Current Economic Trends in Emerging and Developing Countries

INTERNATIONAL CONFERENCE

CURRENT ECONOMIC TRENDS IN EMERGING AND DEVELOPING COUNTRIES

TIMTED 2019

PROGRAMME AND CONFERENCE ABSTRACTS

June 6-8, 2019 TIMIŞOARA, ROMANIA

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

ORGANIZER

PARTNERS

Faculty of Economics and Business Administration West University of Timişoara 16 J.H. Pestalozzi Street 300115, Timişoara, Romania

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

SCIENTIFIC BOARD

ALBU Lucian-Liviu, Romanian Academy, Institute for Economic Forecasting, Romania AIRINEI Dinu, Alexandru Ioan Cuza University, Romania ABDEL-BADEEH Salem, Ain Shams University, Egypt BERÁCS József, Corvinus University, Hungary CALCIU Mihai, University of Lille 1, France CAPRARU Sebastian Bogdan, Alexandru Ioan Cuza University, Romania COMBES Jean-Louis, University of Clermont -Auvergne, France CONSTANTIN Daniela Luminiţa, The Bucharest University of Economics Studies, Romania D’ANSELMI Paolo, University of Rome, Italy DEACONU Adela, Babeș Bolyai University, Romania DEMIR Ender, Istanbul Medeniyet University, Turkey DENTINHO Tomaz Ponce, Azores University, Portugal DOBRESCU Loretti, University of New South Wales, Australia ĐUKID Mihajlo, Institute of Economic Sciences, Serbia DUNAY Anna, Szent István University, Hungary ĐURIČIN Sonja, Institute of Economic Sciences, Serbia FARUK Şahin, Muğla Sıtkı Koçman University, Turkey FILIP Andrei, ESSEC Business School Paris, France FULCONIS François, University of Avignon, France HARDING Liliana, University of East Anglia, United Kingdom IDOWU, Samuel O., London Metropolitan University, UK ILLÉS Csaba Bálint, Szent István University, Hungary KYOPHILAVONG Phouphet, National University of Laos, Laos LOPEZ-RODRIGUEZ Jesus, Universidade da Coruña, Spain MARTIN Claude, University of Pierre-Mendès, France 3

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

MINEA Alexandru, University of Clermont -Auvergne, France MURSA Gabriel, Alexandru Ioan Cuza University, Romania MUTAȘCU Mihai, ESCE International Business School Paris, France NERI Fillipo, University of Naples ″Federico II″, Italy OROS Cornel, University of Poitiers, France PACHE Gilles, University of Aix-Marseille, France PETRESCU Maria, Nova Southeastern University, USA PETTINGER Richard, University College London, United Kingdom POP-SILAGHI Monica Ioana, Babeș Bolyai University, Romania SILAGHI Gheorghe, Babeș Bolyai University, Romania SUCIU Marta Christina, The Bucharest University of Economics Studies, Romania THALASSINOS Eleftherios Ioannis, University of Piraeus, Greece TURCU Camelia, University of Orléans, France VOIA Marcel- Cristian, Carleton University of Ottawa, Canada XHEPA Selami, European University of Tirana, Albania

ORGANISING COMMITTEE

PIRTEA Marilen Gabriel, Rector, West University of Timişoara ENACHE Cosmin, Vice Rector, West University of Timişoara ȘTEFEA Petru Marin, President of the Organizing Committee, Dean,Faculty of Economics and Business Administration SÎRGHI Nicoleta, Vice President of the Organizing Committee, Vice Dean, Faculty of Economics and Business Administration BOȚOC Claudiu Florin, Vice Dean, Faculty of Economics and Business Administration GLIGOR Delia Anca Gabriela, Vice Dean, Faculty of Economics and Business Administration

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

ALMĂȘAN Alina BĂBĂIȚĂ Carmen Mihaela BUNGET Ovidiu Constantin BOLDEA Monica CISMAȘ Laura Mariana CUREA-PITORAC Ruxandra DIMA Bogdan DIMA Ștefana Maria HAȚEGAN Camelia Daniela MARGEA Camelia MARGEA Romeo MICULESCU Andra MILOVAN Anca MIRCEA Gabriela MOLDOVAN Nicoleta Claudia MUNTEAN Mihaela MUNTEANU Valentin Partenie NEAMȚU Mihaela NAGY Andrea NOJA Grațiela Georgiana NIȚU-ANTONIE Renate PARA Iulia PELIN Andrei ȘTEFANIGA Anca-Ioana VĂDĂSAN Ioana VĂTAVU Sorana VECHE Bogdan

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

CONFERENCE LOCATION

Faculty of Economics and Business Administration West University of Timişoara 16 J.H. Pestalozzi Street 300115, Timişoara, Romania

An open space, with computers&free Wi-Fi is available at ECREB-P08 (ground floor)

All participants have free Wi-Fi access: UVT-Guest-HotSpot

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

KEYNOTE SPEAKERS

Richard PETTINGER University College London

Principal Teaching Fellow (Reader/Associate Professor) in Management Education at University College London (UCL), he has also been the founder and creator of the undergraduate and graduate programmes in information management for business, in the UCL School of Management. Richard is the author of over fifty books and numerous papers on all parts of the subject of management. His research interests are privatisation and restructuring, the effects of organisation and human behaviour on decision taking in organisations, and the development of a professional and agreed body of knowledge and expertise for the ‘profession and professionalisation of management’. He is also a major contributor to the development of management teaching and learning initiatives in the UK university sector, particularly through the UK Information Technology Management for Business (ITMB) initiative. Richard is presently designing, developing and delivering major new higher education initiatives under the heading of: Society, Technology and Behaviour. This venture seeks to demonstrate that there are major advantages to be gained from taking a much wider view of business and infrastructure development, than concentrating on narrow and prescribed economic advantages. Richard continues to research write and consult with companies and organisations of all sizes and in many different sectors. He regularly is asked to join panels and conferences as keynote speaker, conference and session chair and expert contributor.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Rita D’ECCLESIA Sapienza University of Rome

Professor of Quantitative Methods at Sapienza University of Rome, Chair of the Euro Working Group for Commodities and Financial Modelling and Director of the PhD programme in Economics and Finance at Sapienza and Chair of the International Summer School on Risk Measurement and Control organized yearly in Rome. She teaches currently Financial Math, Asset Pricing, Risk Management at undergraduate, graduate and PhD level. She was visiting Professor at Birkbeck University of London from 2008 to 2015 were she taught for the MSc in Financial Engineering and Commodities. She has been teaching advanced training courses for several international companies in UK, Sweden, Netherlands and France. She has a broad expertise and deep understanding of financial markets, price modelling, optimization techniques and energy markets dynamics. She served as member of the hiring committee to select quantitative method experts for the Bank of Italy, Consob and Department of Education. She has been serving as independent expert in the Board of major Italian Banks since 2016. At the moment she is in the Board of Banco BPM, the third largest Bank in Italy. Her research topics spread from portfolio optimization to pricing financial securities and commodities.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Sascha KRAUS ESCE International Business School

Research Professor for Innovation & Entrepreneurship at ESCE International Business School, Paris, France. Before, he was a Full Professor and Chairholder in Strategic Management and Entrepreneurship at the University of Liechtenstein, and, parallel to that, Visiting Professor at Copenhagen Business School, Denmark in 2015 and at the University of St. Gallen, Switzerland in the two years before. He holds a doctorate in Social and Economic Sciences from Klagenfurt University, Austria, a Ph.D. degree in Industrial Engineering and Management from Helsinki University of Technology and a Habilitation (Venia Docendi) from Laapeenranta University of Technology, both in Finland. From 2008-2013, he was Full Professor and Chairholder in Entrepreneurship at Utrecht University, The Netherlands, which also awarded him with the highest Dutch qualification as a university professor, the “Senior Kwalificatie Onderwijs”. In 2008, he was also Participating Professor at the “European Entrepreneurship Colloquium on Participant-Centered Learning” (EECPCL) at Harvard University. Professor Kraus is – according to the leading German financial magazine “Handelsblatt” – one of the “Top 20 Researchers in Business & Management” in all German-speaking countries. His main research areas are Strategy, Internationalization, Entrepreneurship and Innovation. He is the author of more than 100 academic articles, his research being published in outlets such as the Journal of Product Innovation Management, the Journal of World Business, the Journal of Business Research, Industrial Marketing Management, Entrepreneurship & Regional Development or Small Business Economics. He holds an h-Index of 39 and ca. 5,000 citations according to Google Scholar (as of June 2018).

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Jesus LÓPEZ-RODRÍGUEZ

Universidade da Coruña

Associate Professor of Economics at Coruña University (Universidade da Coruña), he has taught there since 1997. He is also a senior research fellow at the Jean Monnet Research Group on Competition and Regional Development (C+D) where he served as director from 2013-2015. During 2013 and 2014 he worked at the Institute for Prospective Technological Studies-Joint Research Centre (IPTS-JRC), of the European Commission as a senior economist. He has an extensive track record of research in geographical economics, regional growth and disparities, EU regional policy, EU political economy, industrial economics and more recently in public economics. Lopez-Rodriguez has been invited to give economic seminars in different national and international institutions such as the Univ. of Cincinnati, Univ. of Illinois, Univ. of Arizona, Univ. of Texas, Georgia State Univ., Exeter Univ., Cardiff Business School., Sabanci Univ., Ecole d´Economie University d´Auvergne, DG Regio, Universidad Torcuato di Tella, Eafit, Universidad de los Andes, Banco de la República de Colombia. Lopez-Rodriguez has also been invited as keynote speaker at several international conferences. He has been a visiting scholar at a number of universities including Harvard University (2007-08 and 2012), London School of Economics (2004, 2005, 2011), Institute of Capital, Creativity and Innovation at University of Texas (2003) and University of Exeter (1999, 2000, 2001). He has acted as consultant to several institutions including the DG Regio, European Commission, European Parliament, Galician Court of Competition, Basque Court of Competition, Galicia Innovation agency. In January 2016 he got the accreditation for Full Professor (Catedrático de Universidad), the highest rank at the Spanish university system, given by the Spanish National Agency for quality and accreditation (ANECA).

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

INVITED LECTURERS

Alexandru MINEA

University of Clermont -Auvergne

Full Professor of Economics at the University of Auvergne (Clermont-Ferrand, France), member of the CERDI Department (www.cerdi.org) and adjunct research professor at Carleton University (Ottawa, Canada). He also served as short-term expert for the International Monetary Fund (IMF) in Bangladesh. Dr. Minea has published articles in prestigious international journals, such as: Economic Theory, Journal of International Money and Finance, Ecological Economics, Applied Economics, Economic Modelling.

Marcel-Cristian VOIA

Carleton University

Full Professor of Economics at University of Orleans, and Carleton University. He is an applied econometrician, who works in many fields of economics including: labor, health, energy, industrial, public and financial economics; econometrics; political science and education. He published 40 papers is a wide range of journals including: Journal of American Statistical Association, Journal of Industrial Economics, Annals of Economics and Statistics, Party Politics, Journal of Economics and Statistics, Journal of Macroeconomics, Journal of Institutional and Theoretical Economics.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

PLENARY LECTURERS

Eleftherios THALASSINOS

University of Piraeus

Professor of Quantitative Methods and International Economics, Director of MSc in Maritime Studies at University of Piraeus, Greece. He is also an Affiliate Professor at University of Malta and Visiting Professor at Open University of Cyprus and other prestigious universities, as well as European Chair Jean Monnet in Economic Integration. Prof. Thalassinos is the General Editor/ Founder of European Research Studies Journal since 1998, as well as of International Journal of Economics and Business Administration since 2012. He has a wide range of experience as Board Chair/Founder of International Strategic Management Association (ISMA), respectively as editor for various journals.

Paolo D'ANSELMI University of Rome Tor Vergata

A small entrepreneur throughout the 1990’s, Mr. D’Anselmi is now a practitioner of public policy and management consultancy. He is a doctoral candidate at London Metropolitan University and the author of Unknown Values and Stakeholders: The Pro-Business Outcome and the Role of Competition (2017), Palgrave, 2nd edition. He is head of research at Innova Economia in Rome, Italy, and teaches Corporate Social Responsibility at the Università di Roma Tor Vergata.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

AT A GLANCE June 6, 2019 (Thursday) 9.15-10.00 Registration 10.00-10.15 Conference Opening 10.15-11.00 RICHARD PETTINGER, University College London, United Kingdom 11.00-11.15 Coffee break 11.15-12.00 RITA D’ECCLESIA, Sapienza University of Rome, Italy 12.00-12.15 Coffee break 12.15-13.00 SASCHA KRAUS, ESCE International Business School, France 13.00-14.00 Lunch 14.00-14.45 JESÚS LÓPEZ-RODRÍGUEZ, Universidade da Coruña, Spain 14.45-15.00 Coffee break 15.00-16.30 Parallel sessions 16.30-16.45 Coffee break 16.45-18.15 Parallel sessions 19.00 - Gala Dinner June 7, 2019 (Friday) 9.00-10.30 Parallel sessions 10.30-10.45 Coffee break 10.45-11.30 ELEFTHERIOS THALASSINOS, University of Piraeus, Greece 11.30-12.15 PAOLO D'ANSELMI, University of Rome Tor Vergata, Italy 12.15-13.00 Coffee break 13.00-14.30 Parallel sessions 14.30-14.45 Coffee break 14.45-15.45 Parallel sessions 16.00 - SOCIAL PROGRAMME at RECAȘ Wineries June 8, 2019 (Saturday) 9.30-11.00 Marcel VOIA, Carleton University of Ottawa, Canada 11.00-11.10 Coffee break 11.10-12.40 Alexandru MINEA, University of Clermont - Auvergne, France 16.00-18.30 Timişoara Sightseeing Tour

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

DETAILED CONFERENCE PROGRAMME

June 6, 2019 (Thursday) 09.15 - 10.00 Registration Main lobby - ground floor 10.00 - 10.15 Conference Opening P02 - ground floor 10.15 - 11.00 Lecture Economic Development in a Socio P02 - ground floor Technologically Driven Environment (Richard PETTINGER, University College London, United Kingdom) 11.00 - 11.15 Coffee break - Google Digital Room P04 - ground floor 11.15 - 12.00 Lecture NPLs in the banking system and their P02 - ground floor macroeconomic effects (Rita D’ECCLESIA, Sapienza University of Rome, Italy) 12.00 - 12.15 Coffee break - Google Digital Room P04 - ground floor 12.15 - 13.00 Lecture Entrepreneurial Orientation as a P02 - ground floor Success Driver across National Cultures (Sascha KRAUS, ESCE International Business School, France) 13.00 - 14.00 Lunch 14.00 - 14.45 Lecture Growing like Spain: EU transport P02 - ground floor infrastructure investments and productivity growth over 1989-2010 (Jesus LÓPEZ- RODRÍGUEZ, Universidade da Coruña, Spain) 14.45 - 15.00 Coffee break - Google Digital Room P04 - ground floor

15.00 - 16.30 Parallel Sessions

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session Spéciale Francophone Session: International Business and Global Modern Economy P05 (ground floor) P02 (ground floor) Chairs: Fulconis François & Farcane Chairs: Thalassinos Eleftherios & Noja Nicoleta Grațiela SSF1.Tosi Laetitia, Fulconis François, IBME1. Boz Hakan & Koc Erdogan Paché Gilles & Godbille Thierry SSF2.Paladi Irina & Fenies Pierre IBME2. Diakonidze Maia & Kok Erdogan SSF3. Farcane Nicoleta & Bureana IBME3.Özen Ercan Eusebiu SSF4. Şahin Faruk, Brancu Laura & IBME4.Yeşildağ Eser & Bulut Ayşe Gudmundsdottir Svala

ESCE Special session: Macroeconomic Session: Finance 1 policy and development P03 (ground floor) P11 (ground floor) Chairs: Enache Cosmin & Boțoc Claudiu Chairs: Mutaşcu Mihai & Lessoua Albert FIN 1.1. Marilen Pirtea, Eugen Mihancea ESCE1. Ianc Nicolae-Bogdan & Boțoc Claudiu ESCE2. Garcia Revelo José, Lucotte Yannick FIN1.2. Anton Sorin Gabriel & Pradines-Jobet Florian FIN1.3. Enache Cosmin & Leontin ESCE 3. Sokic Alexandre Gheorghe ESCE4. Ndione Louis, Lessoua Albert & FIN1.4. Vătavu Sorana Diaw Diadié ESCE 5. Mutaşcu Mihai

16.30 - 16.45 Coffee break - Google P04 - ground floor Digital Room

16.45 - 18.15 Parallel Sessions

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: International Business and Session: Finance 2 Global Modern Economy P05 (ground floor) P02 (ground floor) Chairs: Thalassinos Eleftherios & Cristea Chairs: Donath Liliana & Boțoc Claudiu Mirela IBME5. Suciu Marta-Christina, Noja FIN2.1. Naghi Laura Elly Grațiela & Cristea Mirela IBME6. Noja Grațiela, Cristea Mirela & FIN2.2 Stănculescu Andrei & Pîrvu Costin Atila Yüksel FIN2.3. Donath Liliana, Mircea Gabriela, IBME7. Iacob Constanța & AL-Rubaye Neamţu Mihaela & Oprea Ionela Ahmed IBME8. Beju Daniela-Georgeta, Nistor Ioan-Alin & Ciupac-Ulici Maria-Lenuţa

Session: Contemporary Issues in Session: Economics 1 Accounting 1 P03 (ground floor) P11 (ground floor) Chairs: Ștefea Petru & Hațegan Camelia Chairs: Cismaș Laura & Jivan Alexandru ACC1.1. Ajtay Edward, Burcă Valentin & EC1.1. Rebedea Constantin Mateş Dorel ACC1.2. Cioclov Petcu Alexandra & Ștefea EC1.2. Jivan Alexandru, Neamțu Mihaela & Petru Cismaș Laura EC1.3. Jivan Alexandru & Năchescu ACC1.3. Hațegan Camelia Miruna-Lucia EC1.4. Rebedea Constantin EC1.5. Jivan Alexandru & Năchescu Miruna-Lucia

19.00 - Gala Dinner Zaza Restopub, Bulevardul Vasile Pârvan 9, Timişoara

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

June 7, 2019 (Friday) 9.00-10.30 Parallel Sessions Session: International Business and Session: Informatics Global Modern Economy P05 (ground floor) P02 (ground floor) Chair: Muntean Mihaela & Cristescu Chairs: Son Liana & Noja Grațiela Marian Info1. Hauer Ileana IBME9. Pescariu Gabriela Info2. Cristescu Marian IBME10. Bărnuțiu Octavian Info3. Muntean Mihaela, Brȃndaş IBME11. Trifan Radu Claudiu & Didraga Otniel IBME12. Al-Owaidi Mahdi

Session: Management Session: Economics 2 P03 (ground floor) P11 (ground floor) Chairs: Bibu Nicolae & Paolini Chairs: Cismaș Laura & Iacobuță Andreea- Dimitri Oana MNG1. Carroni Elias & Paolini EC2.1. Iacobuță Andreea-Oana, Căutișanu Dimitri Cristina & Mursa Gabriel MNG2. Munteanu Anca-Ioana EC2.2. Bucerzan Dominic & Bejan Crina MNG3. Negovan Ana-Maria, EC2.3. Clipa Raluca-Irina, Ifrim Mihaela & Clipa Dănăiață Doina, Hurbean Luminița & Flavian Margea Camelia MNG4. Teohari Georgiana & Bibu EC2.4. Dănilă (Jianu) Maria, Ardeljan Patricia & Nicolae Cismaș Laura MNG5. Hanganu Irina & Fleșeriu EC2.5. Földi Norbert Cristina

10.30-10.45 Coffee break - Google Digital Room P04 - ground floor 10.45-11.30 Lecture Quantitative Methods: Merging with P02 - ground floor Digital Technologies and Going Global Eleftherios Thalassinos, University of Piraeus, Greece)

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

11.30-12.15 Lecture Institution building for sustainable P02 - ground floor growth Basic hypotheses about public administration (Paolo D'Anselmi, University of Rome Tor Vergata, Italy)

12.15-13.00 Lunch

13.00-14.30 Parallel Sessions

Session: Contemporary Issues in Session: International Business and Accounting 2 Global Modern Economy P05 (ground floor) P02 (ground floor) Chairs: Ștefea Petru & Hațegan Camelia Chairs: Son Liana & Noja Grațiela ACC2.1. Suciachi Andreea IBME13. Cucoş Paula & Son Liana ACC2.2. Băbțan Silviu IBME14. Stoica Adrian ACC2.3. Milu Nicoleta-Daniela IBME15. Ioana (Dumitru) Ramona IBME16. Sinoi Elena-Alexandra IBME17. Ciorbagiu Ioana

Special Session: Sustainable Growth Special Session: Socioeconomic challenges of Industry 4.0 P03 (ground floor) P11 (ground floor) Chairs: Andrid Vladimir & Dima Stefana Chairs: Imbrescu Ion & Farkas Beata SG1. Boussetta Asma SCI1. Cismaș Laura & Imbrescu Ion SG2. Mitid Petar, Zubovid Jovan, Đukid SCI2. Farkas Beata Mihajlo & Bodroža Duško SG3. Andrid Vladimir SCI3. Kanó Izabella & Sávai Marianna SG4. Andrieș Alin & Balutel Daniela SCI4. Megyeri Eszter SG5. Menuet Maxime, Minea Alexandru & SCI5. Nagy Benedek, Udvari Beáta & Villieu Patrick Lengyel Imre

14.30-14.45 Coffee break - Google Digital Room P04 - ground floor

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

14.45-15.45 Parallel Sessions

Session: Economics 2 Session: Economics 1 P05 (ground floor) P02 (ground floor) Chairs: Sîrghi Nicoleta & Neamțu Chairs: Harding Liliana & Voia Marcel Mihaela EC2.6. Dudaş Lavinia & Mihiţ Lavinia EC1.6. Harding Liliana & Margea Camelia

EC2.7. Calinovici Alina & Lobonț Oana- EC1.7. Acharya, Khalaf, Voia, Yazbeck, Ramona Wensley EC2.8. Snunu Iyad EC1.8. Laghlal El Moctar

EC2.9. Rămescu Doriana, Sîrghi EC1.9. Yabre Tobignaré Nicoleta & Neamțu Mihaela EC2.10. Vesa Flavia, Kaslik Eva & Neamţu Mihaela

Special Session: Sustainable Growth Special Session: Socioeconomic challenges of Industry 4.0 P03 (ground floor) P11 (ground floor) Chairs: Minea Alexandru & Dima Chairs: Imbrescu Ion & Farkas Beata Bogdan SG6. Dima Bogdan, Jordaan Jacob, Ioan SCI6. Halmosi Peter Roxana & Dima Ștefana SG7. Albulescu Claudiu, Artene Alin, SCI7. Miculescu Andra & Oțil Maria Luminosu Caius & Tămășilă Matei SG8. Menuet Maxime, Minea Alexandru SCI8. Curea-Pitorac Ruxandra & Părean & Villieu Patrick Mihai SCI9. Sîrghi Nicoleta & Vădăsan Ioana

SOCIAL PROGRAMME 16.00 Rendezvous in the faculty’s parking lot 16.15 Departure from FEAA 17.00 -20.00 Guided tour of Recaş Winery / Wine tasting 20.30 Departure from Recaş Winery (courtyard rendezvous)

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

June 8, 2019 (Saturday)

9.30 - 11.00 Special Lecture Understanding the data P02 - ground floor (Marcel VOIA, Carleton University of Ottawa, Canada) 11.00 - 11.10 Coffee break - Google Digital Room P04 - ground floor 11.10 - 12.40 Special Lecture How to write a scientific P02 - ground floor paper (Alexandru MINEA, University of Clermont -Auvergne, France) 16.00- 18.30 Timişoara Sightseeing Tour Guide: Stefana DIMA

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

BOOK OF ABSTRACTS

June 6, 2019 (Thursday)

15.00 - 16.30 Parallel Sessions Session Spéciale Francophone P05 (ground floor)

Chairs: FULCONIS François & FARCANE Nicoleta

SSF1. INTERNATIONAL HUMANITARIAN ACTION: STAKEHOLDERS FACED WITH THE “EMERGENCY-DEVELOPMENT” CONTIGUUM

Laetitia TOSI, CRET-LOG, Aix-Marseille University (AMU), France François FULCONIS, LNBC (AU) & CRET-LOG (AMU), Avignon University (AU), France Gilles PACHÉ, CRET-LOG, Aix-Marseille University (AMU), France Thierry GODBILLE, CRET-LOG, Aix-Marseille University (AMU), France

Abstract While international humanitarian action is largely limited to its emergency relief role in crisis situations, it is also part of a broader approach to promote the long-term development of populations. As a result, two distinct aid systems–“emergency” and “development”–have coexisted for several decades, and a continuum approach was preferred to address them. However, the recent increase in the complexity of the intervention areas seems to be gradually forcing the actors to no longer separate these two systems, but rather to deal with them accordingly in order to strengthen

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 both the effectiveness and efficiency of the actions carried out. According to this second approach (the contiguum approach), emergency and development actions can manifest themselves simultaneously. Such a phenomenon necessarily leads to questions about the place, role and modalities of intervention of the various stakeholders. This article seeks to highlight the shift from a continuum to a contiguum approach, while raising the question of which means to use in both the short and long term. The analysis is conducted around two axes showing the different relationships between emergency and development aid. This should make it possible to better select the strategies and actions of international solidarity stakeholders faced with this new reading.

Keywords: contiguum, continuum, international humanitarian action, international solidarity, stakeholders

SSF2. MANAGEMENT CONTROL SYSTEMS IN THE POST-SOVIET CONTEXT. A QUALITATIVE COMPARATIVE ANALYSIS

Irina PALADI, IPAG Business School, LARGEPA – University Paris II-Panthéon Assas, France Pierre FENIES, LARGEPA – University Paris II-Panthéon Assas, France

Abstract This study analyzes the evolution and the diversity of management control systems (MCS) in the post-Soviet transition context and determines the factors that explain the existence, extent and use of MCS. Two longitudinal studies of former state-owned Soviet enterprises trace the evolution of MCS induced by the transition from the centralized economic system to the market economy, while a multiple case study (8

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 firms) examines the variety of MCS in the current period. The Qualitative Comparative Analysis is mobilized in order to identify the determinants of different MCS types and to propose a typology of MCS in a post- Soviet context according to contingent and institutional factors.

Keywords: management control system, typology, longitudinal study, multiple case studies, qualitative comparative analysis

SSF3. A CORPORATE CASE STUDY ON THE APPLICATION OF ROKEACH’S VALUE SYSTEM TO SOCIAL CORPORATE RESPONSIBILITY (CSR)

Nicoleta FARCANE, Faculty of Economics and Business Administration, West University of Timişoara, Romania Eusebiu BUREANA

Abstract Starting from the research assumption that Social Corporate Responsibility (CSR) values cannot be efficiently communicated, if they do not naturally belong to a company’s identity, this chapter debates on the prospect of applying Rokeach (1973)’s Value System to the CSR values of Continental corporation. The Rokeach (1973) value system is used to compare Continental online provided data and establish if ideal corporate values presented by the company are similar to the real and CSR values. We base our assessment of the level of integration of CSR into corporate identity on Maon et al (2010) integrated model of CSR development. Our analysis reveals that even though Continental corporation works with CSR concept in a strategic and systematic manner, CSR set values do not have a correspondence with the real corporate values.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Keywords: social corporate responsibility, Rokeach value system, corporate identity

SSF4. EVALUATING THE MEASUREMENT INVARIANCE OF THE FOUR-FACTOR CULTURAL INTELLIGENCE SCALE ACROSS THREE COUNTRIES

Faruk ŞAHIN,Muğla Sıtkı Koçman University, Turkey Laura BRANCU, Faculty of Economics and Business Administration, West University of Timişoara, Romania Svala GUDMUNDSDOTTIR, University of Iceland, Iceland

Abstract The present study assessed the factor structure and measurement invariance of the Cultural Intelligence Scale (CQS) in university students from Romania, Turkey, and Iceland. Confirmatory factor analyses indicated that the four-factor model, which consisted of metacognitive, cognitive, motivational, and behavioural dimensions, could fit the data better than alternative models (three-factor and single factor models). Furthermore, invariance of test for the CQS showed that the four-factor model of the CQS is suitable across three countries and the pattern of factor loading is invariant across these countries. However, the results did not support scalar invariance for three countries, which showed that partial measurement invariance was only established. Limitations and implications were discussed.

Keywords: cultural intelligence, measurement invariance, Cross-Cultural Study

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: International Business and Global Modern Economy P02 (ground floor)

Chairs: THALASSINOS Eleftherios & NOJA Grațiela

IBME1. A NEUROMARKETING ANALYSIS OF GSM SALES PROMOTION CAMPAIGNS

Hakan BOZ, Schoool of Applied Sciences, Usak University, Turkey Erdogan KOC, Faculty of Economics and Administrative Sciences, Bandirma OnyediEylul University, Turkey

Abstract GSM operators attempt to attract new customers, i.e., customers using other GSM operators by offering various benefits. However, the existing and loyal customers who are not eligible for the benefits offered to potential new customers may be negatively influenced by these sales promotion campaigns. Based on this background this study aims to explore the emotional responses of existing customers to sales promotion campaigns of their GSM operators aimed at attracting new customers. The study also aims to measure customers’ brand loyalty towards their GSM operators before and after the exposure to these sales promotion campaigns. The emotions of the GSM operators will be measured by using a Facial Recognition Software and Eye tracker device. The study is believed to have important implications for GSM companies as exposure to these sales promotion campaigns will.

Keywords: GSM operators, sales promotions, campaigns, Neuromarketing

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

IBME2. RURAL AND NATURE TOURISM IN GEORGIA: DEVELOPMENT OF DESTINATIONS AND NEW PRODUCTS

Maia DIAKONIDZE, Akaki Tsereteli State University, Georgia Erdogan KOC, Faculty of Economics and Administrative Sciences, Bandirma Onyeid eylul University, Turkey

Abstract Georgian tourism industry has achieved a phenomenal growth of the past years. However, according to World Economic Forum’s (WEF) Global Travel and Tourism Competitiveness Index Report (2015) Georgian tourism industry was the 70th country among 141 countries. This means that there is a need for futher development. Based on the rural and natural beuaties of Georgia, i.e. banking on its curent strenghts of the country, rural and natural tourism destinations can be develeped in Georgia. The study will anlayse the rural and natural beauties of Georgia based on the destination attractions offered by Buhalis (2000), 6 A’s of destination attractions by using a SWOT (Strenghts, Weaknesses, Opportunities and Threats) analysis. It is believed that a SWOT (Strenghts, Weaknesses, Opportunities and Threats) analysis rural and natural tourism destinations practical guidelines for the practitioners and policy makers in Georgia will be offered.

Keywords: Georgia, natural tourism, rural tourism, destination development

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

IBME3. EFFECT OF CURRENCY VOLATILITY ON SMALL BUSINESS MARKET: THE CASE OF TURKEY 2018

Ercan ÖZEN, Department of Banking and Finance, University of Uşak School of Applied Sciences, Turkey Abstract Developing countries need higher economic growth to reach at the level of developed countries. When developing countries exceed the potential economic growth, problems such as high external debt and high current deficit emerge. Such situations increase the risk of the country. In addition to the increasing financial risk, international political risks, fluctuations in capital inflows and some manipulative movements have subjected countries to extreme exchange rate fluctuations. As a result, important economic problems arise in these countries. The first objective of the research is to reveal its impact on small business activities of the high exchange rate fluctuations in 2018 in Turkey. Another objective is to determine whether the level of exposure of the exchange rate fluctuations on business owners varies by age. Questionnaire method was used in the study and data were obtained by random sampling and the survey was conducted by a total of 390 company owners from trade, service and production sector. The findings of the study show that after six months following the period of significant exchange rate movements, business activities were negatively affected, sales decreased and job cuts increased. On the other hand, the exchange rate effect was mostly felt by all business owners of different ages. According to the study, it is understood that small enterprises are vulnerable to rising exchange rate movements. The situation for people with more work experience is not different. In order to alleviate the effects of adverse exchange rate movements, enterprises should be more cautious in their activities. Small open economies are 27

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 negatively affected by the problems arising from the functioning of the globalized financial system. Two suggestions can be made at this point: (i) Governments should follow optimal growth policies and (ii) Small businesses that have an important place in the economy should be made aware of exchange rate risk and risk management. Keywords: currency shock, exchange rate, small business, economic crisis

IBME4. A RESEARCH ON THE FINANCIAL LITERACY OF THE STAFF OF UŞAK UNIVERSITY

Eser YEŞİLDAĞ, School of Applied Sciences,Uşak University, Turkey Ayşe BULUT, Institute of Social Sciences, Uşak University, Turkey Abstract In recent years, financial literacy has become a very important concept for the stability of a country's economy. This concept concerns not only people in financial markets but all individuals. The level of financial knowledge of academicians and employees in universities is highly important, and the high level of this financial knowledge is effective in financial education of university students. The aim of this study is to measure the financial literacy level of the academic and administrative staff of Uşak University. Uşak University is a state university founded in 2006 in Turkey. A survey prepared in parallel with this aim was applied to Uşak University staff and the obtained data were analyzed by statistical programs. The results of this study show that the majority of Uşak University staff has basic financial knowledge but they are not successful in financial matters in terms of financial decisions. In addition, it is determined that the financial information of the personnel is affected by the demographic characteristics.

Keywords: financial literacy, university staff, financial information, attitude/ behavior

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: Finance 1

P03 (ground floor)

Chairs: ENACHE Cosmin & BOȚOC Claudiu

FIN1.1. RE-EXAMINING DIVIDEND HYPOTHESES FOR CEE’S COUNTRIES

Marilen PIRTEA, Faculty of Economics and Business Administration, West University of Timişoara, Romania Eugen MIHANCEA, Faculty of Economics and Business Administration, West University of Timişoara, Romania Claudiu BOȚOC, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract Dividend policies and their impact on company value represent a subject which was already approached in literature, attracting strong academic interest, with many researchers bringing their contribution at solving the discussion based on the theory of the impact of dividend payments on company value. Lintner (1956) and Modigliani and Miller (1961) opened the discussion for the first time regarding the theory of dividend irrelevance, followed by a series of papers on this topic. Later on, Black (1976) described the lack of consensus regarding the topic as a puzzle with many pieces which don’t fit together. The research paper proposed approaches the effect of the dividend policies on the market value of the company on a sample of companies from Eastern-European countries, using panel data in a linear and non-linear hypothesis. Our empirical results suggest that the classical dividend theories are characterized by a dynamic behavior.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Keywords: dividend, performance, panel model, signalling

FIN1.2. RESEARCH AND DEVELOPMENT EXPENDITURES AND FIRM VALUE. EMPIRICAL EVIDENCE FROM IT&C LISTED FIRMS

Sorin Gabriel ANTON, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, Romania

Abstract The aim of the paper is to analyze the relationship between research and development (R&D) expenditures and firm value on a sample of 579 publicly listed firms from the IT&C sector. On this particular sample of firms from the EU countries over the period 2009-2017, we found an inverted U-shape relationship between R&D expenditures and firm value. The empirical results suggest the existence of an optimal level of R&D expenditures that need to be found and maintained by the firms from the IT&C sector. These findings have important implications for investors, policymakers, and scholars. The robustness of these results has been tested using various estimation techniques.

Keywords: R&D expenditures, firm value, IT&C sector, European Union, listed firms

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

FIN1.3. THE ROLE OF CEO BACKGROUND IN EXPLAINING EXECUTIVE COMPENSATION. A STUDY OF U.S. LISTED FIRMS

Cosmin ENACHE, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Leontin GHEORGHE, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The standard economic theory of executive compensation is the principal-agent model which predicts that firms design efficient compensation packages to solve moral hazards and motivate CEOs. The theoretical model posits a risk-neutral principal who designs an optimal contract for a risk and effort-averse agent in the presence of a moral hazard problem. Boards set CEO pay and incentives based on economic factors, the magnitude of agency problems, and monitoring difficulty in order to align shareholder and managerial interests. Agency theory predicts that executive pay is positively correlated to firm performance. It is, however, relatively silent on the functional form of the estimating equation (e.g. whether to use current or lagged performance measures) and other types of variables to be included. Informativeness principle predicts that any variable that is informative about CEO effort can be contracted upon. The aim of the paper is to analyze the determinants of executive compensation in order to test the aforementioned theories. Our paper both reinforce and extend the previous empirical research by adding new variables that could better explain executive compensation policy. Firstly, we consider firm-level determinants with a focus on performance proxies. Secondly, we include several corporate governance variables with a focus on CEO background. The variables for the panel models tested are collected from several sources: Standard & Poor’s Compustat, Execucomp and

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

BoardEx databases. Using a GMM model on a sample of 1.659 public U.S. firms over the period 2006-2015, we found that CEO professional networking is more important that education or experience. The second important result highlights the superiority of accounting performance in relation to market performance. The results are robust for several subsamples criteria (firm size and CEO tenure) and CEO compensation measurement.

Keywords: Executive compensation, performance, market value, corporate governance, CEO characteristics.

FIN1.4. THE ROLE OF BOARD DIVERSITY ON CORPORATE PERFORMANCE: EVIDENCE FROM THE UK

Sorana VĂTAVU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract This paper examines the economic impact of board diversity on corporate performance, for companies with subsidiaries in the United Kingdom. The analysis reflects the period 2006-2014 and is based on statistics and regressions, employing the gender and age of the board members, as board diversity proxies, and return on assets and return on equity as performance indicators. The research returns significant insights into the association between board diversity and profitability. The main results suggest that a reduced number of board members would improve the returns of the companies, while the experience and knowledge of the board members, as well as their capabilities of adapting the organization in a volatile environment, increase the performance of the companies. Results are not significant

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 in terms of concluding that an increased number of women in board would induce higher returns for the companies analysed.

Keywords: corporate governance, corporate performance, sustainability practices

Session: ESCE Special session: Macroeconomic policy and development P11 (ground floor)

Chairs: MUTAŞCU Mihai & LESSOUA Albert

ESCE1. HOW CAN CULTURE AFFECT TAXATION? EVIDENCES FROM BOTH ADVANCED AND DEVELOPING COUNTRIES

Nicolae-Bogdan IANC, LEO, UMR, CNRS, University of Orléans, France; Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract Several countries afford higher direct taxation rates and their citizens are well off with this fact. Others choose for lower ones in order to stimulate all the taxpayers. Both cases deal with the same dilemma: what determinant affects the most the direct taxation? We want to resolve this dilemma by including the culture as an explanatory variable and to see what type of culture values (i.e. the idea of post materialism, trust, vote participation and religion) can have an impact on taxation. Moreover, for endogeneity issues, we include instrumental variable to solve it. We include in our empirical analysis both advanced and developing countries. The results are the following: culture is able to explain the direct taxation at some extent.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Keywords: tax structure, taxation, postmaterialism, culture

ESCE2. MACROPRUDENTIAL AND MONETARY POLICIES: FRIENDS OR FOES?

José David GARCIA REVELO, CNRS, LEO, University of Orléans, France Yannick LUCOTTE, CNRS, LEO, University of Orléans; Paris School of Business, France Florian PRADINES-JOBET, Paris School of Business, France

Abstract The Great Recession during the late 2000s and early 2010s has led to a strengthening of macroprudential policies over the world in order to address systemic risk concerns. However, the effectiveness of those measures remains unclear. The existing literature fails to demonstrate clearly that macroprudential policies address effectively fnancial vulnerabilities. Moreover, the impact of these policies is often assessed regardless of the monetary policy stance, which is another main determinant of financial stability. This empirical paper aims to fill this gap by at least two ways. Based on a sample of 45 countries covering the period from 2000Q1 to 2014Q4, we first propose to re- evaluate the effectiveness of the macroprudential policies to limit excessive credit growth by considering different measures accounting for the macroprudential policy stance. Second, we also test whether the impact of prudential policies is strengthened by the monetary policy stance, measured through the Taylor gap. Our results indicate that changes in macroprudential policies effectively reduce the credit growth, but there is a transmission delay approximately of one year to be effective. Interestingly, this delay fell to one quarter when macroprudential and monetary policies move in the same direction simultaneously which is a new finding.

Keywords: monetary policy, macroprudential policies, eﬀectiveness, financial

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 stability, interaction

ESCE3. BITCOIN AND HYPERDEFLATION: AN OPTIMIZING MONETARY APPROACH Alexandre SOKIC, ESCE International Business Paris, France

Abstract This paper is deeply motivated by the need to explore the impressive Bitcoin pricedevelopment by addressing Bitcoin as money in its essential attribute as a medium of exchange. We adopt a monetary economics viewpoint and resort to a representative agent modelling strategy within a money-in-the-utility function (MIUF) framework. First, we show that the impressive Bitcoin price development observed since its inception can be interpreted as a hyperdeflation when we focus on Bitcoin role as a medium of exchange. Second, we show that specific monetary features of Bitcoin, its asymptotical fixed nominal stock and divisibility down to eight decimal places, account for a strong possibility of speculative hyperdeflationary paths. It is shown that those paths are fully consistent with the medium of exchange monetary role of Bitcoin and the representative agent optimizing behavior.

Keywords: Cryptocurrencies, Bitcoin, hyperdeflation, medium of exchange

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

ESCE4. SPECIALIZATION IN ENTRY-LEVEL PRODUCTS: A STRATEGY FOR INDUSTRIAL DEVELOPMENT IN AFRICA

Louis César NDIONE, Reims Economic Sciences Laboratory - REGARDS, University of Reims, France Albert LESSOUA, ESCE International Business Paris, France Diadié DIAW, Interdisciplinary Research Laboratory in Societal Innovations – LiRIS, University of Rennes 2, France

Abstract This paper presents an interdisciplinary approach to the potential for industrialization in Africa combining economics, marketing, and econometrics. Based on the observation that domestic demand is mainly oriented towards entry-level products, the products that are offered at the lowest prices in a range, we explore the merits of an industrialization strategy targeting the manufacture of low-cost products. After identifying the main determinants of specialization in entry-level products, our results suggest that entry-level products can play a fundamental role in African industrialization by better addressing the continent’s multiple challenges in terms of employment, investment, and workforce training. It should also be noted that studies on entry-level products in Africa are quite scarce; this novel study thus opens up new avenues for future research.

Keywords: specialization, diversification, entry-level products, marketing, BoP, Tobit model

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

ESCE5. A WAVELET APPROACH OF OKUN’S LAW

Mihai MUTAŞCU, ESCE International Business Paris, France

Abstract The aim of paper is to investigate the direction of co-movement between cyclical component of unemployment and output one in US by using the wavelet tool. The period covered is 1949Q1-2018Q3, dataset having quarterly frequency. The main results show that the direction of co-movement is rather idiosyncratic in short-term. Even though, some evidences reveal that the direction of interaction is related to the origins of economic shocks, as they are internal or external. In medium- term, the Okun’s law in US seems to be valid when the effect goes from output to unemployment, while in long-term, when the effect goes from unemployment to output.

Keywords: unemployment, GDP, Okun's law, wavelet, US

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

June 6, 2019 (Thursday)

16.45 - 18.15 Parallel Sessions Session: Finance 2

P05 (ground floor)

Chairs: DONATH Liliana & BOȚOC Claudiu

FIN2.1. QUALITATIVE IMPACT OF 2018 REGULATIONS ON THE ROMANIAN FINANCIAL SERVICES MARKETS

Laura Elly NAGHI, Faculty of Finance and Banking, Bucharest University of Economics Studies, Romania

Abstract The last 5 years brought about an inflation of financial services regulations to be implemented on the Romanian market. Being originated at the level of EU, the primary legislation affecting the financial sector was the subject of multiple public debates which would be considered a positive approach, but on the other hand the multiple postponing of the implementation of these regulations represented the main drawback on the feeling the major benefits of the European recommendations. Another hurdle to overcome was the initiation and then the agreement on the secondary legislation – the norms and methodologies to be applied at operational level in order to comply with the primary legislation. The focus of major companies was deviated from the client – which in fact, becomes the central player in the entire frame of business – to compliance with the norms, due to potential penalties and fines to be paid the institutions, in case of regulators’ verifications or in case of breach. 38

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

The banking system was affected in the same manner by the late approval of MiFID II Directive that was approved on national level in July 2018 waiting for the secondary legislation to be implemented at the beginning of December 2018- this has brought about a new wave of dissatisfaction among the financial entities having direct contact with potential clients. The costs for the update of clients database, for their information on the main modifications in the service contract due to legislation, the process of implementing internal procedures brought about a significant cost constrain and an increase level of annoyance both for the entities and the client. These examples shall be further detailed in this article that intends to have a general view of the legal requirements imposed in 2018 on the financial services providers and also on the benefits and costs generated by them. There were several voices at European level stating that the implementation of such systemic norms (such as Solvency II, General Data Protection Regulation – GDPR, IDD, AML) would be considered too costly (Carpenter, 2011). The global benefit is easy to be seen – at least on declarative mode, the better service to the client. The implementation costs and capital required to provide that goal are still to be centralized and analysed.

Keywords: prudential supervision, IDD, MiFID, AML, insurance distributors

FIN2.2. FROM CORPORATE FINANCE TO COMMERCIAL FINANCE: COMPARING THEORY WITH PRACTICE

Andrei STĂNCULESCU, Faculty of Finance and Banking, Bucharest University of Economics Studies, Romania Costin Emilian PÎRVU, Faculty of Finance and Banking, Bucharest University of Economics Studies, Romania

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Abstract In this paper we intend to underline the importance of corporate finance rules and principles for conducting a profitable business venture, and we try to corroborate them with specific financial operations which occur during ordinary commerce activity and financial management. The paper focuses on how the profit maximization theoretical paradigm is actually implemented within specific corporate departments, and an important emphasis is put on the risk-return relationship, showing how this is a key aspect, responsible for increasing profitability for different corporate investment projects.

Keywords: corporate finance, return, risk, commercial finance, shareholder, manager

FIN2.3. ANALYSIS OF A CREDIT RISK CONTAGION MODEL WITH TIME DELAY

Liliana DONATH, Faculty of Economics and Business Administration, West University of Timişoara, Romania Gabriela MIRCEA, Faculty of Economics and Business Administration, West University of Timişoara, Romania Mihaela NEAMŢU, Faculty of Economics and Business Administration, West University of Timişoara, Romania Ionela OPREA, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The present paper approaches credit risk contagion on the bank market in terms of dynamical systems. The hypothesis of the paper is that sustainability-oriented banks are able to prevent the spread of contagion on the bank market through the quality of assets that support the projects they are financing. Relevant indicators are used to 40

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 demonstrate that values-based banks better perform of the long run, during the crises and over the cycle, recording stable, durable profitability. The mathematical model is described by a nonlinear differential equation, where the variable is represented by the number of participants that engage in lending and are subject to credit risk on the financial market. Due to the fact that the economic process is not instantaneous, the introduction of the time delay is imperative. The equilibrium point is found and the effect of time delay is investigated by the existence of the Hopf bifurcation. In order to verify the theoretical findings, using Maple and Matlab, numerical simulations are performed. The paper concludes that values-based banks are can better prevent the transfer of risks by assuming different asset management as opposed to traditional banks, thus contributing to the stability of the financial market

Keywords: credit risk contagion, mathematical model, equilibrium, stability

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: International Business and Global Modern Economy

P02 (ground floor)

Chairs: THALASSINOS Eleftherios & CRISTEA Mirela

IBME5. THE EMERGING DIGITAL EUROPEAN LABOUR MARKETS AND THE FUTURE OF WORK

Marta-Christina SUCIU, Faculty of Theoretical and Applied Economics,Bucharest University of Economic Studies, Romania Graţiela Georgiana NOJA, Faculty of Economics and Business Administration, West University of Timişoara, Romania Mirela CRISTEA, Faculty of Economics and Business Administration, University of Craiova, Romania

Abstract Given the European Pillar of Social Rights, the European Union (EU) enhances several broad trends that should be addressed in the new digital economy, with a strong emphasis on “the future of work and the emerging digital labour market” in the new millennium, shaped by globalisation, sustainability challenges and rapid technological advances (European Commission, 2017). Technology is significantly changing the nature and complexity of jobs, while the impact of automation and digitalisation on the labour market grasps the keen need to accurately address these milestones, including the role of artificial intelligence and augmented reality. All of these credentials bring also important challenges since many jobs carried out in Europe are relatively low skilled, repetitive, at threat from job losses and deterioration of job quality in the digital economy. Based on this general background of reference, our

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 main research goal is centered on identifying the most relevant core skills required by the EU labour market in the broader context of the Digital Era, linked to professional profiles and specific domains. Identifying the relevant core skills is considered one of the most important functions of labour market analysis. Across Europe, demand for staff with digital skills is rising at an exponential rate. This is one of the challenges that is considered by the European Commission experts as an essential prerequisite in order to improve digital and analytical skills based on better qualities education and training programmes. Emerging European Policy areas focus on the development of new, innovative and more effective regional approaches such as better equipping youth and adults with the digital skills that are mostly demanded within the globalized economy (Digital Era). Thus there is a higher interest for activities designed to increase the digital competences for employability, based on high skills. Digital economy generates a growing range of employment and career opportunities, aligned with the needs and high standards offered by the digital labour market (Suciu and Năsulea, 2019). Dual-education systems are also based on an extensive development of partnerships and cooperation networking between universities and business sector, involving both university professor (higher education institutions) and business representatives/specialists, by combining school-based learning with work- based practice. Our main results reveal that this broader comprehensive education approach can ensure better achievements in terms of new digital skills and improved core competences, that will be complemented with transversal “soft skills” (e.g. the ability to communicate effectively, leadership, decision-making, positive attitudes, active participation) that go hand in hand with the digital skills development.

Keywords: digital economy, labour market, core skills, digital skills, EU

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

IBME6. MIGRATION AND THE SINGLE EUROPEAN LABOUR MARKET

Graţiela Georgiana NOJA, Faculty of Economics and Business Administration, West University of Timişoara, Romania Mirela CRISTEA, Faculty of Economics and Business Administration, University of Craiova, Romania Atila YÜKSEL, Tourism Faculty, Adnan Menderes University, Turkey

Abstract Migration models inherently comprise, as an essential pillar, the interlinkages with the labour market, grasping occupational sectors of immigrant employment, qualifications and working conditions, labour market success, measured through employment and unemployment rates and wage levels, complementarity and substitution. All of these credentials are furthermore important to be considered for sustainable economic development of both migrant sending and receiving countries, particularly in Europe. Considering the amplitude of labour mobility/migration flows within the European Union and recent challenges of regional integration brought by the Brexit decision and humanitarian dimension of the migration phenomena, the need for better immigration and integration policies within the host countries’ labour markets stands out as a major research direction, especially in case of immigrants looking for better working and living conditions. Hence, the general objective of our paper is to develop a two-fold analysis, which grasps the economic features essential for migrants’ labour market integration, along with feasible ways and specific policies for immigrants’ labour market success. Compared to other studies (Noja et al., 2018; Marcu et al., 2018), this paper analyses labour migration indicators, along with a comprehensive migrants’ integration policy index, as well as welfare (wellbeing) and labour market specific indicators. The analysis is performed for EU-10 countries based on national (panel) data, but also by each EU-10 country, during 2000-2015. The 44

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 methodological endeavour comprises immigration cluster analysis, macro- econometric and spatial models. Our empirical results (panel macro-econometric modelling) show that, overall, EU-10 countries still fail to identify immigrants with high levels of education and skills acquired to enhance their potential for labour market integration. Hence, EU policy makers should monitor the specific ways in which migration policies lead to concrete positive labour market outcomes for immigrants and that the tools used for implementing these policies are suitable in achieving predefined migration goals. Therefore, a particular focus should be on developing a new immigration system to select migrants for their skills and high level of human capital, by following the best practices examples of other receiving countries.

Keywords: migration, welfare, labour market, immigration cluster analysis, spatial models

IBME7. ECONOMICS EFFECTS OF EMIGRATION IN THE MIDDLE-EAST COUNTRIES

Constanța IACOB, Faculty of Economics and Business Administration, University of Craiova, Romania Ahmed Hussein RadhiAL-RUBAYE, Faculty of Economics and Business Administration, University of Craiova, Romania

Abstract Emigration has positive and negative consequences on the development and progress in the original home of the emigrant. Emigration has been associated with the existence of man on earth and it is an essential part of the history of human kind.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Emigration is a phenomenon that is not modern. The past centuries, particularly the 18th and 19th centuries have been characterized by multiple waves of large-scale emigration. Thus, some countries, such as the United States of America, Canada, Australia and others, are debited with their existence to emigrants. Emigration has contributed to the expansion of knowledge, technology and skills among people, to the renaissance of many countries and their progress, but to their establishment, as well as to the achievements of so-called emigrant "human capital", with its vitality and cultural knowledge that was added to the spirit of challenge, innovation and courage by which the emigrant is characterized. Emigration is characterized by two aspects: the first is positive and the other is negative. On the positive aspect, it brings a lot of benefits for the exporting countries. This benefit lies in the positive return represented by the money transferred by emigrants to their motherlands. Although the larger part of these transfers are not considered as addition to the Gross Domestic Product (GDP), but it can be described as a return from the perspective of economic development and an additional source of foreign currency that can be employed in the import of production requirements and investment equipment.

Keywords: immigration, migration, immigrants, host country, economic

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

IBME8. WHAT FACTORS INFLUENCE THE UNEMPLOYMENT RATE INROMANIA DURING 1997-2017 PERIOD?

Daniela-Georgeta BEJU, Babeş-Bolyai University Ioan-Alin NISTOR, Babeş-Bolyai University Maria-Lenuţa CIUPAC-ULICI, Hyperion University Bucharest

Abstract The current research aims to analyze the impact of inflation, the RON / EURO exchange rate and the financial crisis on unemployment rate in Romania. The paper is structured in 5 sections. The first section presents an introduction of the analyzed elements. The second section shows the results of various studies identified in the financial literature. The third section describes the research methodology used to analyze the impact on unemployment rate. Section four presents the data used and the results obtained in this research. The last section shows the findings of the study. In order to analyze the impact of the inflation rate, the exchange rate and the financial crisis in 2008 on the unemployment rate, we employed a linear regression. The data sample comprises 21 observations, the period being analyzed from 1997 to 2017. The data were taken from the Eurostat database. As a conclusion, the unemployment rate in the European Union remained at 7.1 % in March 2018, similar to the previous month, falling from 7.9% in the same period in 2017.This is the lowest level of the unemployment rate registered in the EU since September 2008. While, in the euro area, the unemployment rate remained at 8.5% in March, as in the previous month, and fell from 9.4% in the same period in 2017, and was also the lowest level in the euro area since December 2008.

Keywords: unemployment rate, exchange rate, inflation rate

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: Contemporary Issues in Accounting 1 P03 (ground floor)

Chairs: ȘTEFEA Petru & HAȚEGAN Camelia

ACC1.1. DETECTING TAX EVASION USING ACCOUNTING INFORMATION FROM FINANCIAL STATEMENTS

Edward AJTAY, Faculty of Economics and Business Administration, West University of Timişoara, Romania Valentin BURCĂ, Aurel Vlaicu University of Arad Dorel MATEȘ, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The research aims to analyze and investigate the annual financial statements submitted by Romanian companies in several financial exercises, to identify the significant differences between the financial indicators of companies prone to tax evasion and to identify financial techniques and analyzes that can be used effectively to detect the accounting reports of entities that resort to tax evasion. The analysis was carried out on a sample of 200 commercial companies and the accounting information was collected from the annual financial statements of the period 2010 – 2016, public information published on the website of the Romanian Ministry of Public Finance. The study was structured in two parts, the first part was focusing on the analysis of accounting information and the sample content, then the econometric modeling was applied, concluding that there are significant differences between the financial indicators of the 200 companies. 48

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

From the analysis, it can be drawn to the conclusion that the cases of tax evasion can be identified by using the accounting information reported by an entity during a period of time. The conclusion is that there are methods and techniques that can identify the phenomenon of tax evasion at relatively early stages and the application of these methods and techniques to effectively prevent and reduce the magnitude of this phenomenon.

Keywords: tax evasion, annual financial statements, accounting information, companies

ACC1.2. QUANTIFICATION OF HUMAN RESOURCES’ VALUE AS AN ACCOUNTING ASSET OF BUSINESS ORGANISATIONS

Alexandra CIOCLOV PETCU, Faculty of Economics and Business Administration, West University of Timişoara, Romania Petru ȘTEFEA, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract This paper presents the results obtained during doctoral research on the topic of human capital measurement, reporting and relevance as an accounting asset of business organisations. The three main research objectives aimed to (1) study the need to capitalize on the human resources of economic entities, (2) contribute to the development of a methodology for identifying, evaluating and reporting human resources as an accounting asset, respectively to (3) assess the impact of human resources’ capitalization on the real financial performance of business organisations. Research conducted on business performance analysis has highlighted the need to

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 adapt the methodology used in economic and financial analysis as to provide a better response to the information needs of stakeholders regarding the role of human capital in generating competitive advantage. The current paper presents a set of instruments useful for these purposes, capturing data on (1) behavioural elements that justify organisational decisions and attitudes, (2) interdependencies between business organisations and the environment, (3) performance of business organisations in human capital management as well as in R&D activities, and (4) HR measurement and reporting as an accounting asset. The conclusions of the study also provide a projective calculation of business organisations’ financial performance, based on a proposed model for quantification of the human resources value.

Keywords: human capital, financial performance, business value

ACC1.3. THE RELATION BETWEEN FINANCIAL REPORTING QUALITY AND AUDIT QUALITY

Camelia-Daniela HATEGAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract Investors’ decisions are based on financial and non-financial information. To be useful, the information provided by the financial reports must be accurate, which is also ensured by the opinion expressed by the auditors. The purpose of the paper is to show the importance of the relationship between variables: the quality of financial reporting and the quality of audit services both for investors and for professional accountants and auditors. The quality characteristics of financial reporting are

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 represented by understandability, relevance, reliability and comparability. Audit quality determinants can be structured according to several criteria and were represented by the size of the auditor, rotation, duration of the contract, types of services provided. In order to support this hypothesis, the correlation between the two variables was tested on the basis of a sample of annual financial statements and reports issued by financial auditors. The results show that there is a correlation between financial reporting quality and audit quality, but of different intensities depending on the indicators chosen. Increasing the quality of financial reporting leads to increased investor confidence in professional accountants.

Keywords: financial reporting quality, audit quality, financial statements, professional accountants

Session: Economics 1 P11 (ground floor)

Chairs: CISMAȘ Laura & JIVAN Alexandru

EC1.1. IMPLEMENTATION OF THE NATIONAL STRATEGY FOR SUSTAINABLE DEVELOPMENT OF ROMANIA 2030 BY INTEGRATING THE LINK BETWEEN OBJECTIVES, TARGETS AND LEGAL PRINCIPLES FOR BETTER GOVERNANCE

Constantin REBEDEA, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The article concerns the implementation of Romania's Development Strategy 2030

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 through the close relationship between air quality, circular economy and sustainable development. SDD 2030 links Romania to the sustainable development objectives established at the level of the European Union and the United Nations, explicitly interlinking objectives and targets multiple objectives and resources (eg cities and sustainable communities and responsible consumption and production). Current activity on indicators set by Romania should consider, recognizing and linking objectives, any synergy between objectives such as cities and sustainable communities and responsible consumption and production (SDGs 11, SDGs 12). The challenge is the dependence between air quality and the circular economy and how they serve as entry objectives to each other, given that two different managerial approaches follow: air quality is a centralized environmental policy, governed by government by the public authority for environmental protection, but implemented locally by local authorities, with a top-down approach, while the circular economy is polycentric (following a bottom-up approach). Such institutional and administrative differences create potential tensions in addressing these sectors, in line with the legal principle of correlation, making it difficult to create an integrated and holistic approach to decision-making and functioning. This potential risk also leads to serious environmental damage. This study seeks to contribute to the analyses existing within the framework of the National Strategy for Sustainable Development of Romania 2030, from which to deduce the meaning of the relationship between cities and sustainable communities and responsible consumption and production and to provide legal instruments to support the development of rules ethical link, so that the negotiation of results between the development of cities and sustainable communities is more coherent with policies for sustainable consumption and production.

Keywords: relevant targets, sustainable communities, Sustainable Development Goals (SDGs), integration, resource co-governance, ethical link 52

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

EC1.2. ANALYSIS OF COMPETITION AND COOPERATION INTERACTION FOR THREE ECONOMIC AGENTS ON THE MARKET

Alexandru JIVAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania Mihaela NEAMȚU, Faculty of Economics and Business Administration, West University of Timişoara, Romania Laura Mariana CISMAȘ, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The paper aims at revealing the behaviour of economic agents in that what concerns their relations with other ones, and detailing such evolutions in diverse cases or types of relations. The extreme cases of cooperation and, respectively of competition are mainly taken into account. The mathematical modelling employs usual models in such analyses. In the purpose of simplifying the research, we take into account three economic entities. Thus, the proposed mathematical model is described by a system with three differential equations, where the variables are represented by the size of the actors that are competing or, perhaps, cooperating in the market. This model allows the analysis of the three economic actors on diverse kinds and degrees of cooperation and, respectively, of competition. Our contribution consists of considering a more realistic approach, from the point of view of the development of actual reactions. We employ in the system of equations, a certain delay until the event appearance that is needed for getting the real influence of facts that determine in a certain manner the nature and the way of putting in practice such decisions. We determine the equilibrium points and examine their stability with respect to the model’s parameters. We carry out numerical simulations in order to verify the theoretical findings. The conclusions regarding three scenarios – 53

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 fully cooperative, fully competitive and mixed interaction – are presented.

Keywords: competition, cooperation, oligopoly market, equilibrium, stability, time delay

EC1.3. THE INTELLECTUAL QUALITY AS CORE FEATUREIN KNOWLEDGE BASED ECONOMY

Alexandru JIVAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania Miruna-Lucia NĂCHESCU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The paper approaches the intellectual factor in a conceptual and fundamental way, aiming at revealing its central role in the knowledge society and thus in the economy, particularly in nowadays. Appealing to conceptual approaches from the literature, the intellect and, generally, the intellectual mark is concerned mainly in consistency with productivity and with economic development. We consider that such defining feature of humans and of their activities should be better emphasized and more insistently taken into account if compared with the actual resorting to it in the common economics approaches and analyses. Methodologically, the research is made from the point of view of the market laws, but with respect to the law state and including elements concerning even moral perceptions of people and natural environment. The impact of the market laws on the environment is not ignored, Nature being considered as a participant entity. The approach is in a systemic and inter-correlated way. Some forgotten approaches are

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 invoked, from the genuine Physiocrat idea of the value's creation, put in the actual context of economic realities. Certain unorthodox views are thus concerned, by employing widened horizons of approach. Our paper deals also with a modeled approach of the place and role of the intellectual quality in the functioning of the economic mechanism, productivity, investments and economic growth here included. Contributions consist in reviewing productivity by propositions for improving the view on such indicator, as a more comprehensive heterodox one, and in reviewing also the general equilibrium model, by taking into account unusual elements.

Keywords: intellectual factor, productivity, market behaviour, economic growth, knowledge society

EC1.4. A PROBABILISTIC MODEL FOR DETERMINING THE PERFORMANCE OF INVESTMENTS IN ENVIRONMENTAL INFRASTRUCTURE. AIR QUALITY MANAGEMENT AND MONITORING

Constantin REBEDEA, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The main aim of the research is the scientific elaboration and argumentation of an economic-probabilistic model, which will help the environmental protection authority to improve the legal framework regarding the prioritization of investments in the environmental infrastructure and the selection for the implementation of the most efficient projects. During the research we took into account the variation of the air quality indicators, in

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 certain meteorological and climatic conditions, possible errors in their registration in the work of the Environmental Protection Agency of Timis, correlating the socioeconomic-ecological activity with the periods when they were carried out investment projects in the environmental infrastructure. Data collection started from the official source of the National Air Quality Monitoring Network, trying to integrate air quality indicators with sustainable development goals. The socio-economic-ecological outcome is the realization of a probabilistic model of the direct dependence between the level of investments in the environmental infrastructure and the degree of deterioration of the most important parameters of the air quality expressed in an econometric equation. To formally describe the interdependence between the investment bargain in the field of environmental protection and the values of the air quality indices, we studied economic and probabilistic models, the various conjunctions and the complexity of the internal and external institutional factors that contribute to the delay or non- implementation of the projects, the shortcomings of the simple regression models, have guided to include in future analyzes and a description of less formal factors. The main results of the study are quantified in the elaboration of the economic- probabilistic model describing the number of measurements within the admissible thresholds and the mathematical modeling of the socio-ecological risk-based process by not implementing the urban pollution reduction projects over the years or implementing the projects investment and monitoring of air quality in inappropriate areas.

Keywords: environmental infrastructure, sustainable economic development, atmospheric pollution, air quality infrastructure, modeling of social and environmental risk processes

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

EC1.5. TEACHINGS FROM SERVICES ECONOMY, FOR ECONOMIC SCIENCE

Abstract The paper aims at revealing certain main roots of the service economics that brought core contributions concerning the most important traits and marks of service and of services' phenomenon. The main stress is on the productivity issue that is approached in a widened horizon against the common one, in the attempt of designing a ground for improving productivity approach, as a base for optimizing its calculation in the future. The literature taken into account for a short inventory of relevant moments is mainly from the last decades, but also from the genuine liberalism's economic thought. The classical economic thought is invoked in the purpose of revealing a conceptual inconsistence of the nowadays economics with the true liberalist principles. Thus, on such the genuine grounds, productivity and economic activities’ improvement can be better understood. The teachings from the services economy literature are approached in the clarifying view of such liberalism, considering their most important in defining the nowadays economy as a whole, mainly in that what concerned the growing services and the growing immateriality and complexity of all activities, no matter their degree of materiality. Thus, the core of our research is the generalized service. From the developments brought by the specialists in service economy, a few most important are selected by the criterion of their quality of being valid not just for the immaterial activities, but also having a general validity: in the conditions when the 57

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 whole nowadays economy is becoming more and more complex and immaterialized as well, certain characteristic and functioning ways of the economy elements revealed for their teachings weight for the economic science as a whole.

Keywords: service, services economy, productivity

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

June 7, 2019 (Friday)

09.00 - 10.30 Parallel Sessions Session: Informatics P05 (ground floor)

Chairs: MUNTEAN Mihaela & CRISTESCU Marian

Info1. FEATURES AND BENEFITS OF DOCUMENTMANAGEMENT SYSTEMS

Ileana HAUER, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract By implementing document management software, business owners can achieve many benefits that improve organizational efficiency. The features of Document Management Systems (DMS) are storing, retrieving, and managing unstructured data, such as files, text, spreadsheets, images, sound clips, multimedia data, and compound documents. This paper is separated into parts exploring areas of document management systems. The introduction briefly describes definitions and features of DMS. The next section puts in light the basic components from which most DMS is made, starting with the conversions of paper documents to digital documents. There are open source DMS and also paid-for-commercial DMS, but it is essential that the chosen solution will meet the organization’s requirements. There are questions about vendor, like warranty longer than a year, immediate support, on line support, training. On the other hand there are questions about the DMS quality, like the ability to manage in a single system the documents received from different data support (paper, email,

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 electronic file), underline relation between documents, the ability of advanced search with quick access to documents, bring together project content, tasks and team conversation so everyone has context, records of contracts and invoices. There are core features expected of a DMS including accessibility, integration, scalability, content security, document builder, document sharing, central file storage, systematic organization. The paper also discusses mainly features of one open source DMS, LogicalDOC Community Edition. Also it is analyse a workflow in two different softwares, both open source, LogicalDOC and Bitrix 24 Standard. If the administrator creates workflow templates based on his organizational business process in LogicalDOC, Bitrix 24 comes with several template workflows (Leave Approval, Business Trip, General Requests, Purchase Request, Expense Report), which can be edit, or create new ones. The paper’s final part underlines benefits of implementing DMS, like saving time and space, increasing efficiency, increasing productivity, increasing inter-departmental and inter-organizational communication and collaboration, enabling automation.

Keywords: Document Management System, DMS, digital document, workflow, LogicalDOC

Info2. CAPABILITY AND MATURITY. CHARACTERISTICS USED IN SOFTWARE RELIABILITY ENGINEERING MODELING

Marian Pompiliu CRISTESCU, Lucian Blaga” University of Sibiu, Romania

Abstract This paper presents how to use the Capability Maturity Model Integration (CMMI) in software engineering modeling processes. Any variation of CMMI, depending on the

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 scope of application, can also be used to assess the process maturity of an organization. Regarding the Software Reliability Engineering (SRE) process, the activities in the SRE process have been briefly described, noting that the application of RES in all software-based products leads to good control over the development process.

Keywords: capability, maturity, software engineering, model

Info3. BUSINESS APPLICATION INTEGRATION USING ODATA SERVICE

Mihaela MUNTEAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania Claudiu BRÂNDAȘ, Faculty of Economics and Business Administration, West University of Timişoara, Romania Otniel DIDRAGA, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The complexity of the cloud environment requires diverse application integration approaches. Starting with a methodological framework for a data oriented demarche, a full Application-to-Application integration based on OData service of two SaaS solutions is subject of our debate.

Keywords: application integration, web services, OData service

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: International Business and Global Modern Economy

P02 (ground floor)

Chairs: SON Liana & NOJA Grațiela

IBME9. THE IMPACT OF KNOWLEDGE INTENSIVE ACTIVITIES ON ECONOMIC DEVELOPMENT

Gabriela PESCARIU, West University of Timişoara, Romania

Abstract Innovation is one of the main drives of economic development and knowledge- intensive activities are an important part of innovation. Therefore, it would be relevant to understand the influence that the high-tech industry and knowledge-intensive services have on the growth of a country’s economy. This paper briefly presents a few aspects of the impact of knowledge intensive activities on the economic development in 37 European countries : the 28 EU Member States, the EU Candidate Countries (Albania, the Republic of North Macedonia, Montenegro, Serbia and Turkey) and the European Free Trade Association (EFTA) countries (Iceland, Liechtenstein, Norway and Switzerland). Covering a period of ten years, from 2008 to 2017, the study aims to discover the degree in which the knowledge-intensive activities contribute to the increase of the gross domestic product (GDP). For this purpose, we analyzed a set of relevant indicators such as GDP growth, employment in the high-tech sector, import/export of goods, international trade of high-tech products (intra-EU28 high-tech trade, extra-EU28 high-tech trade, total

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 high-tech trade in million Euros and high-tech trade as a percentage of total). The research results highlight the fact that the knowledge intensive activities have a positive impact on the increase of the Gross Domestic Product and on the economic development of the countries in question.

Keywords: international trade, high-technology, knowledge-intensive activities, GDP

IBME10. INNOVATION AND ECONOMIC PERFORMANCE IN THE EUROPEAN SPACE - A VERY CLOSE RELATIONSHIP

Octavian BĂRNUȚIU, West University of Timişoara, Romania

Abstract Knowledge Economy is given a special importance not only through the dynamic innovation activity in all countries, but also by the special interest in understanding the factors and mechanisms of influence of the innovative capacity of the micro and macro-economic actors, as well as its impact on the development of societies and people. This is highlighted in the theoretical literature on the determinants of innovation or its implications on economic aggregates. Analysis of the impact of innovation activity on the performance of European countries over the last decade is clear, stable, robust, stable. All econometric assessments performed, irrespective of the type of model used, provide substantial evidence of the role of scientific knowledge in increasing economic performance. The results of the estimates suggest that: i) A high intensity of innovation in some countries has a positive impact on the success of other countries or could contribute to a patent concentration in some countries; ii) Sectoral diversity influences GDP per capita differently in relation to technological differences or approaches: unrelated and related variety brings benefits to GDP growth; iii) Significant support for the 63

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 process of economic growth lies in highly-skilled R & D, including science and technology; iv) Some direct and indirect direct effects are highlighted: the direct (feedback) effects induced by the innovation variables are high, especially in models that include variety measures; indirect effects (spillovers) induced by an increase in the proportion of patent applications in the total population in an area have a positive direct, indirect, and total marginal effect on local intensity. Similar effects also result from related and unrelated varieties, tertiary education amongst the population, business research expenditure, and knowledge embedded in services that are the subject of exports.

Keywords: innovation, knowledge economy, economic performance, GDP, R&D

IBME11. MIGRATING TO EASTERN EUROPE: TOWARDS MORE COMPETITIVE AND OPEN ECONOMIES

Radu TRIFAN, West University of Timişoara, Romania

Abstract Much of the research in European migration is focused on inward influxes from second and third world countries towards the western EU countries, but until now less emphasis was put on migration towards the Eastern, less developed countries of the European Union. After three decades of negative migration flows, Eastern EU countries have reached a point where lack of human resources is aversely influencing future development. Less ready to accept immigrants coming in, countries like Poland, Hungary or Romania now face a dire perspective of economic, demographic and social stagnation due, in part, to loss of citizens migrating to more developed countries. The challenge of

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 opening up to new immigrants coming from non-European countries, in order to sustain robust economic growth rates, is one of the biggest they are facing. The purpose of this paper is to look at the existing migration flows towards the Eastern EU countries, analyze the different obstacles that stand in the way of potential immigrants, with a particular look at the main social and economic indicators that make the region less attractive to them, but nonetheless, with great potential. In conclusion we will draw up a few scenarios of migration policy changes that could change the migration landscape in the Eastern European countries.

Keywords: migration, Eastern Europe, labour market, brain gain

IBME12.COMPLEX ASPECTS OF MIGRATION AND THEIR IMPACT IN THE MIDDLE EAST

Mahdi AL-OWAIDI, West University of Timişoara, Romania

Abstract A very old process but with immense features and implications in the world at present, migration is constantly at the heart of political debates of states, international organizations or regional blocs, proving to be difficult to manage. Along with the existence of profound confrontations, including violent manifestations, in the mid-eastern space the dimensions of international migration are impressive and ample, with many adverse economic and social effects. The aim of this paper is to examine the negative sides of the migration in Syria, Iraq, and Yemen. It also focuses the consequent damage caused by many factors that caused migration such as, economic, political, security and environmental impact on the economic growth. However, most of the immigrants were coming from Middle

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

East i.e. Syria, Iraq and Yemen to the other countries especially to Europe. The recent events of conflicts have led the massive displacement of that part of the world. While there are conflicts estimated to more secured, which is one of the disadvantages of migration. For instance, the brain drain migration to the target (safe) countries with high economic growth and more economically developed than their home. These kinds of immigrants chose to be in these countries to get the freedom and more economic opportunities to live a better life.

Keywords: brain drain, displacement, economics, immigrants, Middle East

Session: Management P03 (ground floor)

Chairs: BIBU Nicolae & PAOLINI Dimitri

MNG1. THE BUSINESS MODEL OF A STREAMING PLATFORM

Elias CARRONI, DSE, Almamater Studiorum Universita di Bologna, Italia Dimitri PAOLINI, DiSEA - Universita di Sassari, Italia; CRENoS and CORE, Universite Catholique de Louvain, Belgium

Abstract A streaming platform obtains contents from artists and offers commercial spaces to advertisers. Users value contents’ variety and quality of the service and are heterogeneously bothered by ads. Two solutions can be proposed to users. If they pay a positive price, they subscribe to a commercial-free service with an upgrade of quality (Premium). Otherwise, they have free access to service of a basic quality. We

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 find that a wider audience gives incentives to the platform to increase both the advertising intensity and the quality upgrade in the Premium. As a consequence, some people move to the Premium. At the limit, the platform opts for a purely subscription-based business model as the audience reaches a certain level. The parsimonious model we propose is able to give a rationale to the emergence of different business models in the streaming market as well as to the (end of the) disputes between artists and the Spotify mode.

Keywords: media, advertising, multi-sided markets, platform, second-degree price discrimination

MNG2. STUDY ON THE CHARACTERISTICS OF AGILE ORGANIZATION AND AGILE WORKFORCE IN ROMANIAN COMPANIES

Anca-Ioana MUNTEANU, Postdoctoral Researcher, East European Center for Research in Economics and Business (ECREB), Faculty of Economics and Business Administration, West University of Timişoara

Abstract At present, organizations operate in a changing, uncertain business environment, which generates real opportunities for competitive ones, but also certain threats to those who try to survive at this rate and find their place among the strong ones. Of course, the new era of digitization has a great influence on the work of organizations, supporting them throughout this process, in which they must constantly adapt to requirements, demonstrate flexibility to customers, be able to make decisions and act as quickly as possible. All this has led to the transformation of the traditional organization into a agile,

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 competitive company that has the ability to effectively deal with business changes. However, an organization has no chance to become agile in the absence of an agile workforce. The aim of these papers is to present, in a first stage, the concepts of "agile organization" and "agile workforce", referring to the articles of the recent specialized literature, the last five years. In the second step, the present paper aims to identify the extent to which features of the agile organization and agile workforce in particularly are found in organizations, referring to attributes such as: the use of specialized software for carrying out various activities, continuous improvement for innovation, delegation of authority, autonomy in work, teamwork, quality circles, knowledge management etc. The study was conducted on 92% of large and very large organizations in the Western Region of Romania. The results showed that the organizations analyzed had acquired some of the characteristics of the agile organizations, the majority of the appreciation being the average. Through its structure, the paper presents information for those interested in the field, outlining the future research directions, study extension, and those in the business environment who can become aware of reality in organizations and make them adopt as many of the characteristics of an agile organization, making it competitive on the markets in which it operates.

Keywords: agility; agile organization; organizational agility; agile workforce; competitive advantage

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

MNG3. TRENDS IN HUMAN RESOURCE MANAGEMENT SYSTEMS

Ana-Maria NEGOVAN, West University of Timişoara, Romania Doina DĂNĂIAȚĂ, West University of Timişoara, Romania Luminița HURBEAN, West University of Timişoara, Romania Camelia MARGEA, West University of Timişoara, Romania

Abstract What is next? This is a question that companies around the globe are forced to answer. Are companies prepared to respond and adapt to business requirements? Companies should be proactive and not reactive, if the intention is to remain competitive by obtaining high performance indicators and deliver high quality products/ services at a low cost. Under these circumstances’ companies try to find a balance between economic and social performance. It is a continuous effort to find something that differentiate a company from their competitors and allow them to achieve established goals. If we consider all the above, we can say that human resources have become a crucial factor which allows companies to be competitive and achieve their goals. (Fındıklı & Bayarçelik, 2015). HR is involved in every aspect of the employee’s life cycle: from finding and recruiting the right person for an open position, to training and preparing the employee for the ever-changing environment, to developing retention policies. Global mobility has opened a door to endless possibilities for talent pools, allowing companies to find the right person in any part of the world and relocate them where they would make a difference. Information technology is present in every aspect of human resource management in this global networking era. (Chakraborty & Mansor, 2013) This means that the traditional way in which HR performed their daily tasks has changed radically in the last two decades, as HRM is strongly dependent on information systems (HRS). 69

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Chakraborty & Mansor, 2013 summarize the idea presented in the articles of Martinsons, 1994; Teo, Lim, & Fedric, 2007: there are two important resources in a company: people and information, and these have a significant impact on the overall performance of the business, meaning that a company need to manage them successfully in order to meet the established objectives. It is well known and accepted that an information system for HR (HRS) includes both resources and a proper implementation and usage of this system can lead to organizational success.

Keywords: e-HRM, information technology, human resource information system (HRIS), human resource management systems (HRMS), HR software

MNG4. INNOVATIONS IN MANAGING TRADITIONAL ORGANIZATIONS: GERMAN CLASSIC PROFESSIONAL ORCHESTRAS, SPECIFIC NATURE AND INNOVATIVE ASPECTS

Georgiana Alina TEOHARI, Faculty of Economics and Business Administration, West University of Timişoara, Romania Nicolae Aurelian BIBU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The armed forces and the church are multiple-stakeholders organizations, designed according to very specific characteristics that describe their mission and their objectives. Alongside with them, the classic professional orchestra is one of one the oldest and traditional organizations, with distinguished features that describe its organizational culture, its mission and goals, namely: to provide high-quality musical service, to nurture the public’s desire for culture, for music, to be ambassadors of and

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 for their community, to preserve of musical heritage. Our assumption is that it is requiring a good knowledge and awareness of all stakeholders and all the specific aspects that play a role in preparing, promoting and carrying out an artistic performance, such as the concert, in order to assure the orchestra’s future. Innovations represent a response to new challenges of today’s society, such as multiculturality, digitalization, the new physical and social setting in which people live. German orchestras dominate by number and by high musical performance level the world’s orchestra market. Contrary to the strictness of the musical service provided by the classical professional orchestra’s “sound organism”, is there room for innovations? According to Forbes magazine, “innovation is crucial to the continuing success of any organization”. Are there any management innovations, and if there are, what is their impact upon the stakeholders’ satisfaction? This article is part of a complex research upon specific and innovative aspects in managing a classic professional orchestra for maximizing the satisfaction of multiple stakeholders.

Keywords: management, orchestra, organization, stakeholders, satisfaction, innovation

MNG5. GOOD PRACTICES FOR IMPROVING PROMOTION AND SALES FOR ROMANIAN ECOLOGICAL AGRICULTURAL PRODUCTS

Irina HANGANU, Babeș-Bolyai University, Romania Cristina FLEȘERIU, Babeș-Bolyai University, Romania

Abstract Nowadays, life is an uninterrupted discovery. The consumers tend to have a healthier lifestyle, with a diet that has optimal nutritional values, to maintain their health, in

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 harmony with the nature and the environment. Thus, marketing is selling dreams, impressions, perceptions, creating the opportunity to live through a unique experience, to help the customers write their own story, not just to satisfy them. The main objective of this research is to find ways to support promotion and sales of ecological producers in agriculture Producers offer high quality products, with no artificial additives and contribute to the protection of the biodiversity and the environment, and implicitly our health. The exploratory research represents the main purpose of this paper. Starting from the analysis of the literature review related with ecological agricultural market, the evolution of the customer’s behavior and the identification of the components of the promotional mix, an overview is established. The in depth interviews and the analysis of international models show that the key factors to improve sales and promotion are: informing the producers regarding the dynamic needs of consumers (product diversity and freshness, adaptability to the market’s demand, online orders, home delivery, the client’s feedback, the possibility to return goods, to process the own products, etc.), openness to associations and collaborations on horizontal and vertical axes, communication and information campaigns, the farms’ multi-functionality, proactive promoting, creating a cluster structure, etc.

Keywords: ecological agriculture, promotion mix, sales, promotion, cluster

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: Economics 2 P11 (ground floor)

Chairs: CISMAȘ Laura & IACOBUȚĂ Andreea-Oana

EC2.1. AN ANALYSIS OF THE RELATIONSHIP BETWEEN INSTITUTIONS AND THE ENVIRONMENTAL QUALITY IN HIGH-INCOME COUNTRIES

Andreea-Oana IACOBUȚĂ, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, Romania Cristina CĂUTIȘANU, CERNESIM Environmental Research Center, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, Romania Gabriel Claudiu MURSA, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, Romania

Abstract The existing literature emphasizes the role institutions play in achieving sustainable development objectives, in all its dimensions - economic, social, and environmental. At the same time, the impact of rules on sustainability has been proven to be mitigated by the level of development. In such context, this paper investigates the relationship between the quality of institutions and the environmental quality in a cross-country analysis. We have selected data registered in 2017, namely the Governance indicators released by the World Bank as variables describing the institutional framework, and the Environmental Quality component of the Social Progress Index, to capture the environmental dimension. Based on data availability, our sample includes 47 high-income countries, according to the World Bank classification. The analysis was carried out by using descriptive methods, correlation analysis, and multiple regressions. The findings revealed significant positive 73

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 correlation between the institutional factors and the environmental quality and, also, a positive influence of three factors, namely, rule of law, voice and accountability and government effectiveness on the environmental quality. Surprisingly at a first glance, our results show that control of corruption has a negative influence on the quality of environment. The findings are interpreted in the context of the existing literature and also by taking into consideration the “institutional” heterogeneity of the countries included in the sample.

Keywords: institutions, sustainability, environmental quality, high-income countries

EC2.2. PRESENT AND FUTURE IN CRYPTOECONOMICS

Dominic BUCERZAN, “Aurel Vlaicu” University of Arad, Romania Crina Anina BEJAN, “Aurel Vlaicu” University of Arad, Romania

Abstract Emerging technologies reshape industry, economy and society. Technologies like “the third web” also known like distributed ledgers technology or blockchain seems to arouse the beginning of the second era of digital economy, introducing new concepts like: trestles networks, cryptocurrencies, distributed economy and cryptoeconomics. This article aims to propose an image of the actual state of cryptoeconomics, discussing its present and future implications like a research field and proposing several future trends of development.

Keywords: cryptoeconomics, blockchain, cryptocurrecies, decentralized economy

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

EC2.3. AN ANALYSIS OF REGIONAL INNOVATION CAPACITY AS A FACTOR OF ECONOMIC GROWTH OF ROMANIAN REGIONS

Raluca-Irina CLIPA, Alexandru Ioan Cuza University, Romania Mihaela IFRIM, Alexandru Ioan Cuza University, Romania Flavian CLIPA, Gheorghe Asachi Technical University of Iasi, Romania

Abstract According to Regional Innovation Scoreboard 2016, Romania’s regions, including the Bucharest-Ilfov region, are ranked as modest innovators. This label says much but too little, at the same time, about the capacity of Romania to generate innovation. This paper aims to identify the potential ways of economic growth of the Romanian regions through its innovation absorptive capacity and innovation development capacity, according to the AC/DC model of the National Endowment for Science, Technology and the Arts (NESTA), UK. Using the 2016 pillar scores of the Regional Competitiveness Index (RCI) - Innovation sub-index, we analyze their compatibility with the NESTA model and assess the potential of Romanian regions to absorb external innovation. At the same time, we formulate policy recommendations to increase Romania's regional competitiveness through the development of innovation capacity.

Keywords: innovation, regions, Romania, growth

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

EC2.4. CONVERGENCE BEYOND GDP, MEASURING SIGMA-CONVERGENCE IN EMPLOYMENT, SOCIAL AND LIVING STANDARDS ACROSS EUROPEAN UNION’S NUTS 2 REGIONS

Laura Maria DĂNILĂ (JIANU), Faculty of Economics and Business Administration, West University of Timişoara, Romania Patricia ARDELJAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania Laura Mariana CISMAȘ, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract There are thousands of studies regarding convergence. Initially, at least for European countries acceding European Union, it was about nominal convergence, some macroeconomic indicators clearly established by Maastricht Treaty. Then researchers studied real convergence. Regarding real convergence, even if the number of the studies is impressive, there isn’t yet a common opinion about the best way to measure it. For many years, the most used indicator when measuring real convergence was gross domestic product per capita at national or regional level. Nowadays, there are a lot of studies that are questioning the importance of convergence through gross domestic product per capita regarding sustainable development and well-being. The European Union is also more and more concern over the disparities in the social progress of its Member States, as The European Pillar of Social Rights has been signed in November 2017, structured around 20 key principles. Going beyond gross domestic product per capita our research is considering employment, social and living standards indicators aiming to evidence the trend of disparities across European Union’s NUTS2 regions.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Keywords: European Union, sigma-convergence, employment, social indicators

EC2.5. SOCIO-ECONOMIC CHALLENGES IN ROMANIA DUE TO FOREIGN DIRECT INVESTMENTS (FDI)

Norbert FÖLDI, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The economic development of Romania after 1990 has not been uniform in all parts of the country. The question is which population group has benefited most from the developments and which has benefited least and how this could be connected to the presence of FDI, which were officially first transacted in Romania after 1990, because before that, as in all of Eastern Europe, it did not exist. What impact do FDI have on the socio-economic developments in Romania and what could be the future challenges for the inhabitants?

Keywords: foreign direct investments, socio-economic challenges, foreign ownership

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

June 7, 2019 (Friday)

13.00 - 14.30 Parallel Sessions Session: Contemporary Issues in Accounting 2 P05 (ground floor)

Chairs: ȘTEFEA Petru & HAȚEGAN Camelia

ACC2.1. INCREASING VALUATION ACCURACY WITHIN THE MARKET APPROACH APPLIED IN EMERGING MARKETS – FOCUS ON THE ROMANIAN CAPITAL MARKET

Andreea SUCIACHI, Faculty of Economics and Business Administration, Babes-Bolyai University, Romania

Abstract Emerging markets are characterized by a general lack of transparency and information asymmetry. In such markets, only in recent years, as a consequence of globalization has multiple-based valuation become a widely-used practice, Discounted Cashflow being the most employed valuation method. Nevertheless, the limited availability of relevant market data conducted toward a rather superficial use of valuation multiples and of the market approach in general. In this study, we identify key coordinates in applying the classical four-step method of comparables (Guideline Publicly Traded Company Method) by means of selecting, adjusting and weighting of multiples, which are expected to increase valuation accuracy within the market approach applied in emerging markets, with a particular focus on the Romanian capital market. Also, to advance the classical and superficially applied method of comparables into a comprehensive framework for using multiples in equity valuation

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 in emerging markets, we address the possibility of applying discounts and premiums in such market conditions and the findings are further employed toward reaching the final purpose of correlating the indications of value obtained, with the Discounted Cashflow results.

Keywords: multiples, discounts and premiums, comparables, peer-group

ACC2.2. AUTOMATED VALUATION MODEL FOR RESIDENTIAL REAL ESTATES

Silviu BĂBȚAN, Faculty of Economics and Business Administration, Babes-Bolyai University, Romania

Abstract The general aim of this research project is to point out a series of essential and relevant elements to have a better understanding on several issues of valuation. His particular purpose is to highlight the content of a significant and actual valuation technique, i.e. Automated Valuation Model, and the possibility of its application in Cluj-Napoca, which is one of the most dynamic cities in Romania, especially when it comes to residential buildings. In our paper we will try to create an algorithm and for that we will use a software program and, in the end, we expect to simplify the valuation process. We want to make it easier to calculate the valuation by trying to develop a software program.

Keywords: Automated Valuation Model (AVM), property valuation, software program, market value

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

ACC2.3. CORPORATE TRANSPARENCY SEEN THROUGH NON-FINANCIAL REPORTS

Nicoleta-Daniela MILU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract Corporate Social Responsibility presents an effective way to support the medium and long-term financial interests of companies. The higher the transparency of social and environmental accountability, the greater the credibility of companies, and thus both financial and non-financial results will be improved. This social responsibility approach will increase confidence among stakeholders, including among investors and consumers. The main purpose of this paper is to present the degree of transparency of the social responsibility activities of seven companies listed on the Bucharest Stock Exchange in terms of non-financial performance indicators. The study shows that each company presents its sustainability activities differently in their reports, which leads to the need for a standardized report in order to increase the quality of reports.

Keywords: non-financial reports, transparency, sustainability, quality

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Session: International Business and Global Modern Economy P02 (ground floor)

Chairs: SON Liana & NOJA Grațiela

IBME13. INCOME INEQUALITIES AND INNOVATION OUTCOMES

Paula Roxana CUCOŞ, Faculty of Economics and Business Administration, West University of Timişoara, Romania Liana SON, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The importance of innovation as a major determinant of economic growth in the actual dynamic environment has increased in the last years. The prior reason is the changing focus of both private and public enterprises to improving productivity of the production processes. The aim of this paper is to assess the effects of income inequalities on the outcomes of innovation at a country level. In order to do that, a panel data was used which includes 34 European countries (EU-28 and other 6 non EU member states: Iceland, Norway, Switzerland, Former Yugoslav Republic of Macedonia, Albania and Serbia). The analyzed time frame is 2000 – 2017. We managed to assess the inequalities effects on innovation outcome, using different measures for income distribution by quantiles: the ratio between top richest 10% and the poorest 10% (D9/D1), ratio between top richest 10% and the median (D9/D5), ratio between median and the poorest 10% (D5/D1). We included in our analysis as a control variable also the classical Gini index, before social transfers and pensions included. Regarding the dependent variable (innovation outcome) the number of patent applications and the number of patent applications per million inhabitants 81

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 were used. Other control variables considered in the econometric study are related to demographic, educational, employment and trade openness dimensions. Our findings suggest a very strong relationship between income inequalities and innovation intensity, whatever the inequality dimensions, and in particular when we considered the proportion of the total equivalised income received by the population with top decile income (the top highest decile) reported to the median one (D9/D5).

Keywords: income inequalities, innovation outcome, Gini index

IBME14. MAJOR DIFFERENCES IN THE PERFORMANCE OF EUROPEAN HEALTHCARE SERVICES

Adrian STOICA, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The aim of this analysis is underlining the present situation and improving the performance of the European healthcare services since the 2000s, taking into account the users’ perspective of these services. The assessment is conceived with the help of specific tools of the competitive intelligence process, based on primary observations resulted from the Eurofound Office, regarding European Quality Life Survey 2011 and 2016 (EQLS). The configuration of the status of healthcare systems is realized by using a SWOT analysis, ranging 37.000 respondents as average, from 33 different states Thus, considering the performed analysis, it can be concluded that the European space confronted with significant national differences, both in the quality and the access to medical services. The analysis per country in the north-western Europe and in countries from south

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Europe and south-east indicate evident differences not only connected to the approach of quality of services, but also to other measurement factors, such as quality conditions, personal attention related to patients’ treatment equality, and corruption perceived as a natural phenomenon. Regarding the access to medical services, good performance is registered in countries from the central and north-west Europe. Regarding the access medical services in the south and south-east Europe, considering the costs, the distance to the doctors, the waiting time for making an appointment continue to be difficult, even if improvement of all indicators was registered in the last five years of the considered time interval. In general, the market structure of specialized healthcare services is an oligopolistic, the access to providers of such services being regulated, the market being dominated by a relatively reduced number of bidders in some countries, thus registering a fragmentation of the type of services granted to citizens, and even a concentration of multi-disciplinary healthcare providers.

Keywords: healthcare system, performance, public policy, Europe

IBME15. AN ANALYSIS OF REGIONAL INNOVATION CAPACITY AS A FACTOR OF ECONOMIC GROWTH OF ROMANIAN REGIONS

Ramona Elena IOANA (DUMITRU), Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The implications of economic inequalities (income, wealth, wages, government expenditure) are quite profound. Not only for politics, policy, and political economy, but for global economy overall. In recent history, concerns about equality have been,

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 at heart, concerns about the poor. Under the impact of the regional integration and globalization and with the recent technologies, poverty, - especially extreme poverty-, registers a downward trend among the world states. However, we cannot talk about a uniform phenomenon but, on the contrary, the polarization of societies is continuous, especially within countries. The European Community area is no exception and faces great differences of welfare among its citizens, even if the general trend is to reduce certain types of economic inequalities. The present paper aims at assessing the determinants of income, wealth, governmental allocations to poverty risk in European and non-European countries during the years 2000-2017. Econometric estimates reveal clear negative relationships between the risk of poverty and income inequality (irrespective of the measures used for them). Also, unemployment, and especially long-term and very long term, are threats to poverty reduction. Factors related to human capital also contribute (the danger posed by early school leavers). Determinants that support the poverty reduction are a better health of the population, as well as financial support for consumption, social insurance or education.

Keywords: economic inequalities, welfare, poverty

IBME16. THE EFFECTS OF MIGRATION ON INNOVATION RESULTS AND PERFORMANCES

Elena-Alexandra SINOI, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The complex effects of migration on innovation results and performances represent

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 an actual and growing matter in current research. Many accomplished studies reflect migration opportunities and possibilities as a knowledge transfer channel, with effects of stimulating innovation output, as well as various negative aspects. This study is an assessment of the influence of Romanian emigrant flows on the innovation activity, for the eight regions NUTS-2 and respectively for the 42 counties NUTS-3 from Romania, taking into consideration the magnitude, constancy and characteristics of the phenomenon between 2000 and 2016. The econometric estimations of the net migration impact on intellectual assets in form of patents clearly highlights a negative relationship, strengthened when considering the different factorial combinations related to the proportion of scientists and engineers in regional labor markets or other inputs into the innovative process. At the same time, it is also confirmed the positive influence upon the innovation outcomes of the economic dimension of regions and financial support in research and development, especially in the business sector and in the university education. However, there are some differences in the assessed determinants, depending on the spatial analysis units, namely, on more restricted areas (counties) employment becomes an important element in supporting the innovation.

Keywords: innovation, net migration, emigrant flows, economic development, regions, counties

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

IBME17. SOCIO-ECONOMIC PREDICTORS OF SUBJECTIVE WELL-BEING IN THE EUROPEAN AREA

Ioana CIORBAGIU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The study evaluates the impact on the present subjective well-being of several dimensions of life quality, as well as of certain socio-material living conditions, in 33 European states, during the period 2011-2016. In the measurement of subjective well-being, life satisfaction and happiness are widely used indicators. The econometric estimates analyzing the relation between life satisfaction and a portfolio of determinants, using logistic patterns of ordered probity type, highlight a series of influences that reveal the socio-economical and demographical characteristics that have a significant role for a better life quality. Satisfaction with the living standard, education and family, proof to be most important for personal satisfaction. The analysis by gender does not indicate important differences between men and women (at least as to what concerns the European Union member states), however, differences can be observed as to what regards the age of the persons. Clearly, marriage has an important contribution to the personal satisfaction level, which proves to be negatively influenced in the case of widow or separated persons. A work program that exceeds 40 hours a week cannot have positive effects on the individual. A positive impact on life satisfaction is induced by a significant income: those who have an income that can be positioned in the top quartz have a superior satisfaction related to the others and, especially, related to those positioned in the inferior quartz. This fact is also confirmed by the contribution of the variable regarding income distribution. The coefficients of elasticity estimated for subjective well-being, unimportant which the used measure is (satisfaction or 86

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 happiness) and whatever the factorial combinations are, indicate a negative influence of an increased Gini index, as an expression of an increased inequality in income distribution. Occupational status becomes very important, job security for an indefinite period being highly relevant as to what concerns personal satisfaction. Family support is also an important driver for overall personal satisfaction. Indicators on trust in public institutions (particularly parliament, public authorities, media) have an important role in increasing life satisfaction and improving life quality.

Keywords: well-being, life satisfaction, happiness, life quality, European countries

Special Session: Sustainable Growth P03 (ground floor)

Chairs: ANDRID Vladimir & DIMA Ștefana

SG1. MICROFINANCE AND POVERTY: WHAT DOES THE CROSS-COUNTRY EVIDENCE REALLY SHOW?

Asma BOUSSETTA, LEO, University of Orléans, France

Abstract This paper studies the impact of microfinance on poverty at the macro level using a cross-country panel dataset of 76 countries for the period 1999–2015. Taking account of the potential problem of endogeneity between MFIs’ gross loan portfolio per capita and poverty, we show that any increase in the size of the gross loan portfolio of MFIs in a given country improves the income of the poor and leads to a reduction in poverty. In addition, contrary to most previous studies, we show that microfinance is

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 not only beneficial for reducing the incidence of poverty but also its depth and severit.

Keywords: gross loan portfolio, microfinance institutions, poverty, 2 Within SLS method

SG2. MODELLING THE RELATIONSHIPS AMONG CO2 EMISSIONS, AGRICULTURE, FOREIGN DIRECT INVESTMENTS AND ENERGY CONSUMPTION IN N-11 COUNTRIES

Petar MITID, Institute of Economic Sciences, Serbia Jovan ZUBOVID, Institute of Economic Sciences, Serbia Mihajlo ĐUKID, Institute of Economic Sciences, Serbia Duško BODROŽA, Institute of Economic Sciences, Serbia

Abstract

This paper investigates whether a long run relationship exists between CO2 emissions and selected variables: agriculture, forestry, and fishing, value added, foreign direct investments, energy use and renewable energy consumption for N-11 countries in the period of 1990- 2015. Five panel unit root tests have been done, followed by two panel cointegration tests. As the final step, a panel Granger causality testing has been conducted. The main result clearly proves the existence of a long run causal relationship between CO2 emissions and agriculture, forestry, and fishing, value added. Furthermore, a short-run positive unidirectional causal relationship exists, and runs from:

 CO2 emissions to agriculture, forestry, and fishing, value added,  agriculture, forestry, and fishing, value added to energy use,

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

 foreign direct investments to energy use,

 energy use to CO2 emissions and  energy use to agriculture, forestry, and fishing, value added.

Keywords: CO2 emissions, agriculture, FDI, energy use, panel causality

SG3. FISCAL POLICY AND POLITICS IN A TIME OF TRANSITION-THE SERBIAN EXPERIENCE

Vladimir ANDRID, Institute of Economic Sciences, Serbia

Abstract The paper adds several distinctive contributions to the fiscal sustainability literature in the case of developing and post-socialist transition economies. First, the paper estimates the cyclically and absorption adjusted primary fiscal balance (CAAPFB) in the case of Serbia, a small open transition economy from Western Balkans region, for the period 2001Q1-2017Q3. Second, the paper evaluates the response of primary fiscal balance to the accumulation of public debt in Serbia. Third, the paper quantifies the influence of electoral cycle, political fragmentation and political ideology on fiscal sustainability in the case of Serbia. Finally, the results show that the deterioration of the fiscal stance in Serbia is due to the spillover effects of the Great Recession, while the improvements in the fiscal discipline are due to the stand-by arrangements with the IMF.

Keywords: structural primary fiscal balance, fiscal reaction functions, electoral cycle, political fragmentation, political ideology

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

SG4.THE IMPACT OF NATIONAL CULTURE ON SYSTEMIC RISK

Alin ANDRIES, Department of Economics, Alexandru Ioan Cuza University, Romania Daniela BALUTEL, Department of Economics, Alexandru Ioan Cuza University, Romania

Abstract Using a comprehensive dataset, covering 75 % of the total assets of the Global Bank sample for the period 2000-2016, this paper investigates the effects of national culture on two systemic risk measures that are channeling the risks in a symmetric way (one form the banking sector to the system (∆CoVaR) and the other from the system to the banking sector (MES)). We measure cultural differences using country-level indices for individualism, power distance, masculinity and uncertainty avoidance developed by Hofstede (2001). Because these indicators have dual information, for a better identification we account for the potential non-linear effects they have on the systemic risk measures. Additionally, as the two risk measures are channeling the risks in different ways, we propose to see what is the role of these cultural indices on the full transmission mechanism of risk in a country by looking at a joint risk model. Moreover, as the risk measures are highly skewed, we also analyze the impact of cultural values on the systemic risk measures from a quantile perspective with the purpose of capturing the effects at levels of risk that are associated to crises. As expected, non-linear effects of the cultural values on the risk measures are identified and are stable across model specifications, showing that these cultural traits may increase their impact with the increase in systemic risks. We also find that there is a positive correlation (0.51) between the errors of the two models suggesting that shocks to any of the two risk measures are absorbed by the other measure. An additional finding is that at risks associated with banking crises, the impact of these 90

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 cultural variables may change significantly their effects. In general, the analysis indicates that societies characterized by individualism, high power distance have a positive contribution on systemic risk, while societies characterized by masculinity will have a higher contribution to the risk of financial system, but the exposure will be lower.

Keywords: systemic risk, banking governance, culture

SG5. INCREASING RETURNS, BALANCED-BUDGET RULES, AND AGGREGATE FLUCTUATIONS

Maxime MENUET, School of Economics & CERDI, Université d’Auvergne, France Alexandru MINEA, School of Economics & CERDI, Université d’Auvergne, France; Department of Economics, Carleton University, Canada Patrick VILLIEU, CNRS, LEO, University of Orléans, France

Abstract This paper examines the conditions needed for equilibrium (in)determinacy in growth models characterized by perfect competition and a balanced-budget rule (BBR). Contrary to the literature that assumes zero public debt, we build an endogenous growth model with a generalized BBR authorizing a constant positive debt level. We show that the emergence of aggregate instability dramatically depends on the dynamics of the debt-to- GDP ratio and the strength of social labor externalities. If the labor demand is positively sloped and steeper than the labor supply, two reachable balanced-growth paths appear – a no growth trap, and a positive growth solution – that gives birth to both local and global indeterminacy, hence aggregate instability driven by self-fulfilling beliefs (sunspots). In addition, we show that a fiscal rule such

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 that the tax rate strongly responds to public- debt increases can remove the no- growth trap, and secure positive long-run growth.

Keywords: Endogenous growth; indeterminacy; balanced-budget rules

Special Session: Socioeconomic challenges of Industry 4.0

P11 (ground floor)

Chairs: IMBRESCU Ion & FARKAS Beata

SCI1. SOME ASPECTS OF ORGANIZATIONAL CULTURE IN INDUSTRY 4.0

Laura CISMAŞ, Faculty of Economics and Business Administration, West University of Timişoara, Romania Ion IMBRESCU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The actions required by the implementation of Industry 4.0 policies are still an unknown land for a large number of economic agents. The concept of decentralized production acquires new dimensions, being related not only with production itself but also with supply chain, distribution channels or post sales services. The characteristics of a new comprehensive production factory imply world-wide-web-connected machines, communication in real time like they are physically closed, a continuous education based on organizational culture. We think that organizational culture is a key aspect of a successfully implemented strategy on Industry 4.0 and that specific

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 managerial competences will be decisive in creating new approaches of organizational culture in order to offer innovative ways for entrepreneurs to access to doors of Industry 4.0. Another problem can be related to the bureaucracy in organizational culture and how can be beaten in order to increase the support for an innovative approach. Some researches underline the fact that there are a kind of reticence of older people to use at the right intensity modern tools supply by IT or cybernetics. We try to present some of the most important aspects of the influence of organizational culture in Industry 4.0 and to see how close or far is the moment of this new industry.

Keywords: organizational culture, production, Industry 4.0

SCI2. INDUSTRY 4.0: CHALLENGE FOR THE CENTRAL AND EASTERN EUROPEAN MODEL OF CAPITALISM

Beata FARKAS, Faculty of Economics and Business Administration, University of Szeged, Hungary

Abstract Reindustrialization after the systemic change was an important element of the development in the Central and Eastern European (CEE) countries. The participation of Visegrád countries in Central European manufacturing core decreased the vulnerabilities of these economies during the 2008 global crisis. However, the upcoming technological changes (Industry 4.0 or fourth industrial revolution etc.) mean challenges for the region. There are many debates about the terms, content and the probable impacts of new manufacturing but it is not contested that innovation will be more important than ever.

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

The most attractive feature of the FDI-based CEE modernization and growth model is the low wages with relatively well educated labour force. In this model the low added value keeps low the investment in human capital and innovation. It is obvious that a change is necessary in these policy fields. This paper investigates the research and education performance of CEE countries from the viewpoint how these countries are able to adapt themselves to the requirement of new manufacturing. It seems to be an additional challenge that the current economic upturn in the framework of FDI-based growth model hides the urgent necessity of human capital development.

Keywords: Industry 4.0, growth model, Central and Eastern European countries

SCI3. SPATIAL PATTERNS OF LABOUR FORCE STRUCTURE IN HUNGARIAN COUNTIES 2007-2015

Izabella Szakálné KANÓ, Faculty of Economics and Business Administration, University of Szeged, Hungary Marianna SÁVAI, Faculty of Economics and Business Administration, University of Szeged, Hungary

Abstract In today’s knowledge-based economy, human capital is gaining more and more importance. Especially in case of knowledge-intensive industries, it is crucial to have highly educated labour in place. In order to make the right decisions, educational and regional policies also need well-based economic analysis on the structure of the workforce and on changes of it. On the one hand, regions with diverse labour force provide firms with skilled workers and they can also gain advantage from knowledge spillovers of other firms. On the

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 other hand, regions with less diverse labour pool can offer advantages, which the firms benefit from in form of specialized local labour market, specialized local value chains and intra-industry knowledge spillovers. In order to provide policymakers with a dynamic picture on the structure of the regional labour force, we analyse data based on Standard Classification of Occupations on NUTS3 territorial level (counties) in Hungary. Our goal is to gain this picture. In more detail, in our investigation, we apply dynamic Shift-share analysis on data between 2007 and 2015 to answer the following questions: 1. In which of the Hungarian counties were driven changes in the extent of workforce by changes in national workforce structure? 2. In which of the Hungarian counties were affected changes in the extent of workforce by regional characteristics? 3. Which of the counties had the most and the least diverse labour pool? According to our expectations, counties with higher education institutions had higher qualified human capital, and in these counties workforce was affected mostly by their own regional characteristics. In other counties these changes were driven by changes in national workforce structure. This picture could change in time, our goal is to investigate how.

Keywords: Human capital, structure of workforce, dynamic Shift-share analysis, Hungarian counties

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

SCI4. THE PERCEPTION AND REALITY OF THE FOURTH INDUSTRIAL REVOLUTION FROM THE HUNGARIAN SMES POINT OF VIEW

Eszter MEGYERI, Faculty of Economics and Business Administration, University of Szeged, Hungary

Abstract The fourth industrial revolution is now in the bloodflow of all competitive large companies thriving on technology development and participating in global or regional value chains. The most responsive players are progressive companies who must follow, further develop and deliver new ways of thinking, creating and operating in order to stay viable in the global arena. However, not all players are fully up to speed with the new opportunities and expectations of the 21st century. Typically SMEs are lack of resources and inspiration to fundamentally change their ways of working in a short- or medium run, while numerous niche opportunities are present to exploit. In our research we specifically focus on Hungarian Start- ups and SMEs with the objective of understanding their perception and evaluation of the importance of the key characteristics of the fourth industrial revolution. We approached Hungarian SMEs who are involved and impacted by IR4 challenges to analyse their understanding and ranking of the literature driven characteristics of the fourth industrial revolution. We also analyse the available tools and support smaller companies receive in order to utilize better the advancing technologies and potentials for deeper business connectivity. We review how well these programs received and used by the surveyed companies in order to identify new paths for accelerating the development of SME competitiveness.

Keywords: industrial revolution 4.0 characteristics, SMEs, entrepreneurship, competitiveness 96

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

SCI5. EVOLUTION PATTERNS IN EUROPEAN MANUFACTURING BETWEEN 2000-2017

Benedek NAGY, Faculty of Economics and Business Administration, University of Szeged, Hungary Beáta UDVARI, Faculty of Economics and Business Administration, University of Szeged, Hungary Imre LENGYEL, Faculty of Economics and Business Administration, University of Szeged, Hungary

Abstract We are investigating the evolution patterns of manufacturing within the European Union. As the notion of reindustrialization gains focus in developed countries, the strengthening of the manufacturing sector is being pronounced in EU documents and national regulations alike. We study two country groups within the EU: the 10 Post- socialist EU member states (PS10) and the EU15 to see whether we can observe either reindustrialization or deindustrialization in these country groups, and to what extent is the evolution of their manufacturing sectors similar. The basis of our analysis on reindustrialization is the change in gross value added and the number of employees in manufacturing in the period between 2000 and 2017. The data show that the EU15 country group and most countries in it are still characterized by a process of deindustrialization; while in the majority of the post-socialist EU member states and the PS10 country group experience reindustrialization in terms of rising manufacturing employment. The changes observed might be an indication of a new spatial core-periphery division of labor forming within the EU with firms in the core relocating and causing deindustrialization there while simultaneously a reindustrialization happens at the periphery. Keywords: manufacturing, reindustrialization, deindustrialization, EU 97

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

June 7, 2019 (Friday)

14.45 - 15.45 Parallel Sessions Session: Economics 2 P05 (ground floor)

Chairs: SÎRGHI Nicoleta & NEAMȚU Mihaela

EC2.6. CORRUPTION IN EMERGING AND DEVELOPING COUNTRIES THROUGHOUT THE AFTER CRISIS LITERATURE

Lavinia DUDAŞ, Faculty of Economic Sciences, Computer Science and Engineering, Vasile Goldis Western University of Arad, Romania Lavinia MIHIŢ, Doctoral School of Economics and Business Administration, West University of Timişoara, Romania

Abstract The corruption impact on the economy has always been a topic of interest in academia. Over time it can be observed an increase in publication investigating the corruption phenomena after a major economic and financial crisis. This paper aims to bring together theoretical and empirical studies that are analyzing corruption in emerging and developing countries between 2013-2018. To best achieve the research objective, we made use of content analysis focusing on two directions: (1) methodologies used for measuring and (2) the variables of interest. Our results reveal that empirical approaches are more often used in favor of theoretical ones. Moreover, corruption is associated on the one hand, with the decrease of the economic growth, scheduled elections or a low level of government 98

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 effectiveness and rule of law, public wages and on the other hand with the existence of mobile phones and internet access, expected years of schooling.

Keywords: corruption, developing countries, content analysis

EC2.7.ECONOMIC GROWTH AS A SOCIO-ECONOMIC STRUCTURE FOR IMPLEMENTING PUBLIC POLICIES

Alina Ioana CALINOVICI, Faculty of Economics and Business Administration, West University of Timişoara, Romania Oana-Ramona LOBONȚ, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The purpose of this paper is to analyze the influence of public policies on economic growth in the 28 countries of European Union between 2002-2017. In this case, for describing economic growth we consider the gross domestic product growth rate, collected from World Bank. The indicators taken into account for describing public policy are the Worldwide Governance Indicators, namely: Government Effectiveness (GE), Regulatory Quality (RQ) and Control of Corruption (CC), published by the World Bank. Data analysis was performed by applying the Pearson correlation coefficient and Ordinary Least Squares method. The data resulting from the OLS estimation outlines a dependency relationship between GDP growth rate and the public policy indicators.

Keywords: economic growth, public policies, EU countries

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

EC2.8. LABOUR MARKET AND SELF–EMPLOYMENT: THE ISRAELI CASE

Iyad SNUNU, West University of Timişoara, Romania

Abstract This study discusses and describes the labour market from a perspective of self- employment. I investigated the phenomenon of this form of employment using several aspects. On the one hand, I examine the factors influencing the choice of Israelis to be self-employed among Arabs and Jews in Israel, and on the other hand, I checked the extent to which the human capital and characteristics of the family background determine the employment choice by using data from the 2008's Israeli census. Hypotheses concerning the effect of demographic variables on self-employment are formulated and tested using logistic regression. The results support the research hypotheses, and the most notable predictors of self-employment are discussed. I conclude that factors such as family background, gender, age, number of children and an interaction between nationality and occupation are the most substantial predictors of self-employment.

Keywords: labour market, self-employment, demographical variables, Arabs and Jews, gender, entrepreneurship

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EC2.9. ANALYSIS OF THE COOPERATION AND COMPETITION RELATIONSHIP IN THE OLIGOPOLY MARKET

Doriana RĂMESCU, Faculty of Economics and Business Administration, West University of Timişoara, Romania Nicoleta SÎRGHI, Faculty of Economics and Business Administration, West University of Timişoara, Romania Mihaela NEAMȚU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract The present paper analyses, from the dynamic games perspective, the cooperation and competition relationship in the oligopoly market (two and three companies respectively) which implies the oil and gas industries in Romania. The elements of the game are as follows: the players are identified as the companies, the payoffs are the winnings or profits obtained by the entities and the strategies are cooperation and competition. The mathematical models are described by two and three nonlinear differential equations, where the probabilities of choosing cooperation and competition by each company are taken into consideration. Due to the fact that the economic process is not instantaneous and the choosing of a strategy leads to a payoff after period of time and the time delay is introduced. For both systems the equilibrium points are determined and the existence of the Hopf bifurcation is investigated. For the case study real data are used on two scenarios, where the relationship among payoffs, players and their strategies is considered. In the first case the companies obtain higher payoffs if they cooperate and in the second scenario they get higher payoffs in the competition case. In order to visualize the evolution in time of the variables, we carried out some numerical simulations with Wolfram Mathematica 9. The 101

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 conclusions and future works are provided.

Keywords: competition, cooperation, oligopoly market, evolutionary games, replicator dynamics

EC2.10. AN UNEMPLOYMENT MODEL WITH TIME DELAY

Flavia Loredana VESA, Faculty of Economics and Business Administration, West University of Timişoara, Romania Eva KASLIK, Faculty of Economics and Business Administration, West University of Timişoara, Romania Mihaela NEAMȚU, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract A mathematical model of unemployment is constructed and studied, taking into account the history of past unemployment levels. The main goal of this paper is to investigate the interaction among the unemployed persons U(t), employed persons E(t) and the newly created jobs by the government and the private sector, denoted by V(t). For the mathematical modeling, it is assumed that the number of unemployed persons U(t) increases continuously with a constant rate. The new vacancies are created proportionally to the number of unemployed persons, emphasizing the importance of past unemployment levels. The persons who are fired or leave their job are removed from the employed class and join the unemployed class, and vice versa. Moreover, the rates of death, migration and retirement as well as the rate of diminution of new vacancies are also incorporated in the model. The stability theory of nonlinear systems with distributed time delays is the main

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INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 mathematical tool employed in this paper, allowing for a more realistic depiction of the economic process. The existence of a positive equilibrium is discussed and its stability is analyzed with respect to the time delay under consideration. Numerical simulations are also carried out with the aim of visualizing the theoretical results. Conclusions are drawn which reflect the importance of our investigation.

Keywords: unemployment, mathematical model, equilibrium, stability, time delay

Session: Economics 1 P02 (ground floor)

Chairs: HARDING Liliana & VOIA Marcel

EC1.6.URBAN ENVIRONMENTS AND INNOVATION: A CAMPUS BASED PERSPECTIVE

Liliana HARDING, University of East Anglia Camelia MARGEA, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract Our current paper builds on the findings of an earlier study evaluating the potential of public art to drive innovation in the urban environment and draws on the project of Timişoara European Capital of Culture for 2021 and the Fisart Festival organised in the city over the last decade. Here we are proposing an analysis based on data gathered through two subsequent sets of surveys of university students, to estimate young people’s evaluation of the significance of their urban environment. We are questioning in particular the ability of an urban space enhanced through accessible cultural amenities to increase life satisfaction and motivation for the young, activating 103

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 their innovative capacity and a willingness to contribute to change inspired by cultural initiatives. The paper has received support from colleagues and students at the West University of Timişoara in the Faculties of Arts and Design, Economics and Business, Geography, and Sociology and Social Work. As such it proposes an inter-disciplinary approach, while being directly connected to campus life and the core of activities surrounding a university and its students. We are looking in particular to elicit students’ perspectives of what makes for a positive urban environment in which they can better work and live, as well as enhancing their involvement, learning and innovation by owning the city space that they inhabit and connecting to initiatives in their physical and cultural environment alike.

Keywords: economics of well-being, Timişoara campus, urban regeneration, youth living spaces

EC1.7. SPECIALIZED PEDIATRIC HEALTH CARE UTILIZATION, CHILD HEALTH STATUS, AND PERSONALIZED-PRECISION MEDICINE

Anand ACHARYA, Department of Economics, Carleton University, Canada Lynda KHALAF, Department of Economics, Carleton University, Canada Marcel VOIA, Department of Economics, University of Orleans, France; Carleton University, Canada Myra YAZBECK, Department of Economics, University of Ottawa, Canada David WENSLEY, Department of Pediatrics, University of British Columbia, British Columbia Children’s Hospital, Canada

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Abstract Health status is a key determinant of health care utilization. However, many measures of health status, including precise personalized physiologically based illness severity scores, are imperfect markers of health ability. This complicates many analysis of health care utilization and leaves open questions as to the attributable role of health status. We suggest a method for uncovering the underlying health ability of a child at the time of admission to the pediatric intensive care unit, which consequently provides different results in an analysis of specialized pediatric health care utilization. To do so, we first refine an economic model of pediatric critical care utilization to explicitly account for a child’s underlying health ability. Our theoretical model coincides empirically with the accelerated life regression, a risk adjustment specification common to both clinical health and quality analysis. We extend the accelerated life model using a novel empirical strategy that utilizes the trauma status of a pediatric intensive care unit patient as an instrumental variable. Our results, reported as confidence sets revealing both data and identification uncertainty, suggest that once underlying health ability is accounted for, variations in health utilization attributable to health status change with a clinically and economically relevant magnitude. Furthermore we find that results are sensitive to the choice of health status measures or categorization, which has implications for most types of common risk adjustment. Our theoretical and empirical results also suggest that the clinical uncertainty surrounding underlying health ability is a possible contributor to geographic variation in health utilization.

Keywords: health status, health ability, accelerated life model

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EC1.8. SPATIAL ECONOMETRIC ANALYSIS OF HOUSEHOLD POVERTY IN MAURITANIA

El Moctar LAGHLAL, CNRS, LEO, University of Orléans, France

Abstract In this paper, I analyze the determinants of poverty in Mauritania using a spatial econometric approach. I show the presence of significant spatial dependence in the households’ welfare. Thus, the classical techniques of regression are not appropriate for identifying the determinants of poverty. I empirically show that the classic approach leads to erroneous conclusions about the statistical significance of the impact of belonging to some socio-economic groups on poverty as well as the impact of primary education in urban areas, technical high school and alphabetization in rural areas. I provide precise estimates of these determinants of poverty with more accurate statistical inference using spatial error models.

Keywords: poverty, education, welfare, spatial econometric models

EC1.9. DOES INTERNAL CONFLICT MATTER IN THE DEMOCRACY-GROWTH NEXUS? THE AFRICAN CASE

Tobignaré YABRE, Laboratoire d’Economie d’Orléans, University of Orléans, France

Abstract Regarding the case of African countries, the question of a possible effect of democracy on economic growth through its effect on internal conflict must be raised. But curiously, this glance is overlooked in existing empirical studies. In this paper, we

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INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019 demonstrate this idea by performing a simultaneous equations model from 1985 to 2015 for thirty-four African countries. Our results robustly show that democracy has no significant direct effect on economic growth but its effect through internal conflict is highly significant. More specifically, the results consistently support an U-shaped relationship between democracy and internal conflict indicating that the risk of internal conflict decreases for strongly autocratic regimes and for more democratic regimes but this risk increases for medium level of democracy. Moreover, the relation between internal conflicts and economic growth is highly significant and internal conflict has a feedback effect on democracy. Our finding defends that peaceful democratization stimulates growth. It also supports that making efforts to reach high level of democracy decreases the risk of internal conflicts and stimulating economic growth.

Keywords: democracy, economic growth, internal conflict, simultaneous equations, Africa

Special Session: Sustainable Growth P03 (ground floor)

Chairs: MINEA Alexandru & DIMA Bogdan

SG6. INSTITUTIONS AND THE GLOBAL RISK OF STOCK MARKETS

Bogdan DIMA, East European Center for Research in Economics and Business (ECREB), West University of Timişoara, Romania Jacob A. JORDAAN, Utrecht School of Economics, Utrecht University, The Netherlands Roxana IOAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania 107

INTERNATIONAL CONFERENCE TIMTED 2019 Timişoara, June 6-8, 2019

Ştefana Maria DIMA, East European Center for Research in Economics and Business (ECREB), West University of Timişoara, Romania

Abstract During the last decade, due to the recent financial and real turmoil and the subsequent period of prolonged stock markets instability, the idea that the institutional framework and the quality of economic and regulatory policies have a major impact on the global financial markets’ risk, has drawn attention to the importance of understanding and managing the risk on these markets. Our paper attempts to provide with a contribution to the existing literature in this field, by considering a potential causality running from the global quality of public policies and institutions to stock markets risk as this is captured by the Expected Shortfall as a robust and coherent measure of risk, lately taken into consideration by the Basel Committee on Banking Supervision, as well as a Markov-Switching GARCH model. The diversity of public institutions and policies were analyzed through the six indicators taken into consideration by the Worldwide Governance Indicators (WGI) Project. Our study uses daily data for 25 major stock market indexes all over the world, for a period of almost 12 years (2004 – 2015). Our findings shows in a robust manner that there is a negative causal relation between the quality of the institutional framework and the amount of stock markets risk as this is mainly exercised via the uncertainty associated with current and expected prices and returns.

Keywords: Coherent measures of risk, Expected Shortfall, conditional volatility, public institutions

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SG7. CO2 EMISSIONS, RENEWABLE ENERGY AND ENVIRONMENTAL REGULATIONS IN THE EU COUNTRIES

Claudiu Tiberiu ALBULESCU, Management Department, Politehnica University of Timişoara, Romania; CRIEF, University of Poitiers, France Alin Emanuel ARTENE, Management Department, Politehnica University of Timişoara, Romania Caius Tudor LUMINOSU, Management Department, Politehnica University of Timişoara, Romania Matei TĂMĂȘILĂ, Management Department, Politehnica University of Timişoara, Romania

Abstract This paper analyses the factors explaining the slight decrease of CO2 emissions in the European Union (EU), recorded during the last period. With a focus on 12 EU countries, we apply a panel data analysis over the period 1990 to 2017 and we investigate the impact of renewable energy share in energy production, and the role of EU environmental regulations, in explaining the level of CO2 emissions. Our static and dynamic panel data analysis points to a negative impact of an increased renewable energy share on CO2 emissions, while there is no clear evidence about the role of environmental regulations. It appears that the 2020 climate and energy package contributed to the reduction of pollution level, while the ratification of the Kyoto protocol by the EU countries had no significant influence. At the same time, our findings validate the environmental Kuznets curve (EKC) hypothesis and the pollution halo (PH) hypothesis, showing that foreign companies export eco-friendly technologies. Our results prove to be robust regarding the use of static fixed and random effects models, of two stages least square models and the use of difference and system Generalized Method of Moments (GMM) frameworks. 109

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Keywords: CO2 emissions; environmental Kuznets curve hypothesis; pollution halo hypothesis; renewable energy production; environmental regulations; panel data analysis

SG8. ENDOGENOUS FLUCTUATIONS AND THE BALANCED-BUDGET RULE: TAXES VERSUS SPENDING-BASED ADJUSTMENT

Abstract The present paper develops a simple theoretical setup to examine the role of the tax- spending mix of fiscal adjustments on aggregate (in)stability in indebted economies. To this end, we build an AK endogenous growth model with public debt dynamics. If the adjustment of the government’s budget constraint is based on a single instrument (taxes or public spending), the economy converges towards a high-growth path/ with mixed adjustment, however, another equilibrium appears (the no-growth path) that can be locally over-determine (unstable) or under-determined (stable). A hopf bifurcation can occurs at the border between the last two cases, which leads to cyclical dynamics. We also show that global indeterminacy is likely to emerge if fiscal adjustment is mainly based on public spending. A calibration of the model shows that area of indeterminacy covers reasonable values for parameters.

Keywords: endogenous growth, indeterminacy, balanced-budget rules, hopf bifurcation

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Special Session: Socioeconomic challenges of Industry 4.0 P11 (ground floor)

Chairs: IMBRESCU Ion & FARKAS Beata

SCI6. THE INTERPRETATION OF INDUSTRY 4.0 BY HUNGARIAN TECHNOLOGY- ORIENTED STARTUPS – A SURVEY-BASED STUDY

Peter HALMOSI, Faculty of Economics and Business Administration, University of Szeged, Hungary

Abstract Technology-oriented startups are valued participants of the economy in the 21stcentury. By inventing and bringing new technologies to the market, this sector supports not only the growth of competitiveness in the corporate sector but that of the standard of living as well. The “Industrie 4.0” initiative declared by Germany in 2011 was the first commitment of a government to support the new technology sector which was soon followed by the „Advanced Manufactured Partnership” program of the U.S., as well as by the “Made in China 2025” initiative for the advancement of the productive sector launched by the People’s Republic of China and the “Industria 2016” vision of Italy. The evolution of Industry 4.0 is nowadays parallel to the conscious efforts of many European governments to develop their own start- up ecosystems. These start-ups face significant challenges, but at the same time, they are the means to support changes. This paper – based on a survey among early stage start-up companies, having received angel investment – aims to present how startups see of the significance of Industry 4.0, and what conditions for scaling their businesses are evident compared to traditional companies.

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Keywords: start-ups, survey, Industry 4.0

SCI7. FOREIGN DIRECT INVESTMENTS IN ROMANIA. ARE THEY CONNECTED TO THE FOURTH INDUSTRIAL REVOLUTION?

Andra MICULESCU, Faculty of Economics and Business Administration, West University of Timişoara, Romania Maria OTIL, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract Foreign Direct Investments (FDI) represent an important subject both for economists and politicians. In a country like Romania, where capital stock in 1990 was old and fit for very large production units, FDI was crucial for economic growth. The perspective of, and after that, the adhesion to European Union marked an important milestone on the transition from a centralized-economy to market functionally economy for Romania. FDI determined the increase of productivity in national economy and generated a lot of incentives for home firms, but at a moment also generated a discrimination between foreign firms that invested in our country and domestic firms, from the access to state-aid to the intensity of fiscal control activities. The fourth industrial revolution is based on different pillars such as connectivity, smart-initiative in human capital (especially in education), integrative digital technology and digitization of public services. We will present some key facts about Foreign Direct Investment in Romania and some characteristics of main pillars of fourth industrial revolution and try to see how connected are they to think about some things to do in the future.

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Keywords: foreign direct investments, economic growth, industrial revolution, Romania

SCI8. SMART-FACTORY 1.0 OR INDUSTRY 4.0? IS THAT THE QUESTION?

Ruxandra CUREA-PITORAC, Faculty of Economics and Business Administration, West University of Timişoara, Romania Mihai PAREAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract One of the fashion concept of our days is Industry 4.0. Many researchers consider that the fourth wave of industrial revolution is the best solution for solving different problems generated by globalization. Other researchers are convinced that we must have strong control keys for digital technologies to avoid scenarios like the one presented in Terminator. Industry 4.0 initiative represent a huge challenge of our times and probably the approach is macroeconomic rather than microeconomic so if we refer at it as a set of objectives and instruments at a large scale, we can say that the concept that can be used at micro level is Smart-Factory 1.0, first wave of production units based on integrative processes of different islands of automation developed during last years. We try to present the characteristics of a Smart-Factory and how the combination between these factories can contribute to define a wanted wave for global economy.

Keywords: industrial revolution, Smart-Factory 1.0, Industry 4.0

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SCI9. DIGITAL INDUSTRIAL POLICY: CHALLENGES FOR EUROPE (AN COMMISSION)

Nicoleta SÎRGHI, Faculty of Economics and Business Administration, West University of Timişoara, Romania Ioana VĂDĂSAN, Faculty of Economics and Business Administration, West University of Timişoara, Romania

Abstract European manufacturing industry is at an interesting crossroad, a lot of challenges appear at global level and within European Union countries. Do define the future path is important to formulate clear objectives and deliver efficient instruments in order to achieve the goals. Research and innovation infrastructure cannot be developed without a strong commitment of public bodies (at national and European level) for financing of appropriate mechanism for increase activities in industrial research and innovation. The good intention of the governments has to be doubled by concrete actions, otherwise will be visible much talks and few facts and industrial policy is important in this direction. Digital technologies are dedicated in principal to intangible goods and that can create difficulties for those who are in the world of tangible goods, so the actions must be very good orchestrated. Digital industrial policy can represent a huge challenge for any developed country and an impossible target for an eclectic club like European Union. That means that the role of European Commission is more important than we can imagine. We try to present in this paper some challenges for European Commission and for each member country for deliver policy- oriented arguments and instruments and also the importance of a systematic approach of a Systemic Digital Industrial Policy.

Keywords: manufacturing, digital technology, Systemic Digital Industrial Policy 114