Comparative Economic Research. Central and Eastern Europe Volume 29 (2026), No. 3

From Innovation to Sustainable Competitiveness: Enhancing the Role of Education and the Green-Digital Transition in Central and Eastern Europe

2026-09-29T01:21:41Z

From Innovation to Sustainable Competitiveness: Enhancing the Role of Education and the Green-Digital Transition in Central and Eastern Europe Noja, Grațiela Georgiana; Cristea, Mirela; Dorożyński, Tomasz; Ionaşcu, Alina; Boţoc, Florin Claudiu Technological innovation and digital transformation are increasingly viewed as key drivers of competitiveness and environmental transformation in Central and Eastern Europe (CEE). Yet the extent to which innovation-driven performance also translates into broader sustainability improvements remains insufficiently understood. The current study focuses on determining the link between innovation capabilities, education system, digitization, and sustainable performance for CEE countries in the time frame of 2017 to 2024. Panel data were collected from a multivariate panel dataset created from the European Innovation Scoreboard, with sustainable performance evaluated by the environmental sustainability index, technology for the environment, and PM2.5 emissions. To guarantee the reliability of the results, several approaches for estimating the relationships between variables were used, such as random effects panel regression, pooled OLS estimation with Driscoll-Kraay and panel-corrected standard errors, and robust regression with Huber and biweight iterations. In addition, structural equation modeling (SEM) is employed to identify latent interdependencies among innovation, digitalization, education, and sustainability indicators. The results indicate that stronger innovation capacity and digitalization are associated with improvements in sustainability outcomes of CEE countries, with education playing a decisive role in enhancing this performance. Environmental improvements are even more noticeable in countries that have higher degrees of green and digital innovations. The present research makes a valuable contribution to existing literature in the field, as it presents a comprehensive examination of the innovation greening-digitalization relationship in CEE countries by using an eclectic approach of multiple econometric and SEM analysis techniques.

Beyond Physical Capital Accumulation: Does Human Capital Reduce the Reliance on Infrastructure in ASEAN-5?

2026-09-29T01:21:45Z

Beyond Physical Capital Accumulation: Does Human Capital Reduce the Reliance on Infrastructure in ASEAN-5? Sistriatmaja, Muhammad Bagus; Pratama, Yogi Pasca; Prasetyo, Andri This study investigates the nonlinear interaction between physical and human capital on economic growth across ASEAN-5 economies (Indonesia, Malaysia, the Philippines, Thailand, and Vietnam). Challenging the conventional capital-skill complementarity hypothesis, this research utilizes a macro-panel dataset (2000–2019) and employs the Fixed Effects estimator with Driscoll–Kraay standard errors to address cross-sectional dependence. The empirical results reveal a statistically significant negative interaction between mean-centered physical and human capital (β₄ = −1.152, p < 0.001). This indicates that as human capital levels rise above their sample mean, the marginal impact of physical capital accumulation diminishes – from 0.536 at the 10th percentile of HCI to 0.250 at the 90th percentile – providing evidence of structural transformation from investment-driven to efficiency-driven growth. The marginal effect remains positive throughout the observed range but declines monotonically. These findings imply that avoiding the Middle-Income Trap requires policymakers to pivot from “hard” infrastructure accumulation to “soft” infrastructure investments and synchronize industrial upgrading with workforce education.

Remittance-scapes: How Diaspora Financial Flows Influence Rural Capital Formation and Development

2026-09-29T01:21:38Z

Remittance-scapes: How Diaspora Financial Flows Influence Rural Capital Formation and Development Maune, Alexander Diaspora remittances constitute a critical source of household income and foreign exchange in Zimbabwe, yet their contribution to gross capital formation in rural areas remains ambiguous. This study systematically reviews 62 empirical and policy studies using a PRISMA-guided approach to examine how remittances interact with rural investment environments. The findings reveal that remittances primarily finance consumption, education, healthcare, and housing, with limited allocation to productive assets or rural enterprises. Housing investment, while significant, provides minimal economic spillovers in the absence of complementary infrastructure and market linkages. Macro-level constraints, including inflation, currency volatility, and policy uncertainty, alongside institutional weaknesses such as insecure land tenure and underdeveloped rural financial systems, restrict the transformation of remittances into sustainable capital accumulation. Spatial analysis further indicates an urban bias in remittance-financed investments, exacerbating rural–urban inequalities. The study applies the remittance-scapes framework to conceptualise the socio-economic and spatial pathways through which remittances flow, highlighting structural impediments to productive investment. Policy implications emphasise macroeconomic stability, rural financial inclusion, land tenure reform, and diaspora-targeted investment instruments to enhance remittance-driven rural development. The study also identifies gaps for future research, including longitudinal analyses, collective investment mechanisms, and the measurement of remittance impacts on specific components of rural gross capital formation.

Energy Trade Reconfiguration in Central and Eastern Europe After the Russia–Ukraine War: Evidence From PPML and GAP Analysis

2026-09-29T01:21:45Z

Energy Trade Reconfiguration in Central and Eastern Europe After the Russia–Ukraine War: Evidence From PPML and GAP Analysis Choroś-Mrozowska, Dominika; Clowes, David; Giacomuzzi, Salvatore; Thlon, Michał This article analyses how the energy-related foreign trade structure of Central and Eastern European (CEE) EU Member States has evolved since the Russia–Ukraine war. The study focuses on the diversification of import sources and the geographic reorientation of exports, using detailed HS27 data at the HS4 level for eleven CEE countries. The empirical approach combines a Poisson Pseudo-Maximum Likelihood gravity model with a Supply-Gap Replacement Analysis to identify which partners substituted for lost imports from Russia and Belarus. A new indicator Re-Export Potential is also introduced to capture potential intra-regional energy flows and emerging distribution hubs.The findings show a reduction of more than 99% in direct HS27 imports from Russia and Belarus after 2022 and a major reshaping of supply patterns. Norway, the Gulf states, the United States and North Africa became the main substitutes, while several Western European states acted as key transit and refining hubs. In contrast, CEE countries achieved only limited reorientation of their energy exports, reflecting higher production costs and constrained adjustment capacity after the loss of Russian crude.The Re-Export Potential results point to new regional energy corridors in the Adriatic, Baltic and Black Sea regions. Overall, the study shows that the transformation of CEE energy trade is structural and likely to persist, reshaping the region’s role within Europe’s energy supply chains.