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This paper evaluates new evidence on price-setting practices and inflation persistence in the euro area with respect to its implications for macro modeling. It argues that several of the most commonly used assumptions in micro-founded macro models are seriously challenged by the new findings. [ABSTRACT FROM AUTHOR]

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The paper examines the long-run relationship between innovation and per capita economic growth in the 19 European countries over the period 1989-2014. This study uses six different indicators of innovation: patents-residents, patents-non-residents, research and development expenditure, researchers in research and development activities, high-technology exports, and scientific and technical journal articles to examine this long-run relationship with per capita economic growth. Using cointegration technique, the study finds evidence of long-run relationship between innovation and per capita economic growth in most of the cases, typically with reference to the use of a particular innovation indicator. Using Granger causality test, the study finds the presence of both unidirectional and bidirectional causality between innovation and per capita economic growth. These results vary from country to country, depending upon the types of innovation indicators that we use in the empirical investigation process. Most importantly, the study finds that all these innovation indicators are considerably linked with per capita economic growth. This particular linkage is either supply-leading or demand-following in some occasions, while it is the occurrence of both in some other occasions. The policy implication of this study is that countries should recognize the differences in innovation and per capita economic growth in order to maintain sustainable development in these countries. [ABSTRACT FROM AUTHOR]

This paper notes the historical trend toward fewer societies with larger populations, associated with expanding interdependence, and suggests that interdependence is not only expanding by volume and territory, but that it is also changing in type, and that different forms of social organization have developed in relation to the several types. The local community is seen as a base for pooled interdependence focused on common resources, as, for example, in feudal society and contemporary peasant villages. The nation-state is viewed as a base for sequential interdependence centered on specialized exchange. It is suggested that a new type of intensive interdependence has emerged, centered on the generation and application of knowledge, and the implications of this for the nation-state are considered, with the European Common Market as illustration. [ABSTRACT FROM AUTHOR]

Issues of standardization of products and marketing programs, and the degree of centralization of marketing decision making and planning, are of vital interest to multinational corporations as they increasingly compete in world markets. Previous research has established the need for some degree of standardization and, therefore, for some degree of centralized decision making. The present study was designed to assess the implications that the creation of the Single Market in the European Community will have on the standardization/centralization issue. Specifically, the role of the European central offices of major U.S. multinational corporations is emphasized. The results of the in-depth study of 22 Fortune 500 U.S. corporations with European central offices located in the United Kingdom indicate a trend toward overall strategic planning at the European central office level. More centralization of the distribution and pricing decisions is also noted for fairly uniform products but, in general, the product part of the marketing mix seems more standardized than the pricing, promotion, and distribution aspects. The paper concludes with some suggestions for future research. [ABSTRACT FROM AUTHOR]

This paper reports evidence that OECD economies adopting fixed exchange rates in the process of forming the European currency union experienced declines in labor share of income at the industry level. This occurs most sharply among countries that experienced the biggest changes in their exchange rate policy. An implication of New Keynesian sticky price theory is that monetary policy has a first-order impact on labor share through the interaction of business cycle uncertainty and the choice of optimal markups. However, there is also evidence that goods market integration encouraged by the euro had a negative impact on the bargaining position of labor. [ABSTRACT FROM AUTHOR]

The purpose of this paper based on a quantitative analyze, is to demonstrate that the positive FDI impact on host country's economic growth is not an automatic process which follows unconditionally an active policy of FDI promotion. The effects have to be assessed cautiously. The theoretical and empirical contributions in this field are numerous (Leahy and Neary, 2004; Konings, 1999 etc.). Our empirical analyze, realized on a sample of 19 CEEC, observed between 1994 and 2004, estimates a model inspired by Barro and Sala-i-Martin, according to panel econometrics. The results confirm that the catalytic role of FDI is conditioned by an adequate economical environment (qualified workers, developed financial institutions, political stability and commercial openness). [ABSTRACT FROM AUTHOR]

The sharp deceleration of credit growth to the private sector in the EU, after half a decade of exuberance, will inevitably squeeze households and enterprises and can only aggravate the worsening recession. The region experienced very rapid credit growth in recent years, which was generally viewed positively as supporting rapid convergence to the but at the same time it contributed to the emergence of sizable macroeconomic and financial vulnerabilities. European Governments should use monetary and fiscal policy and not only in order to stimulate domestic non-governmental credit growth because it is crucial for the recovery of the European economies. Within emerging markets, eastern European economies have been the hardest hit. The linkages between western Europe and emerging European banking systems make the region particularly vulnerable. The paper tries to present some financial policy measures regarding banking sector for stimulating credit growth in the Europe and especially, in the Central and Eastern European Countries. [ABSTRACT FROM AUTHOR]

In this paper it is argued that an analysis of intergenerational standard-of-living mobility tables is of equal interest to an analysis of intergenerational class mobility or status group mobility tables. Such tables are analysed for the nine countries of the European Economic Community in 1976. This is done in a log-linear analysis, modelling structural mobility (or competitive balance), circulation mobility (or social fluidity) and the interaction of specific country characteristics with these types of mobility. Countries with a more leftist political history show more circulation mobility in standard of living than countries with a less leftist history. Countries with a higher absolute level of technological development show less structural mobility than countries with a lower level of technological development. Countries with a more rapid pace of economic development display less structural mobility than countries with a slower pace of economic development. [ABSTRACT FROM AUTHOR]

The economic crisis had consequences on both the internal structural changes at mezzo economic level and the reorganisation of policies on industrial production of key categories of goods. To identify the changes in relations to industrial productions of some EU countries and also Norway and Turkey, the paper examines the characteristics of the main clusters formed from eight product categories according to the Statistical Classification of Products by Activity in the European Economic Community. In terms of the index of industrial production registered in 2014 compared to 2010, compared with analysed countries. Romania is both in the first value cluster, in Manufacture of food products, Manufacture of beverages, Manufacture of wearing apparel, and also in less performant clusters, in Manufacture of basic metals, Manufacture of computer, electronic and optical products or Manufacture of electrical equipment. [ABSTRACT FROM AUTHOR]

We postulate that bank lending is affected by ECB policy via new loans and via the stock of existing loans. In this context, this paper documents a wide diversity in borrowers' features, loan features and price developments across euro area Member States that produces heterogeneous impacts in bank lending. Thus, countries with higher (lower) inflation, higher (lower) stock of loans longer (shorter) maturities, and higher (lower) proportion of adjustable rate loans are affected more (less) when ECB changes its policy rate. The significant differences in these factors across euro area Member States can distort a homogeneous transmission of the single monetary policy and generate asymmetries in bank lending. [ABSTRACT FROM AUTHOR]

This paper proposes the use of Bayesian approach to implement Value at Risk (VaR) model for both linear and non-linear portfolios. The Bayesian approach provides risk traders with the flexibility of adjusting their VaR models according to their subjective views. First, we deal with the case of linear portfolios. By imposing the conjugate-prior assumptions, a closed-form expression for the Bayesian VaR is obtained. The Bayesian VaR model can also be adjusted in order to deal with the ageing effect of the past data. By adopting Gerber-Shiu's option-pricing model, our Bayesian VaR model can also be applied to deal with non-linear portfolios of derivatives. We obtain an exact formula for the Bayesian VaR in the case of a single European call option. We adopt the method of back-testing to compare the non-adjusted and adjusted Bayesian VaR models with their corresponding classical counterparts in both linear and non-linear cases. [ABSTRACT FROM AUTHOR]

The article focuses on the macroeconomic implications of Europe 1992. Only a few years ago, Europe was beset with stagnation and mass unemployment. Under the heading of Europe 1992, the discussion has now moved from Eurosclerosis to the growth potential of the internal market, and Europessimism has yielded to pervasive Europhoria. Together with the sharp fall in oil prices in 1987, the disinflationary effects of dollar depreciation, and expansionary policy measures, Europe 1992 has set the stage for growth. The paper shows an outlook for European economic growth that two years ago would have been considered extravagant. Where stagnation had almost seemed inevitable, with discussion of work-sharing a routine response, the prospects have now shifted altogether. This paper first assesses the macroeconomic implications of the internal market project. That assessment highlights the sources of improved macroeconomic performance, its likely magnitude, and its spillover to the rest of the world. Three special areas, the prospects for European protectionism, the implications of financial integration, and the fiscal effects of the present exchange rate system has been discussed.

Abstract. The aim of this paper is to explain why government-controlled enterprises do or do not have international activities (essentially in the sense of foreign direct investments) and to explain the international operations of such enterprises--which of their major operating policy decisions are distinctive in any way and why. The paper arises from 304 interviews with leading executives, government officials, union leaders, etc. throughout the nine EEC countries. [ABSTRACT FROM AUTHOR]

Explores the question of how national fiscal policies could be conducted within the European Monetary Union. Theory of optimum currency areas; Debt sustainability issue; Determinants of debt dynamics; Restraints imposed on national fiscal policies by the Maastricht Treaty.

This paper examines the impacts of the Euro adoption in Slovenia on its tourism. For this purpose, the empirical research among foreign tourists in Slovenia was conducted on their perceptions of the Euro adoption in Slovenia during the second half of 2007. The multivariate factor analysis was performed, which confirmed the four common dimensions of the Euro impacts on Slovenian tourism: attractiveness, costs, expensiveness, and comparison. The mean values of the analyzed items indicate the most positive impacts of the Euro on the direct price comparison and the easiness of comparison among tourist destinations in the Euro zone. The empirical results suggest that the Euro adoption has had the greatest impacts on better comparisons among tourist destinations in the Euro zone, followed by a significant decline in travel-operational costs. The increase in the expensiveness of the destination among foreign tourists is confirmed, whereas no significant improvement in the attractiveness of Slovenia as a tourist destination was proved after the Euro adoption. [ABSTRACT FROM AUTHOR]

The paper is concerned with the determinants of prices of European and Japanese cars in five EEC countries. The basic idea is that under perfect competition, prices should reflect production costs, and hence depend on the technical characteristics of the commodities. Differences between list prices and prices explained by these characteristics result from market imperfections or product differences not accounted for by measurable characteristics. Estimation results show that there is both discrimination and differentiation; but to a very large extent, price differentials across countries are due to discriminating practices. [ABSTRACT FROM AUTHOR]

Provides a syllogism for the case for restricting capital flows to protect the European Monetary System (EMS). Protection of capital controls to the EMS; Credible commitment to the `new' fixed-rate version of the EMS; Conditions in the Maastricht Treaty for moving on to monetary union.

Currency substitution has important implications for the cost of European monetary union—if it is significant it will help to reduce costs of convergence to a single currency. This paper informs the policy debate by testing for its existence on a consistent European database making use of cointegration methods. The results demonstrate that in the two types of model tested there is no clear evidence of currency substitution, in either the short or the long run, and that therefore currency substitution between sterling and EC currencies cannot be relied upon as a mechanism or an aid to reduce the costs of monetary convergence. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to provide the necessary macroeconomic background to an assessment of the microeconomic arguments for a wider use of the ECU and to consider what the implications might be at a macroeconomic level of a spontaneous movement to adopt the ECU as a common European currency even in advance of the political process of economic and monetary union (EMU). [ABSTRACT FROM AUTHOR]

In recent years, business has been heavily preoccupied with two themes: merger and acquisition activity, and the development of the Single European Market. The topic of this paper combines the two: Continental mergers. The authors argue that the costs and benefits of Continental mergers are different from those of their domestic counterparts, and they need to be handled in different ways. This has implications both for the form of integration and for the way in which it is implemented. Most important, it is relevant to the selection of the right partner. [ABSTRACT FROM AUTHOR]

In this article, authors respond to the comments made by economist Murray Goldberg on his paper published in the journal "The American Economic Review" which specify the determinants of U.S. direct investment in the European Economic Community (EEC) over the period 1952-66. The article tries to identify theoretical and empirical components of Goldberg's comments. Goldberg's "theoretical" component, which is considered first, is essentially a series of ad hoc assertions, which provide little additional contribution to the emerging theory of direct foreign investment. The purpose of this article was to identify a number of hypotheses which have been either proposed or considered by the major contributors to the literature. From these existing categories of hypotheses three categories were identified which were deemed statistically testable. This process involved empirically specifying variables which were designed to capture the effects of selected relationships which had been postulated by others. With authors' major objective clearly the testing of existing hypotheses, they made no attempts to develop new hypotheses. At most, one should expect that empirical findings such as authors' would lead to the refinement of previously existing theoretical propositions. In his comment, Goldberg seems to be insufficiently aware of the theoretical underpinning of the proxies used in authors' empirical testing.

A variety of theories have been proposed to explain both the pattern and magnitude of U.S. direct foreign investment. One approach has been to explain direct foreign investment in terms of host country characteristics such as Gross National Product (GNP), rate of growth of GNP, trade barriers and convertibility of currency. In a recent issue of the journal "The American Economic Review," Anthony Scaperlanda and Lawrence Mauer (S-M) adopt this approach in an effort to specify the determinants of U.S. direct investment in the European Economic Community (EEC) over the period 1952-66. S-M find that only the size of the EEC market is a significant variable in explaining U.S. direct investment flows. In contrast this paper contends that the investment/size-of-market relationship that S-M test is theoretically questionable and that investment can be largely explained not by the size of the EEC market but by the growth of that market. This article specifies a model based on the hypotheses proposed by S-M. The model is also applied to U.S. direct investment in the EEC and the empirical results are discussed. Then it evaluates the S-M model and their empirical tests and compares their findings to those presented in the article.

This paper uses empirical evidence to examine the proposition advanced by economist Lawrence B. Krause that the establishment of the Common Market will seriously harm U.S. exports because "dominant suppliers" in European Economic Community (EEC) countries receive increased protection from the averaging of national tariffs. Subsequently, the results are used to reinterpret the traditional conclusions regarding the effects of tariff reductions on the domestic economy, and additional tests are offered to indicate the predominance of intraindustry-as against interindustry-specialization in trade in manufactures among the industrial countries. Upon finding that, in the case of dominant suppliers, national duties are generally lower than the common external tariff, Krause claims that "a comparison of the new EEC tariff for each commodity group with the former national tariff of the leading exporting country in intra-Community trade of each product gives the vivid impression that the new EEC tariff is much more protective than the old national tariff.

The purpose of this paper is to examine the effect on the marketing policies of retailers and manufacturers, and the protection of consumers of the laws of unfair competition which exist in most member countries of the Common Market. The concept of the law of unfair competition is, however, unknown in English law. Now that the UK is a member of the Common Market British manufacturers and retailers are increasingly confronted by this legislation in their efforts to expand trade, and last October preliminary discussions took place in Brussels to harmonise the laws of unfair competition. The particular sections of these wide ranging laws which I propose to question are the restrictions and prohibitions imposed upon a wide range of premium offers, discounts and rebates, seasonal sales, liquidations, and other special forms of sale. In other words, samples, free gifts, competitions and many forms of deferred rebates such as trading stamps are severely curtailed or forbidden in Belgium, Luxemburg, the Netherlands, France, Germany, Denmark and Italy. On the other hand, there are no legal restrictions in the United Kingdom on giving away articles to promote goods or services, and independent trading stamp firms are permitted. Moreover, in recent years consumer protection measures have been incorporated in these European laws through a series of amendments and additions. My theme is three-fold: First, the restrictions and prohibitions on marketing practices included in the laws of unfair competition go further than is necessary for the maintenance of fair competition. Their primary objective is the preservation of the status quo. Moreover, many of these laws are out-of-date, cumbersome and arbitrary. Secondly, it is a fallacy that measures designed to protect traders from so-called unfair competition from one another ipso facto protect consumers. Thirdly, the comparative study of the taw of unfair competition undertaken by the EEC as the basis for harmonisation fails to e [ABSTRACT FROM AUTHOR]

The article focuses on the role of the telecommunications policy in the economic development of Europe and whether such development poses a threat for American businesses. The economic, industrial, and technological policies of the European Community (EC) are reviewed, and the EC's commitment to develop a telecommunications and information technology infrastructure are discussed. A SWOT analysis of the telecommunications policy is provided, and the implications of European integration for the United States telecommunication industry are considered.

The article focuses on the segment reporting practices of multinational companies in the European Economic Community (EEC). Analysis of data from a survey of 100 EEC companies from Great Britain, Germany, Netherlands, Italy, France, Belgium, and Luxembourg suggests that the extent of disclosure is associated with national equity market efficiency. A comparison of disclosure differences between British and continental companies focused on sales. sales-business, sales-geographical, profits, profits-business, profits-geographical, production, and assets analyses. Factors contributing to disclosure differences include four environments--managerial, legal and political, stock market and investment, and professional--and the variables of organizational structure and regulation.

The article discusses the Euro-dollar and how it may impact the growth of monetary unions in the global marketplace and the way that money markets and integrated capital could make the balance of payments easier to adjust. Capital is often considered to be immobile in the international market but mobile in environments with only one currency, which makes it a factor that is considered when the balance of payments are adjusted. The article concludes that the countries of the European Economic Community would benefit from integrating their national currencies into the capital market, leading financial institutions to use something other than Euro-dollars for secondary reserves.

The article examines the development and operations of two finance and payment settlement systems, the European Monetary Agreement (EMA) and the European Payments Union (EPU). The EMA funds for the European Fund and a multilateral settlements system. It is the designated successor to the EPU, to become effective when some Organisation for European Economic Co-operation (OEEC) charter nations have converted their currencies. The Fund will provide its members with credit in order to help them with balance of payments conflicts.

Studies find that entrepreneurial intentions determine the likelihood of starting a business whereas the Theory of Planned Behaviour suggests that intentions capture the motivational aspect of behaviour and are dependent on behavioural, normative and control beliefs. This research endeavours to identify factors that drive entrepreneurial intentions among Macedonian business students. The Partial least square approach to the Structural equation modelling was applied. Findings highlight the impact of entrepreneurship education, support systems and a favourable business climate on entrepreneurial intentions, which correspond to the majority of the European countries as well as global tendencies. [ABSTRACT FROM PUBLISHER]