Scientific Annals of Economics and Business
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FISCAL IMPACTS ON OUTPUT IN A SMALL OPEN ECONOMY: THE CASE OF ALBANIA
Get PDFThe paper is intended to study the effects of total government spending and tax revenue on the annual GDP growth rate in Albania. On this base, we can examine whether and to which extent the macroeconomic governance could rely on those fiscal instruments in terms of a small open economy. The empirical methodology is based on regression analysis which includes OLS estimation on simply specified regression model and Vector Autoregressive estimates. The results support the assumptions that government expenditure is a weak instrument for policy impacts and the government must rely on taxation to stimulate economic growth.JEL Codes - G38; H2
THE IMPACT OF THE 2008 GLOBAL FINANCIAL CRISIS ON THE STRUCTURE OF THE TRANSMISSION OF PRICE INNOVATIONS ACROSS FINANCIAL MARKETS: THE CASE OF SOUTHWEST ASIAN EQUITY MARKETS
Get PDFThis study examines the reaction of Southeast Asian equity markets to the transmission of price innovations from major equity markets during the pre and post periods of the 2008 global financial crisis. In particular, we examine the reaction of returns indices in Malaysia, the Philippines, South Korea, Taiwan, and Thailand as endogenous variables, and compare them to the returns indices of the U.S., the Eurozone, Japan, and China as exogenous variables. The results of VAR models indicate the combined and individual impact of the price innovations from the major equity markets on the volatility of returns of selected countries is relatively trivial during either the pre- or post-financial crisis periods. However, the individual impact of the U.S. innovations is generally higher during the post-financial crisis. The ARCH and GARCH models indicate the stock markets of Southeast Asian countries are more responsive to their own price innovations during both the pre- and the post-crisis periods, although some response to U.S. and Eurozone shocks is also observed.JEL Codes - G01, G1
FINANCIAL DEVELOPMENT AND UNEMPLOYMENT IN EMERGING MARKET ECONOMIES
Get PDFFinancial sector has experienced significant expansion together with accelerating financial globalization in recent years and had important positive and negative economic implications for all the economies. This study investigates the interaction among unemployment, financial development and domestic investment in 16 emerging market economies during 2001-2014 period using panel data analysis. We found that there was long relationship among the variables and domestic investment had negative impact on the unemployment, while financial development had no significant impact on the unemployment. Furthermore, there was unidirectional causality from development of financial sector to unemployment.JEL Codes - C33, E24, E4
SOLVENCY AND LIQUIDITY LEVEL TRADE-OFF: DOES IT EXIST IN CROATIAN BANKING SECTOR?
Get PDFWe focus on 32 Croatian banks in the period 2002-2010 in order to investigate the solvency-liquidity nexus. Dynamic panel data analysis is applied on two basic models in which current liquidity ratio and equity to assets ratio are set as dependent variables, interchangeably, and other explanatory variables employed to capture the effect of bank size, profitability and asset quality as well as macroeconomic environment. We found two-way positive relationship between bank solvency and liquidity. However, bank size plays an important role in the capital and liquidity management, and trade-off between the solvency and liquidity level is found for the larger banks. Therefore, policymakers should take into consideration capital and liquidity interdependence, as well as the bank size effect when designing capital and liquidity requirements in order to downsize the regulatory burden for smaller banks, and increase them for larger banks. Namely, larger banks tend to minimize regulatory costs by avoiding simultaneous increase of liquidity and solvency. Small banks do exactly the opposite and stock both, capital and liquidity, what potentially makes their funds allocation sub-optimal, from their own as well as social point of view. Altogether, the paper contributes to scarce empirical evidence regarding bank solvency and liquidity interdependence, particularly when the post-transitional banking sectors are taken into consideration. It adds to knowledge on bank financial management in praxis, and bank managers and prudential authorities might find it relevant for their policies design and implementation.JEL Codes - G21, G2
INFLUENCE OF RULES FOR COMPUTING CORPORATE INCOME TAX ON THE ACCURACY OF FINANCIAL STATEMENTS OF LITHUANIAN COMPANIES
Get PDFCompanies in Lithuania have to follow Business Accounting Standards (BAS) when preparing their financial statements. Recording financial transactions according to BAS ensures that the information a company shares with potential lenders and investors gives a true and fair view of its business situation. However, the tax law prescribes its own set of accounting rules, which can result in a difference between what a business shows in financial statements and what it reports on its tax returns. This paper examines whether Lithuanian companies predominantly use tax accounting principles that migrate into their financial statements to create an inaccurate picture of business performance. The method of experts’ evaluation was chosen for that purpose. The results indicate that Lithuanian companies tend to heavily rely on accounting principles prescribed in corporate income tax law thus distorting information contained in financial statements. The paper contributes to the scarce literature on this issue of high relevance to both academics and practitioners.JEL Codes - O21, C45, P2
ORGANIC FOOD MARKET IN POLAND – MAIN CHARACTERISTICS AND FACTORS OF DEVELOPMENT
Get PDFSince the early nineties of the twentieth century in the international arena began the interest in the issues of sustainable consumption and production. Undoubtedly, an important category of products, which have a significant impact on the environment, are food products. The intensive agriculture focused mainly on performance and reduction of manufacturing costs leads inevitably to destructive actions that have measurable adverse effects on the environment.The main aim of this paper is to present the results of consumer research concerning attitudes and opinions of customers towards organic food products. In a society the awareness of the importance of organic production for society is growing. However, the interest in organic products appears to be still relatively small. In these circumstances it seems to be important to discover and describe the factors which could potentially increase the interest of the costumers in organic food, which would lead to the growth in the demand for it.JEL Codes - M3, R2, Q
HEALTH AND ITS EFFECTS ON THE QUALITY OF LIFE IN THE EU COUNTRIES
Get PDFThe aim of the paper is to analyse health and its influence on quality of life in the EU countries. One of actually discussed topics in quality of life measurement is health. This paper assesses importance of health in determining the quality of life. First research goal tries to explore relationship between indicators of objective and self-perceived health status to find out means of their usage in the context of quality of life. Next goal is focused on influence of health satisfaction on overall life satisfaction. Final research goal tries to explain relationship between health of population and overall life satisfaction. Main contribution of the paper is to demonstrate differences between objective and self-perceived health and to point out the fact that overall life satisfaction is shaped by various dimensions of life.JEL Codes - C38, C5
CONCEPTUALIZATION AND OPERATIONALISATION OF SPECIFIC VARIABLES IN EXPLORATORY RESEARCHES – AN EXAMPLE FOR BUSINESS NEGOTIATION
Get PDFIn exploratory researches we are looking for clues, trying to get a better picture of the research variables and relationships. Besides variables already studied, identified in the literature review, we might deal with specific variables – for the investigated subject and socio-cultural region – the ones that might lead us to new explanations and theories. These new variables can be depicted from in-depth interviews and informal discussions with intervening actors, through a process of identification, conceptualization (obtaining theoretical definitions), and operationalisation (suggesting ways for the measurement of the identified variables). The present paper offers an example of such a process for a particular subject – identifying potential specific influences on the business negotiation behaviour. The focus is on the methodological aspects of such a research endeavour.JEL Codes - L22, L25, M10, M14, M1
USING PARTIAL DIFFERENTIAL EQUATIONS FOR PRICING OF GOODS AND SERVICES
Get PDFThis article is based on the methodology of comparative analysis, using an innovative approach for pricing of various goods and services. Benchmarking is the continuous search to find and adapt better pricing methods that leading to increased profits. We will consider the numerical solution of partial differential equations, based on Black-Scholes model for pricing of goods and services within European option. Also, we will present formulation and numerical behavior of explicit and implicit methods that can be use in pricing for company assets within European option.JEL Codes - Y8
BIG DATA CONCEPT IN THE FOOD SUPPLY CHAIN: SMALL MARKETS CASE
Get PDFThe strategies of competitive advantage are changing dramatically, because of high technology development. The data size in the world is multiplying rapidly - the amount of information in the world doubles every 12 months. Therefore, the authors analyzed big data in the food supply chain. The food industry‘s supply is complicated, because of various regulations and a demand for high quality products just on time. Various companies are transporting partial freight. Therefore, the visibility, lead-time and cost minimization is essential for them. However, they are unable to use all the gathered information and are not utilizing the potential that is possible. The problem of data analysis is a bigger concern to the smaller markets. Many of the small markets are less developed countries that still is not using big data in their enterprises. In addition, new technologies are developing in the big data industry. Therefore, the gap of technology will increase even more between the large and small markets. The analyzed innovation level and technology usage indicated a need for the food industry to change competiveness strategies. Therefore, the authors developed a competiveness strategy that is oriented to the small market’s food industry.JEL Codes - C80, L6