Andrej Sušjan

The Impact of Institutions on Economic Growth: The Case of Transition Economies

(2005). The Impact of Institutions on Economic Growth: The Case of Transition Economies. Journal of Economic Issues: Vol. 39, No. 4, pp. 995-1027.

Uncertainty and Growth in Transition Economies

Abstract The paper investigates the relationship between fundamental uncertainty, a recurrent theme in post-Keynesian economic literature, and economic performance in transition economies. Uncertainty in the transitional economic environment is enhanced by factors such as institutional transformation, political and social instability, and legacies of the past. To capture the changes in the levels of transition-specific uncertainty, the authors have designed the uncertainty index, based on a weighted selection of Heritage Foundation and Freedom House data. The correlation between the uncertainty index and growth is strong and clearly negative. Panel data analysis based on a growth model, supplemented by variables to simulate transitional cycle, and performed on a sample of transition economies for the period 1995–2002, confirms that high levels of transition-specific uncertainty had a negative impact on economic growth.

Corporate Communication and Economic Theory: An Institutionalist Perspective

Abstract We offer a framework for the economic analysis of corporate communication (CC) by relying on the concept of dynamic competition and the post-Keynesian theory of the firm. The concept of dynamic competition, based on rivalry between companies, encompasses the importance of information flows and CC in the environment, characterized by fundamental uncertainty. We contribute to the literature by developing a CC matrix used for classifying various CC practices on the basis of firms’ imperfect cognition processes and their attitude toward the stakeholders. Within the post-Keynesian theory of the firm, which has institutionalist origin, we show that transparent CC activities are a potentially powerful tool for the improvement of firms’ performance. We also show that, in Slovenia, the deceptive and non-transparent CC of many large firms and banks has negatively affected the business climate, consequently leading to the decline of the Slovenian economy.

HISTORICISM AND NEOCLASSICISM IN THE KIEV SCHOOL OF ECONOMICS: THE CASE OF ALEKSANDER BILIMOVICH

Aleksander Bilimovich (1876–1963) is often considered to have been one of the last representatives of the Kiev School of economics, which was influenced by the German Historical School as well as by the emerging neoclassical theory. After the Soviet revolution, Bilimovich continued his work in exile and was developing his theoretical and methodological views along two lines of the Kiev tradition. On the one side he maintained the historical approach, and on the other side he was inclined towards the deductivist and mathematical approach. The paper thus questions the established view among the historians of Russian economic thought of Bilimovich as a consistent adherent of marginalism. His work bears also several features of historicism.

An Institutionalist View of Public Relations and the Evolution of Public Relations in Transition Economies

Abstract The paper provides an institutionalist view of public relations as a refined mechanism for maintaining corporate power. The institutionalist theory of the firm, based on Galbraithian and Marxist tradition, offers a convenient framework for including public relations into economics. The authors present the role of public relations managers, the creation and management of issues as well as methods of financing the public relations activities. The institutionalist approach bears also relevant aspects for the analysis of the developments of public relations in transition economies, which is shown in a tentative periodisation of the evolution of public relations. During the past twenty years the public relations practices in transition economies have evolved through several stages. After having “successfully” assisted in neutralising the turbulent social consequences of transitional processes in the initial phases of transition, the public relations departments of transitional firms now tend to apply the proactive public relations strategies in order to enhance corporate power.

A Post Keynesian approach to advertising and its relevance for the transition economies

The paper attempts to identify a coherent Post Keynesian approach to advertising. Although the neoclassical explanation of advertising cost is encapsulated by the Dorfman—Steiner theorem, and static in character, the Post Keynesian theory provides a realistic and dynamic framework within which advertising can be viewed as strategic investment of firms, financed by their retained profits. The empirical part of the paper analyzes the impact of the flow of profits on advertising outlays for firms in a transition economy and the results confirm the relevance of the Post Keynesian approach.

Unemployment and Self-Concept

Abstract The article analyses the position of the unemployed in the labour market, primarily relationship between self-concept and self-esteem of workers and their motivation to seek work. The current crisis dramatically worsened labour market situation, making employment almost impossible for many, primarily the vulnerable groups (older, women). Survey data used in cluster analysis reveal that the unemployment is related to self-concept, but besides unemployment also other factors, primarily age, and sex matter. Also, the reactions of people to unemployment conditional on their self-concept differ.