Issue 6, 2019

This article discusses the main changes in the field of digital and cryptocurrencies, as well as their interpretation from the standpoint of the common theory of money (e.g. the definition of monetary functions). The consequences of the central banks’ monetary policies as well as their reaction by launching their own digital currency (central bank digital currency/CBDC) have also been dwelt upon. The possible changes in the global currency system have been outlined. Special attention has been paid to the development of higher economic education as a result of the new monetary and financial technologies and the digital economy. These topics have been set forth against the background of the experience of different countries (with a particular emphasis on Russia's practice), as well as by summarizing leading research and publications in the field.
JEL: A2; E40; E5; F02; O3

This paper analyses the relationship between the national culture (Hofstede’s cultural dimensions Individualism, Uncertainty Avoidance index and Power Distance index, as well as Minkov’s Indulgence vs Restrain index) and the adoption of Internet banking in 30 European countries. We presume, that if there is a strong correlation between them, some recommendations to the banking sector could be made to help them develop more effective marketing strategies to increase the adoption of e-banking, based on the cultural specifics in the particular country or clusters of countries. Our findings show that there is a strong correlation between those cultural dimensions and the adoption level of e-banking. In particular, it was found that the Individualism has a lead role in most of the cases. However, in the cases of a combination of high Uncertainty Avoidance and low Indulgence, the lead role of Individualism does not manifest.
We also argue, that in the cultural combination of high Individualism, and high Uncertainty Avoidance index with low Indulgence vs Restrain index, the combination of Individualism and Restrain factors reduces the influence of Uncertainty Avoidance, no matter how high it is.
We analyse and also discuss the influence of different other factors, which influence the adoption of Internet banking, looking for combinations which lead to specific effects.
JEL: M14; M15; G21

The main aim of the research is to develop recommendations for Cooperative model implementation in order to improve SMEs` performance by cost reduction through automating manual processes and attenuating legal risks regarding code-based SMART-contracts implementation via decentralized blockchain technology. The authors explored the main benefits for business entities of using SMART contracts as a digital tool for automating a large number of business processes in the DLT-system. Among with this, the potential risks for conducting the business activity of SMEs were considered, which could be exemplified as lack of legislation, high volatility of cryptocurrency, attenuation of monitoring level, etc. The usage of blockchain Smart contracts as the part of machine learning could lead to become SME Smarter, more dynamic, more flexible and more integrated with big data, which presupposes innovative component of business development.
In the context of Smart specialization implementation in developing countries in EU, the Cooperative Model between different stakeholders based on SMART contracts in the frame of Smart specialization was designed and proposed by the authors.  This Model allows to involve non-top developed regions into the innovative process. Besides SMEs' participation, the Model provides cooperation between other participants: research and innovative centers, universities, government structures, non-government organization, big corporations. It was studied how SMART contracts make review the business process and revolutionize it, improving difficult collaborations between business and science organizations. The fragment of possible Smart contract program code was regarded as an example.
JEL: G12; G15; G24; G32

The historical roots and subsequent development of political advertising in the modern world are examined. A definition of this type of advertising is derived based on a review of some of its most important scientific productions. The views of leading theorists of political advertising in the twentieth century are presented. A classification of the main types of political advertising is made.
JEL: M37

The study of the economic aspects of leadership is a topical issue both in practical applications or management theories and in general economic science for understanding the issues of entrepreneurship, competitiveness, international economics, globalization. The phenomenon of leadership is interest in the context of determining its essence, mechanisms, role in the processes of world economic development and evaluation. The separation of this kind of leadership as an intellectual is caused by the increasing importance of human resources in general and their intellectual components, in particular, in supporting the development of a modern economy. Intellectual factors, directly or indirectly, due to the influence on other factors, are becoming key in ensuring high positions in today's highly competitive environment. Identifying the influence and role of intellectual factors in achieving leadership positions in the global economy is enabled by the analysis of the intellectual component in different approaches to determining leadership positions. Methodical approaches for estimation of the intellectual leadership of multilevel entities in the global economy are offered. The presented methodology is based on the identification of the three levels of intellectual leadership implementation: the level of resources, the level of results and the level of final results. Each of these levels is characterized by an appropriate system of indicators for different subjects, which allows them to determine their positions according to different criteria at different levels of competition. This research can be used by economists, management specialists.
JEL: I23; I25

Potential of sustainable regional development is studied through demographic, economic, social, socio-cultural and ecological indicators in order to determine the strategy development areas of regional SMART specialisation on the example of Cherkasy oblast (the central region of Ukraine).
Cherkasy oblast was selected for the study because it is one of the pilot regions for the implementation of the SMART specialisation strategies.
The following methods were used in the course of the study: the system-structure analysis, comparative-geographic method, mapping (GIS – MapInfo Professional, Surfer Golden Software, and program for gravity modelling of the potential field calculation), interpolation, correlation and description-statistical method.
The results of the study are intended for national and regional policy-makers, representatives of self-governance, researchers dealing with regional development problems, NGOs, representatives of small and medium business, public activists and others.
The proposed results of the study of the sustainable regional development potential in view of SMART specialisation on the example of Cherkassy oblast may be used in the countries of the Eastern Partnership (Belarus, Georgia, Moldova, Azerbaijan, Armenia).
JEL: R11; R53

The paper analyses the potential macroeconomic effects that the transition to a low-carbon economy would generate on investment activity and employment in the energy sector in Bulgaria. Global and European initiatives and regulations are reviewed. They trace the changes in the structure of the energy sector and may be assessed as an external shock to the country's economic growth. Using the production function approach, the relationship between real GDP, on the one hand, and capital and employees in the energy sector, on the other hand, is modelled and estimated in 1997-2017. The econometric estimate shows that a negative effect on the real GDP growth rate would be expected due to the contraction of the energy sector. Such effects may stem from the reduction of investments because of a decrease in production and profits in the sector, while employment levels have no significant impact on gross value added. This puts much more emphasis on conducting government policies on maintaining the technological level of the sector than on the negative social consequences of increasing unemployment in the energy sector.
JEL: Е01; 044; 047

The aim of the article is to study creditor passivity among non-financial enterprises in Bulgaria. The analysis is based on data from a national representative empirical sociological survey among 1000 non-financial enterprises of different size and main activity. The results of the survey reveal that a significant part of the companies (little more than one-tenth of respondents) do not have a precisely defined approach to reducing the risk of overdue receivables.
The profile of companies showing creditor passivity is outlined. On the whole, it can be summarized that the share of firms lacking a certain approach to reducing the risk of overdue receivables is higher for enterprises with lower turnover and value-added, with fewer employees, operating in sectors with lower entry barriers, firms that have failed to expand their markets and their production capacity in recent years and are characterized by weak innovation activity.
There are statistically significant links between the lack of a certain approach to mitigating the risk of overdue receivables and various indicators of the relative market power of firms.
The study also identifies dependencies between the passivity of firms as creditors and their innovation activity, the specifics of the corporate culture, in particular, the management of the motivation of the employees, the maintenance of the image of the company in the public space, the concern for building a long-term relationship with the trade partners. These dependencies also testify to the importance of the quality of management and, in particular, to the role of having a comprehensive vision of the company's development for effective credit risk management.
JEL: G30; G32; G39

The paper investigates how Bulgarian social economy has currently been performing. In the text, the author mainly focuses on an analysis of various financial indicators of Social Enterprises in Bulgaria as well as on different relations between these indicators. This research explores social phenomena on the Bulgarian market related to Social Entrepreneurs (SErs) and Social Entrepreneurship (SEp). The article investigates which factors are important to facilitate their relationships and provide a full profile of SErs. The research methodology is of a survey-descriptive type. A wide range of research methods are used to successfully achieve the goals and tasks of the research. Analysis of collected data was made using the Statistical Package for the Social Sciences (SPSS).
JEL: L26; L31