EEJRS Issue 10.1 Full text
Author: Adrian LUNGU, Mihai Daniel ROMAN, Diana Mihaela STANCULESCUAbstract: In the context of global systemic transformations, economic security has become a focal point in political and economic debates. The article explores how economic convergence within the European Union (EU) contributes to strengthening regional economic security. Using an innovative approach based on cluster analysis, the study reveals economic convergence trends among EU member states, highlighting the involvement of this process in promoting economic stability and security in the era of systemic changes. Our methodology involves applying clustering techniques to an extensive set of economic indicators to assess the dynamics of economic convergence between EU countries over the last two decades. The cluster analysis carried out allowed the grouping of countries based on their similar economic characteristics, thus providing a clear picture of the progress towards convergence. The results indicate a strong trend of economic alignment within the EU, with the formation of clusters suggesting a reduction in economic discrepancies. This process of convergence not only reflects greater economic cohesion, but also contributes to the macroeconomic stabilization of the region, an important aspect for economic security in the face of global volatility and uncertainties. The analysis shows that the EU is moving towards uniformity and economic convergence, with economic clusters becoming more similar over time.
Keywords: Convergence, Economic security, PCA, Clustering analysis, EU countries.
UDC: [338.22.01+351.862.6+303.722.4]:061.1EU
JEL Code: B16, B22, B23, C01, C38.
Pages: 6-30 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.01
Authors: Andrei-Ionuț PRICOP, Laura MAXIM
Abstract: The down turning events from the beginning of the XXIst century, starting with the 2008 crisis and then the COVID-19 pandemic, shortly followed by Russia’s invasion in Ukraine, exacerbated some preexisting vulnerabilities and created new risks. In this context, the financial stability in the Eastern European states (we will consider "Eastern Europe" in Winston Churchill's terms, namely those countries on the eastern flank of the Iron Curtain) represents an important debating issue for both policy-makers and researchers. Therefore, the present paper aims to quantify the financial stability and to determine the factors that can influence it. In doing so, we first have to establish what we consider to be financial stability: what it means at the microeconomic level (focusing on the behavior of the citizens) and what it means at the macroeconomic level (looking at the role of states in ensuring financial stability). It is important to note that the analysis we wish to undertake will be at a regional rather than at an overall European level, focusing on the Eastern European countries that have joined the European structures. We will present, by means of statistical analysis, the importance that both economic freedom and education have in increasing the financial stability of Eastern European citizens, taking into account the evolution of the financial stability of Eastern European citizens over the last years. In order to perform an analysis for more countries and over a longer period of time, we will utilize panel data analysis. We will observe the role that both variables play in ensuring a greater level of financial stability for the people from these countries.
Keywords: Financial stability, European Union, economic freedom, tertiary education, Eastern Europe
UDC: 005.336:336.1(4-11)
JEL Code: E10, F61, F62, I15
Pages: 31-43 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.02
Author: Lorina BUGA
Abstract: This paper conducts a nuanced examination of organizational commitment, drawing from an array of European business practices to navigate the complexities introduced by the COVID-19 pandemic and the Ukrainian conflict. Employing a meticulous literature review methodology, the research spans academic articles, official reports, and organizational publications from 2010 to 2023. The selection criteria focused on relevance to organizational commitment, crisis management, and the impact of significant crises, employing a combination of keywords across various databases and websites. The analysis revealed an evolving understanding of organizational commitment, highlighting the necessity for Moldovan organizations to adopt contextually adapted engagement strategies. This adaptation is crucial in addressing the unique challenges posed by Moldova’s socio-economic conditions and the external pressures from regional instabilities. The study underscores the importance of flexible work arrangements, digital infrastructure improvements, and culturally informed management practices in fostering organizational commitment amidst uncertainty, offering insights for organizations aiming to maintain a committed workforce in challenging times.
Key words: organizational commitment, crisis management, COVID-19 impact, Ukraine War, business strategy
UDC: 005.59:005.334(478)
JEL code: M12, M54, F52, O52, I15
Pages: 44-52 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.03
Author: Vera KRIEL, Geoff A GOLDMAN
Abstract: This article aims to understand the contemporary relevance of the sustainable competitive advantage (SCA) concept in strategic management. Mainstream management and business training perpetuates the use of SCA despite indications that it is elusive. This study intends to elucidate how, in the 4th Industrial Revolution (4IR) world, SCA has become irrelevant, what the possible reasons are for its continued use and what alternatives can be explored for business success. The study followed an exploratory, constructivist grounded theory approach. Data were obtained from 27 semi-structured interviews to develop a grounded theory. Findings revealed four main themes, and pronounce that in a complex, interconnected business world, SCA is mostly obsolete, which demands an organisation to adapt its strategy, business model and culture to create value, be relevant, have a significant (positive) impact and contribute to the common good. The main implication of the study is therefore that SCA should no longer be promoted as a key concept for organisational success by management and academia. Alternatives to SCA, such as agility and complexity management, are more relevant in an interconnected 4IR business environment. The study enhances the body of knowledge by bolstering the critique on the continued use of SCA in contemporary business management. It furthermore highlights potential erroneous assumptions through a direct explanation of why SCA assumptions are antiquated.
Keywords:strategy; sustainable competitive advantage; organisational change; disruptive change; 4IR.
UDC: [005.21:005.11]:339.137.2
JEL Code:L19, M19
Pages: 53-78 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.04
Author: Coralia TANASUICA (ZOTIC), Mihai Daniel ROMAN
Abstract:In the dynamic landscape of modern business operations, ensuring economic security through efficient and intelligent fleet management is imperative. This necessitates a dual focus on safeguarding revenue streams and optimizing operational costs. The aim of this study centers on two main objectives: first, to identify driving behaviors that have a substantial impact on vehicle maintenance costs; second, to ensure the sustainability of the fleet is managed effectively. To achieve these objectives, the research employs unsupervised Machine Learning (ML) techniques for segmenting driving styles based on diverse parameters collected from Internet of Things (IoT) devices. Furthermore, the Long Short-Term Memory (LSTM) algorithm is used for forecasting fuel consumption, offering a predictive glance into future expenditures. The methodology is based on the analysis of data gathered from sensors installed on the vehicle's Controller Area Network (CAN), collected over a span of five months. The findings spotlight a subset of drivers whose aggressive driving significantly influences maintenance costs and highlight optimal indicators for drivers to monitor to minimize CO2 emissions. Additionally, the study identifies key performance indicators that drivers should monitor to reduce CO2 emissions, contributing to the environmental sustainability of the fleet. This investigation not only elucidates the financial and environmental implications of driving behaviors but also showcases the transformative potential of ML technologies in enhancing the strategic management of vehicle fleets. Through this exploration, the research advocates for the integration of advanced analytics and sustainable practices as foundational elements for businesses striving to achieve economic security and operational resilience.
Key words: driver behavior, fleet sustainability, unsupervised machine learning, clustering analysis, CO2 forecasting.
UDC: [005.:656.01]+[004.8:656.052]
JEL Code: C38, D01, C15, F64
Pages: 79-97 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.05
Authors: Dok Hee OH, Kyung Sook GIL
Abstract: The Republic of Korea has achieved economic growth and development thanks to the benefits of trade liberalization within the framework of a multilateral trading system. However, it faced a new international trading environment with the emergence of neoprotectionism. Initially, neoprotectionism was promoted by developed countries, but now it is becoming a common phenomenon in the international trading environment. In particular, the political and economic conflicts between the United States and China are forcing a radical change in the foreign trade policy of the Republic of Korea. The prolonged confrontation between the two largest markets for the South Korean economy has reinforced the need to review the foreign economic policy of the Government of the Republic of Korea. In response to changes in the international trading environment, the Government of the Republic of Korea was forced to develop and promote new directions of foreign economic policy for the development of the multilateral trading system.
Keywords: mutually beneficial economic cooperation, foreign economic policy, neoprotectionism, deglobalization, global value chain
UDC: 339.54(519.5)
JEL Code: E60, F02, F13
Pages: 98-119 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.06
Author: Iulian MORARU
Abstract: The problem of quantifying the reputational damage resulting from unfair competition actions derives mainly from the lack of contextually established criteria. In the same sense, the lack of relevant judicial precedents amplifies the precarious state of the system of indicative benchmarks in order to assess the damage to reputation as a result of affecting the rights and legitimate interests of the victims of unfair competition actions. Foreign methodological systems for quantifying damages caused by unfair competition actions could represent points of reference for the domestic legislator in the idea of solving practical difficulties in the process of assessing damages caused by unfair competition actions. An eloquent example could be considered the French model for evaluating the economic damage resulting from actions of unfair competition, developed by notorious practitioners in the field in question. The methodological sheets are generically called „La réparation du préjudice économique. Fiches méthodologiques et glossaire - 3e édition (2024)”.
Keywords: quantification, assessment, harm, damage, unfair competition, criteria, methodology.
UDC: 346.546:346.9(478)
JEL Code: K23
Pages: 120-136 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.07
Authors: Anis BENABED
Abstract. This paper analyzes and describes multinational companies as a business internationalization strategy through foreign direct investments FDIs for business internationalization to reach business values in the frames of globalization. The analysis and results demonstrated that Multinational companies (MNCs) and foreign direct investments (FDIs) may face challenges and risks in new locations, economic and political instability, difficulties of infrastructure, distrust in the locations, locations, difficulties of balance in payment, challenging negotiations in business agreements and quality contracts, borders and transportation challenges, challenging in the market size. Multinational companies that go for foreign direct investment have an economic impact and can affect a country's economy in various ways, for example, in the balance of payments, in growth rates and in job creation. The effect of foreign direct investment by multinational companies can be negative or positive depending on certain factors. A multinational company’s pattern of internationalization represents different factors of possibilities, costs, risks and difficulties faced during its internationalization. In conclusion, Foreign direct investment (FDI) is an important step towards business internationalization and if the domestic company decides to go multinational towards FDI, it has to consider the factors of ownership, location and internalization to reach business internationalization as confirmed in Dunning’s framework and this analysis.
Keywords: multinational companies (MNCs). Business internationalization, process, foreign direct investment (FDI), globalization, trends, values.
UDC: 334.726:339.727.22
JEL Code: F20, F21, F23, F60
Pages: 137-155 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.08
Authors: Adrian ANDRONIC
Abstract: This paper analyzes Moldova's higher education transformation, focusing on digital and AI integration, underpinned by the Moldova Higher Education Project financed by the International Development Association. Findings highlight the project's effectiveness in aligning education with labor market demands through AI-driven personalized learning and administrative automation, significantly enhancing learning environments and operational efficiencies. Challenges include the need for improved digital infrastructure and equitable technology access. The study offers actionable recommendations for policymakers, such as enhanced AI training for educators and policy development to ensure fair access to technology. These insights contribute significantly to understanding and implementing educational reforms in similar contexts.
Keywords: digital transformation, higher education, Moldova, financing.
UDC: 378.014.543:004.8
JEL Code: I23, I25, O33, H52
Pages: 156-167 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.09
Authors: Corina CAUȘAN, Svetlana GOROBIEVSCHI
Abstract: In recent years, the Republic of Moldova has been subject to a series of socio-economic and political challenges. Among the most notable are the Covid-19 pandemic (CoronaVirus 2019), the energy crisis and the political crisis (war in Ukraine). The impact of these crises have radically changed the way of life of the population and influenced the economy, bringing both negative and positive changes.
Data were collected from external sources, using qualitative and quantitative method, as well as method of analysis and synthesis, induction, deduction and statistical inference. Comparative analysis was used as a research method in conducting the empirical study.
In this article we aim to analyze the positive impact of the Covid-19 pandemic period on the healthcare system, namely: strengthening the public health system through digitalization in the Republic of Moldova and the Transnistrian Moldovan Republic.
In order to make a comprehensive analysis of this phenomenon, the indicators that determine the level of development of public health were analysed, namely: the evolution of health expenditure and its share in GDP; life expectancy; medical staff in medical institutions; the degree of sickness and the level of requests for emergency medical assistance. The article presents the digital innovations implemented. Budget execution as an influencing factor was established by analysing the financing of the Semashko and Bismark health systems to expose the degree of flexibility of health service provision in the Republic of Moldova and the Transnistrian region. Thus, following the research, the authors concluded that the consolidation of the public health system through digitization in the Transnistrian region is at an early stage compared to the Republic of Moldova, which is in a stable development. This discrepancy is due to the fact that the Transnistrian region is developing the public health system according to its own scenario and without the involvement of external funding sources. Despite this, digital innovations are developing and are expected to be implemented in the future. Thus, we can observe a much slower development of the implementation of digital innovations to strengthen the health system.
Keywords: digitisation, quality of life, development strategy, population well-being, patient-centred hypothesis, health services, electronic register, quality of health services.
UDC: 614.2:004.78(478)
JEL Code: A1, H54, Q57
Pages: 168-180 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.10
Authors: Adela Sorinela SAFTA, Lavinia POPESCU
Abstract: This paper analyzes by transposing the importance of environmental policies, highlighting the most significant regulations directly related to the sustainable agriculture component in relation to the environmental targets proposed by the Municipal Agricultural Policy. The need to rethink agricultural processes led slowly to the anchoring to current trends as a premise in the realization of a real report related to sustainable agricultural systems performing and last but not least aligned to the constraints of eco-conditionality. From this perspective, the methodology in reflecting our analysis was linked to the collection of data reported in international statistical databases such as those available at the National Institute of Statistics Eurostat, as well as OECD reports on the subjects analyzed in the study. In these paradises, the perspective reflected by the New Agricultural Policy is rather aligned towards the achievement of environmental goals in agriculture, which positions the ability of farmers to adapt to these sustainability conditions. Through these completely new concepts for farmers, the studio reflects the sustainability of agriculture through the levers offered by the agricultural policy and research, thus also representing an important resource in complex research aimed at the decarbonization of agriculture as topical issues.
Keywords: environmental, sustainability, agricultural, decarbonization, policies.
UDC: 631.147:504.75
JEL Code: Q10,Q01, Q10, Q59, Q18.
Pages: 181-193 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.11
Authors: Ludmila GONCEARENCO
Abstract: This paper provides a comprehensive analysis of the challenges and advancements in Moldova’s justice system reform, particularly in the context of achieving Sustainable Development Goals (SDGs). It delves into the pivotal role of the Moldovan justice system in governance and societal well-being, highlighting how its efficiency, transparency, and accessibility are essential for democracy, reducing corruption, and building public trust. The paper examines Moldova's ongoing struggles with judicial independence, corruption, and resource limitations, exacerbated by its post-Soviet transition and the need for alignment with European standards. The relevance of SDG 16, which focuses on promoting peaceful and inclusive societies, access to justice, and building effective institutions, is underscored as a key framework for Moldova’s judicial reforms. The paper argues that aligning Moldova’s justice system with SDG 16 is not only strategically necessary but also an ethical obligation. Improving the judicial system could lead to significant advancements in reducing corruption, enhancing public trust, and creating a stable legal environment conducive to economic growth and societal well-being. The paper also highlights the well-established link between an effective justice system and broader sustainable development goals in the literature. It includes a thorough literature review, analysis of justice financing in relation to SDGs, a discussion of Moldova's specific challenges, and concludes with policy recommendations and future research directions. This exploration aims to provide a nuanced understanding of Moldova's justice system reforms and their critical role in the nation’s journey towards sustainable development.
Keywords:Justice financing, Sustainable Development Goals, Moldova.
UDC: 347.97/.99-048.78(478)
JEL Code: H76, P48, O11.
Pages: 194-209 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.12
Authors: Anatolie IACHIMOVSCHI
Abstract: At present, financial auditing in the Republic of Moldova is supported by a legislative framework in line with international best practices and the EU acquis. However, the changing nature of services in the domestic audit market and the current challenges of meeting new quality management requirements are of interest for scientific research in this field. This paper aims to investigate the opportunities for modernization of the profession in the context of the attested reforms regarding the supervision of audit activity in the Republic of Moldova. The aim of the investigation is to highlight the importance of legislative reforms in order to increase the prestige and recognition of the professionalism of financial audit activities in the Republic of Moldova. In addition, this paper includes a study of professional qualifications in auditing and an analysis of the activities carried out by audit entities in recent years of monitoring the audit market by the supervisory authority. The issue of reforming the regulatory framework for the audit of financial statements in line with international good professional practice is considered.
The investigation used the qualitative research method and the observation technique based on the analysis of national and international normative acts. The results indicate a good harmonization of the regulatory framework of the financial audit activity in the Republic of Moldova with the international practices in this field, which will contribute to the development of the domestic process of regulating the profession and at the same time will provide opportunities for modernization of the system of supervision of the quality of audit activity in the country.
Keywords: audit activity, audit profession, international auditing practices, professional standards, qualification certificate, quality management audit, supervisory authority, statutory audit.
UDC: 657.6:005.584(478)
JEL Code: M48.
Pages: 210-224 | Full text (PDF)
DOI: https://doi.org/10.53486/2537-6179.10-1.13
Authors: Joseph ELLIS
Abstract: The invasion of Ukraine highlights the continued threat Russia poses to Eastern Europe. This essay describes these threats as twofold: investigating both the material realities of soldiers and weapons, as well as abstract notions like the role played by ideas and history. Discussing examples such as the “war of monuments,” the Baltic forest brothers, and the Holodomor, this paper examines how contrasting approaches to history and memory can lead to conflict in the region, particularly when threats are perceived differently by competing actors.
Keywords: threat perception, historical memory, memory wars, Baltic states, Ukraine, Estonia, Latvia, Lithuania.
UDC: 355.1(477):327(474.2+474.3+474.5)
JEL Code: Z00
Pages: 225-241 | Full text (PDF)