Eurasian Economic Perspectives

In the era of aging of European society, there is a need to rationalize public expenditures. As a result, it is crucial to increase the efficiency of public policy. It significantly refers to labor market policy, as on the one hand, it is responsible for activation of the unemployed, passive resources, increasing employability and optimal usage of labor supply. On the other hand, public entities conducting labor market policy (mainly public employment services—hereafter PES) are obliged to efficient management of public funds. The effectiveness of PES is strongly determined by the engagement of employers in realization of labor market instruments. Cooperation of PES with relevant stakeholders is needed to build up alliances for active policy. There are different models of such cooperation, with variant levels of partnership, communication channels, and mutual services. The main objective of the article is to determine the perspective cooperation model of PES and private companies in Poland. The quantitative study was realized among large companies in Podlaskie province. It is one of the Polish peripheral regions characterized by lower than average labor demand, lower purchasing power, and higher unemployment rate.

The problem of poverty and social inequality has become extremely important as a consequence of the 2008 financial and economic crisis. Taking into consideration, the Europe 2020 targets lifting at least 20 million people out of the risk of poverty and social exclusion compared with 2008 it seems necessary to check to what extent the member states of the European Union are capable of meeting their imposed requirements. The main aims of the paper include: the description of the EU strategy concerning fight with the poverty and social exclusion, its objectives and the methods used in their implementation in the Member States, analysis of European measures of poverty and social exclusion in Poland against the background of European Union countries and correlation between the level of public expenditure on social protection and indicators of poverty contained in the Europe 2020 strategy. Panel data models (longitudinal data) were used in the research. EU countries will also be subdivided into relatively homogeneous groups in terms of selected poverty rates. The study finds that the variation in the level of spending on social protection was reflected in the degree to which individual EU countries have achieved benchmarks. A higher level of GDP per capita results in a reduction in poverty while an increase in the unemployment rate raises the level of the analyzed poverty rates.

Public expenditure in different countries may have different economic effects as business competitiveness capabilities are more likely to be expressed by more than one factor. The aim of this article is to investigate the link of public expenditure within different field businesses with reference to statistical data. This chapter analyzes the effectiveness of allocation of public expenditure regarding the value of such costs, as well, the impact on the businesses competitiveness incensement. It can be concluded that public expenditure for economy is assigned to productive public expenditure, and however it is not directly reflecting the need for the increasing expenditure for businesses competitiveness. The premise, as well as, a conclusion can be made that the increase of economic expenditure does not always have the impact on specific countries companies’ competitive advantage in the increase.

With societies aging and pension gaps deepening, supplementary pension schemes are treated as the most suitable way of ensuring adequate benefits for pensioners. However, a significant question underlying this research has arisen: how much should one save over the course of his or her professional career to ensure the future pension gap is covered? The following study has two main objectives: to identify the size of the pension gap in five countries (France, Germany, Italy, Spain, and Poland) and to estimate the level of additional savings required to cover it. The study shows that the size of the future pension gap for the average worker in these five countries is between 19% (Italy) and 40% (Poland). Due to different socioeconomic and demographic conditions, the amount of monthly savings needed to cover this gap will vary significantly. In relative terms, fully financing the pension gap for the average worker in a base scenario requires savings from 12% (Italy) to 20% (Poland) of their gross salary. Apart from offering a base scenario, the chapter also includes a sensitivity analysis which considers different values of the applied model’s parameters.

This chapter describes and analyses the structure and performance of the occupational pension system in Poland, highlighting its strengths and weaknesses. The chapter examines the demographic implications for supplementary schemes and such factors as a sharp increase in the number of people over 65, permanent changes in dependency ratio and low savings rates. The study assesses the recent development of the occupational pension schemes and discusses the key elements of the proposals of the mandatory occupational capital plans in Poland. The voluntary occupational plans in Poland are still in an initial phase of development and have good developmental prospects (only 3% of insured people are covered). The political processes that shaped the country-specific pension arrangements in 1999 had important implications for subsequent reform possibilities, but the presented reform proposals need further detailed elaborations.

In the knowledge-based economy, the issue of assessing the financial policy effectiveness and its impact on the level of socioeconomic development of the country and the population’s welfare is acute. Maximizing the effectiveness of financial policy is possible while ensuring financial safety of the country. Market management conditions create the existence of a shadow economy, which adversely affects the development and functioning of the global financial system in general and of each state. The purpose of the chapter is to conduct a comprehensive assessment of the financial safety of states on the basis of determining the socioeconomic position of the country considering the shadow economy and revealing its impact on the level of the population’s welfare. To determine the financial safety of states, a methodology has been developed for calculating the total standardized indicator for assessing the socioeconomic position of countries considering the shadow economy by means of specially created system of indicators. Approbation of a technique is carried out on a selection of 45 countries in 2015. Based on the developed technique, a rating of countries was built. It was revealed that the higher the country’s financial safety, the higher the population’s welfare.

The aim of this study is to assess the importance of interregional cooperation for innovative development of economy. We have carried out our study on the example of Russian regions. In this work, firstly, the system of indicators has been determined describing the level of research, infrastructural and industrial potentials’ development for separate territories. Then, we calculated the integral indices of research, infrastructural and industrial potentials for these regions. Secondly, research, sociopolitical, and economic forces behind territories’ interaction have been estimated. This made it possible to measure the level of interregional cooperation of economic subjects applying the gravity model. Thirdly, the econometric model has been constructed so that to determine the influence of interregional cooperation on the territorial differentiation level. Fourthly, the influence of changes in the level of interregional differentiation on the innovative development of territories has been assessed. Our findings reveal high level of functional dependence of innovative development from efficient interregional cooperation.

In recent years EU has faced a number of problems: “sanctions war” with Russia, migration crisis, Brexit, terrorism, growing euroscepticism and populism. The aim of the paper is to draw attention to a potentially overlooked fundamental reason for these problems: Europe’s demography. Research methods used include application of economic theory, analysis of EU official documents, statistical data and publications on European demography, author’s own calculations. We find that territorial extension of EU has been driven by need for markets and resources, especially labor. The findings indicate that now EU has to concentrate upon internal problems, pointing out natural increase in population as one of the crucial ones. Unless Europe regains ability to rely upon its own human resources, the problem of maintaining European national and cultural identity has no solution. The study also finds that the EU regional policy should be more efficiently used to reduce territorial disparities within the Union in order to slow down depopulation of poorer member states.

Transportation of goods exchanged between China and Europe is performed mainly in containers. Due to economic reasons, most of the containers are transported by maritime corridors. Within the frame of the Chinese initiative One Belt One Road (OBOR), often referred to as the New Silk Road (NSR), substantial investments are made to develop rail connections between China and Europe. In this paper, major challenges in container transportation on the route China-Europe on strategic, tactical and operational level are analysed. Among others they include infrastructure design, location problems, container handling, allocation of resources, service network design, routing and scheduling as well as adjustments deriving from dynamic changes in environment. The main focus is on empty container repositioning problem.

For the past decade renewable energy represented a main source of technological and environmental progress in the European Union, as well as on a global scale. During these years the renewable energy installments have steadily built significant sources of energy of national economics, but also contributed to the progress for achieving energy dependence decrease and the EU 2020 sustainability strategy. In the present chapter the Pearson coefficient was used to determine connections between ten main economic and energy indicators from the European Union in 2015, which revealed development trends of the member states depending on the evolution of each indicator for the year mentioned. The study revealed significant correlations, such as the negative correlation between the energy dependence and the share of renewable energy consumption in gross final energy consumption. Other correlations of the chapter present further connections between economic and energy indicators, having a direct impact on the sustainability strategy of the EU and on the energy consumers. The relevance of the study lies in the analysis of the most recent available data regarding the selected indicators from the European Union, that will contribute to the future development of the economic landscape significantly depending on current renewable energy trends.

The issue of the obligation to comply with the public procurement legal regime in the European Union (EU) fund law is related to the requirement to follow all applicable laws in a case. Problem of violating these regulations is connected with an occurrence of individual (existence of the beneficiaries) and systemic irregularities (functioning of the management and control system). This publication is an attempt to analyse components of the notion of systemic irregularities in the context of a public supervision over the public procurement market. It will allow to show a complexity of systemic irregularities, their relation to individual ones and negative effects in the area of public procurements. These legal problems have a very important meaning for the whole process of implementation of EU funds, because there is a necessity to use all of the public resources in appropriate way in line with all binding provisions—while each irregularity violates these provisions. In the case of systemic irregularities, there is a significant problem—the source of these ones is placed in the system of management and control. It is worth mentioning that discussed problems are important for all EU State Members. Moreover, there are not many scientific publications on this topic. Methodology is connected with an analysis of legal regulations (EU and national law) and legal literature.

An increasing number of governments are using e-governance as a new form of communication with residents, information exchange, and accessibility with the goal of offering improved electronic services, improving quality of services, increased transparency, and cost reduction as traditional public services in today’s society do not meet citizen’s demands. E-governance is the use of information and communication technologies in the public sector to increase the public’s and interested parties’ interaction. Governmental websites are one of the key determents for public organizations to increase this interaction. Although there are enough explored conceptual access, technological innovation, to evaluate e-provision of services and the introduction of e-government, e-management of determinants is not yet understood. This chapter addresses the problems that arise when applying new public management at local self-government institutions. The actual situation and the options are compared.

The housing sector is one of the priority areas of national economy. Its development characterizes the level of well-being of the country’s population. The availability of housing for the population is determined based on the level of housing market prices. The objective of the study is to identify the factors which have a significant impact on the housing price. The conducted literary review confirms the relevance of this objective. The study used qualitative and quantitative approaches. The data were obtained from sociological survey and state statistics. As the result of the study it was determined that the main factors of the housing price identified by the use of quantitative and qualitative approaches are different. This allowed concluding that the image of the good housing the people have in thoughts, differs from the housing they pay for, purchasing it in the market.

In order to achieve the European Union energy objectives, namely cutting down greenhouse gas emissions, increasing energy consumption from renewables, and improving overall energy efficiency, the energy sector needs to be competitive, reliable, and keep track of changes in the world energy market. Particularly in the last decade, this sector has been facing significant changes, which have affected the development of the energy companies’ profiles and their financial performance. This chapter aims to evaluate the financial performance of the EU energy sector in order to deepen our understanding of its risk and return, as well as to provide information useful for making investment, credit, policy or regulatory related decisions. This is achieved through ratio analysis of the EU energy companies with the largest market share in each country observed for the period 2005–2015. Financial ratios indicate that the EU energy sector has been affected adversely by turbulent changes in economic, political, and regulatory conditions. The obtained results point out that new energy reforms are needed in order to ensure new investments required for building a low-carbon economy, competitive facilities for energy production and distribution, as well as for achieving sustainable financial efficiency and effectiveness in companies’ operation.

Changes after 1989 enabled Central and Eastern European (CEE) countries to start processes of political and economic transformation. The Washington Consensus was adopted by post-communist economies in early 1990s. However, reforms were introduced by CEE countries with different speed. The chapter outlines the philosophy and foundation of transition, in which structural changes play an essential role. In the second part, the analysis focuses on structural changes in industrial sectors. The chapter also examines the capacity of industrial structure, as industry is one of the key sectors for CEE countries. Many studies emphasized a significant effect of industry changes on long-term economic growth. The chapter focuses on the relation between structural changes in industry and economic growth/competitiveness. Due to the complexity of the topic, the research requires usage of diverse methodological approaches. Main method is a comparative analysis using data collected from Eurostat Database, OECD Database, and Global Competitiveness Report. The analysis shows that Visegrad countries are doing quite well in the region; however, they are still behind other European Union countries. They need to explore ways to transition to a knowledge-based economy. To achieve it they should focus on high-tech production and improve the business sector’s capacity for innovation, labor market efficiency, and strengthen business sophistication. This research can be used by the government agencies for industrial development policies.

Construction industry largely determines the development of society and its productive forces. Significant part of construction works in Russia is carried out by small construction companies. The success of companies’ economic activity is ensured by the effective use of capital formed by the use of own and debt sources with different costs. The capital structure is the ratio of the financing sources, which have different accessibility for different companies. The capital structure directly affects the company’s operation indicators and financial effectiveness. Proper use of debt financing should allow increasing the effectiveness of using own capital. The objective of the study is to investigate how small Russian construction companies use leveraged capital and the opportunities to increase their effectiveness by its use. As a result, the strong debt dependence of small construction companies was identified. This fact promotes high level of financial risk for both the companies and their counterparties. Companies which use short-term sources are more at risk, as this type of financing is more sensitive to economic situation in the country.

The aim of this chapter is to estimate the “dark matter” assets in the external sector of the United States after the outbreak of the world economic crisis in 2009. The author conducts a statistical analysis using a time series on the balance of payments (BoP) and international investment position (IIP) data for the United States and a group of 19 developed economies. The study reveals that the United States is a privileged economy with respect to foreign income on international investments. The rates of return on its foreign assets are relatively higher, and the costs incurred on its foreign liabilities relatively lower, as compared with the benchmark group of developed countries. Based on prevailing income differentials substantial “dark matter” net assets in the external sector of the US economy are estimated. Consequently, the actual net IIP deviates significantly from that officially reported. Recognizing such “dark matter” leads to the conclusion that the United States is a foreign creditor, not a debtor.

The aim of this study was to describe the innovation processes in the theory of management sciences and to find the main direction of their development. Methods of critical and comparative analyses were used. The research diagnosed a large number (9) of innovation models that had been created since the beginning of innovation theory. The theory started with simple models and later developed the most complicated ideas. The models can be divided into two main groups: linear and nonlinear ones. The conjugated innovation concept showed that the innovation process could be more complicated than a simple cause-and-effect relationship. The new concept started discussions on a new open innovation model. The ideas of user-driven innovation (UDI) and diffusion of innovations were the consequences of this proposal. A description and classification of the innovation models is a novelty in the theory of the management sciences. Another result is the idea of combining some innovation process models. The expected results will have an effect on the development of economic sciences, especially the management sciences. The present research shows that innovation processes are more and more complicated. One can see the increasing role of clients (customers) and wider cooperation in the modern models of innovation processes.

Development of digital economy has become a strategic priority in the majority of developed and developing countries. Today, the creation and dissemination of digital technologies are becoming a key factor for competitive success of the countries and regions, which changes national and regional socioeconomic environment. This chapter’s goal is to reveal and assess the factors contributing to the development of information and communication technologies in the regions of the Russian Federation. The study uses regression analysis to estimate the dependence between several indicators of dissemination and use of digital technologies in the main sectors of economy—business sector, households, public services—and the characteristics of regional development. It is demonstrated that in Russia digital divide between the regions remains rather high, with more than a quarter of the employed population and nearly a half of information and communication technology spending being concentrated in metropolitan centers. The richer and more educated regions have distinct long-term advantages in digital economic development. If these trends are confirmed, the accelerated development of digital technologies will be concentrated mainly in the largest regions; high differentiation in the level of digital economic development will persist or even be amplified.

The aim of the chapter is to assess data breach risk. In particular, severity of the risk is quantified and factors determining its severity are identified. We take a number of records compromised in one data breach incident as a proxy for severity of the data breach risk. This chapter helps to learn from the experience of almost 15 years of data protection and data breach notification regulations in the United States. It offers an interesting insight into the state of cybersecurity that can be indicated by a number of data breaches. Based on the Privacy Rights Clearinghouse database, we examine the statistical properties of data on data breaches disclosed in the United States from 2005 to 2016. The size of our dataset is 5102. The Kruskal–Wallis test is applied to verify our hypotheses. The severity of data breach is modeled by the Pareto distribution. The chapter concludes with several interesting results. Negligent data breaches appear twice more frequently than malicious ones. The dominant causes of data breaches vary by organization type. It suggests that cyber risk management strategies should be tailored to the individual profile of an entity. Surprisingly, implementation of the data breach notification state laws in the United States has not affected the number of breach incidents reported in particular states. Cause of data breach, type of organization, and geographical region are statistically significant factors that diversify the population of affected organizations in terms of severity of the loss.

Agriculture is an economic sector facing large risk, mainly from natural factors and despite of relatively low price responsiveness to supply and demand causes output volatility in general. It is a risky business, and risk assessment and management tools have become increasingly important in recent years. Risk assessment and management is a complex process, since the risk arises from different sources. Typically, literature analyzes financial, business, credit, or currency risk. There is lack of research of human risk, especially in agriculture sector. It is important to identify knowledge, attitudes, behaviors, and priorities among farmers regarding safety, health, and risk management. This research focuses on identifying main human risk factors, identifying vulnerable populations in agriculture, including immigrants, migrants, refugees, young and older persons, women, persons with disabilities, and minority workers. The research explores human risk assessment and management problems in agriculture. Only then is it possible to increase safety and health for agriculture workers and decrease human risk manifestation in agriculture and to make the agriculture sector socially beneficial for its nation.

There is contradictory evidence about the impact of rising income inequality on economic growth through different transmission channels. Inequality can positively influence growth by raising savings and investments, providing incentives for innovation, investment in research and development, as rich people save a higher part of their income, especially in less developed countries. However, inequality may be harmful to growth because it leads to higher levels of social and economic instability, which reduces investment. Investment may also be discouraged by less demand from lower income households in countries where the level of inequality is high. The aim of this research is to assess the impact of income inequality on economic growth through the savings channel and sociopolitical unrest channel in the European Union’s 28 countries grouped according to the level of income inequality and country’s level of development. We use the ordinary least square regression method for panel data of 28 EU countries, divided into groups, over the period 1995–2014. Econometric results show that rising inequality has a negative impact on growth through savings channels in all groups of countries. However, it was also found that rising inequality had a negative impact on growth through the sociopolitical unrest transmission channel in the groups of the countries defined by the lower income inequality level at different stages of country development and a positive impact in the groups of the countries defined by the higher income inequality level.

This paper analyses several aspects of female digital entrepreneurship with the aim of determining if digital businesses help reduce inequality between female and male entrepreneurships. It is divided in five main points: women’s motivations, barriers, digital business, requirements for entrepreneurs, and their future perspectives. This qualitative study used an in-depth survey of a group of Spanish women entrepreneurs in digital business. The research identified a number of situations that affect women’s decisions to become digital entrepreneurs. Their particular characteristics, such as, their various ages, different motivations for entrepreneurship, the same business model and barriers, do not reinforce the conclusion that the majority of research considers female entrepreneurship to be influenced by the same factors as in traditional business models. The findings show that all women agree on the same aspect, independently of each case, and that is the need to focus on basic children’s education in order to eliminate inequality. This cultural aspect, linked to the other findings, continues to be a gender effect that remains an obstacle to entrepreneurship in general, but less so in digital entrepreneurship.

The mail goal of this chapter is showing, which Polish voivodeships have tourism as their regional smart specialization and what is the level of development of tourism clustering in individual regions, especially those focused on tourism development and selecting tourism as the economic branch strategic to their development. Additionally, the chapter presents theoretical issues connected with smart specializations and the roles of clusters in their development. As the method of research, the desk research and analysis of subject literature was used. Tourism clustering is developing in voivodeships which have tourism as their regional specialization as well as in voivodeships which are turning toward other specializations. All regions with a specialization connected with tourism have a chance for development due to the existence of tourism clusters in their areas. The voivodeships which focus on health tourism and which have well prospering clusters connected to medicine and health have especially good predispositions for development.

Dynamic business environment requires publishing accurate and reliable information about company business performance. In this context company financial reporting becomes standard, obligatory and important company communication channel. Publishing company performance information is not for the interest of investors only, but it is because of the interest for customers as well. In present business environment, growing interest for environmental protection and sustainable development, the financial reporting framework becomes insufficient. Information related with social and environmental aspects of business grows in importance not only for employees and local community but for investors and customers as well. Tourism industry highly prioritises environmental protection issues and sustainable development as factors of highest importance for sustainable destination management. In this context non-financial reporting was voluntary for many years, but now non-financial reporting becomes not only important market issue but becomes obligatory, and standards for non-financial reporting are still developing. The primary objective of this study was to identify the level of existing experience and readiness of hotel companies in Croatia to report on sustainable reporting and sustainable business.

Innovativeness is a trait attributed to business entities. It reflects the ability of enterprises to undertake innovative activities. Innovativeness is a complex process. It depends on both external and internal factors. Owing to the small staffing and financial potential of the situation, there are SMEs. They have lower human and financial resources. Their innovation cannot be measured by the ratio of R&D expenditure. Therefore, it is important to consider what factors influence the innovation of this group of companies. The aim of the chapter is to examine the innovativeness determinant of SMEs and to determine the determinants influencing their innovativeness process. The study was conducted on the example of companies operating on the health tourism market, the subsector of aesthetic medicine tourism. The research was conducted on a representative group of Polish companies using a Delphi method and diagnostic survey method. As a result of the research, more than 80% of the companies are implementing innovation, dominating product innovations that are new to the region or to the organization. The innovativeness actions taken depend on the company. Factors related to systematic market analysis and market information gathering as well as human capital of the company (high medical staff and tendency to improve qualifications) were considered as the most important factors.

One of the most important global trends in nature conservation today is the desire to reconcile the interests of nature conservation with the various spheres of economic and social activity of man. Society is moving away from passive and conservative nature conservation to seeking active forms of protection that will ensure the integration of the function of ecological protected areas and their socioeconomic development. Tourism is attributed a particular role in the process. The chapter presents contemporary challenges and problems of sustainable development of tourism in protected areas, both in theoretical and practical terms (on the example of national parks in Poland). In particular, the chapter analyses the theoretical aspects of the nature and principles of sustainable tourism development in protected areas, shows the system of protected areas in Poland, including the tourist potential of national parks to create competitive tourism products on the European market, identifies the main barriers to sustainable tourism development in national parks. The work uses the case study and the desk research method.

Countries with different levels of development show great interest in tourism, which is caused by high economic performance of the tourism industry. The chapter shows the importance of state policy, which supports tourism development in the countries with rich natural and cultural tourism resources but have weakly developed tourism industry, weak economy, and imperfect mechanisms of state regulation. After transition to market economy and losing traditional markets, Georgia quickly recognized the importance of tourism and immediately started to implement various types of activities in this direction. In 2012 Georgia declared tourism as a priority sector. This was followed by legislative changes and boom of foreign investments in hotel constructions. High-class hotels provided the opportunity for the development of new tourism directions, which are less dependent on seasonality. The government has been promoting tourism among the skeptical local population. Georgia faces problems related to improper application of tourism regulatory instruments. Tourism consumes products and services that are not directly part of the tourism sector, but have a significant impact on its development. Therefore, development of tourism industry requires implementation of the united state policy. The state policy needs to be based on the principles of sustainable development so that all the interested parties in tourism—tourists, business, state, local communities—get benefit.

In the present study, relationships between tourism and foreign trade in France, Greece, Italy, Spain, and Turkey were investigated by using new generation panel data analysis methods for the 1995–2015 period. The presence of cross-section dependency was tested by LM, LMS, CD, and LMBC tests and cross-section dependency was determined. The stationarity of the series was examined by CADF and it was found that the series were I(1). The existence of co-integration relationship between the series in the models was investigated by Durbin-H test, and it was found that the series were co-integrated. Co-integration coefficients were estimated by the CCE method and when the number of tourists who visit the country increased by 1%, Turkish exports increased by 0.25%. In France, imports increased by 0.18% on average, when the number of tourists going abroad rose by 1%. Exports increased by 0.43% in France, 0.63% in Greece, 0.60% in Spain, and 0.93% in Turkey when exports increased by 1%. It was determined that the increase in imports increased the number of tourists going abroad in France and Spain, and decreased the same figure in Greece. In the causality test, no strong causal relationship between foreign trade and tourism was determined.

Many studies have found that shrinking wage share can affect aggregate demand both positively and negatively. There is more evidence in the literature that the impact on domestic demand (consumption expenditures) is negative whereas the influence on foreign demand (exports) is positive. In the case of overall positive impact, the aggregate demand regime is profit-led; otherwise, it is wage-led. The nature of demand regime depends on the relative shares of the domestic and foreign demand in total demand. The consumption, investment, and exports sensitivity to the wage share changes is another crucial factor shaping demand regime. We can assume that changes in wage share make a more significant impact on the exports of those countries where foreign demand’s share in GDP is relatively large. Decreasing wage share is related to the lower labor costs which in turn stimulates export competitiveness. If foreign markets are less important for countries’ economy and exports’ share in GDP is relatively small, this might weaken the relationship between wage share changes and export competitiveness. This study aims to assess whether the effect of a decrease in wage share on exports (foreign demand) depends on countries’ share of exports in GDP. Using a panel of 28 EU countries over a 20-year period (1995–2015), I found that in countries where exports’ share in GDP is relatively large, exports’ sensitivity to the wage share changes is higher.

In recent years, although China’s domestic online games have occupied a significant market share, foreign online games still play an essential role in China’s online game market today. On the one hand, this chapter is based on the analysis of the current situation of China’s online game importation; on the other hand, this chapter uses the econometric model to analyze the influencing factors of China’s online game importation. The results show that the size of China’s online game market is positively related to three factors which are the nominal GDP, the per capita disposable income of urban residents, and the market size of the Internet third-party payment. As we can see, with the development of China’s economic base and the increasing popularity of the Internet as well as the improvement of online game related laws, China’s online game import scale is expanding.