Projects / Programmes
Adjustment of the Slovenian economy and development identity of Slovenia in the EU
January 1, 2014
- December 31, 2017
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| 5.03.00 |
Social sciences |
Sociology |
|
| Code |
Science |
Field |
| S180 |
Social sciences |
Economics, econometrics, economic theory, economic systems, economic policy |
| Code |
Science |
Field |
| 5.02 |
Social Sciences |
Economics and Business |
| 5.04 |
Social Sciences |
Sociology |
Researchers (14)
Organisations (2)
Abstract
The research program will deal with the convergence processes and asymmetries on theoretical and methodological levels with the possibility to be applied on the EU as a whole and especially to the position of Slovenia in those EU processes. The Great global recession has disclosed the weaknesses of the EU and raised new challenges for the researchers in economics and social sciences. Considering the paradigms in economic and social sciences of the 21st century, an interdisciplinary analysis will bring us to the new perceptions of these processes and to the possible conceptual solutions of the vital problems and developmental issues. Therefore we will continue the research on convergence process in nonfinancial sector, financial sector, development of new methodologies, and the implementation of game theory in this area of research.
Previous research of our research group has shown that Cross- Border Mergers & Acquisitions (C-B M&A) have important role in the process of convergence, because the influence strategic sectors of the receiving transition economies of Europe. Here economic effects of these processes are related to the institutional arrangements in the recipient country. The research will specifically focus on another determinant - the institutional arrangements in the host country. We expect to obtain stylized facts. Based on them findings of the research will be presented, and identified will be the proposals for action to the recipient country, how to maximize the positive economic effects of C-B M&A on functioning and growth of strategic industries.
Changes in international financial and exchange rate architecture, introduction of new currencies, growing monetary integration of countries (constitution of the euro area, euro area debt-crisis), emergence of financial crises, the recent great recession are just some of the reasons, why it is important to constantly research the financial system and its segments. In the research group we will continue to analyze the convergence process, the question of modeling associated risks, and the validity of the purchasing power parity (PPP) in the new market and institutional conditions.
Sustainable future requires collaborative efforts. We must not think only of how to elevate our personal prosperity and quality of life, but must keep in mind also how the actions we are planning to undertake to achieve this goal will affect the society and the environment on a global scale. If we fail to do so, the tragedy of the commons (Hardin, G., 1968) cannot be avoided, and at least some of the pillars keeping our society humming are destined to collapse. Events in the recent past concerning the world economy are a vivid reminder of this fact, and they call for actions based on a better understanding of how individual behavior affects our existence on a larger scale and will continue doing so in the future. Top journals such as Nature and Science have recently reflected upon the need for research initiatives aimed at addressing current and future socio-economic challenges, in particular by means of an interdisciplinary approach entailing agent-based modeling, mathematical simulations, social data mining, and statistical physics (Szabó, G., Fáth, G., 2007; Nowak, M.A., 2006, Science; Lazer, D., et al., 2009).
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 on one hand and some post Keynesian views are gaining credibility on the other. Thus the economic theory is faced with the new challenges. EU with its integration processes might gain some interest of the economic theory. The main economic paradigms assumed homogenous economies with not only an unified market but with also only one decision center of economic policy. That is why the theoretical concepts can be complemented with the analyses of convergences and asymmetries. They represent the reality of EU and thus the challenge to economic theory and social sciences.
The real conditions different from the actual paradigmatic assumptions is a methodological challenge accepted by the program team. Methodologies to analytically treat the convergence and asymmetries will be developed on the theoretical level with the applicability to EU. An important emphasis is given to interdisciplinary and integral approach.
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. Planned studied merge elements of economy, physics and applied mathematics 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. We envisage that the developed mathematical models will be ripe 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 aimed departure from linear thinking, which does not lead to wanted results. An example is the elevation of taxes with the aim of refilling to state budged. Several EU countries have implemented this procedure before Slovenia, but it worked nowhere. The reason lies in neglecting cyclical interactions between society -) state -) economy -) society. The tax increase is focused on the linear alliance society+economy -) state, but it neglects the negative feedback, which is inevitable once the first part of the "equation" is implemented. The planned mathematical models will show clearly why such linear actions fail, and they will also outline measures that would very likely be much more successful.
Significance for the country
Slovenia is a part of the EU with sharing its destiny. Thus the knowledge on the EU functioning and on 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. This research program will enable an assertive role of Slovenia within the EU as well as the strengthening of her cultural identity.
Because the performed studies are via evolutionary game theory intimately linked with economy and sociology, the results will surely have weight, albeit in an indirect manner, also in the light of the socio-economic development of the Republic of Slovenia. In particular the specification of optimal conditions, in the sense of coevolutionary processes as well as interaction networks, at which cooperation and with it related social welfare is maximal, can have a positive effect on the socio-economic development of Slovenia, provided, of course, an appropriate interest and engagement of competent individuals and/or institutions is at hand. Coevolutionary processes are easily integrated into an institution or the socio-economic apparatus in general, either through praise, punishment or rewards, which, if appropriately selected, can raise the productivity and output. Of course more successful individuals have to be awarded more often and vice versa. Although the outlined approach appears trivial and often used, the suggested studies performed will reveal precise mechanisms and optimal conditions at which these rather simple techniques have the optimal effect.
Theoretical and empirical conclusions, 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 under- and postgraduate study programs. New research results from this field and their transfer into the educational program will significantly increase the quality of the under- and postgraduate study programs.
Most important scientific results
Annual report
2014,
2015,
2016,
final report
Most important socioeconomically and culturally relevant results
Annual report
2014,
2015,
2016,
final report
