Baltic Journal of Economic Studies

THE FEASIBILITY OF THE BASIC INCOME GRANT TO CUSHION THE EFFECT OF UNEMPLOYMENT AMONG LOCAL COMMUNITY MEMBERS IN THE CITY OF TSHWANE METRO

Kaizer Raseane Makole — 2025-04-30

The COVID-19 pandemic further compounded the issue of unemployment, a consequence of depressed economic activity resulting from the implementation of lockdown measures by the South African government. Consequently, the country has been unable to achieve economic recovery through job creation. The present study adopted the Keynesian Theory to demonstrate how a redistributive model of creating economic stimuli can lead to an economic growth trajectory. This is achieved by encouraging people to earn an income that can facilitate their active participation in economic activities. This is in contrast to the neo-liberal macro-economic pathway of cutting expenditure but relying on the trickle-down effect of employers creating jobs, a strategy which has proven to be unsuccessful. The present study examined the feasibility of the Basic Income Grant (BIG) as an effective intervention tool against unemployment in Region 1 of Tshwane Metro in the Republic of South Africa. A qualitative and exploratory research design was adopted, incorporating a case study and focus group interviews with unemployed youth, adults, and graduates as data collection techniques. The findings of this study demonstrate that a Basic Income Grant can provide financial assistance to cushion against unemployment. Moreover, the study established that an absence of skills acquisition impeded the participants' capacity for self-sufficiency. It is incumbent upon the South African government to facilitate the development of its citizens' mindset by providing a foundation of knowledge in entrepreneurship and cultivating a culture of saving and investment. This could encourage those who benefit from the Basic Income Grant to utilise the disbursement mechanism to establish small businesses and subsequently employ other members of the community.

HOW IS ARTIFICIAL INTELLIGENCE CHANGING HR? ADAPTIVE MANAGEMENT FOR THE NEW ENVIRONMENT

Dmytro Antoniuk — 2025-04-30

The integration of artificial intelligence (AI) into human resource management (HRM) is a pivotal factor in the transformation of conventional HR practices. The increasing complexity of HR processes, in conjunction with the mounting necessity for personalisation, efficiency and adaptability, underscores the importance of leveraging AI-based solutions within contemporary organisations. The objective of this research is to explore the role of AI in HRM, analyse its impact on adaptive management approaches, and identify key factors that impact the successful implementation of AI in HR processes. The study uses a mixed approach, combining literature review, empirical data collection based on interviews with companies of different sizes, and correlation analysis. The analysis focuses on the adaptability of AI-based HR systems, their impact on employee engagement, productivity and decision-making processes. Special attention is paid to ethical issues such as algorithmic bias and transparency, as well as organisational barriers that may prevent the implementation of AI. The findings of the research demonstrate that the implementation of AI technology has the potential to enhance the efficiency of HR management practices. This enhancement is achieved through the optimisation of recruitment processes, the creation of personalised learning pathways, the facilitation of real-time performance evaluation, and the cultivation of a culture that fosters proactive career development. Adaptive AI-powered HR systems enable organisations to respond expeditiously to market changes, optimise talent management, and minimise operational risks. The study demonstrates that, while SMEs exhibit greater flexibility in implementing AI solutions, large corporations encounter structural and managerial challenges that necessitate strategic adjustments to facilitate effective integration of AI. The practical significance of the study lies in its recommendations for organisations seeking to implement adaptive AI-based HR models. It provides insights on how to optimise the use of AI for talent management, improve HR efficiency and address ethical considerations.

NFT UNDER CONDITIONS OF CRITICAL TRANSFORMATIONS IN THE DIGITAL ASSET MARKET

Svitlana Volosovych — 2025-04-30

The integration of information technologies into all spheres of human activity, the proliferation of online communities, and the expansion of the virtual world have precipitated a transformation in consumer needs and an influence on their preferences. This paradigm shift has established the foundations for the emergence and development of digital assets, one notable example being the non-fungible token (NFT). The present article aims to examine the prospects for the development of non-fungible tokens (NFTs) in the context of global transformations in the digital asset market. A graphical method was employed in the study to identify global trends in the development of the NFT market. The use of a systematic approach allowed the identification of differences between NFT 1.0 and NFT 2.0. A comparative analysis was conducted to identify the strengths and weaknesses of the functioning of NFTs, as well as the threats and opportunities for the future existence of NFTs. A descriptive literature review allowed the development of optimistic, neutral and pessimistic scenarios for the development of the non-fungible token market. Product, functional and technological approaches to understanding non-fungible tokens were identified. The article examines NFTs in two forms: as digital assets and as digital certificates. The traditional and non-traditional reasons for using NFTs have been clarified. A comparative characterisation of NFT 1.0 and NFT 2.0 was made based on characteristics, ownership, participants, personalisation and areas of use. The article presents an analysis of the NFT market with a focus on its structural changes. The current state of the non-fungible token market is characterised by a shift from speculation to increased utility of NFTs in various sectors. The strengths and weaknesses of the functioning of non-fungible tokens were identified, as well as the threats and opportunities for their development in the context of global transformations. The study allowed the formulation of scenarios for the development of non-fungible tokens in the midst of critical transformations in the digital asset market. Under the optimistic scenario, market capitalisation, trading volumes, the number of users, the share of non-traditional NFT segments, the use of artificial intelligence in the creation of NFTs, the technical modernisation of NFTs and the legal regulation of all related relationships will increase. The neutral scenario will be characterised by volatility in market capitalisation, trading volumes and the number of market participants. In this scenario, regulation will focus on combating fraud and terrorist financing in the NFT market. In a pessimistic scenario, all key market indicators will decline, resulting in losses from non-fungible token transactions. In some jurisdictions, certain types of NFT transactions will be banned. The conclusions emphasise that with the expansion of the virtual world, NFTs are acquiring the characteristics of a digital product with high potential for use in various fields. The development of the NFT market is characterised by a combination of conflicting trends. On the one hand, there has been an increase in NFT capitalisation in early 2025, along with the growth of holders, buyers, and sellers in 2024. Conversely, there has been a decline in NFT trading volumes. These trends may provide the basis for the implementation of an optimistic scenario for the future development of the non-fungible token market.

INVESTIGATING MULTICOLLINEARITY BETWEEN COUNTRY’S LEVEL OF DIGITAL COMPETITIVENESS AND INFLUENCING VARIABLES

Kateryna Kraus — 2025-04-30

The purpose of scientific research is to identify and argue the connection between the level of digital competitiveness of countries and variable factors, and to propose solutions for its improvement. The object of the research is the level of digital competitiveness of countries in 2023 and the variables that affect it (GDP per capita, population in the country, Digital Quality of Life Index). The subject of the study is the digital capabilities and innovative solutions of countries to strengthen their competitive position in the world in the context of globalisation. Methodology. The study is based on the method of multicollinearity according to the Farrar-Glauber algorithm, which makes it possible to understand the dependence of the level of digital competitiveness on three variable factors (GDP per capita, the number of people in the country and the Digital Quality of Life Index). The method of generalisation made it possible, on the basis of a multicollinear study, to provide recommendations for strengthening the country's digital competitiveness in the international arena, taking into account the potential of human resources, the degree of technological progress and the level of economic development. Results. The research revealed an insignificant relationship between the level of a country's digital competitiveness and GDP per capita. However, it was found that the more economically strong the state, the faster and larger the implementation of digital technologies. It has been posited that there exists a negligible relationship between a nation's digital competitiveness and its population size. Nevertheless, it is evident that as a nation's population increases, there is a concomitant rise in the number of individuals engaged in the production and implementation of innovative solutions and digital technologies. The multicollinearity study demonstrated that there is no multicollinear relationship between the level of the country's digital competitiveness and variable factors. However, it was determined that a country can acquire competitive advantages under the condition of contributing to the increase of the economic well-being of the nation and its accessibility to digital goods and services. Practical implications. The value of the publication is determined by the breadth of the author's recommendations for enhancing the Digital Quality of Life Index of the population, which, in the long term, will ensure the country's competitive position in the digital era and contribute to sustainable economic development. Value/Originality. The contribution of the article to the scientific value consists in the study of multicollinearity using the Farrar-Glauber algorithm to assess the impact on the level of digital competitiveness of such variable factors as GDP per capita (a macroeconomic indicator that indicates the well-being of the nation), the number of inhabitants of the country (an indicator that determines the intellectual potential of the country) and the Digital Quality of Life Index (characterises the accessibility and penetration of digital technologies in the life of society).

TRANSFORMATION OF NON-FINANCIAL REPORTING ON THE PATH TO SUSTAINABLE DEVELOPMENT OF SOCIETY

Nataliia Pozniakovska — 2025-04-30

The relevance of the study is driven by society's management demands for financial and non-financial information regarding the activities of its entities, thereby highlighting the importance of modern informational and accounting support for civil society. Research on governance success indicators in European countries has demonstrated the necessity to develop effective mechanisms and tools for government and business influence on achieving sustainable development goals. The study delineates the significance, role, evolution, and development of sustainability reporting at macro-, meso-, and micro-levels, transitioning from past non-financial information to sustainability reporting in the interest of society. The present study examines the history of non-financial reporting implementation worldwide, analysing survey results from large and medium-sized businesses regarding the adoption of sustainability frameworks. The Global Reporting Initiative (GRI) standards and recommendations, which are oriented towards global stakeholders, are recognised as the most widely used worldwide. The IFRS Sustainability Standards have established a process based on integrative thinking, leading to the formation of integrated reporting, which includes sustainability information. There has been a significant increase in the proportion of companies using stock exchange sustainability standards or recommendations. In addition, the study provides a comprehensive review of recent changes to the Exposure Draft Management Commentary, focusing on management's disclosure of factors affecting a company's financial condition and future prospects. The global shift towards mandatory sustainability reporting, as evidenced by the introduction of European Directives (NFRD, CSRD), aims to establish disclosure of responsible business practices. This study examines the challenges and prospects of sustainability reporting in Ukraine. Large companies in Ukraine prepare non-financial annual reports based on the Global Reporting Initiative (GRI) standards or in accordance with the United Nations Global Compact (UN SDGs). It is obligatory for Ukrainian medium and large companies to submit a Management Report, which includes financial and non-financial information characterising the company's condition and development prospects, while disclosing key risks and uncertainties. However, medium-sized enterprises frequently fail to provide non-financial information, and the quality of information presented in domestic management reports remains substandard. The present study analyses the challenges and prospects of adopting sustainability frameworks by Ukrainian small enterprises. The proposal calls for the narrative reporting format to be recognised as a distinct reporting type, characterised by its accessibility and comprehensibility to a wide audience of financial report users. In the context of a contemporary information society, there is an increasing expectation that narrative reporting will be accorded a higher priority than financial reporting. The underlying reason for this is that the former is more suited to meeting the needs of society as a whole, in terms of both format and purpose. In the contemporary phase of societal evolution, the transparency of non-financial reporting and the comprehensive array of standards for its preparation are optimally aligned with the interests of primary stakeholders.

ECONOMIC DRIVERS AND INFRASTRUCTURE IMPACT ON VIETNAM'S ASEAN EXPORTS

Thi Anh Tuyet Le — 2025-04-30

The present study investigates the determinants of Vietnam's export performance to ASEAN countries, with a specific focus on the roles of economic factors and trade-related infrastructure. As the phenomenon of regional economic integration intensifies within the context of frameworks such as the ASEAN Free Trade Area (AFTA), the comprehension of the dynamics that influence bilateral and multilateral trade flows becomes progressively imperative, particularly in the case of developing economies such as Vietnam. In this context, the primary objective of the study is to empirically examine the impact of macroeconomic variables and infrastructure conditions on Vietnam's export flows to its ASEAN partners over time. In order to achieve this objective, the study employs a panel dataset covering the period from 2006 to 2021, encompassing trade data between Vietnam and nine ASEAN countries. The methodological framework is built upon the Feasible Generalised Least Squares (FGLS) model, which is well-suited to address key econometric issues commonly found in panel data, such as heteroskedasticity and autocorrelation. This approach is intended to ensure the robustness and reliability of the estimated coefficients. The empirical results obtained have yielded several noteworthy findings. Firstly, it was established that both Vietnam's GDP (β = 9.21e-06, p < 0.001) and the GDP of ASEAN countries (β = 2.95e-06, p < 0.001) have a statistically significant and positive impact on Vietnam's exports. This finding serves to reinforce the notion that economic growth plays a pivotal role in the stimulation of regional trade. Secondly, in contrast to prevailing expectations, Vietnam's Liner Shipping Connectivity Index (LSCI), which serves as a proxy for trade-related infrastructure, exhibits a negative and statistically significant effect on exports (β = -12351.15, p < 0.05). This result suggests the existence of inefficiencies or mismatches in Vietnam's shipping infrastructure that may hinder export competitiveness. Furthermore, conventional trade policy variables such as tariff rates and border effects have been found to exert negligible influence on Vietnam's export flows within the ASEAN region. This phenomenon may be indicative of the diminished significance of tariffs in the context of ongoing regional liberalisation, thereby suggesting that non-tariff barriers or structural impediments may assume a more substantial role. The findings emphasise the necessity of promoting sustained economic growth and enhancing the quality and efficiency of trade infrastructure in order to improve Vietnam's export performance. The present study makes a contribution to the broader literature on international trade by providing fresh empirical insights into the complex interactions between economic and infrastructural determinants of export activity in Southeast Asia.