ARTIFICIAL INTELLIGENCE WAVES IN FINANCIAL SERVICES INDUSTRY: AN EVOLUTION FACTORIAL ANALYSIS

Ardita TODRI

Associate Professor, University of Elbasan

ardita.todri@uniel.edu.al

Petraq PAPAJORGJI

Professor, Proinfinit Consulting Tirana

petraq@gmail.com

Abstract

Artificial intelligence (AI) has gained prominence in the financial industry. Thus, it is particularly interesting to address the financial services where AI-based systems are mainly used, the reasoning for their use, risks, and evolution potentialities. This research explores the viewpoints of professionals inside and outside the European Union area on AI-based services in the financial industry, aiming to analyze their current position and conceptualize their evolution through an integrative method study. The analyzed data pertain to 523 professionals (out of 740 contacted) who have compiled an online questionnaire related to four study pillars, such as AI-based systems use in financial services (A), the reasoning for their use (B), their risks (C) and evolution potentialities (D). Then, we examine how AI-based systems impact the evolution of AI in financial services (D) use in financial services (A), the reasoning for their use (B), and their risks (C). The study argues that to encourage a sustainable future of AI evolution in the financial sector, the risk management approach is a crucial aspect that regulatory bodies should consider accurately. According to the field professionals’ collected opinions in this study referring to their gender and age, special attention should be paid to these risks: AI limitations in forecasting market uncertainties, their lack of ethical values and explainability, as well as their no-audited versions. Therefore, academia and field professionals recommend the establishment of regulatory standards that, compared to risk management approaches, leave enough space even for AI innovation.

Keywords: artificial intelligence, financial services industry, fintech, risk management

JEL classification: G21, G22, G23

 pp. 63-75

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PLACE-BASED POLICY RESPONSES TO SPATIAL INEQUALITIES

Daniela- Luminița CONSTANTIN

Professor at the Department of Administration and Public Management, The Bucharest University of Economic Studies; Bucharest, Romania

danielaconstantin_2005@yahoo.com

Clara-Alexandra VOLINTIRU

Professor at the Department of International Business and Economics, The Bucharest University of Economic Studies; Bucharest, Romania

clara.volintiru@gmail.com

Abstract

This paper aims to contribute a review of the recent literature on spatial inequalities at subnational level, building on the main foundations of regional studies and specific preoccupations with this subject. The overview of the literature has sought to derive key trends and to identify current knowledge frontiers and debates. It has been deployed on a comprehensive and systematic research of the relevant sources of the past decades and has been structured into three main parts, namely: (1) basic contributions and recent and state-of-the-art literature, (2) current debates, open issues or questions and (3) policy implications. The undertaken inquiries point to a variety of approaches, from those which bring into the spotlight the ‘left-behind places’, the ‘places that don’t matter’ (and their revenge), the ‘geography of discontent’, etc. to those proposing an entire typology for the lagging regions, revealing the interest of both academic community and policy-makers in this subject. The policies gravitate around place-based solutions, which, without neglecting the strongest European regions, aim to support the weaker regions as well. They go beyond simple compensatory measures, concentrating on the turning to good account of the untapped potential of the left-behind places. Moreover, building on the up-to-date findings and useful lessons, the current orientations regarding the future of the Cohesion Policy and the European growth model point to the need of a deeper integration of place-based and people-based approaches, in accordance with the spatial justice desideratum, as well as to the ambition “to bring EU closer to citizens and to leave no one behind” (European Commission, 2023, p.5), in the complex context generated by the ongoing transitions – energy, digital, industrial ones – and COVID-19 recovery.

Keywords: spatial inequalities, European Union, spatial justice, place-based solutions, people-based approaches

JEL classification: R10, R11, R28, R58,

 pp. 43-62

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REGIONAL SPECIALIZATION IN THE CONTEXT OF DEINDUSTRIALIZATION: THE CASE OF TÜRKİYE

Aysu UZSAYILIR

Dr., Department of Urban and Regional Planning, Istanbul Technical University
Orcid: 0000-0003-3920-4062

aysukara@itu.edu.tr

Tüzin BAYCAN

Professor, Department of Urban and Regional Planning, Istanbul Technical University
Orcid: 0000-0001-6073-1188

tbaycan@itu.edu.tr

Abstract

Deindustrialization is experienced in different forms and more deeply in developing countries where regional inequalities, an important component of deindustrialization, impose more structural and historical conditions than in developed countries. Deindustrialization has a deeper causality and impact especially in countries whose economies are based on agriculture and which begin to deindustrialize with global effect while their industrial development continues. The aim of this study is to investigate the regional nature of deindustrialization within the center-periphery relationship at the global and country level. Assuming that the international center-periphery relationship has similar characteristics on a national scale, in this study the regional character of deindustrialization at the level of sectoral specializations is investigated in Türkiye NUTS 2 regions by performing a long-term Location Quotient (LQ) analysis. The main results of the analysis demonstrate that: (i) while Türkiye is an agricultural society and its industrial development continues, it has entered the deindustrialization process with globalization effect; (ii) the pattern of deindustrialization can be exemplified by the regional cluster centered on Istanbul in the Northwest which shows high industrial specialization; (iii) agricultural production dominates throughout the country; and (iv) there is a tendency for industrial development to stagnate and for a direct transition from agriculture to services.

Keywords: Deindustrialization, Labor Market, Regional Specialization

JEL classification: J01, J08, J21, N90, O11, R12

 pp. 33-42

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