Journal Global Policy and Governance <p align="justify">Interdependence of International Relations with finance, economy, technology, research, and advanced knowledge until a few years ago unimaginable, new military might introduced by innovation must be some of the crucial challenges, where also our Journal Global Policy and Governance intends to contribute opening its pages, issue after issue, to faculty, experts, testimonies, articles and relevant review of books, junior researches working papers. But we know also that traditional conflicts would not have any perspective in the medium term and will bring to the defeat of the ones who are imagining a return to the past. We intend to embrace and reach all the possible interested colleagues and fellows around the world, as choices and strategies in all the sectors involving public and private governance, nobody excluded, are under questioning and innovative evaluation.</p> en-US <p align="justify">The authors when submitting their papers endorse and give permission as well to the Publisher Transition Academia Press to publish the article/paper in print and/or electronic format. Article/paper is defined as the final, definitive, and citable Version of Record, and includes the accepted manuscript in its final form, including the abstract, text, bibliography, and all accompanying tables, illustrations, data. </p> <p align="justify">If/when an article is accepted for publication, Author will be asked to transfer copyright of the article to Transition Academia Press. Transition Academia Press will retain copyright of all published material and reserves the right to re-use any such material in any print and/or electronic format. Author willing to retain their copyright from the Editors might request a fair condition, on the base of a bilateral agreement.</p> <div><hr align="left" size="1" width="33%" /> <div> <p> </p> </div> </div> (Prof. Giorgio Dominese) (Editorial Staff) Wed, 22 Apr 2020 16:22:57 +0200 OJS 60 Ukraine’s export diversification: the impact of economic integration and disintegration <p>Using the Herfindahl-Hirschman Index (HHI), Gini index and Thiel index, the paper outlines the consequences of the parallel acceleration of the economic integration and disintegration processes of Ukraine with its main trade partners - the EU and Russian Federation (RF) - in 2013-2018 for the country’s export diversification. It tests the hypothesis that the enhanced trade barriers under the economic disintegration increase commodity and spatial concentration of exports, mainly due to physical reduction in the trade volumes while the economic integration provides for export diversification: the overall impact of economic integration and disintegration on the export diversification depends on the depth and scope of the trade barriers increased and reduced and exporter’s ability to adapt to new terms of trade. Consequently, the results of HHI computation gave evidence of the gradual diversification of the commodity and spatial structure of the Ukrainian exports. It was revealed as a result, that the commodity nomenclature had increased to the largest extent for the following positions: products of chemical and related industries; textiles and products made there of; non-precious metals and products made thereof; machinery, equipment and mechanisms, electrical supplies. The research of the consequences of the parallel processes of trade liberalization (with the EU countries) and imposition of trade barriers (between Ukraine and RF) confirms the author’s hypothesis that the commodity and spatial concentration of the Ukrainian exports has decreased given the abovementioned terms of trade. As a result, the research highlights the ability of domestic manufacturers to adapt to new challenges of foreign trade and compensate the losses of commodity positions at the markets in RF, whereas the demand in the EU market is determined as a core driver for diversification of the commodity structure of the Ukrainian exports, including the ones to third countries.</p><p><strong> </strong></p> Olexandr Shnyrkov, Oleksandr Rogach, Nataliia Reznikova, Anton Nanavov Copyright (c) 2020 Journal Global Policy and Governance Wed, 22 Apr 2020 00:00:00 +0200 1989 -2019: Thirty Years After: Re-Enchanting Europe? <p align="justify">This paper focuses on the complexities created by the interlinked and complex processes of Central-European transitions that arose as the result of integration into the EU and the undermining influence of turbo-capitalism. During the decades before and after the Annus Mirabilis, ’Europe’ and European integration were the models for peaceful regional integration worldwide. Due to the lack of a common vision for the future in “old” and “new” Europe, and due to unexpected internal and external challenges, and increased global uncertainties, the European dream gave way to a common European frustration. Evaluating the transformations of the past three decades, the question remains whether Europe can avoid further disintegration and gain back its role as a model for regional cooperation. Could this provide a window of opportunity for a more important role for Central Europe?</p> Ferenc Miszlivetz Copyright (c) 2020 Journal Global Policy and Governance Wed, 22 Apr 2020 00:00:00 +0200 Impact of the European Central Bank Monetary Policy on the Financial Indicators of the Eastern European Countries The article presents the study results of the European Central Bank Monetary Policy influence on the Poland, Hungary, Czech Republic, and Slovak Republic financial indicators. By running vector autoregression models and applying Granger causality tests the study reveals the impact of the European Central Bank Monetary Policy on the yield of government bonds, interest rates and the inflow of foreign investments into the CEE countries. The results of the analysis demonstrate that the ECB monetary policy had an overall positive impact on the economies of Poland, Hungary and Czech Republic. In the context of a general decrease of interest rates under the influence of the ECB's unconventional monetary policy, these countries managed to achieve sustainable economic growth along with a decrease in the ratio of government debt to GDP and the ratio of interest payable on debt to GDP as well as stock indices growth. The opposite situation is observed in the euro area countries with a high debt burden, primarily in Greece and Italy. Although the ECB policy had led to the decrease of the interest payable on debt to GDP of the high debt euro area countries, the trend of the ratio of government debt to GDP growth for them (except Ireland) has an upward trend. In this situation, the ECB cannot significantly change the goals of its monetary policy, because any, even slight, increase in the discount rate will lead to a new euro area debt crisis with an epicenter in Italy and Greece. The situation may get worse after a probable sharp decline in the US stock market, caused by its current overheating Sergey Yakubovskiy, Halyna Alekseievska, Julia Tsevukh Copyright (c) 2020 Journal Global Policy and Governance Wed, 22 Apr 2020 00:00:00 +0200 Temporal Causality between Human Capital, Trade, FDI, and Economic Growth in Cointegrated Framework. Empirical Evidence from Pakistan <p>We investigate causal links between human capital, foreign direct investment (FDI), trade openness, domestic investment, and economic growth for the case of Pakistan. In a multivariate vector autoregressive (VAR) framework, we apply Johansen and Juselius co-integration, Granger causality, and vector error correction model (VECM) using annual data from 1980 to 2017. Results of the co-integration analysis indicate the positive association among human capital, trade openness, foreign direct investment, and economic growth for the long run. Granger causality reveals that bidirectional causality exists between human capital and trade openness, human capital and economic growth, and foreign direct investment and trade openness. The unidirectional results of Granger causality analysis reveal that human capital and domestic investment influence economies growth through FDI, and trade openness influences economic growth through domestic investment. The most obvious finding to emerge from this empirical investigation is that human capital and trade openness enhance domestic and foreign investment, which leads to the economic growth of Pakistan.</p> Habib-ur Rahman, Ahmad Ghazali, Dr Ghulam Ali Bhatti Copyright (c) 2020 Journal Global Policy and Governance Wed, 22 Apr 2020 00:00:00 +0200 Does Dividend Policy Determine Stock Price Volatility? (A Case Study of Malaysian Manufacturing Sector) <p align="justify">The paper aims to investigate the association between dividend policy and stock price volatility in Malaysian context. The study used multiple regression analysis to explore the association between stock price volatility and both dividend payout ratio and dividend yield. On the basis of diagnostic tests, the study elaborates the results of random effect model. The result is in line with prediction showing that any increase in dividend payout will minimize the stock price volatility. As there is high correlation between dividend yield and dividend payout, the results showed positive and insignificant association between dividend yield and price volatility. The control variables are used in order to address the issue of multicollinearity and to observe if there would be any change in the coefficient of dividend yield. The results show that there is a significant change in dividend yield and the coefficient value changed into negative. Similarly, the results of other variables are also as per expectation. This explains the fact that dividend policy on its own is not the determining factor of price volatility. There are certain other factors that also contribute in measuring stock price volatility. As per results, firm’s size is also negatively associated with stock price volatility. The firms with high level of market capitalizations are better in managing their stock price volatility as compared to their counterpart. Moreover, the mature firms are also efficient in managing their stock prices and firm’s age is negatively associated with stock price volatility. In contrast, the debt ratio is negatively significant which shows that high levered firms have high volatile stock operating in market. Lastly, the earnings volatility shows insignificant effects on stock price volatility. </p> Faisal Khan , Sharif Ullah Jan, Hashim Khan Copyright (c) 2020 Journal Global Policy and Governance Fri, 23 Oct 2020 00:00:00 +0200 Education and Its Impact in Economic Growth in Lower Middle Income Countries <p><strong>Abstract</strong></p><p>The objective of this paper is to link and assess the relationship between investment in education and economic growth in the of low middle income countries in Europe including Russia and Turkey for e period between 2000 – 2017 , and the effect of some of the main variables associated with this investment, such as government expenditure on education as percentage of total government expenditure; government expenditure per student on tertiary education as percentage of GDP and school enrollment on tertiary education. As a technique is employed a Hausman Taylor model with instrumental variables (IV) , to show the regression results of relationship between investment in education and GDP growth in surveyed countries. Also, for comparison reasons the paper shows the results from pooled OLS, fixed effects and random effects. Results from this empirical research shows a positive impact on government’s investment in tertiary education, while school enrollment in tertiary education has a negativ effects in GDP growth in low middle income countries in Europe.</p><p>The study is original in nature and makes effort to promote investment in education in low middle income European countries, including Russian Federation and Turkey. The ?ndings of this study will be of value to governments of above mentioned countries.</p> Bekim Marmullaku, Besnik Fetai, Avni Arifi Copyright (c) 2020 Journal Global Policy and Governance Mon, 06 Jul 2020 00:00:00 +0200 Micro-aspects of mega-regional integration: global value networks in global economic governance – clustering global space <p> </p><p>Abstract. The paper deals with a new approach to the clustering of world economies with respect of their inclusion to global value networks. The goal of the paper is to study micro-aspects of global economic integration and to question on whether GVCs foster mega-regionalization. World bank enterprises survey data covering 2005-2017 on specific indicators describing reporting countries’ enterprises openness to global economy and OECD-EORA GVC-related indicators were used for research purposes. Methodologically paper is split into several parts: first part is devoted to the analysis of the evolution of country’s involvement into global economy from micro-aspects; the second part represents the first attempt to group countries with respect to openness to trade as a key in PTAs signing; the third part represents clustering of economies for 2011 and 2017 separately as well as analyses how similar they are in their respective progress in chosen indicators between these two time-periods. It was found that the higher the use of foreign inputs by firms- the more frequent is the reporting on customs and trade procedures, as well as access to finance, being the main obstacles, supporting the fact that countries try to set up international partnerships and enter foreign markets via starting local production. Using Kendall rang correlation as a base for cluster analysis and performing clustering on the base of growth terms of indicators chosen, it was shown that regional character of clustering persists (pool of Latin American countries, African countries, CEE, Asia countries are clearly observed) with minor exclusions, and non-trivial links between regions are in place.<br />It could be concluded that there is a high possibility of empirically tested relation between micro-motivation behind global value chains functioning and neo-regionalism in the form of mega-regions set-up</p> Alla Kobylianska Copyright (c) 2020 Journal Global Policy and Governance Wed, 22 Apr 2020 00:00:00 +0200 Relations of India and Pakistan with Central Asian Countries from the Perspective of Shanghai Cooperation Organization <p align="justify">After the first expansion of the Shanghai Cooperation Organization, the India’s and Pakistan’s relationship with Central Asian countries has become an issue that needs urgent research. This article analyzed their relationship, focusing on five aspects, i.e. the historical and cultural relations, political and military relations, the economic and energy cooperation, religious conditions and activities of religious organizations, and cooperation in science, technology and education. The author has found that neither India nor Pakistan doesn’t have major investment or particularly close partners in Central Asia. It is not yet possible to say that Central Asia is an area where India and Pakistan are strategically competing. India and Pakistan will not have serious disputes on the SCO’s issues involving Central Asia. For Joining India and Pakistan, we should consider more positive aspects, promote advantages and suppress disadvantages, and make staff expansion a positive factor for SCO to play a greater role.</p> Zhang Yuyan Copyright (c) 2020 Journal Global Policy and Governance Wed, 22 Apr 2020 00:00:00 +0200