No abstract

The idea of business cycles asymmetry is not new in economic theory. According to business cycles asymmetry, a country’s economy behaves differently during economic growth periods as compared to economic recession periods. The results achieved by business cycles asymmetry testing are far from unanimous: some are positive, others are negative. Business cycles asymmetry has major econometric implications: business cycles cannot be modeled using linear models. This paper aims to test business cycles asymmetry in Central and Eastern European Countries, where few business cycles analyses, and especially business cycles asymmetry researches, have been conducted. The industrial production index was considered when testing business cycles asymmetry. We estimated business cycles using the Hodrick-Prescott filter and Mills’ test of asymmetry. Mira’s test was also employed to test results reliability. According to our results, business cycles in Central and Eastern European countries are not asymmetric

No abstract

No abstract

The present study analyses the relationship between economic growth and tourism growth at the level of Central and East European countries, using the spillover indices approach. Based on the monthly data obtained for the period 2000–2019, the analysis of this paper presents certain empirical results. Firstly, the relationship economic growth-international tourism grow is not stable over time, both from the point of view of its size and its direction, which suggests that the specific activities of international tourism contribute to the economic growth and hypotheses according to which international tourism growth causes economic growth are time-dependent. Secondly, the relationship economic growth-international tourism growth is dependent on certain major events, such as the economic and financial crisis that started in 2008 and the debt crises from 2010. The results obtained show that the impact of these events influences the direction of the relationship between international tourism and economic growth which becomes more accentuated during the economic growth periods.

No abstract

The study of the relation between risk and return is an important topic for investors in financial assets, which is the reason why many researchers have tackled it. It is only natural for an investor with aversion for risk, who undertakes a higher risk investment, mare to expect be rewarded accordingly, that is to achieve higher return rates. The research conducted on various stock markets had contradictory results, which means that the existence of such a connection is not certain on all stock markets. According to a new hypothesis, tackled by the latest studies, the aversion for risk of rational investors may be related to the stages of the business cycles. This paper deals with the connection between expected return and volatility at Bucharest Stock Exchange, by analyzing the return and volatility of the BET index portfolio. In order to assess this relation, we employed heteroskedastic autoregressive models. The study was conducted between January 2000 and April 2011, as well as during two sub-periods determined by different business cycle phases: economic growth and recession. The results revealed significant differences between the whole analyzed period and the economic growth and recession sub-periods. By studying BSE return throughout the analyzed period, we conclude that there is no relationship between expected return and risk, whereas volatility is asymmetric. Actually, one may witness a relation between return and risk, as well as a non-asymmetric response of volatility to shocks during economic growth, and no risk-return relationship and asymmetric volatility during economic recession. Also, results have shown a positive relationship between return and volatility during economic growth, and a negative relationship between the same during economic recession.

On the background of the exponential growth of the world’s population, doubled by the decrease of natural resources and the continuous, accentuated degradation of the quality of the environment, with global warming as its main effect, ensuring the sustainability of economic and social processes is becoming a growing concern. At the European Union level, it is important that all member countries adhere to and implement common measures on sustainable development, which involve, inter alia, ensuring the convergence of policies and their effects at EU level. The EU through detailed SDGs presents the structure of a system of indicators structured on 17 objectives, indicators taken over, implemented, and calculated by EUROSTAT. The study proposes, based on a Composite Index of Sustainable Development of EU Countries’ Economies (ISDE-EU), the analysis of the convergence of the sustainability of EU states’ economies, not so much at individual level, but at cluster level, each cluster containing EU countries with similar/close ISDE-EU levels and dynamics. The results of the analysis confirm the partial existence of the beta and sigma convergence of the sustainability of EU countries’ economies. Please note that, at the time when we processed data, the UK was an EU state, which is why it was included in the analysis.