Macroeconomic determinants of government revenues under wartime structural shocks: Evidence from Ukraine

The impact of research and development (R&D) expenditure is crucial for understanding contemporary economic development strategies. This study investigates the relationship between R&D spending as a percentage of GDP and economic growth, focusing on the South Caucasus countries (Azerbaijan, Georgia, and Armenia) and Israel, which is notable for its substantial R&D expenditure (5.71% of GDP in 2020). The objective is to evaluate the impact of R&D expenditure on economic development through the application of rigorous empirical methods. By employing a quantitative approach, this study aims to offer a detailed analysis of the impact of R&D investment on economic growth across various countries. Ordinary least squares (OLS) regression analyzes the association between R&D expenditure and GDP levels. Granger causality tests are utilized to investigate the causal relationships. The results demonstrate a significant positive relationship between R&D expenditure and GDP across all studied countries. Furthermore, the analysis reveals that GDP growth stimulates increased R&D investments in Azerbaijan and Armenia, as evidenced by Granger causality tests. To sum up, this paper underscores the critical role of R&D spending in driving economic development and highlights the necessity for policy initiatives focused on strengthening R&D frameworks.

The world finds itself facing unprecedented conditions as the global pandemic of the COVID-19 virus has led to fundamental changes in the global supply chains. This paper aims to assess the initial response undertaken by Central European companies in the early stages of the outbreak. The survey was conducted as a research method to collect data from a large number of companies. Since it takes time to assess long-term effects of the pandemic and related measures, various changes in supply chains are examined as the early results of the COVID-19 crisis and measures implemented by companies. The study examines how different economy sectors were changed due to this situation. The changes in operating volumes were identified as the most commonly used measures to accommodate new market developments. However, developing the new supply chain partnership was the most successful measure. This measure correlates with an increase in revenues and an increase in the number of customers. In some cases, disruptions in supply chains had positive effects on revenues as a reaction to the COVID-19 epidemic outbreak. Cross-country examinations found that all Polish companies implemented at least one new measure to tackle this crisis. Nearly 20% of Slovak companies and nearly 30% of Czech companies made no changes in their operations during the early stages of the crisis. However, overall, the supply chains in Central European countries turned out to be quite resilient, since most companies managed to survive the supply chain disruptions and in some cases even show signs of overcoming them completely.

Acknowledgement
This contribution was supported by the project No. 1/0757/18, “Consumer behavior in buying goods of daily consumption with an emphasis placed different contents of goods offered on markets of selected EU countries”.

Ukrainian universities operate under uncertain conditions and numerous challenges during wartime, significantly affecting their stability. This paper aims to identify and classify the key risks to the stability of Ukrainian universities during wartime and propose proactive tools for their mitigation. The study focuses on financial, personnel, and social risks, which are highlighted as the most critical under current circumstances. The data were sourced from the official websites of 10 universities, Open Budget, and the official websites of the Ministry of Finance of Ukraine and the State Statistics Service of Ukraine. The methodology combines theoretical analysis and statistical evaluation, including calculating marginal income – representing the portion of income covered by variable costs – and the operating margin ratio, defined as the ratio of marginal income to total income. Financial risks include a 7.9% reduction in education budget allocations, decreased subsidies, and insufficient state support. Personnel risks are analyzed through indicators, e.g., uncompetitive average hourly wages, leading to staff attrition and reduced motivation. The findings propose a multi-level classification of risks, categorizing them into external and internal with subcategories such as financial, personnel, and social ones. Non-traditional financial measures, such as unpaid leave and allowance reductions, were observed as short-term crisis strategies but require further evaluation to assess their long-term impact. The paper contributes to academic discourse by outlining challenges to university stability during wartime and providing a foundation for future research into effective risk mitigation strategies.