Article

 

Protectionism in Bulgaria during the Great Depression: Theory and practice (p.67-85)

by

Rumen Andreev, University of National and World Economy, Sofia

Keywords : Economic theory, Protectionism, Economic crises, Monopoly, Price scissors

JEL classification : В20, B 29, В13, D42, E31, E32, N54, N14

Abstract

This paper presents the theory and practice of protectionism in Bulgaria during the Great Depression. That global cataclysm that lead to the abandonment of free international trade and intensification of protectionist policy applied by all countries in various forms to reach autarchy where countries produced mainly for their domestic markets with the resources they had. The theoretical justifications for protectionism, made by the Bulgarian economists who worked during that period, as well as the various forms of its implementation in Bulgaria are derived.

 

 

Investigating profitability differences between hotel MNEs and DMEs in South Mediterranean European countries (p.11-34)

by

Ioanna A. Giannoukou, Department of Business Administration, University of Patras

George Anastassopoulos, Department of Business Administration, University of Patras

Christina C. Beneki, Department of Business Administration, TEI of Ionian Islands

Keywords : Greece, Tourism and Hospitality, Multinational Enterprises’ Subsidiaries (MNES), Performance

JEL classification : F23, L25

Abstract

The aim of the paper is to investigate the profitability differences between hotel multinational enterprises’ subsidiaries and domestic firms in France, in Italy, in Spain, in Greece and in Portugal. The data permits a comparison between a group of MNEs subsidiaries and a group of DMEs for the period 2000 – 2009. An econometric model has been employed to find support for the ownership advantages model of foreign production. Estimation results indicate that multinationality has a positive impact on firms’ performance. The analysis also reveals that the determinants of performance of MNEs and DMEs partially differ.

 

 

Economic risk transmission in Europe between the center and the periphery: A theoretical approach  (p.35-52)

by

Gildas Bondi, CRIISEA, Université de Picardie Jules Verne, Amiens

Nikolay Nenovsky, CRIISEA, Université de Picardie Jules Verne, Amiens & University of National and World Economy, Sofia IGERIA

Keywords : Euro-crisis, European integration, endogenous instability, EU enlargement

JEL classification : F33, F36, P20, P30

Abstract

Our main hypothesis is that the stylised division of the EU in sub-sets is largely endogenous and internal to the integration processes themselves. Given the genesis and the designed functioning of the EU and the Euro-zone, a set of centrifugal processes come into play inevitably leading to disintegration. The self-propelled breakdown processes come through the creation of "an illusory impression" of safety net and risk insurance in all sub-sets of the EU. This not only increases the overall level of risk and vulnerability but also leads to unfavourable risk redistribution directing it to the weaker links in the whole EU structure. The economic system then becomes much more vulnerable to not only external shocks but also to internal ones. This is usually accompanied by loss of discipline and the emergence of various forms of non-market and bandit behaviour in all sub-sets.

 

 

The effectiveness of fiscal and monetary policy during the financial crisis (p.53-66)

by

Besnik Fetai, SEE UNIVERSITY, ILINDENSKA BB, TETOVO, FYROM

Keywords : Output Loss, Financial Crisis, Fiscal Policy, Monetary Policy

JEL classification : E52, E62, G15

Abstract

The objective of this paper is to assess the effectiveness of monetary and fiscal policy on economic growth during the financial crisis in developing and emerging countries. Applying the dataset provided by Leaven and Valencia (2008 and 2010), I examine 83 financial crisis episodes in 66 developing and emerging countries. Employing the method utilized by Gupta at al., (2007), Baldacci at al., (2009), Hutchison (2010) and Li and Tang (2010), I performed the monetary and fiscal variables in order to control various determinants of output cost during the financial crisis. Applying different techniques OLS with robust standard errors and GMM estimator, I find out that monetary and fiscal policy contractions are associated with an increase of the output cost during the financial crisis. In addition, fiscal policy expansion is accompanied with smaller output cost over the financial crisis, whereas monetary expansion has no showed a clear effect. The macroeconomic policy mix with a discretionary fiscal expansion and a neutral monetary policy are likely to mitigate output cost during the financial crisis in developing and emerging countries.