Külgazdaság Vol. 7-8/2021

Components of nominal convergence: real economic and price level convergence in the European Union between 1995 and 2019


Significant cross-country differences in real income levels are accompanied by sizable differences in price levels, and, in the longer run, convergence in real income levels goes together with convergence in price levels. Although the cross-country comparison of nominal per capita GDP levels at current exchange rates is neither suitable to measure real income differences, nor their changes over time, their decomposition into a real and price component can reveal the contribution of the two factors to nominal convergence. The decomposition may be performed by drawing on two statistical sources, providing conflicting indications with respect to relative price and real changes in the case of several member states of the European Union. However, both sources suggest that the

rapid nominal convergence of the Central and Eastern European member states between 1995 and 2008 mainly stemmed from the swift convergence in price levels (real exchange rate appreciation), while the deadlock in nominal convergence after 2009 is mainly due to the halt (reversal) in price convergence. Real economic convergence of the CEEU region continued in the 2010s, albeit at a slower pace. Journal of Economic Literature (JEL) codes: E01, F43, O47, O52.

Globalisation, regionalisation and geography: does distance still matter?


The leitmotif of this paper is ’rivalry’ between globalisation and regionalisation, which – at least at the level of academic discourse – intensified around the turn of the millennium. Globalisation seemed to be receding, regionalisation to be gaining ground through the 2010s, when nation-states ‘re-arrived’. In the meantime, and despite radical technological and ICT changes, international economic flows apparently continued to gravitate towards home regions, without being followed (with literally one or two exceptions) by economic and the underlying security policy cooperation and institutionalisation in home regions. It is within this framework, at the boundaries of the disciplines of international relations, international economics and geography, that this paper seeks answers, or rather, poses questions, with an aspiration to finding answers through further research. The presumed academic added value of the paper is that its analyses do not dissolve in the inevitable complexity of international flows and levels discussed but is able to define specific hypotheses and calls for future academic inquiry. Journal of Economic Literature (JEL) codes: F14, F15, F23, F50

Russia’s foreign trade: impacts of the WTO-accession and the sanctions imposed in 2014


Russia became member of the World Trade Organization in 2012, but in 2014, several partner countries imposed trade sanctions on Russia as a response to its aggression against Ukraine 92 Csontos Máté – Udvari Beáta triggering processes that could have significant impact on Russia’s trade. Academic research analysed the impact of Russia’s WTO membership and the sanctions on the economy separately. This paper established relationship between these two issues: namely, the research objective was to analyse whether trade sanctions introduced against Russia in 2014 influenced the unfolding effects induced by Russia’s accession to the WTO, and if yes, to what extent. A gravity model was applied that involved 30 partner countries covering 85 per cent of Russian foreign trade. The major conclusion of the paper is that joining the WTO affected Russia’s exports favourably, however, the trade sanctions did not weaken this trend.

The force majeure event as an exemption opportunity


An unforeseeable, unavoidable, objective external event, the so-called force majeure situation might exempt non-performing companies to pay compensation for violation of their contractual duties. The restrictive measures of Covid-19 epidemics such as air transportation prohibition, borders closure or extraordinary licensing have resulted in significant losses in operation of global supply chains. The article aims to examine the liability issues caused by the delayed or deleted deliveries referring to force majeure from the business professionals’ point of view. Based upon the lessons of the presented litigation and the results of the questionnaires addressed to Hungarian enterprises, the article aims to point to the complexity and difficulty of force majeure principle, contractual clause, and national regulation. Journal of Economic Literature (JEL) codes: K220, F190.

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