is especially true for the effect...
Prague Economic Papers 2024, 33(4):444-477 | DOI: 10.18267/j.pep.864
Poverty reduction has long been one of the political priorities of the European Union and its member states. Despite the political declarations and measures applied, poverty is still a phenomenon that affects the everyday lives of about 70 million Europeans. Moreover, trends in poverty incidence show how poverty risks are sensitive to overall socio-economic development and how they are more actual for some vulnerable population groups. Following the popular concept of poverty feminization, the analysis presented in the paper aims to identify gender perspective relationship between the poverty incidence and characteristics describing the situation on...
Prague Economic Papers 2024, 33(4):414-443 | DOI: 10.18267/j.pep.870
This paper examines the effect of company size on transaction multiples. The existence of the size effect has been investigated by a number of authors who have primarily used data for publicly traded companies for their research. Our research works with data from private transactions with non-traded companies (shares) from the EU. The transaction price concluded in these deals is decomposed into the product of profit and transaction multiple as when using market comparison valuation methods. Transaction multiples are relative types of financial metrics that typically compare various levels of profit such as EBITDA, EBIT or EAT to a value that an investor...
Prague Economic Papers 2024, 33(4):380-413 | DOI: 10.18267/j.pep.872
In the last two decades, advances in globalization have evolved remarkably and countries have become more integrated with the entire world. The implications of this process have attracted interest of researchers and monetary policy authorities. This paper provides an assessment of the impact of globalization on macroeconomic dynamics at the level of four representative Central Eastern European countries (Czechia, Hungary, Poland and Romania) between 2003Q2 and 2022Q4. The method proposed in this study is a time-varying vector autoregressive model with stochastic volatility estimated using the Metropolis-Hastings algorithm through Bayesian inference....
Prague Economic Papers 2024, 33(3):277-318 | DOI: 10.18267/j.pep.862
This paper deals with the problem of how the risk perception among retail customers is affected by the consumer protection regulation on the financial market. Through a questionnaire survey, we have measured the effect of selected consumer protection measures on banking or investment decisions taken by a young (student) population. These measures included the most common elements of financial regulation, such as bank deposit insurance, corporate bond prospectus, licenced fund management and securities broker indemnity insurance. Our results show that protective state intervention represents strong stimuli for customer decision-making with a widely...
Prague Economic Papers 2024, 33(3):319-335 | DOI: 10.18267/j.pep.861
Non-fungible tokens are transferable rights to digital assets such as artwork, videos, in-game items, collectibles or music. Non-fungible tokens relate only to a specific unique item and carry information about the owner. The non-fungible token market has received widespread attention and has grown enormously since the beginning of 2021. Despite significant growth in the market, there needs to be more surveys, especially in the context of the Czech Republic. This article, therefore, aims to evaluate the level of awareness of non-fungible tokens in the Czech Republic. The paper presents the basics of the non-fungible token market, its potential and...
Prague Economic Papers 2024, 33(3):357-379 | DOI: 10.18267/j.pep.858
This study investigates the macroeconomic resilience of the Moroccan economy using a comprehensive analysis of key indicators and policy variables. Utilising data from sources such as the World Bank, we examined GDP per capita, government debt, government final expenditure, agriculture and industry sectors as a percentage of GDP, output gap, and trade openness. Applying the Autoregressive Distributed Lag (ARDL) method, we established both long-run and short-run relationships between these variables and the output gap, which represents the cyclical trend in the economy. Our findings revealed that both government final consumption in % of GDP and government...
Prague Economic Papers 2024, 33(3):336-356 | DOI: 10.18267/j.pep.860
The main objective of this study is to determine the effects of economic and social inequalities on academic success and to test whether the cycle of inequality is active through education. This objective is accomplished using classical and Bayesian discrete choice models for the sample obtained from Türkiye. The results reveal that students' economic and social characteristics affect their academic success and that these characteristics are possible sources of inequality in education. According to the findings obtained from models employed in the study, income, private school education, parental education level, region of residence, neediness to work,...
Prague Economic Papers 2024, 33(3):261-276 | DOI: 10.18267/j.pep.863
Modeling policy effects in the context of high-dimensional data requires a balanced consideration of omitted interaction bias and overfitting problems. This paper investigates the role of machine learning algorithms in stabilizing estimates and demonstrates the possible regularization bias caused by common LASSO methods. To overcome the three problems simultaneously, post-double selection is used to screen for the interaction terms that need to be included in the model, and the variance estimates are expanded to measure the uncertainty of the interaction effects and marginal effects. Monte Carlo simulations analyze the main factors affecting conditional...
Prague Economic Papers 2024, 33(2):244-260 | DOI: 10.18267/j.pep.856
This paper empirically analyses the determining factors of the growth in the migration rate in the countries of the Western Balkans. The analysis is carried out with panel data over 17 years from 2005 to 2021. The purpose of this paper is to analyse social variables such as unemployment and standard of living, and political variables such as corruption, political stability, government effectiveness, rule of law and the level of corruption in the migration of citizens. For this purpose, we employ different econometric models and techniques such as OLS, OLS robust fixed and random effects models, and GMM (generalized method of moments). The study's findings...
Prague Economic Papers 2024, 33(2):220-243 | DOI: 10.18267/j.pep.857
There are studies investigating a country's digital competitiveness; however, there is a lack of research examining digital competitiveness at the enterprise level. Hence, the current study aims at composing an enterprise digital competitiveness index (EDCI), which provides a possibility to assess the level of enterprise digital competitiveness and could be used by policymakers in the development of a strategy for transitioning to the digital economy. The CRITIC and COPRAS approaches are employed for the index construction. The criteria and subcriteria provided by Eurostat (2022) are used as antecedents of the EDCI. The results indicate that Nordic...
Prague Economic Papers 2024, 33(2):187-219 | DOI: 10.18267/j.pep.859
This paper examines the validity of the risk-return trade-off for a sample of Czech banks over the period 2002-2022 by analysing the relationship between the bank risk and risk-adjusted returns. I find evidence of a significant negative association between the regulatory risk measure and risk-adjusted returns, indicating that the risk-return trade-off does not hold. Specifically, a 100 bps increase in the risk is associated with about a 7 bps decrease in the return on risk-adjusted assets (RORWA) and an 11 bps decrease in the risk-adjusted net interest margin (rNIM) in the short run. The long-run effect is about double for RORWA and almost triple for...
Prague Economic Papers 2024, 33(2):164-186 | DOI: 10.18267/j.pep.855
The EU Cohesion Policy is one of the European Union’s key policy instruments for reducing economic and social disparities among its regions. The paper evaluates the policy contribution to regional economic growth in V4 (Visegrad Four) countries. The study establishes a significant variation in ESIF (European Structural and Investment Funds) distribution at the NUTS2 (Nomenclature of Territorial Units for Statistics) level within the V4 regions over 2000–2018. It suggests that ESIF absorption was not evenly distributed across regions within the V4 countries. This finding indicates that regional disparities in ESIF distribution may have contributed...
Prague Economic Papers 2024, 33(2):137-163 | DOI: 10.18267/j.pep.854
The study explores a relationship between divergence in ESG scores (measurements of a company's performance in environmental, social and governance issues) and excess stock returns on the European equity market. The sample consists of 851 European stocks in the period from January 2015 to May 2022. It is concluded that, despite previous findings on the US stock market, a similar effect is not observed for equities in Europe. Even though the stock portfolios with the most and the least divergent ESG scores bear excess returns, the effect disappears when it is adjusted for Fama-French factors. The effect is not relevant for any specific industry, nor...
Prague Economic Papers 2024, 33(1):103-136 | DOI: 10.18267/j.pep.851
This study assesses the relationship between the ownership structure and corporate tax avoidance based on annual financial data of Chinese A-share listed firms during 2010-2020. Firstly, the empirical results demonstrate that when a listed firm has multiple large shareholders (MLS), these shareholders are likely to weaken internal monitoring and collude with each other, which will lower its corporate governance level and increase its corporate tax avoidance (CTA) level. The empirical conclusion remains valid after multiple robustness tests. Secondly, the empirical result of the baseline model is significantly influenced by the nature of ownership,...
Prague Economic Papers 2024, 33(1):79-102 | DOI: 10.18267/j.pep.853
Psychological traits have received significant attention in labour market research in recent decades. Unfortunately, empirical evidence remains limited for some psychological traits and their interactions. To address this gap, we conduct a representative survey of employees, assessing competitiveness, persistence, and risk tolerance using single-item scales. This comprehensive study sheds light on the connection between these traits and wages. Our results confirm that individuals possessing these traits tend to earn higher wages, even when we account for indirect factors, such as higher educational attainment and better job positions. It also suggests...
Prague Economic Papers 2024, 33(1):60-78 | DOI: 10.18267/j.pep.850
Using developing countries in Europe for context, this study examines the complex relationship between financial crises and financial integration. We use panel data comprising 37 countries in Europe, including Iceland, Belarus, Ukraine, Turkey, and Russia from 2000-2019 and the general method of moments. Our findings show that there is a positive relationship between financial integration and development and economic growth. In addition, the results suggest that a higher degree of financial integration is not necessarily increasing financial fragility during a financial crisis. Therefore, the results show that it is a self-defeating policy for developing...
Prague Economic Papers 2024, 33(1):36-59 | DOI: 10.18267/j.pep.852
The paper explores the interconnections between foreign capital flows and the exchange rate regime switching in developing countries. We formulate the exchange rate regime switching as annual time series of binary/ordered variables employing de facto classification of exchange rate arrangements and regress them on the financial account capital flows for a panel of 28 developing countries which experienced change in their exchange rate regime during the period 2000-2016. Employing probit and logit regression, we discover the FDI, portfolio flows and changes in reserve assets to precede and/or coincide with switching. Specifically, accumulation of foreign...
Prague Economic Papers 2024, 33(1):1-35 | DOI: 10.18267/j.pep.849
The balanced growth theory and the neoclassical growth model predict that certain macroeconomic variables such as output, consumption, and investment grow at a constant rate. Analytically, it indicates that the consumption-output ratio and the investment-output ratio (termed "great ratios") must be stationary. Moreover, consumption and investment must be cointegrated with output. This paper examines these implications with respect to developed (G7) and emerging (E7) countries using data for the period 1970-2019. The validity of the balanced growth hypothesis (BGH) is tested by using unit root tests (univariate analysis) and cointegration techniques...
