The European integration of the Western Balkans: business opportunity or economic challenge?
OLEG TANKOVSKY – VIKTÓRIA ENDRŐDI-KOVÁCS
The aim of the study, based on a complex indicator developed by the authors, is to examine the evolution of the economic integration maturity of the Western Balkan countries between 2006 and 2020. The main conclusion is that, although the candidate countries have improved their economic integration maturity over the period, their performance is below that of Croatia, the benchmark for the former accession. This calls for further reforms in the candidate countries. The study is a valuable contribution to the relevant body of the knowledge of the subject, as no similar analysis has yet been carried out in the domestic or international literature. The introduction of a composite indicator is a new academic element, which allows the economic preparedness of the countries under scrutiny for EU accession, including the business environment, to be measured in a quantitative and comparative way. Despite its widespread application, a composite indicator has not been used in this form to measure economic integration readiness by introducing a benchmark country. The research results support and complement the current enlargement strategy of the European Union in a quantitative approach. The results can also provide an objective basis for developing and supporting business and economic policy decisions.
Transforming objectives – changing implementation frameworks.
Dilemmas of support for environmental public goods and the move towards renationalisation in the EU’s Common Agricultural Policy
ÁKOS KENGYEL – MIKLÓS SOMAI
The European Union’s Common Agricultural Policy must constantly adapt to changing economic, social and environmental needs. Due to this phenomenon, the objectives and conditionalities of the subsidies have undergone several major transformations over the past decades. The article seeks an answer to the dilemma of how far the EU-level support system, which pursues increasingly complex goals, and especially the focus on the provision of environmental public goods, would justify the return of agricultural policy planning and financing tasks to a certain extent to the level of the member states. Due to the more efficient achievement and financing of the objectives, the possibility of renationalisation may arise as a feasible reform direction. At the same time, concerns can be expressed regarding renationalisation, especially in the field of environmental and climate measures, where the support and implementation of common strategic goals is necessary. In the article, the authors analyse in detail the political economy of the transformation of agricultural policy objectives and the current operating framework of the support system. Desirable further changes are evaluated in the light of the new approaches appearing in the regulatory framework introduced from 2023 and the considerations supporting more efficient financing.
App economy: exploring the mobile app ecosystem
ENIKŐ JUDIT CZIGLER – ADRIÁN GAÁL
The mobile app market has been evolving since its birth in 2008. This study focuses on the microeconomic factors of the mobile app ecosystem through international research results. The paper can be considered a gap-filling study in the Hungarian literature. It provides an overview of the players in the app economy (users, developers, and app stores) and the relationships between them. It identifies the characteristics and success factors of the goods produced in the ecosystem. Mobile applications can be grouped according to several aspects (technological, motivational, purpose of use, business model) depending on the socio-economic benefits to be achieved. The market is typically flexible and responsive to rapidly emerging and abruptly changing trends. This characteristic makes it easier to enter the market than to compete effectively. The study highlights the potential of the app economy and shows why other, larger business sectors find it profitable to invest in app development.
The world’s most valuable education technology companies
ANDRÁS BETHLENDI – ÁRPÁD SZŐCS
The years of the global coronavirus epidemic have created an exceptionally favourable environment for educational technology (edtech) startups. For educational institutions and companies, the importance of the online tools they can use to transfer knowledge has increased. In the last two years, the number of private start-ups providing education-related services has nearly doubled, with a market value of more than one billion dollars (unicorn start-ups). This paper looks at three areas. The first is the distribution of edtech unicorns in the world’s top startup ecosystems. Although the US has traditionally had a strong innovation environment, China has more unicorn startups in the field of education technology. India is the third most powerful actor in the international ranking. The second is the role of business model innovation in the growth of edtech unicorns: how they have been able to adapt to a rapidly changing environment. The third is the emergence of technology giants (Big Tech) as new participants in the edtech market. The exceptional growth opportunities of recent years have been accompanied by strong development pressures, increased competition, and the emergence of new competitors.
Breaking the bank-guarantee independence
KATALIN CSEKŐ
Guarantees, in terms of bank-guarantees rendered by financial institutions are deemed efficient and independent personal securities in international transactions. The usage of bank-guarantees created by the International Chamber of Commerce is a relatively recent, no more than 50-year-old customary law. Due to its relative immature nature, it frequently conflicts with the 2000-year-old the guaranty (bond) and the 150-year-old documentary credit whose rules are applied for its hiatus. The bank-guarantee is the guarantor’s own independent payment or performance obligation that is completely separated from the secured transaction. The guarantee is favoured by trading companies because it can efficiently protect their interests, provided that the text of guarantee-letter does not contain any contradiction or hidden connection with the underlying contract. The new usage of ICC on International Standard Demand Guarantee Practice (ISDGP) published in 2022 has strengthened the safety of guarantee, therefore its knowledge is indispensable for a successful “demand.” The lawmaking power of usages has been acknowledged and underscored by two judgments that were recently made and widely interpreted. The article pays attention to the examination, checking and interpretation standards which the ISDGP – after having uniformized the international banking practices – lays down. Since the independence of guarantees is warranted by the lack of secondary nature, the most critical point in its application is the text of guarantee obligation. By analysing the two lawsuits, this article points to the importance of the accurate wordings of independent personal securities and to the fact that autonomy principle of documentary credit is also not in harmony with the abstract nature of guarantees.