Tallinn University of Technology

Department of Economics and Finance

Companies’ Productivity, Investments and Export Competitiveness

Head of the research group: Professor Kadri Männasoo, kadri.mannasoo@taltech.ee; Phone +372 620 4051

Members: Juan Carlos Cuestas, Simona Ferraro, Kaja Lutsoja, Kirsti Rumma, Tõnn Talpsepp

Doctoral students: Heili Hein-Sula, Kaido Kepp, Artjom Saia, Miina Hõbenael, Iskandar Mammadzada (doctoral student from 03.02.2025)

Topics and Competences

Keywords: productivity, innovation, R&D, investments, export, digital economy

The line of research pursues micro-level or regional comparative empirical studies. The main research focuses relate to capital and labour productivity, human capital, innovation, investments and competitiveness for explaining the economic growth in small, open and export-oriented economies. The aim is to investigate the drivers and obstacles of productivity enhancing investments into adoption of new technologies and production processes, human capital accumulation, R&D and innovation. One line of investigation seeks for a better understanding on regional convergence issues while integrating the spatial aspects and institutional factors into the research framework. The research aims at new evidence on digital innovation and digital empowerment and on their effect on productivity growth and economic welfare. The research employs contemporary quantitative economic research techniques and econometric estimations and contributes to policy making while providing evidence based policy implications with respect to the macro- and business-environmental factors and individuals’ and companies’ decisions and incentives that have an effect on productivity, innovation and export competitiveness.

Selected projects:

Selected articles:

TalTech Academic Development Plan priority area: Innovative businesses and future governance

Applications in business, economics, society:

  • The research group is involved in the launch of COST Action (CA21163) HiTEc that embraces members from 32 countries and that focuses on econometric and analytic applications and modelling of complex data. Research group head acts as the member of the management committee and participates in two working groups (WG1: Complex and text data, WG5: Applications and transfer).
Kadri uurimisgrupp

From left Artjom Saia, Heili Hein, Jelena Matina, Simona Ferraro, Katriin Ranniku, Kadri Männasoo, Hakan Berber, Helery Tasane, Juan Carlos Cuestas

Economic performance: integration, governance and policy

Head of the research group: Professor Karsten Staehr, karsten.staehr@taltech.ee

Members: Natalia Levenko

Doctoral students: Katri Urke, Gerda Kirpson, Ann Merit Toiger

Topics and competencies

Keywords: macroeconomics, international integration, international finance, public economics, economic governance

The research group focuses on contemporary policy challenges and seeks to uncover macroeconomic and microeconomic relationships of societal importance. Key areas of research include macroeconomic dynamics, monetary economics, expectations formation, public finances, fiscal sustainability, tax evasion and financial stability. The research is typically policy-oriented and aims to devise measures to improve economic performance.  

The research of the group members is mainly empirical but always grounded in economic theory. The research typically uses contemporary econometric methodologies using data from public or proprietary sources.

The group members with a doctoral degree work individually, together with other members of the group, or with researchers outside the group. The research group prioritises the supervision of doctoral candidates. The doctoral candidates work independently on their research projects, but they also cooperate with senior academic members of the research group.
 

Selected outstanding research results (published or accepted in 2022 or later):

Priority area: Future governance

Applied research: The research group members (Staehr, Levenko, Urke, Kirpson) are also affiliated with the Bank of Estonia and carry out analysis or applied research at this institution.

Finance and the Digital Economy: Financial Behaviour, Markets, and Competitiveness

Head of the research group: Associate Professor Laivi Laidroo, laivi.laidroo@taltech.ee; Tel +372 620 4056

Members: Karin Jõeveer, Mari Avarmaa, Kristjan Liivamägi, Tõnn Talpsepp, Enn Listra, Kalle Ahi

Doctoral students: Pavlo Illiashenko (defended 09.08.2023), Kaido Kepp, Triinu Tapver (defended 20.12.2022)

Topics and Competences

Keywords: FinTech, financial intermediation, digital economy, financial economics, behavioural finance

The research group seeks to contribute to the international academic literature that deals with contemporary topics in financial economics. Special attention is paid to the emerging topics related to the digitalisation in finance (e.g., crowdfunding, ICOs, cryptocurrencies, digital wallets, robo-advisory) as well as to the business models and ecosystems of FinTechs and sustainable finance. The research is also linked to the fields of industrial organisation and economic development, innovation, technological change and growth.

Traditional and behavioural finance theories are utilised to investigate topics related to corporate finance, household finance, financial markets, and banking with the aim of enhancing the understanding of the financial behaviour of individuals, firms and financial intermediaries, and the linkages between them (mainly in the European context). Interdisciplinary approach is used to address questions related to business, legal and technological aspects of green turn and digitalisation in finance and its economic impact for determining the factors needed for improving the competitiveness and performance of the national economies through the employment of suitable regulative measures.

Selected projects:

Participation in a network: COST Action - Fintech and Artificial Intelligence in Finance

Selected articles:

TalTech Academic Development Plan priority area: Innovative businesses and future governance

Applications in business, economics, society:
In co-operation with FinanceEstoniaga the second FinTech Report Estonia 2021 was prepared. It reflects the current status of the Estonian FinTech landscape and future outlook. Its results have been presented by different parties involved in the preparation of the report at events introducing the sector and it has also been covered in an article in a local business newspaper Äripäev.

Laivi uurimisrühm

From left Kristjan Liivamägi, Triinu Tapver, Pavlo Illiashenko, Laivi Laidroo, Karin Jõeveer, Mari Avarmaa, Kaido Kepp and Kalle Ahi.

Human capital, mental health and socio-economic inclusion for promoting sustainable development

Head of the research group: Professor Aaro Hazak, aaro.hazak@taltech.ee, +372 620 4050

Members: Merike Kukk, Tairi Rõõm, Simona Ferraro, Marit Rebane

Doctoral students: Miina Hõbenael, Vladislav Fjodorov, Artjom Saia (until PhD defence on 9 May 2024), Heili Hein-Sula, Liina Rebane

Visiting postdoctoral scholars (not employees; supervised by Aaro Hazak): 
Johanna Liuhanen (01.09.2024 - ) "Association of psychiatric traits with economic outcomes" visiting postdoc, PhD from University of Helsinki (Finland);
Majid Einian (22.01.2024-31.06.2024) "Individual mental health, economic decisions and labour market outcomes", visiting postdoc from Aalto University (Finland);
Leonardo Ivarola (01.04.2019−30.08.2024); “Institutions and Social Behavior in Complex Systems”; visiting postdoc, PhD Buenos Aires University (Argentina)

Topics and Competences

Keywords: Institutions, sustainable economic development, efficiency, wellbeing, human capital, individual behaviour, mental health

The research group seeks to investigate links between health related, behavioural and institutional factors and economic outcomes, which could have implications for sustainable socio-economic development. In particular, the relationship between mental health and economic performance, human capital endowment, socio-economic inclusion and inequality, efficient implementation of modern technologies and work regulation/practices are in focus of the studies, particularly in an interdisciplinary context. Also, sustainable development problems related to climate change were studied. The results may cast light to some possibly latent or underestimated reasons for development and wellbeing issues and for inefficiencies in human capital and modern technology use in economies.

Selected projects:

Selected publications:

Hazak, A., Kantojärvi, K., Jääskeläinen, T., Sulkava, S., Liuhanen, J., Salomaa, V., Koskinen, S., Perola, M., Paunio, T. (2024). Genetic proxies for sleep behaviours and individual labour market outcomes. Journal of Sleep Research, 33(S1), 635. DOI: 10.1111/jsr.14291

Hazak, A., Kantojärvi, K., Jääskeläinen, T., Sulkava, S., Liuhanen, J., Salomaa, V., Koskinen, S., Perola, M., Paunio, T. (2024). Genetically proxied diurnal preference and career performance. Journal of Sleep Research, 33(S1), 634. DOI: 10.1111/jsr.14291

Kukk, M.; Levenko, N. (2024). Measuring the effects of borrower-based policies on new housing loans. Economic Analysis and Policy, 82, 666−684. DOI: 10.1016/j.eap.2024.04.011.

Rebane, L.; Kukk, M.; Rõõm, T. (2024). Wealth disparities between elderly immigrants and natives: a study of Estonia and Latvia. Baltic Journal of Economics, 24 (2), 203−238. DOI: 10.1080/1406099X.2024.2395671.

Kukk, M.; Levenko, N. (2024). Interest rate spreads: Different stories for different types of loan. Research in International Business and Finance, 72 (A), 102524. DOI: 10.1016/j.ribaf.2024.102524.

Kukk, M., Meriküll, J., Rõõm, T. (2023). The Gender Wealth Gap in Europe: Application of Machine-Learning to Predict Individual-level Wealth. The Review of Income and Wealth ,69(2), 289-317. DOI: 10.1111/roiw.12596

Kukk, M. (2023). What are the triggers for arrears on debt over a business cycle? Evidence from panel data. International Journal of Finance Economics, 28(3), 2811-2833. DOI: 10.1002/ijfe.2565.

Tasane, H., Srun, S. (2023). The Institutional Environment, Human Capital Development, and Productivity-Enhancing Factors: Evidence from ASEAN Countries. TRaNS: Trans-Regional and-National Studies of Southeast Asia, 1-16. DOI: 10.1017/trn.2022.13

Tapver, T. (2023). Luck and skill in the performance of global equity funds in Central and Eastern Europe. Managerial Finance, 49(4), 597-619. DOI: 10.1108/MF-01-2022-0051

Kukk, M.,van Raaij, W. F. (2022). Joint and individual savings within families: evidence from bank accounts. Journal of Family and Economic Issues,43, 511-533. DOI: 10.1007/s10834-021-09783-3

Saia, A., Neshumayev, D., Hazak, A., Sander, P., Järvik, O., Konist, A. (2022). Techno-economic assessment of CO2 capture possibilities for oil shale power plants. Renewable and Sustainable Energy Reviews,169, 112938. DOI: 10.1016/j.rser.2022.112938

Ferraro, S., Agasisti, T., Porcelli, F., & Soncin, M. (2021). Local governments’ efficiency and educational results: empirical evidence from Italian primary schools. Applied Economics, 53(35), 4017-4039. DOI: 10.1080/00036846.2021.1896672

Mathä, T. Y; Millard, S.; Rõõm, T.; Wintr, L.; Wyszyński, R. (2021). Shocks and labour cost adjustment: evidence from a survey of European firms. Oxford Economic Papers, 73 (3), 1008-1033. DOI: 10.1093/oep/gpaa041

Meriküll, J.; Kukk, M.; Rõõm, T. (2021). What explains the gender gap in wealth? Evidence from administrative data. Review of Economics of the Household, 19, 501-547. DOI: 10.1002/ijfe.2565