CURRENT ECONOMIC TRENDS IN EMERGING AND DEVELOPING … · Internationalization, Entrepreneurship...

INTERNATIONAL CONFERENCE

CURRENT ECONOMIC TRENDS

IN EMERGING AND DEVELOPING COUNTRIES

TIMTED 2019

PROGRAMME AND CONFERENCE ABSTRACTS

June 6-8, 2019

TIMIŞOARA, ROMANIA

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

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ORGANIZER

PARTNERS

Faculty of Economics and Business Administration

West University of Timişoara

16 J.H. Pestalozzi Street

300115, Timişoara, Romania


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SCIENTIFIC BOARD

ALBU Lucian-Liviu, Romanian Academy, Institute for Economic Forecasting, Romania

AIRINEI Dinu, Alexandru Ioan Cuza University, Romania

ABDEL-BADEEH Salem, Ain Shams University, Egypt

BERÁCS József, Corvinus University, Hungary

CALCIU Mihai, University of Lille 1, France

CAPRARU Sebastian Bogdan, Alexandru Ioan Cuza University, Romania

COMBES Jean-Louis, University of Clermont -Auvergne, France

CONSTANTIN Daniela Luminiţa, The Bucharest University of Economics Studies,

Romania

D’ANSELMI Paolo, University of Rome, Italy

DEACONU Adela, Babeș Bolyai University, Romania

DEMIR Ender, Istanbul Medeniyet University, Turkey

DENTINHO Tomaz Ponce, Azores University, Portugal

DOBRESCU Loretti, University of New South Wales, Australia

ĐUKID Mihajlo, Institute of Economic Sciences, Serbia

DUNAY Anna, Szent István University, Hungary

ĐURIČIN Sonja, Institute of Economic Sciences, Serbia

FARUK Şahin, Muğla Sıtkı Koçman University, Turkey

FILIP Andrei, ESSEC Business School Paris, France

FULCONIS François, University of Avignon, France

HARDING Liliana, University of East Anglia, United Kingdom

IDOWU, Samuel O., London Metropolitan University, UK

ILLÉS Csaba Bálint, Szent István University, Hungary

KYOPHILAVONG Phouphet, National University of Laos, Laos

LOPEZ-RODRIGUEZ Jesus, Universidade da Coruña, Spain

MARTIN Claude, University of Pierre-Mendès, France


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MINEA Alexandru, University of Clermont -Auvergne, France

MURSA Gabriel, Alexandru Ioan Cuza University, Romania

MUTAȘCU Mihai, ESCE International Business School Paris, France

NERI Fillipo, University of Naples ″Federico II″, Italy

OROS Cornel, University of Poitiers, France

PACHE Gilles, University of Aix-Marseille, France

PETRESCU Maria, Nova Southeastern University, USA

PETTINGER Richard, University College London, United Kingdom

POP-SILAGHI Monica Ioana, Babeș Bolyai University, Romania

SILAGHI Gheorghe, Babeș Bolyai University, Romania

SUCIU Marta Christina, The Bucharest University of Economics Studies, Romania

THALASSINOS Eleftherios Ioannis, University of Piraeus, Greece

TURCU Camelia, University of Orléans, France

VOIA Marcel- Cristian, Carleton University of Ottawa, Canada

XHEPA Selami, European University of Tirana, Albania

ORGANISING COMMITTEE

PIRTEA Marilen Gabriel, Rector, West University of Timişoara

ENACHE Cosmin, Vice Rector, West University of Timişoara

ȘTEFEA Petru Marin, President of the Organizing Committee, Dean,Faculty of

Economics and Business Administration

SÎRGHI Nicoleta, Vice President of the Organizing Committee, Vice Dean, Faculty of

Economics and Business Administration

BOȚOC Claudiu Florin, Vice Dean, Faculty of Economics and Business Administration

GLIGOR Delia Anca Gabriela, Vice Dean, Faculty of Economics and Business

Administration


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ALMĂȘAN Alina

BĂBĂIȚĂ Carmen Mihaela

BUNGET Ovidiu Constantin

BOLDEA Monica

CISMAȘ Laura Mariana

CUREA-PITORAC Ruxandra

DIMA Bogdan

DIMA Ștefana Maria

HAȚEGAN Camelia Daniela

MARGEA Camelia

MARGEA Romeo

MICULESCU Andra

MILOVAN Anca

MIRCEA Gabriela

MOLDOVAN Nicoleta Claudia

MUNTEAN Mihaela

MUNTEANU Valentin Partenie

NEAMȚU Mihaela

NAGY Andrea

NOJA Grațiela Georgiana

NIȚU-ANTONIE Renate

PARA Iulia

PELIN Andrei

ȘTEFANIGA Anca-Ioana

VĂDĂSAN Ioana

VĂTAVU Sorana

VECHE Bogdan


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CONFERENCE LOCATION

Faculty of Economics and Business Administration

West University of Timişoara

16 J.H. Pestalozzi Street

300115, Timişoara, Romania

An open space, with computers&free Wi-Fi is available at ECREB-P08 (ground floor)

All participants have free Wi-Fi access:

UVT-Guest-HotSpot


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KEYNOTE SPEAKERS

Richard PETTINGER

University College London

Principal Teaching Fellow (Reader/Associate

Professor) in Management Education at University

College London (UCL), he has also been the founder and creator of the undergraduate

and graduate programmes in information management for business, in the UCL

School of Management.

Richard is the author of over fifty books and numerous papers on all parts of the

subject of management. His research interests are privatisation and restructuring, the

effects of organisation and human behaviour on decision taking in organisations, and

the development of a professional and agreed body of knowledge and expertise for

the ‘profession and professionalisation of management’. He is also a major

contributor to the development of management teaching and learning initiatives in

the UK university sector, particularly through the UK Information Technology

Management for Business (ITMB) initiative.

Richard is presently designing, developing and delivering major new higher education

initiatives under the heading of: Society, Technology and Behaviour. This venture

seeks to demonstrate that there are major advantages to be gained from taking a

much wider view of business and infrastructure development, than concentrating on

narrow and prescribed economic advantages. Richard continues to research write and

consult with companies and organisations of all sizes and in many different sectors.

He regularly is asked to join panels and conferences as keynote speaker, conference

and session chair and expert contributor.


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Rita D’ECCLESIA

Sapienza University of Rome

Professor of Quantitative Methods at Sapienza

University of Rome, Chair of the Euro Working Group for

Commodities and Financial Modelling and Director of the

PhD programme in Economics and Finance at Sapienza

and Chair of the International Summer School on Risk Measurement and Control

organized yearly in Rome.

She teaches currently Financial Math, Asset Pricing, Risk Management at

undergraduate, graduate and PhD level. She was visiting Professor at Birkbeck

University of London from 2008 to 2015 were she taught for the MSc in Financial

Engineering and Commodities.

She has been teaching advanced training courses for several international companies

in UK, Sweden, Netherlands and France.

She has a broad expertise and deep understanding of financial markets, price

modelling, optimization techniques and energy markets dynamics.

She served as member of the hiring committee to select quantitative method experts

for the Bank of Italy, Consob and Department of Education. She has been serving as

independent expert in the Board of major Italian Banks since 2016.

At the moment she is in the Board of Banco BPM, the third largest Bank in Italy. Her

research topics spread from portfolio optimization to pricing financial securities and

commodities.


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Sascha KRAUS

ESCE International Business School

Research Professor for Innovation & Entrepreneurship at

ESCE International Business School, Paris, France. Before,

he was a Full Professor and Chairholder in Strategic

Management and Entrepreneurship at the University of

Liechtenstein, and, parallel to that, Visiting Professor at Copenhagen Business School,

Denmark in 2015 and at the University of St. Gallen, Switzerland in the two years

before.

He holds a doctorate in Social and Economic Sciences from Klagenfurt University,

Austria, a Ph.D. degree in Industrial Engineering and Management from Helsinki

University of Technology and a Habilitation (Venia Docendi) from Laapeenranta

University of Technology, both in Finland. From 2008-2013, he was Full Professor and

Chairholder in Entrepreneurship at Utrecht University, The Netherlands, which also

awarded him with the highest Dutch qualification as a university professor, the

“Senior Kwalificatie Onderwijs”. In 2008, he was also Participating Professor at the

“European Entrepreneurship Colloquium on Participant-Centered Learning” (EECPCL)

at Harvard University. Professor Kraus is – according to the leading German financial

magazine “Handelsblatt” – one of the “Top 20 Researchers in Business &

Management” in all German-speaking countries. His main research areas are Strategy,

Internationalization, Entrepreneurship and Innovation. He is the author of more than

100 academic articles, his research being published in outlets such as the Journal of

Product Innovation Management, the Journal of World Business, the Journal of

Business Research, Industrial Marketing Management, Entrepreneurship & Regional

Development or Small Business Economics. He holds an h-Index of 39 and ca. 5,000

citations according to Google Scholar (as of June 2018).


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Jesus LÓPEZ-RODRÍGUEZ

Universidade da Coruña

Associate Professor of Economics at Coruña University

(Universidade da Coruña), he has taught there since

1997. He is also a senior research fellow at the Jean

Monnet Research Group on Competition and Regional Development (C+D) where he

served as director from 2013-2015. During 2013 and 2014 he worked at the Institute

for Prospective Technological Studies-Joint Research Centre (IPTS-JRC), of the

European Commission as a senior economist. He has an extensive track record of

research in geographical economics, regional growth and disparities, EU regional

policy, EU political economy, industrial economics and more recently in public

economics. Lopez-Rodriguez has been invited to give economic seminars in different

national and international institutions such as the Univ. of Cincinnati, Univ. of Illinois,

Univ. of Arizona, Univ. of Texas, Georgia State Univ., Exeter Univ., Cardiff Business

School., Sabanci Univ., Ecole d´Economie University d´Auvergne, DG Regio,

Universidad Torcuato di Tella, Eafit, Universidad de los Andes, Banco de la República

de Colombia. Lopez-Rodriguez has also been invited as keynote speaker at several

international conferences. He has been a visiting scholar at a number of universities

including Harvard University (2007-08 and 2012), London School of Economics (2004,

2005, 2011), Institute of Capital, Creativity and Innovation at University of Texas

(2003) and University of Exeter (1999, 2000, 2001). He has acted as consultant to

several institutions including the DG Regio, European Commission, European

Parliament, Galician Court of Competition, Basque Court of Competition, Galicia

Innovation agency. In January 2016 he got the accreditation for Full Professor

(Catedrático de Universidad), the highest rank at the Spanish university system, given

by the Spanish National Agency for quality and accreditation (ANECA).


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INVITED LECTURERS

Alexandru MINEA

University of Clermont -Auvergne

Full Professor of Economics at the University of

Auvergne (Clermont-Ferrand, France), member of the

CERDI Department (www.cerdi.org) and adjunct

research professor at Carleton University (Ottawa,

Canada). He also served as short-term expert for the International Monetary Fund

(IMF) in Bangladesh. Dr. Minea has published articles in prestigious international

journals, such as: Economic Theory, Journal of International Money and Finance,

Ecological Economics, Applied Economics, Economic Modelling.

Marcel-Cristian VOIA

Carleton University

Full Professor of Economics at University of Orleans, and

Carleton University. He is an applied econometrician, who

works in many fields of economics including: labor,

health, energy, industrial, public and financial economics; econometrics; political

science and education. He published 40 papers is a wide range of journals including:

Journal of American Statistical Association, Journal of Industrial Economics, Annals of

Economics and Statistics, Party Politics, Journal of Economics and Statistics, Journal of

Macroeconomics, Journal of Institutional and Theoretical Economics.


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PLENARY LECTURERS

Eleftherios THALASSINOS

University of Piraeus

Professor of Quantitative Methods and International

Economics, Director of MSc in Maritime Studies at

University of Piraeus, Greece. He is also an Affiliate Professor at University of Malta

and Visiting Professor at Open University of Cyprus and other prestigious universities,

as well as European Chair Jean Monnet in Economic Integration. Prof. Thalassinos is

the General Editor/ Founder of European Research Studies Journal since 1998, as well

as of International Journal of Economics and Business Administration since 2012. He

has a wide range of experience as Board Chair/Founder of International Strategic

Management Association (ISMA), respectively as editor for various journals.

Paolo D'ANSELMI

University of Rome Tor Vergata

A small entrepreneur throughout the 1990’s, Mr. D’Anselmi is

now a practitioner of public policy and management

consultancy. He is a doctoral candidate at London Metropolitan

University and the author of Unknown Values and Stakeholders: The Pro-Business

Outcome and the Role of Competition (2017), Palgrave, 2nd edition. He is head of

research at Innova Economia in Rome, Italy, and teaches Corporate Social

Responsibility at the Università di Roma Tor Vergata.


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AT A GLANCE

June 6, 2019 (Thursday)

9.15-10.00 Registration

10.00-10.15 Conference Opening

10.15-11.00 RICHARD PETTINGER, University College London, United Kingdom

11.00-11.15 Coffee break

11.15-12.00 RITA D’ECCLESIA, Sapienza University of Rome, Italy


12.15-13.00 SASCHA KRAUS, ESCE International Business School, France

13.00-14.00 Lunch

14.00-14.45 JESÚS LÓPEZ-RODRÍGUEZ, Universidade da Coruña, Spain


15.00-16.30 Parallel sessions



19.00 - Gala Dinner

June 7, 2019 (Friday)



10.45-11.30 ELEFTHERIOS THALASSINOS, University of Piraeus, Greece

11.30-12.15 PAOLO D'ANSELMI, University of Rome Tor Vergata, Italy





16.00 - SOCIAL PROGRAMME at RECAȘ Wineries

June 8, 2019 (Saturday)

9.30-11.00 Marcel VOIA, Carleton University of Ottawa, Canada


11.10-12.40 Alexandru MINEA, University of Clermont - Auvergne, France

16.00-18.30 Timişoara Sightseeing Tour


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DETAILED CONFERENCE PROGRAMME


09.15 - 10.00 Registration

Main lobby -

ground floor

10.00 - 10.15 Conference Opening P02 - ground floor

10.15 - 11.00 Lecture Economic Development in a Socio

Technologically Driven Environment (Richard

PETTINGER, University College London, United

Kingdom)

P02 - ground floor

11.00 - 11.15 Coffee break - Google Digital Room P04 - ground floor

11.15 - 12.00 Lecture NPLs in the banking system and their

macroeconomic effects (Rita D’ECCLESIA,

Sapienza University of Rome, Italy)

P02 - ground floor


12.15 - 13.00 Lecture Entrepreneurial Orientation as a

Success Driver across National Cultures

(Sascha KRAUS, ESCE International Business

School, France)

P02 - ground floor

13.00 - 14.00 Lunch

14.00 - 14.45 Lecture Growing like Spain: EU transport

infrastructure investments and productivity

growth over 1989-2010 (Jesus LÓPEZ-

RODRÍGUEZ, Universidade da Coruña, Spain)

P02 - ground floor


15.00 - 16.30 Parallel Sessions


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Session Spéciale Francophone Session: International Business and Global

Modern Economy

P05 (ground floor) P02 (ground floor)

Chairs: Fulconis François & Farcane

Nicoleta

Chairs: Thalassinos Eleftherios & Noja

Grațiela

SSF1.Tosi Laetitia, Fulconis François,

Paché Gilles & Godbille Thierry

IBME1. Boz Hakan & Koc Erdogan

SSF2.Paladi Irina & Fenies Pierre IBME2. Diakonidze Maia & Kok Erdogan

SSF3. Farcane Nicoleta & Bureana

Eusebiu

IBME3.Özen Ercan

SSF4. Şahin Faruk, Brancu Laura &

Gudmundsdottir Svala

IBME4.Yeşildağ Eser & Bulut Ayşe

Session: Finance 1 ESCE Special session: Macroeconomic

policy and development


Chairs: Enache Cosmin & Boțoc Claudiu Chairs: Mutaşcu Mihai & Lessoua Albert

FIN 1.1. Marilen Pirtea, Eugen Mihancea

& Boțoc Claudiu ESCE1. Ianc Nicolae-Bogdan

FIN1.2. Anton Sorin Gabriel ESCE2. Garcia Revelo José, Lucotte Yannick

& Pradines-Jobet Florian

FIN1.3. Enache Cosmin & Leontin

Gheorghe ESCE 3. Sokic Alexandre

FIN1.4. Vătavu Sorana ESCE4. Ndione Louis, Lessoua Albert &

Diaw Diadié

ESCE 5. Mutaşcu Mihai

16.30 - 16.45 Coffee break - Google

Digital Room

P04 - ground floor



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Session: Finance 2 Session: International Business and

Global Modern Economy


Chairs: Donath Liliana & Boțoc Claudiu Chairs: Thalassinos Eleftherios & Cristea

Mirela

FIN2.1. Naghi Laura Elly IBME5. Suciu Marta-Christina, Noja

Grațiela & Cristea Mirela

FIN2.2 Stănculescu Andrei & Pîrvu Costin IBME6. Noja Grațiela, Cristea Mirela &

Atila Yüksel

FIN2.3. Donath Liliana, Mircea Gabriela,

Neamţu Mihaela & Oprea Ionela

IBME7. Iacob Constanța & AL-Rubaye

Ahmed

IBME8. Beju Daniela-Georgeta, Nistor

Ioan-Alin & Ciupac-Ulici Maria-Lenuţa

Session: Contemporary Issues in

Accounting 1 Session: Economics 1


Chairs: Ștefea Petru & Hațegan Camelia Chairs: Cismaș Laura & Jivan Alexandru

ACC1.1. Ajtay Edward, Burcă Valentin &

Mateş Dorel EC1.1. Rebedea Constantin

ACC1.2. Cioclov Petcu Alexandra & Ștefea

Petru

EC1.2. Jivan Alexandru, Neamțu Mihaela &

Cismaș Laura

ACC1.3. Hațegan Camelia EC1.3. Jivan Alexandru & Năchescu

Miruna-Lucia

EC1.4. Rebedea Constantin

EC1.5. Jivan Alexandru & Năchescu

Miruna-Lucia

19.00 - Gala Dinner Zaza Restopub, Bulevardul Vasile Pârvan 9, Timişoara


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9.00-10.30 Parallel Sessions

Session: Informatics Session: International Business and



Chair: Muntean Mihaela & Cristescu

Marian Chairs: Son Liana & Noja Grațiela

Info1. Hauer Ileana IBME9. Pescariu Gabriela

Info2. Cristescu Marian IBME10. Bărnuțiu Octavian

Info3. Muntean Mihaela, Brȃndaş

Claudiu & Didraga Otniel IBME11. Trifan Radu

IBME12. Al-Owaidi Mahdi

Session: Management Session: Economics 2


Chairs: Bibu Nicolae & Paolini

Dimitri

Chairs: Cismaș Laura & Iacobuță Andreea-

Oana

MNG1. Carroni Elias & Paolini

Dimitri

EC2.1. Iacobuță Andreea-Oana, Căutișanu

Cristina & Mursa Gabriel

MNG2. Munteanu Anca-Ioana EC2.2. Bucerzan Dominic & Bejan Crina

MNG3. Negovan Ana-Maria,

Dănăiață Doina, Hurbean Luminița &

Margea Camelia

EC2.3. Clipa Raluca-Irina, Ifrim Mihaela & Clipa

Flavian

MNG4. Teohari Georgiana & Bibu

Nicolae

EC2.4. Dănilă (Jianu) Maria, Ardeljan Patricia &

Cismaș Laura

MNG5. Hanganu Irina & Fleșeriu

Cristina

EC2.5. Földi Norbert

10.30-10.45 Coffee break - Google Digital Room P04 - ground floor

10.45-11.30 Lecture Quantitative Methods: Merging with

Digital Technologies and Going Global Eleftherios

Thalassinos, University of Piraeus, Greece)

P02 - ground floor


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Session: Contemporary Issues in

Accounting 2

Session: International Business and



Chairs: Ștefea Petru & Hațegan Camelia Chairs: Son Liana & Noja Grațiela

ACC2.1. Suciachi Andreea IBME13. Cucoş Paula & Son Liana

ACC2.2. Băbțan Silviu IBME14. Stoica Adrian

ACC2.3. Milu Nicoleta-Daniela IBME15. Ioana (Dumitru) Ramona

IBME16. Sinoi Elena-Alexandra

IBME17. Ciorbagiu Ioana

Special Session: Sustainable Growth Special Session: Socioeconomic challenges of Industry 4.0


Chairs: Andrid Vladimir & Dima Stefana Chairs: Imbrescu Ion & Farkas Beata

SG1. Boussetta Asma SCI1. Cismaș Laura & Imbrescu Ion

SG2. Mitid Petar, Zubovid Jovan, Đukid

Mihajlo & Bodroža Duško

SCI2. Farkas Beata

SG3. Andrid Vladimir SCI3. Kanó Izabella & Sávai Marianna

SG4. Andrieș Alin & Balutel Daniela SCI4. Megyeri Eszter

SG5. Menuet Maxime, Minea Alexandru &

Villieu Patrick

SCI5. Nagy Benedek, Udvari Beáta &

Lengyel Imre

14.30-14.45 Coffee break - Google Digital Room P04 - ground floor

11.30-12.15 Lecture Institution building for sustainable

growth Basic hypotheses about public

administration (Paolo D'Anselmi, University of

Rome Tor Vergata, Italy)

P02 - ground floor

12.15-13.00 Lunch



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Special Session: Sustainable Growth Special Session: Socioeconomic challenges

of Industry 4.0


Chairs: Minea Alexandru & Dima

Bogdan

Chairs: Imbrescu Ion & Farkas Beata

SG6. Dima Bogdan, Jordaan Jacob, Ioan

Roxana & Dima Ștefana

SCI6. Halmosi Peter

SG7. Albulescu Claudiu, Artene Alin,

Luminosu Caius & Tămășilă Matei

SCI7. Miculescu Andra & Oțil Maria

SG8. Menuet Maxime, Minea Alexandru

& Villieu Patrick

SCI8. Curea-Pitorac Ruxandra & Părean

Mihai

SCI9. Sîrghi Nicoleta & Vădăsan Ioana

Session: Economics 2 Session: Economics 1


Chairs: Sîrghi Nicoleta & Neamțu

Mihaela

Chairs: Harding Liliana & Voia Marcel

EC2.6. Dudaş Lavinia & Mihiţ Lavinia EC1.6. Harding Liliana & Margea Camelia

EC2.7. Calinovici Alina & Lobonț Oana-

Ramona

EC1.7. Acharya, Khalaf, Voia, Yazbeck,

Wensley

EC2.8. Snunu Iyad EC1.8. Laghlal El Moctar

EC2.9. Rămescu Doriana, Sîrghi

Nicoleta & Neamțu Mihaela EC1.9. Yabre Tobignaré

EC2.10. Vesa Flavia, Kaslik Eva &

Neamţu Mihaela

SOCIAL PROGRAMME

16.00 Rendezvous in the faculty’s parking lot

16.15 Departure from FEAA

17.00 -20.00 Guided tour of Recaş Winery / Wine tasting

20.30 Departure from Recaş Winery (courtyard rendezvous)


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June 8, 2019 (Saturday)

9.30 - 11.00 Special Lecture Understanding the data

(Marcel VOIA, Carleton University of Ottawa,

Canada)

P02 - ground floor


11.10 - 12.40 Special Lecture How to write a scientific

paper (Alexandru MINEA, University of

Clermont -Auvergne, France)

P02 - ground floor

16.00- 18.30 Timişoara Sightseeing Tour Guide: Stefana DIMA


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BOOK OF ABSTRACTS



Session Spéciale Francophone

P05 (ground floor)

Chairs: FULCONIS François & FARCANE Nicoleta

SSF1. INTERNATIONAL HUMANITARIAN ACTION: STAKEHOLDERS FACED

WITH THE “EMERGENCY-DEVELOPMENT” CONTIGUUM

Laetitia TOSI, CRET-LOG, Aix-Marseille University (AMU), France

François FULCONIS, LNBC (AU) & CRET-LOG (AMU), Avignon University (AU), France

Gilles PACHÉ, CRET-LOG, Aix-Marseille University (AMU), France

Thierry GODBILLE, CRET-LOG, Aix-Marseille University (AMU), France

Abstract

While international humanitarian action is largely limited to its emergency relief role

in crisis situations, it is also part of a broader approach to promote the long-term

development of populations. As a result, two distinct aid systems–“emergency” and

“development”–have coexisted for several decades, and a continuum approach was

preferred to address them. However, the recent increase in the complexity of the

intervention areas seems to be gradually forcing the actors to no longer separate

these two systems, but rather to deal with them accordingly in order to strengthen


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both the effectiveness and efficiency of the actions carried out.

According to this second approach (the contiguum approach), emergency and

development actions can manifest themselves simultaneously. Such a phenomenon

necessarily leads to questions about the place, role and modalities of intervention of

the various stakeholders. This article seeks to highlight the shift from a continuum to a

contiguum approach, while raising the question of which means to use in both the

short and long term. The analysis is conducted around two axes showing the different

relationships between emergency and development aid. This should make it possible

to better select the strategies and actions of international solidarity stakeholders

faced with this new reading.

Keywords: contiguum, continuum, international humanitarian action, international

solidarity, stakeholders

SSF2. MANAGEMENT CONTROL SYSTEMS IN THE POST-SOVIET CONTEXT.

A QUALITATIVE COMPARATIVE ANALYSIS

Irina PALADI, IPAG Business School, LARGEPA – University Paris II-Panthéon Assas,

France

Pierre FENIES, LARGEPA – University Paris II-Panthéon Assas, France

Abstract

This study analyzes the evolution and the diversity of management control systems

(MCS) in the post-Soviet transition context and determines the factors that explain

the existence, extent and use of MCS. Two longitudinal studies of former state-owned

Soviet enterprises trace the evolution of MCS induced by the transition from the

centralized economic system to the market economy, while a multiple case study (8


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firms) examines the variety of MCS in the current period.

The Qualitative Comparative Analysis is mobilized in order to identify the

determinants of different MCS types and to propose a typology of MCS in a post-

Soviet context according to contingent and institutional factors.

Keywords: management control system, typology, longitudinal study, multiple case

studies, qualitative comparative analysis

SSF3. A CORPORATE CASE STUDY ON THE APPLICATION OF ROKEACH’S

VALUE SYSTEM TO SOCIAL CORPORATE RESPONSIBILITY (CSR)

Nicoleta FARCANE, Faculty of Economics and Business Administration, West

University of Timişoara, Romania

Eusebiu BUREANA

Abstract

Starting from the research assumption that Social Corporate Responsibility (CSR)

values cannot be efficiently communicated, if they do not naturally belong to a

company’s identity, this chapter debates on the prospect of applying Rokeach

(1973)’s Value System to the CSR values of Continental corporation. The Rokeach

(1973) value system is used to compare Continental online provided data and

establish if ideal corporate values presented by the company are similar to the real

and CSR values. We base our assessment of the level of integration of CSR into

corporate identity on Maon et al (2010) integrated model of CSR development. Our

analysis reveals that even though Continental corporation works with CSR concept in

a strategic and systematic manner, CSR set values do not have a correspondence with

the real corporate values.


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Keywords: social corporate responsibility, Rokeach value system, corporate identity

SSF4. EVALUATING THE MEASUREMENT INVARIANCE OF THE FOUR-FACTOR

CULTURAL INTELLIGENCE SCALE ACROSS THREE COUNTRIES

Faruk ŞAHIN,Muğla Sıtkı Koçman University, Turkey

Laura BRANCU, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Svala GUDMUNDSDOTTIR, University of Iceland, Iceland

Abstract

The present study assessed the factor structure and measurement invariance of the

Cultural Intelligence Scale (CQS) in university students from Romania, Turkey, and

Iceland. Confirmatory factor analyses indicated that the four-factor model, which

consisted of metacognitive, cognitive, motivational, and behavioural dimensions,

could fit the data better than alternative models (three-factor and single factor

models). Furthermore, invariance of test for the CQS showed that the four-factor

model of the CQS is suitable across three countries and the pattern of factor loading is

invariant across these countries. However, the results did not support scalar

invariance for three countries, which showed that partial measurement invariance

was only established. Limitations and implications were discussed.

Keywords: cultural intelligence, measurement invariance, Cross-Cultural Study


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Session: International Business and Global Modern Economy

P02 (ground floor)

Chairs: THALASSINOS Eleftherios & NOJA Grațiela

IBME1. A NEUROMARKETING ANALYSIS OF GSM SALES PROMOTION

CAMPAIGNS

Hakan BOZ, Schoool of Applied Sciences, Usak University, Turkey

Erdogan KOC, Faculty of Economics and Administrative Sciences, Bandirma

OnyediEylul University, Turkey

Abstract

GSM operators attempt to attract new customers, i.e., customers using other GSM

operators by offering various benefits. However, the existing and loyal customers who

are not eligible for the benefits offered to potential new customers may be negatively

influenced by these sales promotion campaigns. Based on this background this study

aims to explore the emotional responses of existing customers to sales promotion

campaigns of their GSM operators aimed at attracting new customers. The study also

aims to measure customers’ brand loyalty towards their GSM operators before and

after the exposure to these sales promotion campaigns. The emotions of the GSM

operators will be measured by using a Facial Recognition Software and Eye tracker

device. The study is believed to have important implications for GSM companies as

exposure to these sales promotion campaigns will.

Keywords: GSM operators, sales promotions, campaigns, Neuromarketing


26

IBME2. RURAL AND NATURE TOURISM IN GEORGIA: DEVELOPMENT OF

DESTINATIONS AND NEW PRODUCTS

Maia DIAKONIDZE, Akaki Tsereteli State University, Georgia

Erdogan KOC, Faculty of Economics and Administrative Sciences, Bandirma Onyeid

eylul University, Turkey

Abstract

Georgian tourism industry has achieved a phenomenal growth of the past years.

However, according to World Economic Forum’s (WEF) Global Travel and Tourism

Competitiveness Index Report (2015) Georgian tourism industry was the 70th country

among 141 countries. This means that there is a need for futher development. Based

on the rural and natural beuaties of Georgia, i.e. banking on its curent strenghts of

the country, rural and natural tourism destinations can be develeped in Georgia. The

study will anlayse the rural and natural beauties of Georgia based on the destination

attractions offered by Buhalis (2000), 6 A’s of destination attractions by using a SWOT

(Strenghts, Weaknesses, Opportunities and Threats) analysis. It is believed that a

SWOT (Strenghts, Weaknesses, Opportunities and Threats) analysis rural and natural

tourism destinations practical guidelines for the practitioners and policy makers in

Georgia will be offered.

Keywords: Georgia, natural tourism, rural tourism, destination development


27

IBME3. EFFECT OF CURRENCY VOLATILITY ON SMALL BUSINESS MARKET:

THE CASE OF TURKEY 2018

Ercan ÖZEN, Department of Banking and Finance, University of Uşak School of Applied

Sciences, Turkey

Abstract

Developing countries need higher economic growth to reach at the level of developed

countries. When developing countries exceed the potential economic growth,

problems such as high external debt and high current deficit emerge. Such situations

increase the risk of the country. In addition to the increasing financial risk,

international political risks, fluctuations in capital inflows and some manipulative

movements have subjected countries to extreme exchange rate fluctuations. As a

result, important economic problems arise in these countries.

The first objective of the research is to reveal its impact on small business activities of

the high exchange rate fluctuations in 2018 in Turkey. Another objective is to

determine whether the level of exposure of the exchange rate fluctuations on

business owners varies by age.

Questionnaire method was used in the study and data were obtained by random

sampling and the survey was conducted by a total of 390 company owners from

trade, service and production sector. The findings of the study show that after six

months following the period of significant exchange rate movements, business

activities were negatively affected, sales decreased and job cuts increased. On the

other hand, the exchange rate effect was mostly felt by all business owners of

different ages.

According to the study, it is understood that small enterprises are vulnerable to rising

exchange rate movements. The situation for people with more work experience is not

different. In order to alleviate the effects of adverse exchange rate movements,

enterprises should be more cautious in their activities. Small open economies are


28

negatively affected by the problems arising from the functioning of the globalized

financial system. Two suggestions can be made at this point: (i) Governments should

follow optimal growth policies and (ii) Small businesses that have an important place

in the economy should be made aware of exchange rate risk and risk management.

Keywords: currency shock, exchange rate, small business, economic crisis

IBME4. A RESEARCH ON THE FINANCIAL LITERACY OF THE STAFF OF UŞAK

UNIVERSITY

Eser YEŞİLDAĞ, School of Applied Sciences,Uşak University, Turkey

Ayşe BULUT, Institute of Social Sciences, Uşak University, Turkey

Abstract

In recent years, financial literacy has become a very important concept for the

stability of a country's economy. This concept concerns not only people in financial

markets but all individuals. The level of financial knowledge of academicians and

employees in universities is highly important, and the high level of this financial

knowledge is effective in financial education of university students.

The aim of this study is to measure the financial literacy level of the academic and

administrative staff of Uşak University. Uşak University is a state university founded in

2006 in Turkey. A survey prepared in parallel with this aim was applied to Uşak

University staff and the obtained data were analyzed by statistical programs.

The results of this study show that the majority of Uşak University staff has basic

financial knowledge but they are not successful in financial matters in terms of

financial decisions. In addition, it is determined that the financial information of the

personnel is affected by the demographic characteristics.

Keywords: financial literacy, university staff, financial information, attitude/ behavior


29

Session: Finance 1

P03 (ground floor)

Chairs: ENACHE Cosmin & BOȚOC Claudiu

FIN1.1. RE-EXAMINING DIVIDEND HYPOTHESES FOR CEE’S COUNTRIES

Marilen PIRTEA, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Eugen MIHANCEA, Faculty of Economics and Business Administration, West University

of Timişoara, Romania

Claudiu BOȚOC, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

Dividend policies and their impact on company value represent a subject which was

already approached in literature, attracting strong academic interest, with many

researchers bringing their contribution at solving the discussion based on the theory

of the impact of dividend payments on company value. Lintner (1956) and Modigliani

and Miller (1961) opened the discussion for the first time regarding the theory of

dividend irrelevance, followed by a series of papers on this topic. Later on, Black

(1976) described the lack of consensus regarding the topic as a puzzle with many

pieces which don’t fit together.

The research paper proposed approaches the effect of the dividend policies on the

market value of the company on a sample of companies from Eastern-European

countries, using panel data in a linear and non-linear hypothesis. Our empirical results

suggest that the classical dividend theories are characterized by a dynamic behavior.


30

Keywords: dividend, performance, panel model, signalling

FIN1.2. RESEARCH AND DEVELOPMENT EXPENDITURES AND FIRM VALUE.

EMPIRICAL EVIDENCE FROM IT&C LISTED FIRMS

Sorin Gabriel ANTON, Faculty of Economics and Business Administration, Alexandru

Ioan Cuza University, Romania

Abstract

The aim of the paper is to analyze the relationship between research and

development (R&D) expenditures and firm value on a sample of 579 publicly listed

firms from the IT&C sector. On this particular sample of firms from the EU countries

over the period 2009-2017, we found an inverted U-shape relationship between R&D

expenditures and firm value. The empirical results suggest the existence of an optimal

level of R&D expenditures that need to be found and maintained by the firms from

the IT&C sector. These findings have important implications for investors,

policymakers, and scholars. The robustness of these results has been tested using

various estimation techniques.

Keywords: R&D expenditures, firm value, IT&C sector, European Union, listed firms


31

FIN1.3. THE ROLE OF CEO BACKGROUND IN EXPLAINING EXECUTIVE

COMPENSATION. A STUDY OF U.S. LISTED FIRMS

Cosmin ENACHE, Faculty of Economics and Business Administration, West University


Leontin GHEORGHE, Faculty of Economics and Business Administration, West


Abstract

The standard economic theory of executive compensation is the principal-agent

model which predicts that firms design efficient compensation packages to solve

moral hazards and motivate CEOs. The theoretical model posits a risk-neutral

principal who designs an optimal contract for a risk and effort-averse agent in the

presence of a moral hazard problem. Boards set CEO pay and incentives based on

economic factors, the magnitude of agency problems, and monitoring difficulty in

order to align shareholder and managerial interests. Agency theory predicts that

executive pay is positively correlated to firm performance. It is, however, relatively

silent on the functional form of the estimating equation (e.g. whether to use current

or lagged performance measures) and other types of variables to be included.

Informativeness principle predicts that any variable that is informative about CEO

effort can be contracted upon.

The aim of the paper is to analyze the determinants of executive compensation in

order to test the aforementioned theories. Our paper both reinforce and extend the

previous empirical research by adding new variables that could better explain

executive compensation policy. Firstly, we consider firm-level determinants with a

focus on performance proxies. Secondly, we include several corporate governance

variables with a focus on CEO background. The variables for the panel models tested

are collected from several sources: Standard & Poor’s Compustat, Execucomp and


32

BoardEx databases. Using a GMM model on a sample of 1.659 public U.S. firms over

the period 2006-2015, we found that CEO professional networking is more important

that education or experience. The second important result highlights the superiority

of accounting performance in relation to market performance. The results are robust

for several subsamples criteria (firm size and CEO tenure) and CEO compensation

measurement.

Keywords: Executive compensation, performance, market value, corporate

governance, CEO characteristics.

FIN1.4. THE ROLE OF BOARD DIVERSITY ON CORPORATE PERFORMANCE:

EVIDENCE FROM THE UK

Sorana VĂTAVU, Faculty of Economics and Business Administration, West University


Abstract

This paper examines the economic impact of board diversity on corporate

performance, for companies with subsidiaries in the United Kingdom. The analysis

reflects the period 2006-2014 and is based on statistics and regressions, employing

the gender and age of the board members, as board diversity proxies, and return on

assets and return on equity as performance indicators. The research returns

significant insights into the association between board diversity and profitability. The

main results suggest that a reduced number of board members would improve the

returns of the companies, while the experience and knowledge of the board

members, as well as their capabilities of adapting the organization in a volatile

environment, increase the performance of the companies. Results are not significant


33

in terms of concluding that an increased number of women in board would induce

higher returns for the companies analysed.

Keywords: corporate governance, corporate performance, sustainability practices

Session: ESCE Special session: Macroeconomic policy and

development

P11 (ground floor)

Chairs: MUTAŞCU Mihai & LESSOUA Albert

ESCE1. HOW CAN CULTURE AFFECT TAXATION? EVIDENCES FROM BOTH

ADVANCED AND DEVELOPING COUNTRIES

Nicolae-Bogdan IANC, LEO, UMR, CNRS, University of Orléans, France; Faculty of

Economics and Business Administration, West University of Timişoara, Romania

Abstract

Several countries afford higher direct taxation rates and their citizens are well off with

this fact. Others choose for lower ones in order to stimulate all the taxpayers. Both

cases deal with the same dilemma: what determinant affects the most the direct

taxation? We want to resolve this dilemma by including the culture as an explanatory

variable and to see what type of culture values (i.e. the idea of post materialism,

trust, vote participation and religion) can have an impact on taxation. Moreover, for

endogeneity issues, we include instrumental variable to solve it. We include in our

empirical analysis both advanced and developing countries. The results are the

following: culture is able to explain the direct taxation at some extent.


34

Keywords: tax structure, taxation, postmaterialism, culture

ESCE2. MACROPRUDENTIAL AND MONETARY POLICIES: FRIENDS OR FOES?

José David GARCIA REVELO, CNRS, LEO, University of Orléans, France

Yannick LUCOTTE, CNRS, LEO, University of Orléans; Paris School of Business, France

Florian PRADINES-JOBET, Paris School of Business, France

Abstract

The Great Recession during the late 2000s and early 2010s has led to a strengthening

of macroprudential policies over the world in order to address systemic risk concerns.

However, the effectiveness of those measures remains unclear. The existing literature

fails to demonstrate clearly that macroprudential policies address effectively fnancial

vulnerabilities. Moreover, the impact of these policies is often assessed regardless of

the monetary policy stance, which is another main determinant of financial stability.

This empirical paper aims to fill this gap by at least two ways. Based on a sample of 45

countries covering the period from 2000Q1 to 2014Q4, we first propose to re-

evaluate the effectiveness of the macroprudential policies to limit excessive credit

growth by considering different measures accounting for the macroprudential policy

stance. Second, we also test whether the impact of prudential policies is strengthened

by the monetary policy stance, measured through the Taylor gap. Our results indicate

that changes in macroprudential policies effectively reduce the credit growth, but

there is a transmission delay approximately of one year to be effective. Interestingly,

this delay fell to one quarter when macroprudential and monetary policies move in

the same direction simultaneously which is a new finding.

Keywords: monetary policy, macroprudential policies, effectiveness, financial


35

stability, interaction

ESCE3. BITCOIN AND HYPERDEFLATION: AN OPTIMIZING MONETARY

APPROACH

Alexandre SOKIC, ESCE International Business Paris, France

Abstract

This paper is deeply motivated by the need to explore the impressive Bitcoin

pricedevelopment by addressing Bitcoin as money in its essential attribute as a

medium of exchange. We adopt a monetary economics viewpoint and resort to a

representative agent modelling strategy within a money-in-the-utility function (MIUF)

framework. First, we show that the impressive Bitcoin price development observed

since its inception can be interpreted as a hyperdeflation when we focus on Bitcoin

role as a medium of exchange. Second, we show that specific monetary features of

Bitcoin, its asymptotical fixed nominal stock and divisibility down to eight decimal

places, account for a strong possibility of speculative hyperdeflationary paths. It is

shown that those paths are fully consistent with the medium of exchange monetary

role of Bitcoin and the representative agent optimizing behavior.

Keywords: Cryptocurrencies, Bitcoin, hyperdeflation, medium of exchange


36

ESCE4. SPECIALIZATION IN ENTRY-LEVEL PRODUCTS: A STRATEGY FOR

INDUSTRIAL DEVELOPMENT IN AFRICA

Louis César NDIONE, Reims Economic Sciences Laboratory - REGARDS, University of

Reims, France

Albert LESSOUA, ESCE International Business Paris, France

Diadié DIAW, Interdisciplinary Research Laboratory in Societal Innovations – LiRIS,

University of Rennes 2, France

Abstract

This paper presents an interdisciplinary approach to the potential for industrialization

in Africa combining economics, marketing, and econometrics. Based on the

observation that domestic demand is mainly oriented towards entry-level products,

the products that are offered at the lowest prices in a range, we explore the merits of

an industrialization strategy targeting the manufacture of low-cost products.

After identifying the main determinants of specialization in entry-level products, our

results suggest that entry-level products can play a fundamental role in African

industrialization by better addressing the continent’s multiple challenges in terms of

employment, investment, and workforce training. It should also be noted that studies

on entry-level products in Africa are quite scarce; this novel study thus opens up new

avenues for future research.

Keywords: specialization, diversification, entry-level products, marketing, BoP, Tobit

model


37

ESCE5. A WAVELET APPROACH OF OKUN’S LAW

Mihai MUTAŞCU, ESCE International Business Paris, France

Abstract

The aim of paper is to investigate the direction of co-movement between cyclical

component of unemployment and output one in US by using the wavelet tool. The

period covered is 1949Q1-2018Q3, dataset having quarterly frequency.

The main results show that the direction of co-movement is rather idiosyncratic in

short-term. Even though, some evidences reveal that the direction of interaction is

related to the origins of economic shocks, as they are internal or external. In medium-

term, the Okun’s law in US seems to be valid when the effect goes from output to

unemployment, while in long-term, when the effect goes from unemployment to

output.

Keywords: unemployment, GDP, Okun's law, wavelet, US


38



Session: Finance 2

P05 (ground floor)

Chairs: DONATH Liliana & BOȚOC Claudiu

FIN2.1. QUALITATIVE IMPACT OF 2018 REGULATIONS ON THE ROMANIAN

FINANCIAL SERVICES MARKETS

Laura Elly NAGHI, Faculty of Finance and Banking, Bucharest University of Economics

Studies, Romania

Abstract

The last 5 years brought about an inflation of financial services regulations to be

implemented on the Romanian market. Being originated at the level of EU, the

primary legislation affecting the financial sector was the subject of multiple public

debates which would be considered a positive approach, but on the other hand the

multiple postponing of the implementation of these regulations represented the main

drawback on the feeling the major benefits of the European recommendations.

Another hurdle to overcome was the initiation and then the agreement on the

secondary legislation – the norms and methodologies to be applied at operational

level in order to comply with the primary legislation. The focus of major companies

was deviated from the client – which in fact, becomes the central player in the entire

frame of business – to compliance with the norms, due to potential penalties and

fines to be paid the institutions, in case of regulators’ verifications or in case of

breach.


39

The banking system was affected in the same manner by the late approval of MiFID II

Directive that was approved on national level in July 2018 waiting for the secondary

legislation to be implemented at the beginning of December 2018- this has brought

about a new wave of dissatisfaction among the financial entities having direct contact

with potential clients. The costs for the update of clients database, for their

information on the main modifications in the service contract due to legislation, the

process of implementing internal procedures brought about a significant cost

constrain and an increase level of annoyance both for the entities and the client.

These examples shall be further detailed in this article that intends to have a general

view of the legal requirements imposed in 2018 on the financial services providers

and also on the benefits and costs generated by them. There were several voices at

European level stating that the implementation of such systemic norms (such as

Solvency II, General Data Protection Regulation – GDPR, IDD, AML) would be

considered too costly (Carpenter, 2011). The global benefit is easy to be seen – at

least on declarative mode, the better service to the client. The implementation costs

and capital required to provide that goal are still to be centralized and analysed.

Keywords: prudential supervision, IDD, MiFID, AML, insurance distributors

FIN2.2. FROM CORPORATE FINANCE TO COMMERCIAL FINANCE:

COMPARING THEORY WITH PRACTICE

Andrei STĂNCULESCU, Faculty of Finance and Banking, Bucharest University of

Economics Studies, Romania

Costin Emilian PÎRVU, Faculty of Finance and Banking, Bucharest University of

Economics Studies, Romania


40

Abstract

In this paper we intend to underline the importance of corporate finance rules and

principles for conducting a profitable business venture, and we try to corroborate

them with specific financial operations which occur during ordinary commerce activity

and financial management. The paper focuses on how the profit maximization

theoretical paradigm is actually implemented within specific corporate departments,

and an important emphasis is put on the risk-return relationship, showing how this is

a key aspect, responsible for increasing profitability for different corporate

investment projects.

Keywords: corporate finance, return, risk, commercial finance, shareholder, manager

FIN2.3. ANALYSIS OF A CREDIT RISK CONTAGION MODEL WITH TIME DELAY

Liliana DONATH, Faculty of Economics and Business Administration, West University


Gabriela MIRCEA, Faculty of Economics and Business Administration, West University


Mihaela NEAMŢU, Faculty of Economics and Business Administration, West University


Ionela OPREA, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

The present paper approaches credit risk contagion on the bank market in terms of

dynamical systems. The hypothesis of the paper is that sustainability-oriented banks

are able to prevent the spread of contagion on the bank market through the quality of

assets that support the projects they are financing. Relevant indicators are used to


41

demonstrate that values-based banks better perform of the long run, during the

crises and over the cycle, recording stable, durable profitability.

The mathematical model is described by a nonlinear differential equation, where the

variable is represented by the number of participants that engage in lending and are

subject to credit risk on the financial market. Due to the fact that the economic

process is not instantaneous, the introduction of the time delay is imperative. The

equilibrium point is found and the effect of time delay is investigated by the existence

of the Hopf bifurcation. In order to verify the theoretical findings, using Maple and

Matlab, numerical simulations are performed.

The paper concludes that values-based banks are can better prevent the transfer of

risks by assuming different asset management as opposed to traditional banks, thus

contributing to the stability of the financial market

Keywords: credit risk contagion, mathematical model, equilibrium, stability


42


P02 (ground floor)

Chairs: THALASSINOS Eleftherios & CRISTEA Mirela

IBME5. THE EMERGING DIGITAL EUROPEAN LABOUR MARKETS AND THE

FUTURE OF WORK

Marta-Christina SUCIU, Faculty of Theoretical and Applied Economics,Bucharest

University of Economic Studies, Romania

Graţiela Georgiana NOJA, Faculty of Economics and Business Administration, West


Mirela CRISTEA, Faculty of Economics and Business Administration, University of

Craiova, Romania

Abstract

Given the European Pillar of Social Rights, the European Union (EU) enhances several

broad trends that should be addressed in the new digital economy, with a strong

emphasis on “the future of work and the emerging digital labour market” in the new

millennium, shaped by globalisation, sustainability challenges and rapid technological

advances (European Commission, 2017). Technology is significantly changing the

nature and complexity of jobs, while the impact of automation and digitalisation on

the labour market grasps the keen need to accurately address these milestones,

including the role of artificial intelligence and augmented reality. All of these

credentials bring also important challenges since many jobs carried out in Europe are

relatively low skilled, repetitive, at threat from job losses and deterioration of job

quality in the digital economy. Based on this general background of reference, our


43

main research goal is centered on identifying the most relevant core skills required by

the EU labour market in the broader context of the Digital Era, linked to professional

profiles and specific domains. Identifying the relevant core skills is considered one of

the most important functions of labour market analysis. Across Europe, demand for

staff with digital skills is rising at an exponential rate. This is one of the challenges that

is considered by the European Commission experts as an essential prerequisite in

order to improve digital and analytical skills based on better qualities education and

training programmes. Emerging European Policy areas focus on the development of

new, innovative and more effective regional approaches such as better equipping

youth and adults with the digital skills that are mostly demanded within the globalized

economy (Digital Era). Thus there is a higher interest for activities designed to

increase the digital competences for employability, based on high skills. Digital

economy generates a growing range of employment and career opportunities, aligned

with the needs and high standards offered by the digital labour market (Suciu and

Năsulea, 2019). Dual-education systems are also based on an extensive development

of partnerships and cooperation networking between universities and business

sector, involving both university professor (higher education institutions) and

business representatives/specialists, by combining school-based learning with work-

based practice. Our main results reveal that this broader comprehensive education

approach can ensure better achievements in terms of new digital skills and improved

core competences, that will be complemented with transversal “soft skills” (e.g. the

ability to communicate effectively, leadership, decision-making, positive attitudes,

active participation) that go hand in hand with the digital skills development.

Keywords: digital economy, labour market, core skills, digital skills, EU


44

IBME6. MIGRATION AND THE SINGLE EUROPEAN LABOUR MARKET

Graţiela Georgiana NOJA, Faculty of Economics and Business Administration, West


Mirela CRISTEA, Faculty of Economics and Business Administration, University of

Craiova, Romania

Atila YÜKSEL, Tourism Faculty, Adnan Menderes University, Turkey

Abstract

Migration models inherently comprise, as an essential pillar, the interlinkages with

the labour market, grasping occupational sectors of immigrant employment,

qualifications and working conditions, labour market success, measured through

employment and unemployment rates and wage levels, complementarity and

substitution. All of these credentials are furthermore important to be considered for

sustainable economic development of both migrant sending and receiving countries,

particularly in Europe. Considering the amplitude of labour mobility/migration flows

within the European Union and recent challenges of regional integration brought by

the Brexit decision and humanitarian dimension of the migration phenomena, the

need for better immigration and integration policies within the host countries’ labour

markets stands out as a major research direction, especially in case of immigrants

looking for better working and living conditions. Hence, the general objective of our

paper is to develop a two-fold analysis, which grasps the economic features essential

for migrants’ labour market integration, along with feasible ways and specific policies

for immigrants’ labour market success. Compared to other studies (Noja et al., 2018;

Marcu et al., 2018), this paper analyses labour migration indicators, along with a

comprehensive migrants’ integration policy index, as well as welfare (wellbeing) and

labour market specific indicators. The analysis is performed for EU-10 countries based

on national (panel) data, but also by each EU-10 country, during 2000-2015. The


45

methodological endeavour comprises immigration cluster analysis, macro-

econometric and spatial models. Our empirical results (panel macro-econometric

modelling) show that, overall, EU-10 countries still fail to identify immigrants with

high levels of education and skills acquired to enhance their potential for labour

market integration. Hence, EU policy makers should monitor the specific ways in

which migration policies lead to concrete positive labour market outcomes for

immigrants and that the tools used for implementing these policies are suitable in

achieving predefined migration goals. Therefore, a particular focus should be on

developing a new immigration system to select migrants for their skills and high level

of human capital, by following the best practices examples of other receiving

countries.

Keywords: migration, welfare, labour market, immigration cluster analysis, spatial

models

IBME7. ECONOMICS EFFECTS OF EMIGRATION IN THE MIDDLE-EAST

COUNTRIES

Constanța IACOB, Faculty of Economics and Business Administration, University of

Craiova, Romania

Ahmed Hussein RadhiAL-RUBAYE, Faculty of Economics and Business Administration,

University of Craiova, Romania

Abstract

Emigration has positive and negative consequences on the development and progress

in the original home of the emigrant. Emigration has been associated with the

existence of man on earth and it is an essential part of the history of human kind.


46

Emigration is a phenomenon that is not modern. The past centuries, particularly the

18th and 19th centuries have been characterized by multiple waves of large-scale

emigration. Thus, some countries, such as the United States of America, Canada,

Australia and others, are debited with their existence to emigrants.

Emigration has contributed to the expansion of knowledge, technology and skills

among people, to the renaissance of many countries and their progress, but to their

establishment, as well as to the achievements of so-called emigrant "human capital",

with its vitality and cultural knowledge that was added to the spirit of challenge,

innovation and courage by which the emigrant is characterized.

Emigration is characterized by two aspects: the first is positive and the other is

negative. On the positive aspect, it brings a lot of benefits for the exporting countries.

This benefit lies in the positive return represented by the money transferred by

emigrants to their motherlands.

Although the larger part of these transfers are not considered as addition to the Gross

Domestic Product (GDP), but it can be described as a return from the perspective of

economic development and an additional source of foreign currency that can be

employed in the import of production requirements and investment equipment.

Keywords: immigration, migration, immigrants, host country, economic


47

IBME8. WHAT FACTORS INFLUENCE THE UNEMPLOYMENT RATE INROMANIA

DURING 1997-2017 PERIOD?

Daniela-Georgeta BEJU, Babeş-Bolyai University

Ioan-Alin NISTOR, Babeş-Bolyai University

Maria-Lenuţa CIUPAC-ULICI, Hyperion University Bucharest

Abstract

The current research aims to analyze the impact of inflation, the RON / EURO

exchange rate and the financial crisis on unemployment rate in Romania. The paper is

structured in 5 sections. The first section presents an introduction of the analyzed

elements. The second section shows the results of various studies identified in the

financial literature. The third section describes the research methodology used to

analyze the impact on unemployment rate. Section four presents the data used and

the results obtained in this research. The last section shows the findings of the study.

In order to analyze the impact of the inflation rate, the exchange rate and the

financial crisis in 2008 on the unemployment rate, we employed a linear regression.

The data sample comprises 21 observations, the period being analyzed from 1997 to

2017. The data were taken from the Eurostat database. As a conclusion, the

unemployment rate in the European Union remained at 7.1 % in March 2018, similar

to the previous month, falling from 7.9% in the same period in 2017.This is the lowest

level of the unemployment rate registered in the EU since September 2008. While, in

the euro area, the unemployment rate remained at 8.5% in March, as in the previous

month, and fell from 9.4% in the same period in 2017, and was also the lowest level in

the euro area since December 2008.

Keywords: unemployment rate, exchange rate, inflation rate


48

Session: Contemporary Issues in Accounting 1

P03 (ground floor)

Chairs: ȘTEFEA Petru & HAȚEGAN Camelia

ACC1.1. DETECTING TAX EVASION USING ACCOUNTING INFORMATION FROM

FINANCIAL STATEMENTS

Edward AJTAY, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Valentin BURCĂ, Aurel Vlaicu University of Arad

Dorel MATEȘ, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

The research aims to analyze and investigate the annual financial statements

submitted by Romanian companies in several financial exercises, to identify the

significant differences between the financial indicators of companies prone to tax

evasion and to identify financial techniques and analyzes that can be used effectively

to detect the accounting reports of entities that resort to tax evasion. The analysis

was carried out on a sample of 200 commercial companies and the accounting

information was collected from the annual financial statements of the period 2010 –

2016, public information published on the website of the Romanian Ministry of Public

Finance.

The study was structured in two parts, the first part was focusing on the analysis of

accounting information and the sample content, then the econometric modeling was

applied, concluding that there are significant differences between the financial

indicators of the 200 companies.


49

From the analysis, it can be drawn to the conclusion that the cases of tax evasion can

be identified by using the accounting information reported by an entity during a

period of time. The conclusion is that there are methods and techniques that can

identify the phenomenon of tax evasion at relatively early stages and the application

of these methods and techniques to effectively prevent and reduce the magnitude of

this phenomenon.

Keywords: tax evasion, annual financial statements, accounting information,

companies

ACC1.2. QUANTIFICATION OF HUMAN RESOURCES’ VALUE AS AN

ACCOUNTING ASSET OF BUSINESS ORGANISATIONS

Alexandra CIOCLOV PETCU, Faculty of Economics and Business Administration, West


Petru ȘTEFEA, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

This paper presents the results obtained during doctoral research on the topic of

human capital measurement, reporting and relevance as an accounting asset of

business organisations. The three main research objectives aimed to (1) study the

need to capitalize on the human resources of economic entities, (2) contribute to the

development of a methodology for identifying, evaluating and reporting human

resources as an accounting asset, respectively to (3) assess the impact of human

resources’ capitalization on the real financial performance of business organisations.

Research conducted on business performance analysis has highlighted the need to


50

adapt the methodology used in economic and financial analysis as to provide a better

response to the information needs of stakeholders regarding the role of human

capital in generating competitive advantage. The current paper presents a set of

instruments useful for these purposes, capturing data on (1) behavioural elements

that justify organisational decisions and attitudes, (2) interdependencies between

business organisations and the environment, (3) performance of business

organisations in human capital management as well as in R&D activities, and (4) HR

measurement and reporting as an accounting asset. The conclusions of the study also

provide a projective calculation of business organisations’ financial performance,

based on a proposed model for quantification of the human resources value.

Keywords: human capital, financial performance, business value

ACC1.3. THE RELATION BETWEEN FINANCIAL REPORTING QUALITY AND

AUDIT QUALITY

Camelia-Daniela HATEGAN, Faculty of Economics and Business Administration, West


Abstract

Investors’ decisions are based on financial and non-financial information. To be

useful, the information provided by the financial reports must be accurate, which is

also ensured by the opinion expressed by the auditors. The purpose of the paper is to

show the importance of the relationship between variables: the quality of financial

reporting and the quality of audit services both for investors and for professional

accountants and auditors. The quality characteristics of financial reporting are


51

represented by understandability, relevance, reliability and comparability. Audit

quality determinants can be structured according to several criteria and were

represented by the size of the auditor, rotation, duration of the contract, types of

services provided. In order to support this hypothesis, the correlation between the

two variables was tested on the basis of a sample of annual financial statements and

reports issued by financial auditors. The results show that there is a correlation

between financial reporting quality and audit quality, but of different intensities

depending on the indicators chosen. Increasing the quality of financial reporting leads

to increased investor confidence in professional accountants.

Keywords: financial reporting quality, audit quality, financial statements, professional

accountants

Session: Economics 1

P11 (ground floor)

Chairs: CISMAȘ Laura & JIVAN Alexandru

EC1.1. IMPLEMENTATION OF THE NATIONAL STRATEGY FOR SUSTAINABLE

DEVELOPMENT OF ROMANIA 2030 BY INTEGRATING THE LINK BETWEEN

OBJECTIVES, TARGETS AND LEGAL PRINCIPLES FOR BETTER GOVERNANCE

Constantin REBEDEA, Faculty of Economics and Business Administration, West


Abstract

The article concerns the implementation of Romania's Development Strategy 2030


52

through the close relationship between air quality, circular economy and sustainable

development. SDD 2030 links Romania to the sustainable development objectives

established at the level of the European Union and the United Nations, explicitly

interlinking objectives and targets multiple objectives and resources (eg cities and

sustainable communities and responsible consumption and production).

Current activity on indicators set by Romania should consider, recognizing and linking

objectives, any synergy between objectives such as cities and sustainable

communities and responsible consumption and production (SDGs 11, SDGs 12).

The challenge is the dependence between air quality and the circular economy and

how they serve as entry objectives to each other, given that two different managerial

approaches follow: air quality is a centralized environmental policy, governed by

government by the public authority for environmental protection, but implemented

locally by local authorities, with a top-down approach, while the circular economy is

polycentric (following a bottom-up approach).

Such institutional and administrative differences create potential tensions in

addressing these sectors, in line with the legal principle of correlation, making it

difficult to create an integrated and holistic approach to decision-making and

functioning. This potential risk also leads to serious environmental damage.

This study seeks to contribute to the analyses existing within the framework of the

National Strategy for Sustainable Development of Romania 2030, from which to

deduce the meaning of the relationship between cities and sustainable communities

and responsible consumption and production and to provide legal instruments to

support the development of rules ethical link, so that the negotiation of results

between the development of cities and sustainable communities is more coherent

with policies for sustainable consumption and production.

Keywords: relevant targets, sustainable communities, Sustainable Development Goals

(SDGs), integration, resource co-governance, ethical link


53

EC1.2. ANALYSIS OF COMPETITION AND COOPERATION INTERACTION FOR

THREE ECONOMIC AGENTS ON THE MARKET

Alexandru JIVAN, Faculty of Economics and Business Administration, West University


Mihaela NEAMȚU, Faculty of Economics and Business Administration, West University


Laura Mariana CISMAȘ, Faculty of Economics and Business Administration, West


Abstract

The paper aims at revealing the behaviour of economic agents in that what concerns

their relations with other ones, and detailing such evolutions in diverse cases or types

of relations. The extreme cases of cooperation and, respectively of competition are

mainly taken into account. The mathematical modelling employs usual models in such

analyses. In the purpose of simplifying the research, we take into account three

economic entities. Thus, the proposed mathematical model is described by a system

with three differential equations, where the variables are represented by the size of

the actors that are competing or, perhaps, cooperating in the market. This model

allows the analysis of the three economic actors on diverse kinds and degrees of

cooperation and, respectively, of competition.

Our contribution consists of considering a more realistic approach, from the point of

view of the development of actual reactions. We employ in the system of equations, a

certain delay until the event appearance that is needed for getting the real influence

of facts that determine in a certain manner the nature and the way of putting in

practice such decisions. We determine the equilibrium points and examine their

stability with respect to the model’s parameters. We carry out numerical simulations

in order to verify the theoretical findings. The conclusions regarding three scenarios –


54

fully cooperative, fully competitive and mixed interaction – are presented.

Keywords: competition, cooperation, oligopoly market, equilibrium, stability, time

delay

EC1.3. THE INTELLECTUAL QUALITY AS CORE FEATUREIN KNOWLEDGE BASED

ECONOMY



Miruna-Lucia NĂCHESCU, Faculty of Economics and Business Administration, West


Abstract

The paper approaches the intellectual factor in a conceptual and fundamental way,

aiming at revealing its central role in the knowledge society and thus in the economy,

particularly in nowadays. Appealing to conceptual approaches from the literature, the

intellect and, generally, the intellectual mark is concerned mainly in consistency with

productivity and with economic development. We consider that such defining feature

of humans and of their activities should be better emphasized and more insistently

taken into account if compared with the actual resorting to it in the common

economics approaches and analyses.

Methodologically, the research is made from the point of view of the market laws, but

with respect to the law state and including elements concerning even moral

perceptions of people and natural environment. The impact of the market laws on the

environment is not ignored, Nature being considered as a participant entity. The

approach is in a systemic and inter-correlated way. Some forgotten approaches are


55

invoked, from the genuine Physiocrat idea of the value's creation, put in the actual

context of economic realities. Certain unorthodox views are thus concerned, by

employing widened horizons of approach.

Our paper deals also with a modeled approach of the place and role of the intellectual

quality in the functioning of the economic mechanism, productivity, investments and

economic growth here included.

Contributions consist in reviewing productivity by propositions for improving the view

on such indicator, as a more comprehensive heterodox one, and in reviewing also the

general equilibrium model, by taking into account unusual elements.

Keywords: intellectual factor, productivity, market behaviour, economic growth,

knowledge society

EC1.4. A PROBABILISTIC MODEL FOR DETERMINING THE PERFORMANCE OF

INVESTMENTS IN ENVIRONMENTAL INFRASTRUCTURE. AIR QUALITY

MANAGEMENT AND MONITORING

Constantin REBEDEA, Faculty of Economics and Business Administration, West


Abstract

The main aim of the research is the scientific elaboration and argumentation of an

economic-probabilistic model, which will help the environmental protection authority

to improve the legal framework regarding the prioritization of investments in the

environmental infrastructure and the selection for the implementation of the most

efficient projects.

During the research we took into account the variation of the air quality indicators, in


56

certain meteorological and climatic conditions, possible errors in their registration in

the work of the Environmental Protection Agency of Timis, correlating the socio-

economic-ecological activity with the periods when they were carried out investment

projects in the environmental infrastructure.

Data collection started from the official source of the National Air Quality Monitoring

Network, trying to integrate air quality indicators with sustainable development goals.

The socio-economic-ecological outcome is the realization of a probabilistic model of

the direct dependence between the level of investments in the environmental

infrastructure and the degree of deterioration of the most important parameters of

the air quality expressed in an econometric equation.

To formally describe the interdependence between the investment bargain in the

field of environmental protection and the values of the air quality indices, we studied

economic and probabilistic models, the various conjunctions and the complexity of

the internal and external institutional factors that contribute to the delay or non-

implementation of the projects, the shortcomings of the simple regression models,

have guided to include in future analyzes and a description of less formal factors.

The main results of the study are quantified in the elaboration of the economic-

probabilistic model describing the number of measurements within the admissible

thresholds and the mathematical modeling of the socio-ecological risk-based process

by not implementing the urban pollution reduction projects over the years or

implementing the projects investment and monitoring of air quality in inappropriate

areas.

Keywords: environmental infrastructure, sustainable economic development,

atmospheric pollution, air quality infrastructure, modeling of social and

environmental risk processes


57

EC1.5. TEACHINGS FROM SERVICES ECONOMY, FOR ECONOMIC SCIENCE



Miruna-Lucia NĂCHESCU, Faculty of Economics and Business Administration, West


Abstract

The paper aims at revealing certain main roots of the service economics that brought

core contributions concerning the most important traits and marks of service and of

services' phenomenon. The main stress is on the productivity issue that is approached

in a widened horizon against the common one, in the attempt of designing a ground

for improving productivity approach, as a base for optimizing its calculation in the

future.

The literature taken into account for a short inventory of relevant moments is mainly

from the last decades, but also from the genuine liberalism's economic thought. The

classical economic thought is invoked in the purpose of revealing a conceptual

inconsistence of the nowadays economics with the true liberalist principles. Thus, on

such the genuine grounds, productivity and economic activities’ improvement can be

better understood.

The teachings from the services economy literature are approached in the clarifying

view of such liberalism, considering their most important in defining the nowadays

economy as a whole, mainly in that what concerned the growing services and the

growing immateriality and complexity of all activities, no matter their degree of

materiality. Thus, the core of our research is the generalized service.

From the developments brought by the specialists in service economy, a few most

important are selected by the criterion of their quality of being valid not just for the

immaterial activities, but also having a general validity: in the conditions when the


58

whole nowadays economy is becoming more and more complex and immaterialized

as well, certain characteristic and functioning ways of the economy elements revealed

for their teachings weight for the economic science as a whole.

Keywords: service, services economy, productivity


59



Session: Informatics

P05 (ground floor)

Chairs: MUNTEAN Mihaela & CRISTESCU Marian

Info1. FEATURES AND BENEFITS OF DOCUMENTMANAGEMENT SYSTEMS

Ileana HAUER, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

By implementing document management software, business owners can achieve

many benefits that improve organizational efficiency. The features of Document

Management Systems (DMS) are storing, retrieving, and managing unstructured data,

such as files, text, spreadsheets, images, sound clips, multimedia data, and compound

documents.

This paper is separated into parts exploring areas of document management systems.

The introduction briefly describes definitions and features of DMS. The next section

puts in light the basic components from which most DMS is made, starting with the

conversions of paper documents to digital documents. There are open source DMS

and also paid-for-commercial DMS, but it is essential that the chosen solution will

meet the organization’s requirements. There are questions about vendor, like

warranty longer than a year, immediate support, on line support, training. On the

other hand there are questions about the DMS quality, like the ability to manage in a

single system the documents received from different data support (paper, email,


60

electronic file), underline relation between documents, the ability of advanced search

with quick access to documents, bring together project content, tasks and team

conversation so everyone has context, records of contracts and invoices.

There are core features expected of a DMS including accessibility, integration,

scalability, content security, document builder, document sharing, central file storage,

systematic organization.

The paper also discusses mainly features of one open source DMS, LogicalDOC

Community Edition. Also it is analyse a workflow in two different softwares, both

open source, LogicalDOC and Bitrix 24 Standard. If the administrator creates workflow

templates based on his organizational business process in LogicalDOC, Bitrix 24 comes

with several template workflows (Leave Approval, Business Trip, General Requests,

Purchase Request, Expense Report), which can be edit, or create new ones.

The paper’s final part underlines benefits of implementing DMS, like saving time and

space, increasing efficiency, increasing productivity, increasing inter-departmental

and inter-organizational communication and collaboration, enabling automation.

Keywords: Document Management System, DMS, digital document, workflow,

LogicalDOC

Info2. CAPABILITY AND MATURITY. CHARACTERISTICS USED IN SOFTWARE

RELIABILITY ENGINEERING MODELING

Marian Pompiliu CRISTESCU, Lucian Blaga” University of Sibiu, Romania

Abstract

This paper presents how to use the Capability Maturity Model Integration (CMMI) in

software engineering modeling processes. Any variation of CMMI, depending on the


61

scope of application, can also be used to assess the process maturity of an

organization. Regarding the Software Reliability Engineering (SRE) process, the

activities in the SRE process have been briefly described, noting that the application of

RES in all software-based products leads to good control over the development

process.

Keywords: capability, maturity, software engineering, model

Info3. BUSINESS APPLICATION INTEGRATION USING ODATA SERVICE

Mihaela MUNTEAN, Faculty of Economics and Business Administration, West


Claudiu BRÂNDAȘ, Faculty of Economics and Business Administration, West University


Otniel DIDRAGA, Faculty of Economics and Business Administration, West University


Abstract

The complexity of the cloud environment requires diverse application integration

approaches. Starting with a methodological framework for a data oriented demarche,

a full Application-to-Application integration based on OData service of two SaaS

solutions is subject of our debate.

Keywords: application integration, web services, OData service


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P02 (ground floor)

Chairs: SON Liana & NOJA Grațiela

IBME9. THE IMPACT OF KNOWLEDGE INTENSIVE ACTIVITIES ON ECONOMIC

DEVELOPMENT

Gabriela PESCARIU, West University of Timişoara, Romania

Abstract

Innovation is one of the main drives of economic development and knowledge-

intensive activities are an important part of innovation.

Therefore, it would be relevant to understand the influence that the high-tech

industry and knowledge-intensive services have on the growth of a country’s

economy.

This paper briefly presents a few aspects of the impact of knowledge intensive

activities on the economic development in 37 European countries : the 28 EU

Member States, the EU Candidate Countries (Albania, the Republic of North

Macedonia, Montenegro, Serbia and Turkey) and the European Free Trade

Association (EFTA) countries (Iceland, Liechtenstein, Norway and Switzerland).

Covering a period of ten years, from 2008 to 2017, the study aims to discover the

degree in which the knowledge-intensive activities contribute to the increase of the

gross domestic product (GDP).

For this purpose, we analyzed a set of relevant indicators such as GDP growth,

employment in the high-tech sector, import/export of goods, international trade of

high-tech products (intra-EU28 high-tech trade, extra-EU28 high-tech trade, total


63

high-tech trade in million Euros and high-tech trade as a percentage of total).

The research results highlight the fact that the knowledge intensive activities have a

positive impact on the increase of the Gross Domestic Product and on the economic

development of the countries in question.

Keywords: international trade, high-technology, knowledge-intensive activities, GDP

IBME10. INNOVATION AND ECONOMIC PERFORMANCE IN THE EUROPEAN

SPACE - A VERY CLOSE RELATIONSHIP

Octavian BĂRNUȚIU, West University of Timişoara, Romania

Abstract

Knowledge Economy is given a special importance not only through the dynamic

innovation activity in all countries, but also by the special interest in understanding

the factors and mechanisms of influence of the innovative capacity of the micro and

macro-economic actors, as well as its impact on the development of societies and

people. This is highlighted in the theoretical literature on the determinants of

innovation or its implications on economic aggregates.

Analysis of the impact of innovation activity on the performance of European

countries over the last decade is clear, stable, robust, stable. All econometric

assessments performed, irrespective of the type of model used, provide substantial

evidence of the role of scientific knowledge in increasing economic performance. The

results of the estimates suggest that: i) A high intensity of innovation in some

countries has a positive impact on the success of other countries or could contribute

to a patent concentration in some countries; ii) Sectoral diversity influences GDP per

capita differently in relation to technological differences or approaches: unrelated

and related variety brings benefits to GDP growth; iii) Significant support for the


64

process of economic growth lies in highly-skilled R & D, including science and

technology; iv) Some direct and indirect direct effects are highlighted: the direct

(feedback) effects induced by the innovation variables are high, especially in models

that include variety measures; indirect effects (spillovers) induced by an increase in

the proportion of patent applications in the total population in an area have a positive

direct, indirect, and total marginal effect on local intensity. Similar effects also result

from related and unrelated varieties, tertiary education amongst the population,

business research expenditure, and knowledge embedded in services that are the

subject of exports.

Keywords: innovation, knowledge economy, economic performance, GDP, R&D

IBME11. MIGRATING TO EASTERN EUROPE: TOWARDS MORE COMPETITIVE

AND OPEN ECONOMIES

Radu TRIFAN, West University of Timişoara, Romania

Abstract

Much of the research in European migration is focused on inward influxes from

second and third world countries towards the western EU countries, but until now

less emphasis was put on migration towards the Eastern, less developed countries of

the European Union.

After three decades of negative migration flows, Eastern EU countries have reached a

point where lack of human resources is aversely influencing future development. Less

ready to accept immigrants coming in, countries like Poland, Hungary or Romania

now face a dire perspective of economic, demographic and social stagnation due, in

part, to loss of citizens migrating to more developed countries. The challenge of


65

opening up to new immigrants coming from non-European countries, in order to

sustain robust economic growth rates, is one of the biggest they are facing.

The purpose of this paper is to look at the existing migration flows towards the

Eastern EU countries, analyze the different obstacles that stand in the way of

potential immigrants, with a particular look at the main social and economic

indicators that make the region less attractive to them, but nonetheless, with great

potential. In conclusion we will draw up a few scenarios of migration policy changes

that could change the migration landscape in the Eastern European countries.

Keywords: migration, Eastern Europe, labour market, brain gain

IBME12.COMPLEX ASPECTS OF MIGRATION AND THEIR IMPACT IN THE

MIDDLE EAST

Mahdi AL-OWAIDI, West University of Timişoara, Romania

Abstract

A very old process but with immense features and implications in the world at

present, migration is constantly at the heart of political debates of states,

international organizations or regional blocs, proving to be difficult to manage. Along

with the existence of profound confrontations, including violent manifestations, in the

mid-eastern space the dimensions of international migration are impressive and

ample, with many adverse economic and social effects.

The aim of this paper is to examine the negative sides of the migration in Syria, Iraq,

and Yemen. It also focuses the consequent damage caused by many factors that

caused migration such as, economic, political, security and environmental impact on

the economic growth. However, most of the immigrants were coming from Middle


66

East i.e. Syria, Iraq and Yemen to the other countries especially to Europe. The recent

events of conflicts have led the massive displacement of that part of the world. While

there are conflicts estimated to more secured, which is one of the disadvantages of

migration. For instance, the brain drain migration to the target (safe) countries with

high economic growth and more economically developed than their home. These

kinds of immigrants chose to be in these countries to get the freedom and more

economic opportunities to live a better life.

Keywords: brain drain, displacement, economics, immigrants, Middle East

Session: Management

P03 (ground floor)

Chairs: BIBU Nicolae & PAOLINI Dimitri

MNG1. THE BUSINESS MODEL OF A STREAMING PLATFORM

Elias CARRONI, DSE, Almamater Studiorum Universita di Bologna, Italia

Dimitri PAOLINI, DiSEA - Universita di Sassari, Italia; CRENoS and CORE, Universite

Catholique de Louvain, Belgium

Abstract

A streaming platform obtains contents from artists and offers commercial spaces to

advertisers. Users value contents’ variety and quality of the service and are

heterogeneously bothered by ads. Two solutions can be proposed to users. If they pay

a positive price, they subscribe to a commercial-free service with an upgrade of

quality (Premium). Otherwise, they have free access to service of a basic quality. We


67

find that a wider audience gives incentives to the platform to increase both the

advertising intensity and the quality upgrade in the Premium. As a consequence,

some people move to the Premium. At the limit, the platform opts for a purely

subscription-based business model as the audience reaches a certain level. The

parsimonious model we propose is able to give a rationale to the emergence of

different business models in the streaming market as well as to the (end of the)

disputes between artists and the Spotify mode.

Keywords: media, advertising, multi-sided markets, platform, second-degree price

discrimination

MNG2. STUDY ON THE CHARACTERISTICS OF AGILE ORGANIZATION AND

AGILE WORKFORCE IN ROMANIAN COMPANIES

Anca-Ioana MUNTEANU, Postdoctoral Researcher, East European Center for Research

in Economics and Business (ECREB), Faculty of Economics and Business

Administration, West University of Timişoara

Abstract

At present, organizations operate in a changing, uncertain business environment,

which generates real opportunities for competitive ones, but also certain threats to

those who try to survive at this rate and find their place among the strong ones.

Of course, the new era of digitization has a great influence on the work of

organizations, supporting them throughout this process, in which they must

constantly adapt to requirements, demonstrate flexibility to customers, be able to

make decisions and act as quickly as possible.

All this has led to the transformation of the traditional organization into a agile,


68

competitive company that has the ability to effectively deal with business changes.

However, an organization has no chance to become agile in the absence of an agile

workforce.

The aim of these papers is to present, in a first stage, the concepts of "agile

organization" and "agile workforce", referring to the articles of the recent specialized

literature, the last five years.

In the second step, the present paper aims to identify the extent to which features of

the agile organization and agile workforce in particularly are found in organizations,

referring to attributes such as: the use of specialized software for carrying out various

activities, continuous improvement for innovation, delegation of authority, autonomy

in work, teamwork, quality circles, knowledge management etc.

The study was conducted on 92% of large and very large organizations in the Western

Region of Romania. The results showed that the organizations analyzed had acquired

some of the characteristics of the agile organizations, the majority of the appreciation

being the average.

Through its structure, the paper presents information for those interested in the field,

outlining the future research directions, study extension, and those in the business

environment who can become aware of reality in organizations and make them adopt

as many of the characteristics of an agile organization, making it competitive on the

markets in which it operates.

Keywords: agility; agile organization; organizational agility; agile workforce;

competitive advantage


69

MNG3. TRENDS IN HUMAN RESOURCE MANAGEMENT SYSTEMS

Ana-Maria NEGOVAN, West University of Timişoara, Romania

Doina DĂNĂIAȚĂ, West University of Timişoara, Romania

Luminița HURBEAN, West University of Timişoara, Romania

Camelia MARGEA, West University of Timişoara, Romania

Abstract

What is next? This is a question that companies around the globe are forced to

answer. Are companies prepared to respond and adapt to business requirements?

Companies should be proactive and not reactive, if the intention is to remain

competitive by obtaining high performance indicators and deliver high quality

products/ services at a low cost.

Under these circumstances’ companies try to find a balance between economic and

social performance. It is a continuous effort to find something that differentiate a

company from their competitors and allow them to achieve established goals.

If we consider all the above, we can say that human resources have become a crucial

factor which allows companies to be competitive and achieve their goals. (Fındıklı &

Bayarçelik, 2015). HR is involved in every aspect of the employee’s life cycle: from

finding and recruiting the right person for an open position, to training and preparing

the employee for the ever-changing environment, to developing retention policies.

Global mobility has opened a door to endless possibilities for talent pools, allowing

companies to find the right person in any part of the world and relocate them where

they would make a difference.

Information technology is present in every aspect of human resource management in

this global networking era. (Chakraborty & Mansor, 2013) This means that the

traditional way in which HR performed their daily tasks has changed radically in the

last two decades, as HRM is strongly dependent on information systems (HRS).


70

Chakraborty & Mansor, 2013 summarize the idea presented in the articles of

Martinsons, 1994; Teo, Lim, & Fedric, 2007: there are two important resources in a

company: people and information, and these have a significant impact on the overall

performance of the business, meaning that a company need to manage them

successfully in order to meet the established objectives. It is well known and accepted

that an information system for HR (HRS) includes both resources and a proper

implementation and usage of this system can lead to organizational success.

Keywords: e-HRM, information technology, human resource information system

(HRIS), human resource management systems (HRMS), HR software

MNG4. INNOVATIONS IN MANAGING TRADITIONAL ORGANIZATIONS:

GERMAN CLASSIC PROFESSIONAL ORCHESTRAS, SPECIFIC NATURE AND

INNOVATIVE ASPECTS

Georgiana Alina TEOHARI, Faculty of Economics and Business Administration, West


Nicolae Aurelian BIBU, Faculty of Economics and Business Administration, West


Abstract

The armed forces and the church are multiple-stakeholders organizations, designed

according to very specific characteristics that describe their mission and their

objectives. Alongside with them, the classic professional orchestra is one of one the

oldest and traditional organizations, with distinguished features that describe its

organizational culture, its mission and goals, namely: to provide high-quality musical

service, to nurture the public’s desire for culture, for music, to be ambassadors of and


71

for their community, to preserve of musical heritage. Our assumption is that it is

requiring a good knowledge and awareness of all stakeholders and all the specific

aspects that play a role in preparing, promoting and carrying out an artistic

performance, such as the concert, in order to assure the orchestra’s future.

Innovations represent a response to new challenges of today’s society, such as

multiculturality, digitalization, the new physical and social setting in which people live.

German orchestras dominate by number and by high musical performance level the

world’s orchestra market. Contrary to the strictness of the musical service provided

by the classical professional orchestra’s “sound organism”, is there room for

innovations? According to Forbes magazine, “innovation is crucial to the continuing

success of any organization”. Are there any management innovations, and if there

are, what is their impact upon the stakeholders’ satisfaction? This article is part of a

complex research upon specific and innovative aspects in managing a classic

professional orchestra for maximizing the satisfaction of multiple stakeholders.

Keywords: management, orchestra, organization, stakeholders, satisfaction,

innovation

MNG5. GOOD PRACTICES FOR IMPROVING PROMOTION AND SALES FOR

ROMANIAN ECOLOGICAL AGRICULTURAL PRODUCTS

Irina HANGANU, Babeș-Bolyai University, Romania

Cristina FLEȘERIU, Babeș-Bolyai University, Romania

Abstract

Nowadays, life is an uninterrupted discovery. The consumers tend to have a healthier

lifestyle, with a diet that has optimal nutritional values, to maintain their health, in


72

harmony with the nature and the environment. Thus, marketing is selling dreams,

impressions, perceptions, creating the opportunity to live through a unique

experience, to help the customers write their own story, not just to satisfy them. The

main objective of this research is to find ways to support promotion and sales of

ecological producers in agriculture Producers offer high quality products, with no

artificial additives and contribute to the protection of the biodiversity and the

environment, and implicitly our health. The exploratory research represents the main

purpose of this paper. Starting from the analysis of the literature review related with

ecological agricultural market, the evolution of the customer’s behavior and the

identification of the components of the promotional mix, an overview is established.

The in depth interviews and the analysis of international models show that the key

factors to improve sales and promotion are: informing the producers regarding the

dynamic needs of consumers (product diversity and freshness, adaptability to the

market’s demand, online orders, home delivery, the client’s feedback, the possibility

to return goods, to process the own products, etc.), openness to associations and

collaborations on horizontal and vertical axes, communication and information

campaigns, the farms’ multi-functionality, proactive promoting, creating a cluster

structure, etc.

Keywords: ecological agriculture, promotion mix, sales, promotion, cluster


73


P11 (ground floor)

Chairs: CISMAȘ Laura & IACOBUȚĂ Andreea-Oana

EC2.1. AN ANALYSIS OF THE RELATIONSHIP BETWEEN INSTITUTIONS AND

THE ENVIRONMENTAL QUALITY IN HIGH-INCOME COUNTRIES

Andreea-Oana IACOBUȚĂ, Faculty of Economics and Business Administration,

Alexandru Ioan Cuza University, Romania

Cristina CĂUTIȘANU, CERNESIM Environmental Research Center, Faculty of Economics

and Business Administration, Alexandru Ioan Cuza University, Romania

Gabriel Claudiu MURSA, Faculty of Economics and Business Administration, Alexandru

Ioan Cuza University, Romania

Abstract

The existing literature emphasizes the role institutions play in achieving sustainable

development objectives, in all its dimensions - economic, social, and environmental.

At the same time, the impact of rules on sustainability has been proven to be

mitigated by the level of development. In such context, this paper investigates the

relationship between the quality of institutions and the environmental quality in a

cross-country analysis. We have selected data registered in 2017, namely the

Governance indicators released by the World Bank as variables describing the

institutional framework, and the Environmental Quality component of the Social

Progress Index, to capture the environmental dimension. Based on data availability,

our sample includes 47 high-income countries, according to the World Bank

classification. The analysis was carried out by using descriptive methods, correlation

analysis, and multiple regressions. The findings revealed significant positive


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correlation between the institutional factors and the environmental quality and, also,

a positive influence of three factors, namely, rule of law, voice and accountability and

government effectiveness on the environmental quality. Surprisingly at a first glance,

our results show that control of corruption has a negative influence on the quality of

environment. The findings are interpreted in the context of the existing literature and

also by taking into consideration the “institutional” heterogeneity of the countries

included in the sample.

Keywords: institutions, sustainability, environmental quality, high-income countries

EC2.2. PRESENT AND FUTURE IN CRYPTOECONOMICS

Dominic BUCERZAN, “Aurel Vlaicu” University of Arad, Romania

Crina Anina BEJAN, “Aurel Vlaicu” University of Arad, Romania

Abstract

Emerging technologies reshape industry, economy and society. Technologies like “the

third web” also known like distributed ledgers technology or blockchain seems to

arouse the beginning of the second era of digital economy, introducing new concepts

like: trestles networks, cryptocurrencies, distributed economy and cryptoeconomics.

This article aims to propose an image of the actual state of cryptoeconomics,

discussing its present and future implications like a research field and proposing

several future trends of development.

Keywords: cryptoeconomics, blockchain, cryptocurrecies, decentralized economy


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EC2.3. AN ANALYSIS OF REGIONAL INNOVATION CAPACITY AS A FACTOR OF

ECONOMIC GROWTH OF ROMANIAN REGIONS

Raluca-Irina CLIPA, Alexandru Ioan Cuza University, Romania

Mihaela IFRIM, Alexandru Ioan Cuza University, Romania

Flavian CLIPA, Gheorghe Asachi Technical University of Iasi, Romania

Abstract

According to Regional Innovation Scoreboard 2016, Romania’s regions, including the

Bucharest-Ilfov region, are ranked as modest innovators. This label says much but too

little, at the same time, about the capacity of Romania to generate innovation. This

paper aims to identify the potential ways of economic growth of the Romanian

regions through its innovation absorptive capacity and innovation development

capacity, according to the AC/DC model of the National Endowment for Science,

Technology and the Arts (NESTA), UK. Using the 2016 pillar scores of the Regional

Competitiveness Index (RCI) - Innovation sub-index, we analyze their compatibility

with the NESTA model and assess the potential of Romanian regions to absorb

external innovation. At the same time, we formulate policy recommendations to

increase Romania's regional competitiveness through the development of innovation

capacity.

Keywords: innovation, regions, Romania, growth


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EC2.4. CONVERGENCE BEYOND GDP, MEASURING SIGMA-CONVERGENCE IN

EMPLOYMENT, SOCIAL AND LIVING STANDARDS ACROSS EUROPEAN

UNION’S NUTS 2 REGIONS

Laura Maria DĂNILĂ (JIANU), Faculty of Economics and Business Administration, West


Patricia ARDELJAN, Faculty of Economics and Business Administration, West


Laura Mariana CISMAȘ, Faculty of Economics and Business Administration, West


Abstract

There are thousands of studies regarding convergence. Initially, at least for European

countries acceding European Union, it was about nominal convergence, some

macroeconomic indicators clearly established by Maastricht Treaty. Then researchers

studied real convergence. Regarding real convergence, even if the number of the

studies is impressive, there isn’t yet a common opinion about the best way to

measure it. For many years, the most used indicator when measuring real

convergence was gross domestic product per capita at national or regional level.

Nowadays, there are a lot of studies that are questioning the importance of

convergence through gross domestic product per capita regarding sustainable

development and well-being. The European Union is also more and more concern

over the disparities in the social progress of its Member States, as The European Pillar

of Social Rights has been signed in November 2017, structured around 20 key

principles. Going beyond gross domestic product per capita our research is

considering employment, social and living standards indicators aiming to evidence the

trend of disparities across European Union’s NUTS2 regions.


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Keywords: European Union, sigma-convergence, employment, social indicators

EC2.5. SOCIO-ECONOMIC CHALLENGES IN ROMANIA DUE TO FOREIGN

DIRECT INVESTMENTS (FDI)

Norbert FÖLDI, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

The economic development of Romania after 1990 has not been uniform in all parts

of the country. The question is which population group has benefited most from the

developments and which has benefited least and how this could be connected to the

presence of FDI, which were officially first transacted in Romania after 1990, because

before that, as in all of Eastern Europe, it did not exist. What impact do FDI have on

the socio-economic developments in Romania and what could be the future

challenges for the inhabitants?

Keywords: foreign direct investments, socio-economic challenges, foreign ownership


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Session: Contemporary Issues in Accounting 2

P05 (ground floor)

Chairs: ȘTEFEA Petru & HAȚEGAN Camelia

ACC2.1. INCREASING VALUATION ACCURACY WITHIN THE MARKET

APPROACH APPLIED IN EMERGING MARKETS – FOCUS ON THE ROMANIAN

CAPITAL MARKET

Andreea SUCIACHI, Faculty of Economics and Business Administration, Babes-Bolyai

University, Romania

Abstract

Emerging markets are characterized by a general lack of transparency and

information asymmetry. In such markets, only in recent years, as a consequence of

globalization has multiple-based valuation become a widely-used practice, Discounted

Cashflow being the most employed valuation method. Nevertheless, the limited

availability of relevant market data conducted toward a rather superficial use of

valuation multiples and of the market approach in general. In this study, we identify

key coordinates in applying the classical four-step method of comparables (Guideline

Publicly Traded Company Method) by means of selecting, adjusting and weighting of

multiples, which are expected to increase valuation accuracy within the market

approach applied in emerging markets, with a particular focus on the Romanian

capital market. Also, to advance the classical and superficially applied method of

comparables into a comprehensive framework for using multiples in equity valuation


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in emerging markets, we address the possibility of applying discounts and premiums

in such market conditions and the findings are further employed toward reaching the

final purpose of correlating the indications of value obtained, with the Discounted

Cashflow results.

Keywords: multiples, discounts and premiums, comparables, peer-group

ACC2.2. AUTOMATED VALUATION MODEL FOR RESIDENTIAL REAL ESTATES

Silviu BĂBȚAN, Faculty of Economics and Business Administration, Babes-Bolyai

University, Romania

Abstract

The general aim of this research project is to point out a series of essential and

relevant elements to have a better understanding on several issues of valuation. His

particular purpose is to highlight the content of a significant and actual valuation

technique, i.e. Automated Valuation Model, and the possibility of its application in

Cluj-Napoca, which is one of the most dynamic cities in Romania, especially when it

comes to residential buildings. In our paper we will try to create an algorithm and for

that we will use a software program and, in the end, we expect to simplify the

valuation process. We want to make it easier to calculate the valuation by trying to

develop a software program.

Keywords: Automated Valuation Model (AVM), property valuation, software

program, market value


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ACC2.3. CORPORATE TRANSPARENCY SEEN THROUGH NON-FINANCIAL

REPORTS

Nicoleta-Daniela MILU, Faculty of Economics and Business Administration, West


Abstract

Corporate Social Responsibility presents an effective way to support the medium and

long-term financial interests of companies. The higher the transparency of social and

environmental accountability, the greater the credibility of companies, and thus both

financial and non-financial results will be improved. This social responsibility approach

will increase confidence among stakeholders, including among investors and

consumers. The main purpose of this paper is to present the degree of transparency

of the social responsibility activities of seven companies listed on the Bucharest Stock

Exchange in terms of non-financial performance indicators. The study shows that each

company presents its sustainability activities differently in their reports, which leads

to the need for a standardized report in order to increase the quality of reports.

Keywords: non-financial reports, transparency, sustainability, quality


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P02 (ground floor)

Chairs: SON Liana & NOJA Grațiela

IBME13. INCOME INEQUALITIES AND INNOVATION OUTCOMES

Paula Roxana CUCOŞ, Faculty of Economics and Business Administration, West


Liana SON, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

The importance of innovation as a major determinant of economic growth in the

actual dynamic environment has increased in the last years. The prior reason is the

changing focus of both private and public enterprises to improving productivity of the

production processes. The aim of this paper is to assess the effects of income

inequalities on the outcomes of innovation at a country level. In order to do that, a

panel data was used which includes 34 European countries (EU-28 and other 6 non EU

member states: Iceland, Norway, Switzerland, Former Yugoslav Republic of

Macedonia, Albania and Serbia). The analyzed time frame is 2000 – 2017. We

managed to assess the inequalities effects on innovation outcome, using different

measures for income distribution by quantiles: the ratio between top richest 10% and

the poorest 10% (D9/D1), ratio between top richest 10% and the median (D9/D5),

ratio between median and the poorest 10% (D5/D1). We included in our analysis as a

control variable also the classical Gini index, before social transfers and pensions

included. Regarding the dependent variable (innovation outcome) the number of

patent applications and the number of patent applications per million inhabitants


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were used. Other control variables considered in the econometric study are related to

demographic, educational, employment and trade openness dimensions. Our findings

suggest a very strong relationship between income inequalities and innovation

intensity, whatever the inequality dimensions, and in particular when we considered

the proportion of the total equivalised income received by the population with top

decile income (the top highest decile) reported to the median one (D9/D5).

Keywords: income inequalities, innovation outcome, Gini index

IBME14. MAJOR DIFFERENCES IN THE PERFORMANCE OF EUROPEAN

HEALTHCARE SERVICES

Adrian STOICA, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

The aim of this analysis is underlining the present situation and improving the

performance of the European healthcare services since the 2000s, taking into account

the users’ perspective of these services. The assessment is conceived with the help of

specific tools of the competitive intelligence process, based on primary observations

resulted from the Eurofound Office, regarding European Quality Life Survey 2011 and

2016 (EQLS). The configuration of the status of healthcare systems is realized by using

a SWOT analysis, ranging 37.000 respondents as average, from 33 different states

Thus, considering the performed analysis, it can be concluded that the European

space confronted with significant national differences, both in the quality and the

access to medical services.

The analysis per country in the north-western Europe and in countries from south


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Europe and south-east indicate evident differences not only connected to the

approach of quality of services, but also to other measurement factors, such as

quality conditions, personal attention related to patients’ treatment equality, and

corruption perceived as a natural phenomenon. Regarding the access to medical

services, good performance is registered in countries from the central and north-west

Europe. Regarding the access medical services in the south and south-east Europe,

considering the costs, the distance to the doctors, the waiting time for making an

appointment continue to be difficult, even if improvement of all indicators was

registered in the last five years of the considered time interval.

In general, the market structure of specialized healthcare services is an oligopolistic,

the access to providers of such services being regulated, the market being dominated

by a relatively reduced number of bidders in some countries, thus registering a

fragmentation of the type of services granted to citizens, and even a concentration of

multi-disciplinary healthcare providers.

Keywords: healthcare system, performance, public policy, Europe

IBME15. AN ANALYSIS OF REGIONAL INNOVATION CAPACITY AS A FACTOR

OF ECONOMIC GROWTH OF ROMANIAN REGIONS

Ramona Elena IOANA (DUMITRU), Faculty of Economics and Business Administration,

West University of Timişoara, Romania

Abstract

The implications of economic inequalities (income, wealth, wages, government

expenditure) are quite profound. Not only for politics, policy, and political economy,

but for global economy overall. In recent history, concerns about equality have been,


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at heart, concerns about the poor. Under the impact of the regional integration and

globalization and with the recent technologies, poverty, - especially extreme poverty-,

registers a downward trend among the world states. However, we cannot talk about a

uniform phenomenon but, on the contrary, the polarization of societies is continuous,

especially within countries. The European Community area is no exception and faces

great differences of welfare among its citizens, even if the general trend is to reduce

certain types of economic inequalities.

The present paper aims at assessing the determinants of income, wealth,

governmental allocations to poverty risk in European and non-European countries

during the years 2000-2017. Econometric estimates reveal clear negative

relationships between the risk of poverty and income inequality (irrespective of the

measures used for them). Also, unemployment, and especially long-term and very

long term, are threats to poverty reduction. Factors related to human capital also

contribute (the danger posed by early school leavers). Determinants that support the

poverty reduction are a better health of the population, as well as financial support

for consumption, social insurance or education.

Keywords: economic inequalities, welfare, poverty

IBME16. THE EFFECTS OF MIGRATION ON INNOVATION RESULTS AND

PERFORMANCES

Elena-Alexandra SINOI, Faculty of Economics and Business Administration, West


Abstract

The complex effects of migration on innovation results and performances represent


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an actual and growing matter in current research. Many accomplished studies reflect

migration opportunities and possibilities as a knowledge transfer channel, with effects

of stimulating innovation output, as well as various negative aspects. This study is an

assessment of the influence of Romanian emigrant flows on the innovation activity,

for the eight regions NUTS-2 and respectively for the 42 counties NUTS-3 from

Romania, taking into consideration the magnitude, constancy and characteristics of

the phenomenon between 2000 and 2016. The econometric estimations of the net

migration impact on intellectual assets in form of patents clearly highlights a negative

relationship, strengthened when considering the different factorial combinations

related to the proportion of scientists and engineers in regional labor markets or

other inputs into the innovative process. At the same time, it is also confirmed the

positive influence upon the innovation outcomes of the economic dimension of

regions and financial support in research and development, especially in the business

sector and in the university education. However, there are some differences in the

assessed determinants, depending on the spatial analysis units, namely, on more

restricted areas (counties) employment becomes an important element in supporting

the innovation.

Keywords: innovation, net migration, emigrant flows, economic development,

regions, counties


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IBME17. SOCIO-ECONOMIC PREDICTORS OF SUBJECTIVE WELL-BEING IN THE

EUROPEAN AREA

Ioana CIORBAGIU, Faculty of Economics and Business Administration, West University


Abstract

The study evaluates the impact on the present subjective well-being of several

dimensions of life quality, as well as of certain socio-material living conditions, in 33

European states, during the period 2011-2016. In the measurement of subjective

well-being, life satisfaction and happiness are widely used indicators. The

econometric estimates analyzing the relation between life satisfaction and a portfolio

of determinants, using logistic patterns of ordered probity type, highlight a series of

influences that reveal the socio-economical and demographical characteristics that

have a significant role for a better life quality.

Satisfaction with the living standard, education and family, proof to be most

important for personal satisfaction. The analysis by gender does not indicate

important differences between men and women (at least as to what concerns the

European Union member states), however, differences can be observed as to what

regards the age of the persons. Clearly, marriage has an important contribution to the

personal satisfaction level, which proves to be negatively influenced in the case of

widow or separated persons. A work program that exceeds 40 hours a week cannot

have positive effects on the individual. A positive impact on life satisfaction is induced

by a significant income: those who have an income that can be positioned in the top

quartz have a superior satisfaction related to the others and, especially, related to

those positioned in the inferior quartz. This fact is also confirmed by the contribution

of the variable regarding income distribution. The coefficients of elasticity estimated

for subjective well-being, unimportant which the used measure is (satisfaction or


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happiness) and whatever the factorial combinations are, indicate a negative influence

of an increased Gini index, as an expression of an increased inequality in income

distribution. Occupational status becomes very important, job security for an

indefinite period being highly relevant as to what concerns personal satisfaction.

Family support is also an important driver for overall personal satisfaction. Indicators

on trust in public institutions (particularly parliament, public authorities, media) have

an important role in increasing life satisfaction and improving life quality.

Keywords: well-being, life satisfaction, happiness, life quality, European countries

Special Session: Sustainable Growth

P03 (ground floor)

Chairs: ANDRID Vladimir & DIMA Ștefana

SG1. MICROFINANCE AND POVERTY: WHAT DOES THE CROSS-COUNTRY

EVIDENCE REALLY SHOW?

Asma BOUSSETTA, LEO, University of Orléans, France

Abstract

This paper studies the impact of microfinance on poverty at the macro level using a

cross-country panel dataset of 76 countries for the period 1999–2015. Taking account

of the potential problem of endogeneity between MFIs’ gross loan portfolio per capita

and poverty, we show that any increase in the size of the gross loan portfolio of MFIs

in a given country improves the income of the poor and leads to a reduction in

poverty. In addition, contrary to most previous studies, we show that microfinance is


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not only beneficial for reducing the incidence of poverty but also its depth and

severit.

Keywords: gross loan portfolio, microfinance institutions, poverty, 2 Within SLS

method

SG2. MODELLING THE RELATIONSHIPS AMONG CO2 EMISSIONS,

AGRICULTURE, FOREIGN DIRECT INVESTMENTS AND ENERGY CONSUMPTION

IN N-11 COUNTRIES

Petar MITID, Institute of Economic Sciences, Serbia

Jovan ZUBOVID, Institute of Economic Sciences, Serbia

Mihajlo ĐUKID, Institute of Economic Sciences, Serbia

Duško BODROŽA, Institute of Economic Sciences, Serbia

Abstract

This paper investigates whether a long run relationship exists between CO2 emissions

and selected variables: agriculture, forestry, and fishing, value added, foreign direct

investments, energy use and renewable energy consumption for N-11 countries in the

period of 1990- 2015. Five panel unit root tests have been done, followed by two

panel cointegration tests. As the final step, a panel Granger causality testing has been

conducted. The main result clearly proves the existence of a long run causal

relationship between CO2 emissions and agriculture, forestry, and fishing, value

added. Furthermore, a short-run positive unidirectional causal relationship exists, and

runs from:

CO2 emissions to agriculture, forestry, and fishing, value added,

agriculture, forestry, and fishing, value added to energy use,


89

foreign direct investments to energy use,

energy use to CO2 emissions and

energy use to agriculture, forestry, and fishing, value added.

Keywords: CO2 emissions, agriculture, FDI, energy use, panel causality

SG3. FISCAL POLICY AND POLITICS IN A TIME OF TRANSITION-THE SERBIAN

EXPERIENCE

Vladimir ANDRID, Institute of Economic Sciences, Serbia

Abstract

The paper adds several distinctive contributions to the fiscal sustainability literature in

the case of developing and post-socialist transition economies. First, the paper

estimates the cyclically and absorption adjusted primary fiscal balance (CAAPFB) in

the case of Serbia, a small open transition economy from Western Balkans region, for

the period 2001Q1-2017Q3. Second, the paper evaluates the response of primary

fiscal balance to the accumulation of public debt in Serbia. Third, the paper quantifies

the influence of electoral cycle, political fragmentation and political ideology on fiscal

sustainability in the case of Serbia. Finally, the results show that the deterioration of

the fiscal stance in Serbia is due to the spillover effects of the Great Recession, while

the improvements in the fiscal discipline are due to the stand-by arrangements with

the IMF.

Keywords: structural primary fiscal balance, fiscal reaction functions, electoral cycle,

political fragmentation, political ideology


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SG4.THE IMPACT OF NATIONAL CULTURE ON SYSTEMIC RISK

Alin ANDRIES, Department of Economics, Alexandru Ioan Cuza University, Romania

Daniela BALUTEL, Department of Economics, Alexandru Ioan Cuza University,

Romania

Abstract

Using a comprehensive dataset, covering 75 % of the total assets of the Global Bank

sample for the period 2000-2016, this paper investigates the effects of national

culture on two systemic risk measures that are channeling the risks in a symmetric

way (one form the banking sector to the system (∆CoVaR) and the other from the

system to the banking sector (MES)).

We measure cultural differences using country-level indices for individualism, power

distance, masculinity and uncertainty avoidance developed by Hofstede (2001).

Because these indicators have dual information, for a better identification we account

for the potential non-linear effects they have on the systemic risk measures.

Additionally, as the two risk measures are channeling the risks in different ways, we

propose to see what is the role of these cultural indices on the full transmission

mechanism of risk in a country by looking at a joint risk model. Moreover, as the risk

measures are highly skewed, we also analyze the impact of cultural values on the

systemic risk measures from a quantile perspective with the purpose of capturing the

effects at levels of risk that are associated to crises.

As expected, non-linear effects of the cultural values on the risk measures are

identified and are stable across model specifications, showing that these cultural

traits may increase their impact with the increase in systemic risks. We also find that

there is a positive correlation (0.51) between the errors of the two models suggesting

that shocks to any of the two risk measures are absorbed by the other measure. An

additional finding is that at risks associated with banking crises, the impact of these


91

cultural variables may change significantly their effects. In general, the analysis

indicates that societies characterized by individualism, high power distance have a

positive contribution on systemic risk, while societies characterized by masculinity will

have a higher contribution to the risk of financial system, but the exposure will be

lower.

Keywords: systemic risk, banking governance, culture

SG5. INCREASING RETURNS, BALANCED-BUDGET RULES, AND AGGREGATE

FLUCTUATIONS

Maxime MENUET, School of Economics & CERDI, Université d’Auvergne, France

Alexandru MINEA, School of Economics & CERDI, Université d’Auvergne, France;

Department of Economics, Carleton University, Canada

Patrick VILLIEU, CNRS, LEO, University of Orléans, France

Abstract

This paper examines the conditions needed for equilibrium (in)determinacy in growth

models characterized by perfect competition and a balanced-budget rule (BBR).

Contrary to the literature that assumes zero public debt, we build an endogenous

growth model with a generalized BBR authorizing a constant positive debt level. We

show that the emergence of aggregate instability dramatically depends on the

dynamics of the debt-to- GDP ratio and the strength of social labor externalities. If the

labor demand is positively sloped and steeper than the labor supply, two reachable

balanced-growth paths appear – a no growth trap, and a positive growth solution –

that gives birth to both local and global indeterminacy, hence aggregate instability

driven by self-fulfilling beliefs (sunspots). In addition, we show that a fiscal rule such


92

that the tax rate strongly responds to public- debt increases can remove the no-

growth trap, and secure positive long-run growth.

Keywords: Endogenous growth; indeterminacy; balanced-budget rules

Special Session: Socioeconomic challenges of Industry 4.0

P11 (ground floor)

Chairs: IMBRESCU Ion & FARKAS Beata

SCI1. SOME ASPECTS OF ORGANIZATIONAL CULTURE IN INDUSTRY 4.0

Laura CISMAŞ, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Ion IMBRESCU, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

The actions required by the implementation of Industry 4.0 policies are still an

unknown land for a large number of economic agents. The concept of decentralized

production acquires new dimensions, being related not only with production itself but

also with supply chain, distribution channels or post sales services. The characteristics

of a new comprehensive production factory imply world-wide-web-connected

machines, communication in real time like they are physically closed, a continuous

education based on organizational culture. We think that organizational culture is a

key aspect of a successfully implemented strategy on Industry 4.0 and that specific


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managerial competences will be decisive in creating new approaches of

organizational culture in order to offer innovative ways for entrepreneurs to access to

doors of Industry 4.0. Another problem can be related to the bureaucracy in

organizational culture and how can be beaten in order to increase the support for an

innovative approach. Some researches underline the fact that there are a kind of

reticence of older people to use at the right intensity modern tools supply by IT or

cybernetics. We try to present some of the most important aspects of the influence of

organizational culture in Industry 4.0 and to see how close or far is the moment of

this new industry.

Keywords: organizational culture, production, Industry 4.0

SCI2. INDUSTRY 4.0: CHALLENGE FOR THE CENTRAL AND EASTERN

EUROPEAN MODEL OF CAPITALISM

Beata FARKAS, Faculty of Economics and Business Administration, University of

Szeged, Hungary

Abstract

Reindustrialization after the systemic change was an important element of the

development in the Central and Eastern European (CEE) countries. The participation

of Visegrád countries in Central European manufacturing core decreased the

vulnerabilities of these economies during the 2008 global crisis. However, the

upcoming technological changes (Industry 4.0 or fourth industrial revolution etc.)

mean challenges for the region. There are many debates about the terms, content

and the probable impacts of new manufacturing but it is not contested that

innovation will be more important than ever.


94

The most attractive feature of the FDI-based CEE modernization and growth model is

the low wages with relatively well educated labour force. In this model the low added

value keeps low the investment in human capital and innovation. It is obvious that a

change is necessary in these policy fields. This paper investigates the research and

education performance of CEE countries from the viewpoint how these countries are

able to adapt themselves to the requirement of new manufacturing. It seems to be an

additional challenge that the current economic upturn in the framework of FDI-based

growth model hides the urgent necessity of human capital development.

Keywords: Industry 4.0, growth model, Central and Eastern European countries

SCI3. SPATIAL PATTERNS OF LABOUR FORCE STRUCTURE IN HUNGARIAN

COUNTIES 2007-2015

Izabella Szakálné KANÓ, Faculty of Economics and Business Administration, University

of Szeged, Hungary

Marianna SÁVAI, Faculty of Economics and Business Administration, University of

Szeged, Hungary

Abstract

In today’s knowledge-based economy, human capital is gaining more and more

importance. Especially in case of knowledge-intensive industries, it is crucial to have

highly educated labour in place. In order to make the right decisions, educational and

regional policies also need well-based economic analysis on the structure of the

workforce and on changes of it.

On the one hand, regions with diverse labour force provide firms with skilled workers

and they can also gain advantage from knowledge spillovers of other firms. On the


95

other hand, regions with less diverse labour pool can offer advantages, which the

firms benefit from in form of specialized local labour market, specialized local value

chains and intra-industry knowledge spillovers.

In order to provide policymakers with a dynamic picture on the structure of the

regional labour force, we analyse data based on Standard Classification of

Occupations on NUTS3 territorial level (counties) in Hungary. Our goal is to gain this

picture. In more detail, in our investigation, we apply dynamic Shift-share analysis on

data between 2007 and 2015 to answer the following questions:

1. In which of the Hungarian counties were driven changes in the extent of

workforce by changes in national workforce structure?

2. In which of the Hungarian counties were affected changes in the extent of

workforce by regional characteristics?

3. Which of the counties had the most and the least diverse labour pool?

According to our expectations, counties with higher education institutions had higher

qualified human capital, and in these counties workforce was affected mostly by their

own regional characteristics. In other counties these changes were driven by changes

in national workforce structure. This picture could change in time, our goal is to

investigate how.

Keywords: Human capital, structure of workforce, dynamic Shift-share analysis,

Hungarian counties


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SCI4. THE PERCEPTION AND REALITY OF THE FOURTH INDUSTRIAL

REVOLUTION FROM THE HUNGARIAN SMES POINT OF VIEW

Eszter MEGYERI, Faculty of Economics and Business Administration, University of

Szeged, Hungary

Abstract

The fourth industrial revolution is now in the bloodflow of all competitive large

companies thriving on technology development and participating in global or regional

value chains. The most responsive players are progressive companies who must

follow, further develop and deliver new ways of thinking, creating and operating in

order to stay viable in the global arena. However, not all players are fully up to speed

with the new opportunities and expectations of the 21st century. Typically SMEs are

lack of resources and inspiration to fundamentally change their ways of working in a

short- or medium run, while numerous niche opportunities are present to exploit. In

our research we specifically focus on Hungarian Start- ups and SMEs with the

objective of understanding their perception and evaluation of the importance of the

key characteristics of the fourth industrial revolution. We approached Hungarian

SMEs who are involved and impacted by IR4 challenges to analyse their

understanding and ranking of the literature driven characteristics of the fourth

industrial revolution. We also analyse the available tools and support smaller

companies receive in order to utilize better the advancing technologies and potentials

for deeper business connectivity. We review how well these programs received and

used by the surveyed companies in order to identify new paths for accelerating the

development of SME competitiveness.

Keywords: industrial revolution 4.0 characteristics, SMEs, entrepreneurship,

competitiveness


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SCI5. EVOLUTION PATTERNS IN EUROPEAN MANUFACTURING BETWEEN

2000-2017

Benedek NAGY, Faculty of Economics and Business Administration, University of

Szeged, Hungary

Beáta UDVARI, Faculty of Economics and Business Administration, University of

Szeged, Hungary

Imre LENGYEL, Faculty of Economics and Business Administration, University of

Szeged, Hungary

Abstract

We are investigating the evolution patterns of manufacturing within the European

Union. As the notion of reindustrialization gains focus in developed countries, the

strengthening of the manufacturing sector is being pronounced in EU documents and

national regulations alike. We study two country groups within the EU: the 10 Post-

socialist EU member states (PS10) and the EU15 to see whether we can observe

either reindustrialization or deindustrialization in these country groups, and to what

extent is the evolution of their manufacturing sectors similar. The basis of our analysis

on reindustrialization is the change in gross value added and the number of

employees in manufacturing in the period between 2000 and 2017. The data show

that the EU15 country group and most countries in it are still characterized by a

process of deindustrialization; while in the majority of the post-socialist EU member

states and the PS10 country group experience reindustrialization in terms of rising

manufacturing employment. The changes observed might be an indication of a new

spatial core-periphery division of labor forming within the EU with firms in the core

relocating and causing deindustrialization there while simultaneously a

reindustrialization happens at the periphery.

Keywords: manufacturing, reindustrialization, deindustrialization, EU


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P05 (ground floor)

Chairs: SÎRGHI Nicoleta & NEAMȚU Mihaela

EC2.6. CORRUPTION IN EMERGING AND DEVELOPING COUNTRIES

THROUGHOUT THE AFTER CRISIS LITERATURE

Lavinia DUDAŞ, Faculty of Economic Sciences, Computer Science and Engineering,

Vasile Goldis Western University of Arad, Romania

Lavinia MIHIŢ, Doctoral School of Economics and Business Administration, West


Abstract

The corruption impact on the economy has always been a topic of interest in

academia. Over time it can be observed an increase in publication investigating the

corruption phenomena after a major economic and financial crisis. This paper aims to

bring together theoretical and empirical studies that are analyzing corruption in

emerging and developing countries between 2013-2018.

To best achieve the research objective, we made use of content analysis focusing on

two directions: (1) methodologies used for measuring and (2) the variables of

interest.

Our results reveal that empirical approaches are more often used in favor of

theoretical ones. Moreover, corruption is associated on the one hand, with the

decrease of the economic growth, scheduled elections or a low level of government


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effectiveness and rule of law, public wages and on the other hand with the existence

of mobile phones and internet access, expected years of schooling.

Keywords: corruption, developing countries, content analysis

EC2.7.ECONOMIC GROWTH AS A SOCIO-ECONOMIC STRUCTURE FOR

IMPLEMENTING PUBLIC POLICIES

Alina Ioana CALINOVICI, Faculty of Economics and Business Administration, West


Oana-Ramona LOBONȚ, Faculty of Economics and Business Administration, West


Abstract

The purpose of this paper is to analyze the influence of public policies on economic

growth in the 28 countries of European Union between 2002-2017. In this case, for

describing economic growth we consider the gross domestic product growth rate,

collected from World Bank. The indicators taken into account for describing public

policy are the Worldwide Governance Indicators, namely: Government Effectiveness

(GE), Regulatory Quality (RQ) and Control of Corruption (CC), published by the World

Bank. Data analysis was performed by applying the Pearson correlation coefficient

and Ordinary Least Squares method. The data resulting from the OLS estimation

outlines a dependency relationship between GDP growth rate and the public policy

indicators.

Keywords: economic growth, public policies, EU countries


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EC2.8. LABOUR MARKET AND SELF–EMPLOYMENT: THE ISRAELI CASE

Iyad SNUNU, West University of Timişoara, Romania

Abstract

This study discusses and describes the labour market from a perspective of self-

employment. I investigated the phenomenon of this form of employment using

several aspects. On the one hand, I examine the factors influencing the choice of

Israelis to be self-employed among Arabs and Jews in Israel, and on the other hand, I

checked the extent to which the human capital and characteristics of the family

background determine the employment choice by using data from the 2008's Israeli

census.

Hypotheses concerning the effect of demographic variables on self-employment are

formulated and tested using logistic regression. The results support the research

hypotheses, and the most notable predictors of self-employment are discussed. I

conclude that factors such as family background, gender, age, number of children and

an interaction between nationality and occupation are the most substantial predictors

of self-employment.

Keywords: labour market, self-employment, demographical variables, Arabs and

Jews, gender, entrepreneurship


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EC2.9. ANALYSIS OF THE COOPERATION AND COMPETITION RELATIONSHIP

IN THE OLIGOPOLY MARKET

Doriana RĂMESCU, Faculty of Economics and Business Administration, West


Nicoleta SÎRGHI, Faculty of Economics and Business Administration, West University




Abstract

The present paper analyses, from the dynamic games perspective, the cooperation

and competition relationship in the oligopoly market (two and three companies

respectively) which implies the oil and gas industries in Romania. The elements of the

game are as follows: the players are identified as the companies, the payoffs are the

winnings or profits obtained by the entities and the strategies are cooperation and

competition.

The mathematical models are described by two and three nonlinear differential

equations, where the probabilities of choosing cooperation and competition by each

company are taken into consideration. Due to the fact that the economic process is

not instantaneous and the choosing of a strategy leads to a payoff after period of time

and the time delay is introduced. For both systems the equilibrium points are

determined and the existence of the Hopf bifurcation is investigated. For the case

study real data are used on two scenarios, where the relationship among payoffs,

players and their strategies is considered. In the first case the companies obtain

higher payoffs if they cooperate and in the second scenario they get higher payoffs in

the competition case. In order to visualize the evolution in time of the variables, we

carried out some numerical simulations with Wolfram Mathematica 9. The


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conclusions and future works are provided.

Keywords: competition, cooperation, oligopoly market, evolutionary games,

replicator dynamics

EC2.10. AN UNEMPLOYMENT MODEL WITH TIME DELAY

Flavia Loredana VESA, Faculty of Economics and Business Administration, West


Eva KASLIK, Faculty of Economics and Business Administration, West University of

Timişoara, Romania



Abstract

A mathematical model of unemployment is constructed and studied, taking into

account the history of past unemployment levels. The main goal of this paper is to

investigate the interaction among the unemployed persons U(t), employed persons

E(t) and the newly created jobs by the government and the private sector, denoted by

V(t). For the mathematical modeling, it is assumed that the number of unemployed

persons U(t) increases continuously with a constant rate. The new vacancies are

created proportionally to the number of unemployed persons, emphasizing the

importance of past unemployment levels. The persons who are fired or leave their job

are removed from the employed class and join the unemployed class, and vice versa.

Moreover, the rates of death, migration and retirement as well as the rate of

diminution of new vacancies are also incorporated in the model.

The stability theory of nonlinear systems with distributed time delays is the main


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mathematical tool employed in this paper, allowing for a more realistic depiction of

the economic process. The existence of a positive equilibrium is discussed and its

stability is analyzed with respect to the time delay under consideration. Numerical

simulations are also carried out with the aim of visualizing the theoretical results.

Conclusions are drawn which reflect the importance of our investigation.

Keywords: unemployment, mathematical model, equilibrium, stability, time delay


P02 (ground floor)

Chairs: HARDING Liliana & VOIA Marcel

EC1.6.URBAN ENVIRONMENTS AND INNOVATION: A CAMPUS BASED

PERSPECTIVE

Liliana HARDING, University of East Anglia

Camelia MARGEA, Faculty of Economics and Business Administration, West University


Abstract

Our current paper builds on the findings of an earlier study evaluating the potential of

public art to drive innovation in the urban environment and draws on the project of

Timişoara European Capital of Culture for 2021 and the Fisart Festival organised in the

city over the last decade. Here we are proposing an analysis based on data gathered

through two subsequent sets of surveys of university students, to estimate young

people’s evaluation of the significance of their urban environment. We are

questioning in particular the ability of an urban space enhanced through accessible

cultural amenities to increase life satisfaction and motivation for the young, activating


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their innovative capacity and a willingness to contribute to change inspired by cultural

initiatives.

The paper has received support from colleagues and students at the West University

of Timişoara in the Faculties of Arts and Design, Economics and Business, Geography,

and Sociology and Social Work. As such it proposes an inter-disciplinary approach,

while being directly connected to campus life and the core of activities surrounding a

university and its students. We are looking in particular to elicit students’ perspectives

of what makes for a positive urban environment in which they can better work and

live, as well as enhancing their involvement, learning and innovation by owning the

city space that they inhabit and connecting to initiatives in their physical and cultural

environment alike.

Keywords: economics of well-being, Timişoara campus, urban regeneration, youth

living spaces

EC1.7. SPECIALIZED PEDIATRIC HEALTH CARE UTILIZATION, CHILD HEALTH

STATUS, AND PERSONALIZED-PRECISION MEDICINE

Anand ACHARYA, Department of Economics, Carleton University, Canada

Lynda KHALAF, Department of Economics, Carleton University, Canada

Marcel VOIA, Department of Economics, University of Orleans, France; Carleton

University, Canada

Myra YAZBECK, Department of Economics, University of Ottawa, Canada

David WENSLEY, Department of Pediatrics, University of British Columbia, British

Columbia Children’s Hospital, Canada


105

Abstract

Health status is a key determinant of health care utilization. However, many measures

of health status, including precise personalized physiologically based illness severity

scores, are imperfect markers of health ability. This complicates many analysis of

health care utilization and leaves open questions as to the attributable role of health

status. We suggest a method for uncovering the underlying health ability of a child at

the time of admission to the pediatric intensive care unit, which consequently

provides different results in an analysis of specialized pediatric health care utilization.

To do so, we first refine an economic model of pediatric critical care utilization to

explicitly account for a child’s underlying health ability. Our theoretical model

coincides empirically with the accelerated life regression, a risk adjustment

specification common to both clinical health and quality analysis. We extend the

accelerated life model using a novel empirical strategy that utilizes the trauma status

of a pediatric intensive care unit patient as an instrumental variable. Our results,

reported as confidence sets revealing both data and identification uncertainty,

suggest that once underlying health ability is accounted for, variations in health

utilization attributable to health status change with a clinically and economically

relevant magnitude. Furthermore we find that results are sensitive to the choice of

health status measures or categorization, which has implications for most types of

common risk adjustment. Our theoretical and empirical results also suggest that the

clinical uncertainty surrounding underlying health ability is a possible contributor to

geographic variation in health utilization.

Keywords: health status, health ability, accelerated life model


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EC1.8. SPATIAL ECONOMETRIC ANALYSIS OF HOUSEHOLD POVERTY IN

MAURITANIA

El Moctar LAGHLAL, CNRS, LEO, University of Orléans, France

Abstract

In this paper, I analyze the determinants of poverty in Mauritania using a spatial

econometric approach. I show the presence of significant spatial dependence in the

households’ welfare. Thus, the classical techniques of regression are not appropriate

for identifying the determinants of poverty. I empirically show that the classic

approach leads to erroneous conclusions about the statistical significance of the

impact of belonging to some socio-economic groups on poverty as well as the impact

of primary education in urban areas, technical high school and alphabetization in rural

areas. I provide precise estimates of these determinants of poverty with more

accurate statistical inference using spatial error models.

Keywords: poverty, education, welfare, spatial econometric models

EC1.9. DOES INTERNAL CONFLICT MATTER IN THE DEMOCRACY-GROWTH

NEXUS? THE AFRICAN CASE

Tobignaré YABRE, Laboratoire d’Economie d’Orléans, University of Orléans, France

Abstract

Regarding the case of African countries, the question of a possible effect of

democracy on economic growth through its effect on internal conflict must be raised.

But curiously, this glance is overlooked in existing empirical studies. In this paper, we


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demonstrate this idea by performing a simultaneous equations model from 1985 to

2015 for thirty-four African countries. Our results robustly show that democracy has

no significant direct effect on economic growth but its effect through internal conflict

is highly significant. More specifically, the results consistently support an U-shaped

relationship between democracy and internal conflict indicating that the risk of

internal conflict decreases for strongly autocratic regimes and for more democratic

regimes but this risk increases for medium level of democracy. Moreover, the relation

between internal conflicts and economic growth is highly significant and internal

conflict has a feedback effect on democracy. Our finding defends that peaceful

democratization stimulates growth. It also supports that making efforts to reach high

level of democracy decreases the risk of internal conflicts and stimulating economic

growth.

Keywords: democracy, economic growth, internal conflict, simultaneous equations,

Africa

Special Session: Sustainable Growth

P03 (ground floor)

Chairs: MINEA Alexandru & DIMA Bogdan

SG6. INSTITUTIONS AND THE GLOBAL RISK OF STOCK MARKETS

Bogdan DIMA, East European Center for Research in Economics and Business (ECREB),

West University of Timişoara, Romania

Jacob A. JORDAAN, Utrecht School of Economics, Utrecht University, The Netherlands

Roxana IOAN, Faculty of Economics and Business Administration, West University of

Timişoara, Romania


108

Ştefana Maria DIMA, East European Center for Research in Economics and Business

(ECREB), West University of Timişoara, Romania

Abstract

During the last decade, due to the recent financial and real turmoil and the

subsequent period of prolonged stock markets instability, the idea that the

institutional framework and the quality of economic and regulatory policies have a

major impact on the global financial markets’ risk, has drawn attention to the

importance of understanding and managing the risk on these markets.

Our paper attempts to provide with a contribution to the existing literature in this

field, by considering a potential causality running from the global quality of public

policies and institutions to stock markets risk as this is captured by the Expected

Shortfall as a robust and coherent measure of risk, lately taken into consideration by

the Basel Committee on Banking Supervision, as well as a Markov-Switching GARCH

model. The diversity of public institutions and policies were analyzed through the six

indicators taken into consideration by the Worldwide Governance Indicators (WGI)

Project. Our study uses daily data for 25 major stock market indexes all over the

world, for a period of almost 12 years (2004 – 2015). Our findings shows in a robust

manner that there is a negative causal relation between the quality of the

institutional framework and the amount of stock markets risk as this is mainly

exercised via the uncertainty associated with current and expected prices and returns.

Keywords: Coherent measures of risk, Expected Shortfall, conditional volatility, public

institutions


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SG7. CO2 EMISSIONS, RENEWABLE ENERGY AND ENVIRONMENTAL

REGULATIONS IN THE EU COUNTRIES

Claudiu Tiberiu ALBULESCU, Management Department, Politehnica University of

Timişoara, Romania; CRIEF, University of Poitiers, France

Alin Emanuel ARTENE, Management Department, Politehnica University of Timişoara,

Romania

Caius Tudor LUMINOSU, Management Department, Politehnica University of

Timişoara, Romania

Matei TĂMĂȘILĂ, Management Department, Politehnica University of Timişoara,

Romania

Abstract

This paper analyses the factors explaining the slight decrease of CO2 emissions in the

European Union (EU), recorded during the last period. With a focus on 12 EU

countries, we apply a panel data analysis over the period 1990 to 2017 and we

investigate the impact of renewable energy share in energy production, and the role

of EU environmental regulations, in explaining the level of CO2 emissions. Our static

and dynamic panel data analysis points to a negative impact of an increased

renewable energy share on CO2 emissions, while there is no clear evidence about the

role of environmental regulations. It appears that the 2020 climate and energy

package contributed to the reduction of pollution level, while the ratification of the

Kyoto protocol by the EU countries had no significant influence. At the same time, our

findings validate the environmental Kuznets curve (EKC) hypothesis and the pollution

halo (PH) hypothesis, showing that foreign companies export eco-friendly

technologies. Our results prove to be robust regarding the use of static fixed and

random effects models, of two stages least square models and the use of difference

and system Generalized Method of Moments (GMM) frameworks.


110

Keywords: CO2 emissions; environmental Kuznets curve hypothesis; pollution halo

hypothesis; renewable energy production; environmental regulations; panel data

analysis

SG8. ENDOGENOUS FLUCTUATIONS AND THE BALANCED-BUDGET RULE:

TAXES VERSUS SPENDING-BASED ADJUSTMENT

Maxime MENUET, School of Economics & CERDI, Université d’Auvergne, France

Alexandru MINEA, School of Economics & CERDI, Université d’Auvergne, France;

Department of Economics, Carleton University, Canada

Patrick VILLIEU, CNRS, LEO, University of Orléans, France

Abstract

The present paper develops a simple theoretical setup to examine the role of the tax-

spending mix of fiscal adjustments on aggregate (in)stability in indebted economies.

To this end, we build an AK endogenous growth model with public debt dynamics. If

the adjustment of the government’s budget constraint is based on a single instrument

(taxes or public spending), the economy converges towards a high-growth path/ with

mixed adjustment, however, another equilibrium appears (the no-growth path) that

can be locally over-determine (unstable) or under-determined (stable). A hopf

bifurcation can occurs at the border between the last two cases, which leads to

cyclical dynamics. We also show that global indeterminacy is likely to emerge if fiscal

adjustment is mainly based on public spending. A calibration of the model shows that

area of indeterminacy covers reasonable values for parameters.

Keywords: endogenous growth, indeterminacy, balanced-budget rules, hopf

bifurcation


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Special Session: Socioeconomic challenges of Industry 4.0

P11 (ground floor)

Chairs: IMBRESCU Ion & FARKAS Beata

SCI6. THE INTERPRETATION OF INDUSTRY 4.0 BY HUNGARIAN TECHNOLOGY-

ORIENTED STARTUPS – A SURVEY-BASED STUDY

Peter HALMOSI, Faculty of Economics and Business Administration, University of

Szeged, Hungary

Abstract

Technology-oriented startups are valued participants of the economy in the

21stcentury. By inventing and bringing new technologies to the market, this sector

supports not only the growth of competitiveness in the corporate sector but that of

the standard of living as well. The “Industrie 4.0” initiative declared by Germany in

2011 was the first commitment of a government to support the new technology

sector which was soon followed by the „Advanced Manufactured Partnership”

program of the U.S., as well as by the “Made in China 2025” initiative for the

advancement of the productive sector launched by the People’s Republic of China and

the “Industria 2016” vision of Italy. The evolution of Industry 4.0 is nowadays parallel

to the conscious efforts of many European governments to develop their own start-

up ecosystems. These start-ups face significant challenges, but at the same time, they

are the means to support changes. This paper – based on a survey among early stage

start-up companies, having received angel investment – aims to present how start-

ups see of the significance of Industry 4.0, and what conditions for scaling their

businesses are evident compared to traditional companies.


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Keywords: start-ups, survey, Industry 4.0

SCI7. FOREIGN DIRECT INVESTMENTS IN ROMANIA. ARE THEY CONNECTED

TO THE FOURTH INDUSTRIAL REVOLUTION?

Andra MICULESCU, Faculty of Economics and Business Administration, West


Maria OTIL, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

Foreign Direct Investments (FDI) represent an important subject both for economists

and politicians. In a country like Romania, where capital stock in 1990 was old and fit

for very large production units, FDI was crucial for economic growth. The perspective

of, and after that, the adhesion to European Union marked an important milestone on

the transition from a centralized-economy to market functionally economy for

Romania. FDI determined the increase of productivity in national economy and

generated a lot of incentives for home firms, but at a moment also generated a

discrimination between foreign firms that invested in our country and domestic firms,

from the access to state-aid to the intensity of fiscal control activities. The fourth

industrial revolution is based on different pillars such as connectivity, smart-initiative

in human capital (especially in education), integrative digital technology and

digitization of public services. We will present some key facts about Foreign Direct

Investment in Romania and some characteristics of main pillars of fourth industrial

revolution and try to see how connected are they to think about some things to do in

the future.


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Keywords: foreign direct investments, economic growth, industrial revolution,

Romania

SCI8. SMART-FACTORY 1.0 OR INDUSTRY 4.0? IS THAT THE QUESTION?

Ruxandra CUREA-PITORAC, Faculty of Economics and Business Administration, West


Mihai PAREAN, Faculty of Economics and Business Administration, West University of

Timişoara, Romania

Abstract

One of the fashion concept of our days is Industry 4.0. Many researchers consider

that the fourth wave of industrial revolution is the best solution for solving different

problems generated by globalization. Other researchers are convinced that we must

have strong control keys for digital technologies to avoid scenarios like the one

presented in Terminator. Industry 4.0 initiative represent a huge challenge of our

times and probably the approach is macroeconomic rather than microeconomic so if

we refer at it as a set of objectives and instruments at a large scale, we can say that

the concept that can be used at micro level is Smart-Factory 1.0, first wave of

production units based on integrative processes of different islands of automation

developed during last years. We try to present the characteristics of a Smart-Factory

and how the combination between these factories can contribute to define a wanted

wave for global economy.

Keywords: industrial revolution, Smart-Factory 1.0, Industry 4.0


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SCI9. DIGITAL INDUSTRIAL POLICY: CHALLENGES FOR EUROPE (AN

COMMISSION)

Nicoleta SÎRGHI, Faculty of Economics and Business Administration, West University


Ioana VĂDĂSAN, Faculty of Economics and Business Administration, West University


Abstract

European manufacturing industry is at an interesting crossroad, a lot of challenges

appear at global level and within European Union countries. Do define the future path

is important to formulate clear objectives and deliver efficient instruments in order to

achieve the goals. Research and innovation infrastructure cannot be developed

without a strong commitment of public bodies (at national and European level) for

financing of appropriate mechanism for increase activities in industrial research and

innovation. The good intention of the governments has to be doubled by concrete

actions, otherwise will be visible much talks and few facts and industrial policy is

important in this direction. Digital technologies are dedicated in principal to intangible

goods and that can create difficulties for those who are in the world of tangible

goods, so the actions must be very good orchestrated. Digital industrial policy can

represent a huge challenge for any developed country and an impossible target for an

eclectic club like European Union. That means that the role of European Commission

is more important than we can imagine. We try to present in this paper some

challenges for European Commission and for each member country for deliver policy-

oriented arguments and instruments and also the importance of a systematic

approach of a Systemic Digital Industrial Policy.

Keywords: manufacturing, digital technology, Systemic Digital Industrial Policy

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