Projects / Programmes
Adjustment of the Slovenian economy and development identity of Slovenia in the EU
January 1, 2018
- December 31, 2027
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| Code |
Science |
Field |
| S180 |
Social sciences |
Economics, econometrics, economic theory, economic systems, economic policy |
| Code |
Science |
Field |
| 5.02 |
Social Sciences |
Economics and Business |
convergence, economic integration, purchasing power parity, real exchange rates, price mechanisms, financial markets, financial integration, single market, big data analysis, financial crisis, labour market, human capital, employee performance management, Slovenia, EU.
Data for the last 5 years (citations for the last 10 years) on
April 18, 2024;
A3 for period
2018-2022
| Database |
Linked records |
Citations |
Pure citations |
Average pure citations |
| WoS |
791 |
41,212 |
37,587 |
47.52 |
| Scopus |
839 |
44,739 |
40,944 |
48.8 |
Researchers (16)
Organisations (2)
Abstract
The program will continue to research the convergence processes and asymmetries on the theoretical and methodological level, with applications in the EU and Slovenia. Besides general testing of convergence processes, our research will focus mainly on the following topics, all related with convergence and integration of European single market from various points of view. These are: purchasing power parity (PPP), financial markets and financial crisis (FM), labour market (LM), and, closely related to the last two, game theory (GT).
We plan to empirically scrutinize the validity of PPP on samples of countries with similar levels of economic, monetary and regional integration. A natural starting point is to evaluate selected European countries. Second, our goal is to examine the role of exchange rate regimes, the impact of economic crises, and the effect of the the selection of numeraire currencies on the validity of PPP for the above-mentioned samples of countries. We aim to pinpoint the preconditions and crucial economic as well institutional factors under which the PPP is more likely to hold.
We aim to study, whether on the macro as well as on the micro financial level there are characteristics of the single financial market and in what manner and to what extend the process of the integration of national insurance markets is present. The originality of the research will therefore be shown also in newly gained insight into the development of the whole financial integration in European Union. The dynamics of the research results and their analysis of the time coincidence, when compared to other, already known processes or factors on the broader financial market, enables to discover potential indicators on the insurance market.
Economic imbalances in eurozone, seen in euro crisis are not resolved and represent the foundation of new crises. The financial crisis that erupted in the Eurozone after 2009 forced governments to save their domestic banking systems from collapse. As a result, these governments saw their debt levels increase dramatically. The Eurozone countries are more prone to experience a sovereign debt crisis than countries that are not part of a monetary union even when these countries experience a worse fiscal situation. The purpose of our research is how member countries can avoid liquidity crisis, which can degenerate in solvency crisis.
Traditional methods of Employees Performance Management that classify and evaluate employee in comparison with other colleagues turned out to be ineffective and denounced as a method of managing employee performance; they demoralize employees, create enmity between them and encourage prospective and key employees to begin to look for work elsewhere. Thus, the objective for next period of our research programme group in the field of labour market is to develop socially responsible and innovative model of employee performance management using holistic development methods.
Significance for science
Main stream of the economic theory turned back to neoclassic in the seventies and the eighties of the 20th century. That turn stemmed from the inability of Keynesianism to explain and improve the stagflation caused by the oil crisis. In the beginning of the 21st century more and more signs of exhaustion of neoclassical paradigm in economic policy are present, whereas the post Keynesian views are not gaining credibility at all. Thus the economic theory is faced with the new challenges. Recent political movements, even ignoring the basic postulates of economics will require a fundamental economic knowledge to further harden. EU with its integration and at the same time disintegration processes within it, in its periphery, and globally, might gain some new interest of the economic theory. The main economic paradigms assumed homogenous economies with unified market, only one decision center of economic policy, and the general consensus on liberal foundations of the system. Therefore, the theoretical concepts need to be complemented with the analysis of convergences and asymmetries assuming potential institutional changes, which constitute the reality of the EU and globally, so they are the challenge of economic theory and the social sciences. The real conditions different from the actual paradigmatic assumptions is a methodological challenge accepted by the program team. Methodologies for analytical treatment of convergence and asymmetries will be developed on the theoretical level with the applicability to EU and its periphery. An important emphasis is given to interdisciplinary and integral approach with emphasis on analysis of financial markets and financial crisis, characteristic and validity of purchasing power parity, and labour market and social responsibility.
The program group has, in the past, produced a number of highly cited papers, which
undoubtedly confirm the relevance of the contributions for the advancement of science related to all areas, which are topicc covered by the research group. Our studies merge elements of economics, physics and applied mathematics, statistics and econometrics to deliver a strongly interdisciplinary research effort, through which the integration of the Slovenian economy into the EU can be investigated, understood, and ultimately made successful.
Similar approaches to understand complex systems have in the past led to remarkable success, and they gave birth to several flourishing areas of economic research. Two most notable examples are the fields of econophysics and sociophysics, where large numbers of interacting participants form a collective behaviour that could never be explained by analysing solely a representative member of the system. Instead, as Philip W. Anderson wrote, “More is different”, i.e., it is important to overcome the limits of reductionism, and to embrace synergetic connections towards other scientific disciplines if they can benefit from it. Modern theories, which are capable not only to analyse past events, but also to predict sudden changes, economic crisis or social revolutions, can not be established without utilizing such an approach to research. Our goal is thus not just to develop the science of economics, but also to use economic concepts, methodologies and perspectives in other disciplines to address or solve important problems in the other disciplines that have not been solved before. The final outcome shall be a more comprehensive evolutionary game theory, in particular one that will be capable of tackling the challenges of the 21st century.
Significance for the country
Slovenia is a part of the EU with sharing its destiny. Thus, the knowledge on the EU existence, functioning and future expectations with the possibility to influence the processes is of utmost importance. Involvement into convergence processes on one hand and the exposure to asymmetric shocks on the other is a Slovenian reality in interdependence with other European countries and institutions. The economic interest of Slovenia is also associated with the development of the periphery of the EU. This research program will enable an assertive role of Slovenia within the EU as well as the strengthening of her economic and political identity.
Weaknesses of emerging markets, as Slovenia, is insufficient and inadequate institutional building of financial regulation; the latter does not contain sufficient bulwarks (eg. a well-defined and transparent system to regulate bankruptcies, liquidations and other forms of debt collection, deposit insurance, the function of lender of last resort, etc.) to defend against self-fulfilling panic, or the eventual bulwarks are non operative, when it comes to creditors or debtors who are residents of foreign countries. Such situation creates potential conditions for the outbreak and the spread of panic in the bursting of the financial bubble. Therefore, the study of appropriate financial arrangements is of crucial importance for the further successful development of the Slovenian economy.
The mathematical models are ready for transfer into practice, in particular as supplementary tools to help guide and decide on strategies out of social decline, crisis, unproductive collective behavior, as well as political incoherence. Crucial is the departure from linear thinking, which does not lead to wanted results. An example is the elevation of value added taxes with the aim of increasing state budget income. Several EU countries have implemented this procedure before Slovenia, but the government expectations were not fulfilled. The reason lies in neglecting cyclical interactions between society a state aeconomy a society. The tax increase is focused on the linear alliance society + economyastate, but it neglects the negative feedback, which is inevitable once the first part of the "equation" is implemented. The mathematical models, which are being developed within the research programme group, show clearly why such linear actions fail, and they also outline measures that would very likely be much more successful. Limitations for the transfer into practice at this point lie mainly with unfamiliarity with the methodology of those who could benefit from it the most.
Additionally, the consistent findings on innovation management of the elderly, health management, employee performance management, and the new role of human capital in the digital age can significantly contribute to the overall level of economic activity, increased innovation, efficiency and productivity at work and therefore increase efficiency Slovenian economy.
Nevertheless, the theoretical and empirical results, derived from our work and from the analysis of convergence process, will be also used in the educational and in the research process within the underand postgraduate study programs. New research results from this field and their transfer into the educational program will significantly increase the quality of the underand postgraduate study programs.
Most important scientific results
Interim report
Most important socioeconomically and culturally relevant results
Interim report
