Vol 28, No 1 (2020)

This study analyzes technical efficiency and determinants of the efficiency of honey production in the Gomma and Gera districts of the Jimma zone. The data were obtained from 194 randomly selected honey-producing smallholder farmers. A Cobb - Douglas stochastic frontier production analysis with the inefficiency effect model was used to estimate technical efficiency and identify the determinants of efficiency variations among honey farmers. The study showed that several hives and supplementary feeds positively and significantly influenced honey yield. This shows that there is room to increase honey productivity from the current level if farmers can efficiently use these input variables. The result further showed that there were differences in technical efficiency among honey producers in the study area. The discrepancy ratio, γ, which measures the relative deviation of output from the frontier level due to inefficiency, was about 84%. This implies that about 84% of the variation in honey output among the farmers was attributed to technical inefficiency effects. The estimated mean level of technical efficiency of honey producers was about 74%. This reveals that there is a possibility to increase the level of honey output by about 26% through exploiting the existing local practices and technical knowledge of the relatively efficient farmers. The education level of the farmer, landholding, income, extension contact, and training were found to determine technical efficiency significantly. Therefore, the concerned sector should focus on the above variables to enhance the technical efficiency of honey producers in the study area.

The emergence of new factors affecting the dynamics of the number of branches of national banks, stricter financial policies of national economies aimed at controlling the performance of financing operations by transnational financial institutions, increasing the range of services provided by transnational banks are currently contributing to a change in the strategy for realizing the economic interests of transnational banks. It is economically inexpedient to compete with transnational banks of developed economies for banks in developing countries. The options for promoting their services and gaining market share can be the search for a certain category of customers who can’t afford the services of international banks, as well as the conclusion of transactions for joint project financing of the largest national industrial and infrastructure projects. In this paper, we study the process of transnationalization of bank capital in the face of changes in the institutional environment of countries - recipients of capital.

The emphasis on economic cooperation between South Korea and Russia is growing according to the new foreign policies of the two countries. This study aims to draw policy implications for increasing inter South Korea-Russia investments as reflecting growing political significances of economic cooperation of the two countries. For that, we analyzed FDI data from Central Bank of Russia, Export-Import Bank of Korea, and KOTRA given that in globalized economies, above all the other entry modes in foreign markets, FDI plays a significant role in national economic growth as allowing firms to utilize cross-border production factors with high efficiencies. Based on the data analysis, we made the following meaningful conclusions. First, despite growing political importance, FDI flows between the two countries are insignificant, partially due to the profound sense of closeness. Second, the motivations of Korean FDI showed differences dependent on Russian cities. Third, Korean FDI in Russia is highly concentrated in the manufacturing industry. To increase FDI flows between the two countries, we recommend to launch cultural exchange programs in private sectors with longterm visions and diversify investment in a way to increase cooperation among SMEs, and start-ups in high value-added and innovative industries.

Relations between the EU and China are of global importance, and these ties are likely to expand in the coming years. Analyzing the trade relations between the EU and China in 2009-2018, the author notes their activation and at the same time the growth of instability and imbalance. The main purpose of this article is to answer the question, what are the success factors and problems of cooperation in the field of mutual trade, in order to identify the conditions that can play an important role in the process of strengthening bilateral ties between China and the European Union. According to the author, China and the European Union, taken together, can become engines of a more cooperative approach to world politics, global stability and regional economic prosperity.

One of the most acute problems of the social development of present-day Russia is a tense demographic situation, one of the reasons for which is the insufficient rate of decline in mortality due to the birth crisis and uneven growth of migration. This study assessed the link of socio-economic factors with mortality by the example of the Pskov region, which is the permanent leader in natural population decline. Based on official statistics, the authors obtained quantitative estimates to characterize the dynamics of mortality using econometric tools. The aim of the study is to identify socio-economic factors that contribute most to the preservation of the dramatic demographic situation in the region. The study conducted an analysis of the relationship of socio-economic factors with mortality in the regions of the Russian Federation using the example of the Pskov region, which is the leader in anti-rating of natural population decline. As a result of the study, quantitative estimates were obtained that characterize the impact of the population lifestyle, age and gender structure on mortality, while controlling the average level of well-being. It is also shown that an increase in the share of the rural population leads to an increase in mortality, which can be explained by the migration of the young population to cities and the increase in the share of elderly people, remoteness from medical institutions and the inaccessibility of qualified medical care. It is estimated how an increase in the level of health development in the region and an improvement in the standard of living of the population contribute to a drop in mortality rates.

From the perspective of enterprise development, all problems can be divided into two types: routine or technical, and development or improvement. At the same time, routine problems and procedures obscure development goals and problems. In addition, studies show that about 80-85% of problems are routine problems that could take 20% of managerial time, while 95% of manager’s time is taken and give only 20% of the organization’s efficiency. Therefore, it is necessary to classify problems, build a solution algorithm, implement and transform this algorithm until it becomes absolutely correct (the percentage of errors in such processes is 1-2) and effective. It should be borne in mind that the problem may be existing or real and far-fetched.

Digitalization affects all sectors of the economy, including agriculture. In addition, agriculture is a sector where the flow of data is very large and their digitization becomes a necessity for making optimal management decisions. The use of digital technologies in the industry is aimed at automating the maximum number of agricultural processes by creating a virtual model of the entire production cycle, and planning and forecasting with a high level of accuracy the schedule of work, crop yields, production costs and profits. Thus, digital technologies significantly change the process of managerial decision-making by the head of an agricultural organization. The purpose of this study is to develop the theoretical foundations of digital agricultural production management. The research methodology was based on monographic, abstract-logical, comparative methods. The study revealed that digitalization of agricultural production requires not only a complete change in production technology, but also a management system. A number of specific features inherent in the management of digital agricultural production are highlighted, which relate to the emergence of possibilities for modeling the production process, making changes to it and developing different scenarios; reducing the degree of influence on the production results of the climatic and human factors; guaranteed receipt of specified production parameters and the dependence of the vital activity of organisms on the work of engineering systems. In the context of digitalization of production, the functions of managing an organization undergo changes: in the framework of planning, which is generally carried out by a person, a significant role is given to forecasting, or rather, the development of scenarios for the possible development of production, which is already carried out by artificial intelligence. The latter also passes the function of monitoring production.

Reshoring is recognized as one of the tools to achieve the goal set in Western countries to restore the role of manufacturing in the economy, its “renaissance”, stimulate innovation and increase employment. This article analyzes current trends and prospects for reshoring. Obstacles to the successful relocation of Western companies' production capacities to maternal jurisdiction were identified, the key role of which was played by the US protectionist policy and the escalation of trade conflicts. As a result, after increasing the cases of reshoring in previous years, in 2018-2019, the process of moving production facilities of western companies to other countries of Southeast Asia at lower costs received an additional impetus. It is concluded that the state policies of countries aimed at reviving their industry and the technology of the fourth industrial revolution have a significant impact on the change in the position of individual countries in the international division of labor, which gives an opportunity for “catching countries” to develop the economy and improve their position in the world trade.

The article highlights the problem of the emigration of young scientists and students from Russia abroad. The factors affecting the retention of foreign students in the country after graduation are presented, as well as the return of Russian students after receiving higher education abroad. The experience of foreign states in stimulating educational immigration has been analyzed, in particular, scientific programs have been considered to attract foreign students for the purpose of studying in higher education institutions. Similarly, scientific, industrial and economic benefits are singled out in the article with the accumulation of intellectual capital in the country. The options for managing intellectual capital are considered, for example, the idea of creating scientific centers on the basis of coworking as an effective method for attracting and engaging young scientists for achieving high scientific results is proposed.