Baltic Journal of Economic Studies

AI-DRIVEN STRUCTURING AND SEMANTIC MATCHING OF CONSTRUCTION COST DATA FOR EFFICIENCY AND CO₂ IMPACT ASSESSMENT

Oskars Bagants, Raita Rollande, Juris Klonovs — Fri, 07 Aug 2026 00:00:00 +0000

The buildings and construction sector is one of the largest contributors to global greenhouse gas emissions. It accounts for around 34% of global energy-related CO₂ emissions, which come from both the energy used to operate buildings and the emissions produced when construction materials such as cement, steel and concrete are made. Despite the increasing use of embodied-carbon assessment methodologies in the architecture, engineering and construction (AEC) sector, carbon accounting tools are still not integrated into the cost estimation and procurement processes that directly affect material selection and initial design choices. This study presents the novel, AI-driven 'EEBOQ' framework, which was developed in the context of the Latvian construction market while taking into account broader European and international carbon accounting practices. The proposed framework integrates a hybrid semantic processing pipeline that combines Large Language Models (LLMs), ontology-based classification mechanisms and vector-based similarity retrieval techniques in order to autonomously interpret heterogeneous, spreadsheet-based procurement documentation. The system aligns the free-text estimate positions with standardised embodied-carbon reference datasets, such as the ICE Database, Environmental Product Declarations (EPDs) and EN 15978-compliant life cycle assessment structures. To improve the reliability of practical CO₂ estimation, the framework introduces a Bayesian Feedback Correction Engine (BFCE). This is designed to reduce discrepancies iteratively between generalised look-up table emission factors and observed, project-specific embodied carbon data. The feedback mechanism continuously recalibrates environmental coefficients using primary data provided by suppliers, transport information related to logistics, records of material substitution, and validated environmental product declarations. Experimental validation on a corpus of real-world construction projects demonstrated that the semantic-matching module achieved top-1 matching accuracy of 89.3% and top-3 accuracy of 97.1%. Furthermore, the proposed Bayesian correction mechanism reduced the median absolute percentage error in embodied carbon estimation from 28.5% using a conventional static look-up table to 8.3% after three iterative feedback cycles. The results obtained indicate that the proposed architecture establishes a scalable, reproducible pathway towards real-time, evidence-based embodied carbon accounting that is directly integrated with operational construction cost management and procurement processes.

EVALUATING HOSPITALITY ECOSYSTEM COMPONENTS IN A REGIONAL TOURISM DESTINATION: EFFECTS ON TOURIST SATISFACTION AND RECOMMENDATION INTENTIONS

Remigijus Kinderis, Ilvija Pikturnaitė, Olga Niemi — Fri, 07 Aug 2026 00:00:00 +0000

Tourism destinations are becoming more and more like interconnected hospitality ecosystems, where visitor experiences are created through the interaction of information services, infrastructure, hospitality services and leisure opportunities. Understanding how these components influence tourist satisfaction and intention to recommend a destination is important for enhancing its competitiveness. This study therefore aims to evaluate the influence of these components on tourist satisfaction and recommendation intentions in a regional tourism destination in western Lithuania. A quantitative research design was employed, involving a structured questionnaire survey. The final sample consisted of 455 visitors. The data were analysed using descriptive statistics, a reliability analysis, a Pearson correlation analysis, multiple linear regression and an ordinal logistic regression. The findings revealed generally positive evaluations of the dimensions of the hospitality ecosystem. Information quality received the highest evaluation (M = 3.79), while infrastructure quality received the lowest score (M = 2.88). Reliability analysis revealed excellent internal consistency, with Cronbach’s alpha coefficients ranging from 0.934 to 0.967. Regression analysis revealed that infrastructure quality (β = 0.235, p = 0.036) and leisure service quality (β = 0.164, p = 0.020) had a significant impact on tourist satisfaction. In contrast, information quality, food service quality and accommodation quality were not found to have a significant effect. The model explained 28.1% of the variance in tourist satisfaction. Satisfied tourists were significantly more likely to recommend the destination (β = 1.817, p < 0.001). These results emphasise the importance of infrastructure and leisure services in enhancing visitor experiences and boosting a destination's competitiveness.

THE IMPACT OF THE UNITED STATES OF AMERICA-ISRAEL AND IRAN MILITARY CONFLICT ON GLOBAL TRADE FLOWS AND SUPPLY CHAINS: A SYSTEMATIC LITERATURE REVIEW

Steven Kayambazinthu Msosa — Fri, 07 Aug 2026 00:00:00 +0000

This systematic literature review investigated the impact of a potential military conflict between the United States of America (USA), Israel and Iran on global trade flows and supply chain systems. The study adopted the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach, drawing on a large number of studies identified through a literature search of several popular academic databases, including Web of Science, Scopus, EBSCOhost, ScienceDirect and JSTOR. Consequently, a total of 52 articles that have undergone the peer-review process and were published between 2020 and 2026 were selected on the basis of their relevance. The present study has identified the following five major transmission channels of the effects of geopolitical conflict on international trade flows and supply chains: energy market disruptions; maritime transit vulnerabilities; trade fragmentation through economic sanctions; supply chain resilience and adaptive strategies; and macroeconomic and sectoral spillovers. Based on the reviewed literature, the following major implications of the current conflict on international trade flows can be identified: instability in energy markets and threats to strategic maritime routes, including the Strait of Hormuz, are likely to impose cost pressures on international trade flows and require the restructuring of global trade. The findings emphasise the importance of strategic diversification and the development of resilient supply chains, as well as prospective policy actions to address the potential for disruption. This study makes theoretical and policy contributions based on the latest scholarly discourse. It emphasises the need for adaptive, technology-facilitated and diversified approaches to ensure the smooth running of international trade in a tense geopolitical environment.

INTERNATIONAL ECONOMIC CO-OPERATION IN THE FIELD OF LAWMAKING IN THE CONTEXT OF UKRAINE'S INTEGRATION INTO THE EU

Stepan Kovbasiuk, Viktoriia Formaniuk, Vitalii Oliinyk — Fri, 07 Aug 2026 00:00:00 +0000

This study examines the theoretical, legal and practical aspects of international economic co-operation in the context of Ukraine's accession to the EU. This is important given Ukraine's status as a candidate for EU accession and the ongoing process of European integration, as well as the need for thorough reform of the national legal system in line with European standards. International economic co-operation is expanding beyond traditional trade and economic relations to increasingly encompass legal regulation. This is because successful economic integration hinges on proper legislative harmonisation and effective mechanisms for regulating social relations. International economic co-operation is an important means of aligning Ukrainian legislation with that of the European Union. The process of legal integration has been found to entail not only aligning national legislation with EU law, but also amending the lawmaking process and improving procedures for drafting and assessing the impact of regulations, as well as implementing advanced tools for monitoring legislation's effectiveness. The study concludes that the Association Agreement is a vital legal mechanism that paves the way for legislative harmonisation and establishes the regulatory preconditions for Ukraine's continued integration into the European legal framework. The study found that the Ukrainian lawmaking system is gradually aligning with European standards. This is evident through the introduction of new institutional instruments and the development of a regulatory framework. However, several issues were also identified, such as fragmented individual lawmaking procedures, ineffective impact assessment mechanisms, limited use of legal oversight tools and insufficient institutional capacity within government bodies. Particular attention was paid to the impact of martial law on lawmaking and the importance of adhering to relevant governance rules and making effective regulatory decisions. The subject of this study is international economic co-operation in lawmaking, as it relates to Ukraine’s integration into the European Union. Methodology. The formal-legal method was applied to analyse the provisions of the Association Agreement between Ukraine and the European Union, the Law of Ukraine “On Lawmaking Activity”, the Treaty on European Union and other legal acts governing the process of legislative harmonisation and legislative activity. The comparative legal method made it possible to identify similarities and differences between the Ukrainian and European approaches to lawmaking, regulatory policy, impact assessment, public consultation and legal monitoring. The systemic method was employed to analyse lawmaking activity within the context of a broader legal and institutional framework of European integration. Meanwhile, the functional method was employed to evaluate the practical effectiveness of legal mechanisms designed to implement European standards within the Ukrainian legal system. The aim of this article is to examine the role of international economic co-operation in the development of lawmaking activities in Ukraine in the context of European integration. Results. The research demonstrates that international economic co-operation has become one of the main factors influencing the transformation of Ukraine’s lawmaking system during its integration into the European Union. It has been established that bringing Ukrainian legislation into line with the European Union's acquis involves changes not only to the content of legal norms, but also to the way rules are made. The present study demonstrates that the adoption of the Law of Ukraine "On Lawmaking Activity" signifies a significant step towards the institutional modernisation of the national lawmaking framework and the implementation of European regulatory standards. Concurrently, the research identifies several challenges, including the need to strengthen the institutional capacity of public authorities responsible for European integration. Conclusion. International economic co-operation in the field of lawmaking constitutes an essential element of Ukraine's European integration process and serves as an important mechanism for the modernisation of the national legal system. The approximation of Ukrainian legislation to European Union law necessitates not only the harmonisation of legal norms but also the transformation of lawmaking procedures and institutional practices in accordance with European standards of good governance.

THE ECONOMIC DIMENSION OF DOMESTIC VIOLENCE: FROM CRIMINALISATION OF AN ACT TO REPARATION IN THE CONTEXT OF ECTHR PRACTICE

Dmytro Baranenko, Vitalii Porkhun, Oksana Chornomaz — Fri, 07 Aug 2026 00:00:00 +0000

The subject of the present study is the legal and institutional framework for responding to the economic dimension of domestic violence. The focus of the study is on the transition from criminalisation of the act to reparation for the victim in the context of the practice of the European Court of Human Rights. The paper focuses on the interaction between criminal liability, positive obligations of the state, economic autonomy of the victim, compensation mechanisms, social support, and human rights standards in ensuring effective protection against domestic violence. Methodology. This research draws on a combination of comparative legal, systemic, human rights-based, criminal law and institutional economic methods. The analysis integrates the European Convention on Human Rights, an examination of the European Court of Human Rights' (ECtHR) case law on domestic violence, an assessment of the economic consequences of abuse, and an evaluation of legal mechanisms for compensation, protection and restoration. This methodological approach has enabled the interdependency between criminalisation, institutional responsibility, economic deprivation, victim protection and the enforceability of human rights in cases of domestic violence to be identified. This work aims to define the legal and economic framework of the state's response to domestic violence, evaluate the limitations of criminalisation as a protective measure and develop a conceptual approach to reparation that encompasses compensation, restoration of autonomy, social support and the prevention of further violations. The article demonstrates that domestic violence is a human rights violation with direct material, social and institutional consequences. The results of the study demonstrate that domestic violence is a complex legal, social and economic phenomenon. The first necessary level of legal recognition is criminalisation, because it confirms the public nature of the violation and creates the basis for intervention, investigation, prosecution and protective measures. However, the practice of the European Court of Human Rights (ECtHR) demonstrates that formal criminal provisions are insufficient where public authorities fail to assess risks, respond to complaints, protect victims, or address repeated patterns of abuse. Cases such as Opuz v. Turkey, Volodina v. Russia, Kurt v. Austria, Tunikova and Others v. Russia, Talpis v. Italy and Tkhelidze v. Georgia demonstrate that state responsibility can include effective prevention, protection and investigation measures, as well as just satisfaction and structural reforms. The study emphasises that the economic aspect of domestic violence is an integral part of the harm caused. Victims may be deprived of income, housing, employment opportunities, access to documents, family resources, childcare, mobility and the practical capacity to leave the abusive relationship. These losses are often hidden, cumulative and difficult to prove, yet they are crucial in determining whether the victim can establish an independent life. Therefore, the legal response should include compensation for material and non-material damage, as well as access to safe housing, legal aid, psychological and medical support, employment assistance, protection from financial abuse and stable public financing of infrastructure supporting victims. Conclusion. The legal regulation of domestic violence is the responsibility of the state in terms of criminal law, economics, and human rights. The shift from criminalisation to reparation reflects the need to change the state's response from punishing the perpetrator to restoring the victim’s autonomy and preventing repeated harm. In the context of the European Court of Human Rights' (ECtHR) practice, effective protection requires a model in which criminal liability, positive obligations, compensation, social support, institutional accountability, and financial responsibility operate within a single framework. The future development of this model hinges on national legal systems recognising the economic impact of domestic violence and redistributing the associated costs away from victims through compensation, public support and structural prevention measures.

ECONOMIC INCENTIVES AND CRIMINAL LIABILITY: DOES PUNISHMENT FUNCTION AS A MECHANISM FOR REGULATING MARKET BEHAVIOUR?

Andrii Borovyk, Yaroslav Kolesnyk, Vitalii Mykulets — Fri, 07 Aug 2026 00:00:00 +0000

This article presents a comprehensive, interdisciplinary study of the relationship between economic incentives and criminal liability as instruments for regulating market behaviour. The topic's relevance stems from the need to identify an optimal model of state intervention in economic relations, given the increasing prevalence of economic crime, the high latency of economic criminal offences and the limited effectiveness of traditional punitive mechanisms. The study aims to evaluate the effectiveness of criminal punishment as a means of regulating the behaviour of economic agents, determine its regulatory capacity limits, and substantiate the optimal balance between punitive and incentive-based public policy instruments. The methodological framework combines economic analysis of law with systemic, comparative, formal, logical-analytical and statistical legal methods. The research is theoretically founded on Gary Becker's economic model of the rational offender, the ultima ratio doctrine, the principle of the economy of criminal law enforcement, and contemporary approaches within the field of law and economics. The findings demonstrate that compensatory increases in the severity of criminal sanctions do not ensure a proportional enhancement of the deterrent effect of economic criminal offences under conditions of a high level of latency, and may conflict with the principles of proportionality, justice, and economy of criminal law repression. Based on an analysis of deposit and lending activity dynamics in Ukraine, the study concludes that lawful financial behaviour is influenced to a much greater extent by economic and institutional incentives, particularly the deposit guarantee system, preferential lending programmes and predictable monetary policy, than by intensified criminal law enforcement. The study also argues that excessive or disproportionate reliance on criminal law mechanisms to regulate economic activity may increase legal uncertainty, raise businesses' transaction costs, and negatively impact investment activity. The research's scientific novelty lies in the development of the concept of complementary market behaviour regulation, whereby economic incentives and criminal liability perform mutually reinforcing functions. Economic instruments shape incentives for lawful behaviour ex ante, whereas criminal law serves a protective function ex post, responding to the most socially dangerous manifestations of opportunistic behaviour. The practical significance of the findings lies in their support for the transition to an integrated criminal policy model that prioritises the use of economic incentives alongside the proportional, predictable and ultima ratio-based application of criminal law mechanisms.

LEGAL AND ECONOMIC CHALLENGES OF ARTIFICIAL INTELLIGENCE USE IN JOURNALISM: TOWARDS RESPONSIBLE MEDIA GOVERNANCE

Liudmyla Borovyk, Sergii Paladiichuk, Oleksandr Golovach — Fri, 07 Aug 2026 00:00:00 +0000

This article presents a comprehensive interdisciplinary analysis of the legal and economic challenges associated with the use of artificial intelligence in journalism. It does this within the framework of developing a model of responsible media governance. The relevance of the study is driven by several factors. Firstly, there has been rapid diffusion of generative artificial intelligence technologies in editorial practice. Secondly, there has been transformation of media business models. Thirdly, there has been emergence of new challenges relating to copyright protection, professional journalistic ethics, and information security. Finally, there is a need to harmonise Ukrainian legislation with the European regulatory framework governing artificial intelligence. The study aims to examine the legal and economic implications of artificial intelligence in journalism, evaluate current approaches to its regulation and demonstrate that responsible media governance is a viable model for balancing technological innovation, economic efficiency and public interest protection. The findings demonstrate that, although artificial intelligence can substantially enhance the efficiency of editorial workflows by automating routine tasks, it can also generate new legal, economic and ethical challenges. These challenges are associated with using journalistic content to train generative AI models, allocating liability for AI-generated content, developing the market for licensing journalistic data, spreading disinformation and the growing use of digital avatars and synthetic media. The study concludes that the risk-based regulatory approach set out in the European Union's Artificial Intelligence Act (AI Act) offers a modern conceptual basis for managing the use of artificial intelligence in the media sector. However, effective implementation requires economic mechanisms to complement content licensing, transparent allocation of responsibilities among digital ecosystem participants, and further development of editorial self-regulation. The research's scientific novelty lies in substantiating the interdisciplinary concept of responsible media governance, integrating legal, economic and organisational self-regulatory mechanisms for the use of artificial intelligence in journalism. The practical significance of the findings is their potential to improve Ukrainian legislation on media and artificial intelligence, develop editorial AI governance policies, establish licensing mechanisms for journalistic content and align the national regulatory framework with European Union legislation.

ECONOMIC RESILIENCE AND COMPETITIVENESS OF AGRI-FOOD CHAINS IN WARTIME: THE CASE OF UKRAINIAN ANIMAL HUSBANDRY

Natalia Vasylieva — Fri, 07 Aug 2026 00:00:00 +0000

The economic resilience and global competitiveness of agri-food chains are critical components of national economic security, particularly in times of geopolitical instability. The full-scale Russian invasion of Ukraine had a highly disruptive effect on the macroeconomy as a whole, including livestock agri-food chains driven by agricultural enterprises and households. This study evaluates how these chains can preserve their viability under extreme risk conditions through structural adaptations and market reorientations. The study hypothesis was that Ukrainian livestock agri-food chains had developed distinct institutional and structural patterns of economic resilience, enabling them to maintain international competitiveness despite wartime pressures. The purpose of the research was to evaluate the structural changes, market adaptability and trade competitiveness of Ukrainian animal husbandry between 2021 and 2024, as the sector establishes stronger links with the EU. The research methodology used available official statistics and encompassed quantitative econometric tests (Student's T-test), regional cluster optimisation modelling and trade balance analysis. The findings revealed a significant structural divergence. Agri-food chains anchored by agricultural enterprises demonstrated high economic stability in capital-intensive sectors such as egg production, pork production and poultry production. The agri-food chains led by smallholder households only retained dominant market shares in the highly fragmented milk and honey niches. Optimisation modelling identified three distinctive economic clusters in regional agribusiness, mirroring pre-war configurations but with an increased focus on exports. Despite massive asset destruction, the paper proves that strategic resource reallocation and a pivot to exporting to the EU market allowed Ukrainian agri-food chains to remain competitive in international trade. This lays the groundwork for their integration into the EU's Common Agricultural Policy (CAP).

STABILITY OF ECONOMIC TURNOVER AS A FACTOR OF MARKET PREDICTABILITY

Oleh Vaskovskyi, Viktoriіa Rieznikova — Fri, 07 Aug 2026 00:00:00 +0000

The subject of the present study is market predictability as an autonomous economic and legal category, and its functional relationship with the stability of economic turnover. Market predictability is defined as an aggregated characteristic of the institutional environment that reflects the extent to which market participants are able, in advance and with a reasonable degree of certainty, to relate their economic conduct to its probable legal and economic consequences. This enables them to form expectations that remain stable over time regarding the operation of rules, the enforceability of obligations, and the protection of rights. The relevance of the topic is heightened by contemporary armed conflicts, particularly the full-scale war against Ukraine. The consequences of this war are disrupting supply chains, contractual ties and investment horizons, thereby eroding predictability in both the global and national economies. The purpose of the article is threefold: to substantiate market predictability as a distinct phenomenon and functional result of stable economic turnover; to define its content, features and nature; and to develop a system of criteria for assessing market predictability that captures the influence of stable economic turnover on market participants' behaviour. Methodology. The study combines economic and legal approaches. General scientific methods of analysis and synthesis are employed to break down the category into its components and functions. The systemic-structural and functional methods form the basis of the two-channel model of influence, while the formal-legal and comparative-legal methods are used to organise legal instruments and align national approaches with the EU acquis. This argument is supported by recent European empirical research indexed in Scopus and Web of Science. Results. Firstly, market predictability is distinguished from neighbouring categories. Legal certainty is characterised by the clarity, coherence and consistency of norms and their application. Stability of economic turnover reflects the continuity, protection and recoverability of economic ties. Market predictability, on the other hand, is characterised by participants' ability to form well-founded expectations. Therefore, predictability is not identical to the stability of turnover, but is one of its functional results. Secondly, the formation of predictability through a two-channel mechanism is revealed: turnover stability shapes participants' expectations by reducing transaction costs at the stages of concluding, performing and enforcing contracts, and by strengthening institutional trust among counterparties, creditors and investors. Empirical studies confirm the link between judicial efficiency and the development of trade credit, the level of doubtful receivables and economic growth rates. This supports the idea that the consistency and effectiveness of legal regulation's application is more important than its formal immutability. Thirdly, a system of criteria for assessing market predictability has been developed. Each criterion is linked to an observable indicator and the corresponding channel through which turnover stability affects market conduct. This design ensures the system's empirical verifiability and distinguishes it from generalised assessments of institutional quality. This gives the approach a diagnostic character, making it possible to identify the sources of a predictability deficit and determine appropriate legal responses. Fourthly, the significance of predictable insolvency procedures in forming a system is substantiated. Uncertainty regarding the duration, cost and outcome of such proceedings complicates credit risk assessment and may increase financing costs, whereas timely and foreseeable restructuring and liquidation procedures boost the confidence of creditors and investors. Conclusions. The insolvency regime should not be regarded as a peripheral matter, but as a key element in ensuring the stability and predictability of economic turnover. The practical value of the results lies in the applicability of the proposed system of criteria for evaluating the impact of reforms to economic legislation, the judiciary, enforcement proceedings and insolvency procedures on the behavioural expectations of market participants. During wartime and the subsequent period of transformation, the criteria for the restoration of economic ties, the effectiveness of rights protection and the trust of creditors acquire particular importance. In this context, securing market predictability – notably by aligning national insolvency legislation with EU law – should be considered an independent area of economic and legal policy, and a precondition for sustainable recovery.

THE IMPACT OF LAW ENFORCEMENT AGENCIES ON ENSURING NATIONAL ECONOMIC SECURITY WITHIN THE SYSTEM OF STATE FINANCIAL CONTROL (THE SSU AND SBI CASE STUDY)

Marianna Koshchynets, Serhii Kononenko, Mykola Ulmer — Fri, 07 Aug 2026 00:00:00 +0000

This article uses the examples of the Security Service of Ukraine (SSU) and the State Bureau of Investigations (SBI) to examine the role and significance of law enforcement agencies in the exercise of state financial control for ensuring the economic security of the state. This research employs an interdisciplinary methodology that integrates economic and legal analysis to ensure the reliability of its findings. The evolving role of law enforcement in maintaining national economic security through financial control was examined using the dialectical method. The systemic-structural method enabled the conceptualisation of state financial control as a vital component of the country’s economic architecture. A comparative analysis was conducted to evaluate the functional economic impact of the SSU and SBI within the oversight system. The dogmatic method was employed to evaluate the regulatory framework in terms of financial stability and fiscal discipline. Statistical analysis played a key role in quantifying the economic outcomes of financial crime investigations in 2025, with a particular focus on asset recovery and mitigating budgetary losses. Finally, the analytical method synthesised the findings into strategic recommendations for improving the economic efficiency of state control mechanisms. Results. Theoretical and legal approaches to defining financial control were summarised and a definition of state financial control was provided. The tasks and entities involved in the latter were also identified. The system of bodies exercising state financial control in Ukraine was visualised. The role of law enforcement agencies in its implementation was also established. Practical implications. The role of the Security Service of Ukraine as a key institution in ensuring state security, including economic security, was analysed. Although the State Bureau of Investigation does not directly belong to the system of state financial control bodies, it was demonstrated that it nevertheless acts as a key entity in jurisdictional activities in this sphere. Value / Originality. The results of this study deepen the understanding of the institutional role of law enforcement agencies in the State financial control system, which enhances Ukraine's economic efficiency. The study also paves the way for improvements to the regulatory framework in this area.