Europe in the New World Economy: Opportunities and Challenges

Inhaltsverzeichnis

1. Frontmatter

2. Chapter 1. 100 Years of Academic Economic and Social Research in Romania

   Luminița Chivu, Valeriu Ioan-Franc, George Georgescu

   Abstract

   The paper focuses on the history of the economic research organization and development in Romania during the last century, in three distinct periods: interwar (1918–1947), socialist (1948–1989) and post-communist (1990-present). Each period is analysed taking into account its particularities, being presented the economic research interest areas and topics under the circumstances of institutional research network changes, highlighting the contribution of the main promoters and scientists, and the most representative works and publications in economics. The paper is presenting the research organizations outstanding scientific achievements, including those related to the complex theoretical and practical issues of Romania’s transition to the market economy and European integration with a special focus on the National Institute for Economic Research “Costin C. Kirițescu” of the Romanian Academy as well as the research institutes and centres of its network.

3. Chapter 2. Is Basic Scientific Research Still a Priority in Romania?!

   Valeriu Ioan-Franc, Andrei-Marius Diamescu

   Abstract

   The intervention outlines, through a critical and punctual analysis, a perspective on how the leadership of contemporary Romanian society relates to scientific research in general, and to basic scientific research in particular. The Romanian Academy, the epicenter of basic scientific research in our country, reserves the right, the authors claim, to produce its own assessments in the spirit of society’s requirements, in keeping with its commitment to having served the nation for over 100 years. Considering the status of the Romanian Academy, the current relevance of “the highest national forum of scientific and cultural consecration” is all the greater since, at present, there is an obvious tendency to generalize the “commensuration” of research results by industrial/economic means/methods, a way that is totally and utterly inappropriate for basic scientific research.

4. Chapter 3. Exploring the Recent Inflationary Pressure: Features and Challenges for Central Banks

   Adina Criste, Iulia Lupu

   Abstract

   One of the major problems reported worldwide is the recent inflation dynamics, reflected by its sharp increase since 2021 and the persistence of high levels in the following years. Starting from some specific features of the recent inflationary episode, the research focuses on analysing the dynamics of inflation in the European Union countries compared to how consumers perceive inflation. Using recent data provided by Eurostat, the ECB Survey of Professional Forecasters, and data provided by the European Commission business and consumer surveys for the European Union countries, the results show the maintenance of large gaps between the perception of inflation and its actual level. In response to the increase in inflationary pressure, central banks changed their monetary policy conduct from easing to restrictive, reflected by successive increases in policy interest rates. Although the inflationary pressure has eased, the forecasts show that it will remain above the predetermined target level in the coming years, bearing the risk of impairing inflationary expectations. In a pessimistic scenario, the persistence of above-target inflation can maintain a certain sentiment of uncertainty among consumers and implicitly fuel the negative perception regarding the evolution of inflation. Therefore, one of the major challenges facing central banks is to find a way to improve their communication strategy with the public by integrating the objective aimed at improving consumers’ economic and financial education.

5. Chapter 4. Fiscal Consolidation in Eurozone Countries

   Ada Cristina Marinescu

   Abstract

   Fiscal consolidation episodes can be implemented either through increases in government revenues or reduction in public expenditure. Fiscal consolidation has an important role in macroeconomic stabilization as it can reduce budgetary pressures and improve fiscal sustainability. We will study in this paper several fiscal consolidation episodes in EZ countries, implemented as a reaction to a severe economic contraction which resulted in important increases of public debts and deficits. Our results confirm the existence of significant differences between core and periphery EZ member states regarding fiscal adjustments. Fiscal space represents an important tool to cope with negative output shocks, which can produce significant increases in debt and deficits and reduce the scope for expansionary fiscal policies implemented in order to restore economic growth.

6. Chapter 5. BRICS+ and the New International Economic Order

   Iulia Monica Oehler-Șincai

   Abstract

   The present paper has as key objectives the investigation of the BRICS+ institutional architecture and its support for a NIEO, the analysis of the BRICS countries in terms of economic power and influence, as well as the interpretation of the enlargement process considering specific motivations for each new participant. The key novelty of this research resides in the classification of potential and current partners worldwide in five main categories, according to their position towards BRICS. Motivations of economic, geopolitical and ideological origin are analysed, based on official declarations and literature review. Among the new member states, the United Arab Emirates is interested in BRICS from the perspective of increasing its bargaining power and role on the international stage. For Egypt and Ethiopia, BRICS membership is mainly relevant from an economic standpoint. For Iran, the accession is impelled by economic and geopolitical determinants. Argentina’s position change is of ideological origin. The paper also fills the gap in the literature regarding the current NIEO, which is different not only from those between 1970s and 1989, but also from that reflecting the “unipolar moment”. The expectations of developing countries in relationship with BRICS are high, being related to the NIEO, inclusive multilateralism and reform of multilateral organizations.

7. Chapter 6. The Influence of Private Credit on Economic Development in Romania

   Elena-Florentina (Popescu) Mircea

   Abstract

   In a period marked by globalization, social, and military events with profound national and international implications, Romania must aim for sustainable economic development. The Gross Domestic Product (GDP) can be used to measure a country’s level of economic development. Considering that the engine of growth is the private sector, this paper aims to analyse the influence the private sector’s level of lending has on the GDP. For this purpose, a linear regression was created to analyse the dependence of GDP on credit granted to the private sector. The model shows the positive impact that domestic credit granted to the private sector has on economic development, i.e. increases in domestic credit granted to the private sector result in increases in GDP.

8. Chapter 7. Unlocking Financial Innovation: The Synergy of Open Banking and Artificial Intelligence in Banking System

   Isabelle Oprea

   Abstract

   The synergy between Open Banking and Artificial Intelligence (AI) represents a key initiative in recent years that hit the banking industry at a global level. Open Banking, which is led by technological innovation and strict legal norms, started new times for data accessibility by allowing third parties to access and utilize the financial data of the clients of the banks. This information is accessed of course, with the consent of the bank’s customers. In the same time, AI technologies evolved and offer very useful tools for data analysis and automation. The base principles regarding data sharing of Open Banking, the client’s competencies and increased competition in the financial system created new ways of application of AI. This article explores the convergence between open banking and AI, investigating how this interaction is reshaping the financial services industry. Through a literature review, the study examines the current state of open banking and of Artificial Intelligence technologies, and how their merger is fostering innovation, upgrades customer experiences, and ensures greater financial inclusivity in banking system. The search reveals that the synergy of open banking and Artificial Intelligence imply substantial opportunities; it also presents challenges related to data privacy and security. It also provides practical implications for banks and Fintech companies targeting to navigate the evolving landscape of digital finance.

9. Chapter 8. A Comparison Between Human Trading and Algorithmic Trading

   Florentin Șerban, Bogdan-Petru Vrînceanu

   Abstract

   This study presents a comparative analysis of human trading and algorithmic trading, focusing on the methodology employed and the resulting performance metrics. Methodologically, an algorithmic trading bot was developed using Pine Script 5, leveraging the Learning Vector Quantization (LVQ) algorithm model. The bot operated autonomously, executing predefined trading strategies without human intervention. In contrast, human trading involved manual decision-making within defined working hours. Key performance indicators such as net profit, total closed trades, win rate, and profit factor were analysed to assess the efficacy of each approach. The results revealed that while algorithmic trading offered benefits in terms of automation and efficiency, human trading demonstrated instances of superior profitability and adaptability, particularly during working hours. This study underscores the importance of integrating the strengths of both approaches to develop robust trading strategies that are adaptive and effective in navigating dynamic market conditions.

10. Chapter 9. Econometric Analysis on the Interdependence Between the Size of the Population, Level of CO2 Emissions and Evolution of GDP

    Mihaela-Irma Vlădescu, Carmen-Adriana Gheorghe, Mihaela-Georgiana Oprea, Ignacio De Los Rios Carmenado

    Abstract

    Climate change and environmental degradation influence the sustainable economy, producing effects at both the macroeconomic and microeconomic levels. The links between economic growth and environmental pollution and energy consumption have been studied extensively in recent years. The state of environmental quality is influenced by the level of income per capita, a phenomenon that generates changes in environmental policies. With increasing per capita income, people tend to consume more goods and services, which leads to more intensive use of natural resources and more waste production. High economic development is usually accompanied by accelerated industrialization and urbanization; these processes can produce negative effects on the environment, such as air and water pollution and deforestation for the expansion of urban areas. Economic growth also brings benefits such as increased availability of financial resources. These resources can be directed towards investments in renewable energies, climate-resilient infrastructure and environmental conservation programs. Economic growth also stimulates technological innovation, investment in research and development, including the development of sustainable technologies and solutions to reduce greenhouse gas emissions, with additional revenues helping to finance measures needed to address climate change and challenges. The purpose of this study is to analyse the existence of a dynamic dependency relationship between the evolution of the GDP indicator and the evolution of the indicators: CO₂ emissions and the number of inhabitants, in the last 19 years, in Romania.

11. Chapter 10. Bridging the Gap: Population Statistics as a Tool for Measuring Sustainable Development

    Ana-Maria Ciuhu, Valentina Vasile, Raluca Mazilescu, Marius Surugiu, Teodor Sedlarski

    Abstract

    The population is a strategic resource for any economy, and analysing its medium- and long-term evolution allows for estimating the potential human capital available to the national labor market. Therefore, examining the population’s dynamics and structure—based on census surveys and the identification of sustainability attributes and factors—is crucial for the business environment, the education system, and political decision-makers responsible for public policies that ensure the intelligent use of national resources. Through the comparative analysis of the characteristics of the population from the last four censuses, the paper aims to identify, on the one hand, to what extent this survey allows us to identify and measure the characteristics of the population that have an impact on the supply of human resources for the labor market and, on the other hand part, the main indicators that adjust the provision of labor market needs. Overall, the statistical analysis of socio-economic indicators demonstrates how demographic factors, educational attainment, and economic sectors interplay to shape the dynamics of the labor force. At the same time, demographic aging and increased intergenerational dependence underscore the need for integrated policies to support a demographic model that sustains present and future labor resources. This should be associated with policies that encourage the prolonged presence of the elderly in the labor market and a human development model that will retain young people in Romania.

12. Chapter 11. Demographic Trends and Human Impact on Landscape: A Corine Land Cover Data Analysis of Artificial Surface Expansion

    Mihaita Iulian Niculae, Gabriel Vanau, Sorin Avram, Irina Onțel, Carmen-Adriana Gheorghe, Ana-Maria Corpade, Cristian Maloș, Donatella Privitera

    Abstract

    This study assesses the influence of artificial surfaces and demographic changes on landscape dynamics within and around Romania’s protected areas since 2000. Utilizing Corine Land Cover data, we analyzed land use and land cover changes in 13 natural parks and two geoparks, excluding Vacaresti Natural Park due to its distinct characteristics that made it irrelevant for such an analysis. Our findings reveal a general trend of decreasing population within these areas, with significant variations in the expansion of artificial surfaces. Specifically, while most areas witnessed a reduction in artificial surfaces and demographic figures, notable exceptions were observed. The protective status of these parks has contributed to mitigating unrestricted urban expansion, preserving natural landscapes and biodiversity. However, economic growth, demographic shifts, and land-use modifications pose ongoing challenges to the balance between conservation efforts and developmental pressures. Our study underscores the importance of adaptive management practices, integrating socioeconomic development with environmental conservation to ensure the sustainability of these natural reserves. The results highlight the crucial role of protected areas in balancing ecological preservation with human activity, calling for continuous refinement of conservation strategies amid evolving socioeconomic landscapes.

13. Chapter 12. Demographic Dynamics: A Key Factor in the Transition to Zero Energy Buildings (ZEB) Standard

    Larisa Georgiana Ungureanu, Teodor Andrei Cipu, Ștefan-Cătălin Petrescu, Ruxandra-Ioana Cipu, Elena Corina Cipu

    Abstract

    Mathematical modeling of demographic dynamics and the transition to Zero Energy Building (ZEB) standards is a complex and interdisciplinary endeavor. It requires expertise in mathematics, statistics, economics, and a deep understanding of the factors at play. It can be a valuable tool for policymakers, urban planners, and industry stakeholders seeking to navigate the challenges of sustainable building transitions in a dynamic socioeconomic landscape. Research in these areas can help identify key drivers and milestones in the relationship between demographic cycles and the transition to the ZEB standard, contributing to a better understanding of this complex and dynamic intersection. Starting from the definition of variables and looking for parameter and time dependence through simulations and data collection through sensitivity analysis and scenarios, optimization techniques are considered to find the best strategies to achieve the ZEB adoption objectives, considering demographic and economic constraints.

14. Chapter 13. Effects of the Use of AI on Jobs and on the Employment Model: Limits and Risks

    Răzvan Vasile, Elena Bunduchi, Valentin Sava, Olga Pachni-Tsitiridou

    Abstract

    The digital transformation has brought fundamental changes to the content of work and the structure of jobs, from easing work tasks to replacing human work and creating new jobs. Currently, the question is to what extent the use of artificial intelligence (AI) in the business environment will determine a new employment shift, to what extent it will definitively replace the workforce. In the present study, on the one hand, the current offers for the use of AI in productive processes are analyzed, whether it is the creation of products, the optimization of some services, and, on the other hand, the opportunities for the efficiency of managerial activity increase. The bibliometric analysis using VOSviewer is used and it is completed with a qualitative analysis, based on a focus group and the application of an in-depth questionnaire, which aims to identify the extent to which AI can and will replace human activity. The quantitative results of the exploratory research show us the limits, at least in the current phase of AI development, of human substitution in the production processes of goods/services or in managerial activities. The conclusions identify the role of AI as a tool to optimize work tasks for decision-making processes and facilitator of updating work content and the limits of total human replacement. We are facing with a new employment shift, different from others because it will impact the work content as such of the most jobs and, at least in this development stage of the generative AI, will assist, without final decision in processing activities or in services providing.

15. Chapter 14. The Ethical Concerns of AI Technologies in Human Resources

    Diana-Cristina Lungu, Adriana Grigorescu, Zahid Yousaf

    Abstract

    Technologies have developed enormously in recent years, and the involvement of artificial intelligence (AI) in processes from different fields is becoming more and more common these days. The integration of AI technologies into human resources (HR) has garnered significant attention and transformed how organizations manage their workforce. This chapter discusses the ethical difficulties raised by the increasing use of AI in HR procedures. It explores artificial intelligence’s possible benefits and downsides, with a special emphasis on justice, prejudice, privacy, and transparency. The chapter also emphasizes the significance of ensuring that AI-driven HR procedures adhere to ethical values and regulatory laws, hence creating a more inclusive and equal workplace. AI is playing a significant pivotal role in HR decision-making; understanding and addressing these ethical concerns is crucial to maintaining the balance between innovation and ethics in the realm of HR management. The chapter concludes by highlighting the need for guidelines and best practices to navigate the evolving landscape of AI in HR, ultimately fostering a more responsible and ethical integration of AI technologies in the workplace.

16. Chapter 15. Assessing the Behaviour of Generation Z in the Labour Market from an Organizational Perspective

    Alic Bîrcă, Christiana Brigitte Sandu

    Abstract

    Currently, there are three generations on the labour market—X, Y and Z—working together, with different values and attitudes to working life. The objective of this chapter is to assess the behaviour of Generation Z in the labour market, in particular the weaknesses observed from employers. Under the current conditions, Generation Z differs from other generations in the labour market, having different values in their work. At the same time, there are also certain problems or weaknesses related to the workplace, observed in Generation Z. In order to achieve the research objective, an eight-item questionnaire was developed to reflect the problems or weaknesses of Generation Z youth who have recently been employed in organizations. The sample included 288 organizations, and respondents (company managers or HR managers) had to identify which of the eight items (problems/weaknesses) characterize this generation in the professional environment. In order to have a more comprehensive analysis, the assessment of Generation Z was carried out on four categories of employees: auxiliary personnel, workers, specialists and managers. SPSS was used for data processing and Chi-Square test of association and correspondence analysis were applied. The results show that the weaknesses recorded in Generation Z differ from one category of employees to another. Urban organizations also highlighted some weaknesses of Generation Z, while rural ones—others.

17. Chapter 16. Analysis of the European Union’s Supportive Measures for Overcoming Challenges of Youth Unemployment

    Nataša Papić-Blagojević

    Abstract

    Youth unemployment in the European Union countries has been a problem for many years, and an evident increase occurred during 2020 under the influence of the COVID-19 pandemic. According to the OECD report (The Missing Entrepreneurs, 2021), many young people had problems finding adequate employment in that period. In 2020, unemployment among young people up to the age of 25 in the countries of the European Union increased by 2.8% compared to the previous year; at the same time, the unemployment rate of young people aged up to 29 increased by 1.4%. High youth unemployment rates reflect the challenges they face when looking for a job. The most common problem is a lack of experience because employers seek experienced and qualified workers. According to Eurostat data (2023), from 2002 to 2022, the highest unemployment rates were from 2012 to 2014. A decrease in the unemployment rate followed it and lasted until the second quarter of 2020, when a significant increase occurred under the influence of the pandemic. Between 2014 and 2020, the European Union worked intensively on youth support programmes to reduce unemployment. In order to analyse the trends in youth unemployment between the ages of 15 and 29 and to make predictions about future trends, the chapter will examine the unemployment rate in the period from 2002 to 2022 with a parallel analysis of the European Union measures developed and implemented to create opportunities for easier and faster job finding.

18. Chapter 17. Moral Values and Human Values: Support for Sustainable Societal Development

    Ioan-Gheorghe Rotaru

    Abstract

    Starting from the definition of value in our work, namely the fact that they are the benchmark in the socialization criteria of the individual and a direct reference for the sustainable development of society. We can say that the value defines our and society’s system of options and determines our orientation or the collectivity of which we are a part in the evolved society subject to multiple challenges. Moreover, the individual and implicitly society relates, or should relate, to the main moral values, namely: kindness, courage, altruism, perseverance, empathy. Based on existing empirical research, the results of our work will highlight the fact that through value, the individual plans his personal value involvements or looks for certain attitudes and qualities of the people he interacts with. Value helps us formulate our goals and define our perspectives. The value also defines the character and direction of personal relationships, the preference of choosing or rejecting partners in a collective participation. In the conclusions of the chapter, we will highlight the fact that values have a determining and fundamental role in all creative, cooperative or conflicting human actions. Moreover, through them we can each of us participate in the societal balance and a sustainable development of the current society, in the context of the multiple crises in which we find ourselves.