Külgazdaság Vol. 5-6/2020

Productivity, Innovation and Foreign Trade (Hungarian Firm-level Data)


In addition to exports, imports are important factors too when the relationship between innovation and productivity is analyzed at the level of firms. Innovation boosts productivity, and this impact has been changing in Hungary between 2005 and 2016. The estimated impact increased until 2010, then declined and fell to the level of 2005 in 2016. This impact was exacerbated by the continuous decline in the share of innovative firms.

Working abroad, changing jobs and leaving the profession


Higher wages, better work conditions and pleasant work environment are considered to be the most attractive elements when deciding for emigration and working abroad. Individual motivations shade off the picture described by migration models. Beyond the expected advantages and gains, the decision is often coinciding with personal losses and self-denials. Those working abroad often should take a job different to the one in the home country. Changing the previous job can be promise but loss as well. The article will focus on this particular section of migration, the character and motivations of job change of Hungarians moving abroad.

Journal of Economic Literature (JEL) kódok: C83, J40, J60, J61.

Global crisis, local liquidity?

Analysing the impact of coronavirus pandemic crisis within a multicountry DSGE model with heterogenous banking system based on liquidity demand

Ádám Czelleng

The study discusses the actual and potential economic crisis triggered by the coronavirus epidemic as the function of the banking system’s liquidity. In this paper, we analysed how and to what extent the liquidity conditions of the banking system in the euro area and in Hungary influence the economic effects of the coronavirus epidemic. Results confirm that with the consideration of financial frictions they affect the pace of recovery primary through the investment channel. The negative impact of the crisis is more significant and the recovery path changes slightly if banks are distinguished by their liquidity positions with surpluses and deficits. To address the research questions, a multicountry dynamic model was applied. This approach is new in the Hungarian literature in as much as in the model the effects of the liquidity position of the banking system are identified and quantified in the event of an economic shock. One of the major conclusions is that the steady expansion of the Hungarian banking system’s liquidity, in which both monetary policy and regulation (micro- and macroprudential policy) plays a significant role is a necessary but not sufficient condition for stabilizing the national economy. The effects are asymmetric, i. e. whereas the improvement in the liquidity in the euro area’s banking system hardly contributes to the mitigation of the domestic effects, its deterioration strengthens significantly the negative domestic macroeconomic repercussions. To minimize the effects, targeted and well-timed measures are necessary that can help recovery. They should remain transparent and sustainable (meeting minimum prudential requirements).

JEL Codes: E12; F37; G21; G28.Key words: multicountry DSGE, monetary policy, liquidity, regulation

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