South East European Journal of Economics and Business
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GOVERNMENT AND BUSINESS FUNDING OF SOURCES OF FUNDS FOR R&D AT UNIVERSITIES: COMPLEMENTS OR SUBSTITUTES?
Full text linkThe paper examines the relationship between different sources of funding for research and development at universities. Following the European Commission methodology, we distinguished between government, business and abroad financing of research and development (R&D) in the higher education sector. The paper aims to test short-run and long-run relationships between different funding sources. We are focused on the relationship between government and business funding of R&D at universities. Based on panel data for EU countries, we applied the Granger causality tests and General methods of moments to examine short-run causality and cointegrating regression to search for potential long-run relationships. Our results suggest that government funding of R&D act as a complement to business funding. Hence, rising government financial support for research in higher education can, lead to higher funding from the business sector. Founding from abroad seems to have a similar effect on business funding in the long ru
THE IMPACT OF LOCAL GOVERNMENTS’ BUDGET TRANSPARENCY ON DEBT IN CROATIA
Full text linkWe investigate the impact of the budget transparency of local governments on debt using a panel data analysis of all 556 Croatian cities and municipalities over the 2014-2021 period. The analysis shows that increased budget transparency is associated with lower local government debt, i.e., budget transparency enables better public control of unnecessary debt. Additionally, regarding the legal regulation according to which higher own revenues enable higher borrowing, we examine the link between budget transparency and own revenues. The results show that local governments with higher budget transparency have higher own revenues, i.e., budget transparency can help local governments better control opportunistic borrowing and simultaneously increase their own revenues. Finally, we detect political budget cycles related to local government revenues and debt. This paper constitutes the first attempt to explore the effect of budget transparency on debt and own revenues in all local governments in one young democracy
A BIBLIOMETRIC ANALYSIS OF PUBLIC BUSINESS SCHOOL SCIENTIFIC PRODUCTIVITY AND IMPACT IN SOUTH-EAST EUROPE (2017-2021)
Full text linkIn this paper, we analyze the scientific productivity and impact of selected public business schools in South East Europe (SEE) in the 2017-2021 period by using the scientific output indexed in the Elsevier Scopus reference database. The region’s most productive and influential authors, institutions, and publication outlets are identified in the field of business research. Empirical results are discussed from the viewpoints of two research questions related to regional business school research patterns and the research cooperation outcomes. Selected public business schools in the SEE region have been found to have a mixed record regarding research productivity and impact. International collaboration is valuable in increasing the research impact, while institutional collaboration seems more effective in raising impact than national one. Recommendations for business school administrators are identified and discussed
HOW THE CONTAGION IS TRANSMITTED TO THE MACEDONIAN STOCK MARKET? AN ANALYSIS OF CO-EXCEEDANCES
Full text linkThe aim of the paper is to analyze the transmission of shocks from selected developed and Southeastern European stock markets to the stock market of North Macedonia. Using the Bae, Karolyi, and Stulz (2003) co-exceedance methodology, we find that the probability of contagion from the stock markets of United States, Serbia and Bosnia and Herzegovina to the Macedonian stock market increased during the Global Financial Crisis. Regarding the asset classes, we show that contagion is positively associated with the volatility of Eurostoxx50 index, while negatively with the return of the euro dollar exchange rate and the yield of the 10 year US Treasury Note. The results have important implications for portfolio diversification and the asset allocation decisions of investors
ECONOMIC AND POLITICAL DRIVERS OF REMITTANCE TRANSFER
Full text linkThis paper explores the political and economic determinants of remittance transfers by foreign workers in hosting countries with an application to the case of the Gulf Cooperation Council (GCC) countries. Our empirical model is estimated with the fixed-effects technique applied on annual data covering the period 1996-2019. The main result confirms that both the economic and political stability do matter to remittance transfers. First, our findings suggest that higher per capita growth across the GCC region tends to discourage remittance transfers. Second, we find a statistically significant and positive relationship between oil prices and remittance transfers. Third, our findings show that political stability across the host countries can shape remittances. Put it simply, higher political stability tends to induce lower remittance outflows. While conventional findings on importance of economic factors for remittances are confirmed, this research signifies that any change in political stability across the GCC might affect decisions made by foreign workers. This finding has general implications for similar regions throughout the world suggesting that political stability has a strong effect on the flow of remittances
IMPACT OF REMITTANCES ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM SOUTH-EAST EUROPEAN COUNTRIES
Full text linkSouth-East European (SEE) countries are experiencing high emigration, resulting in a significant increase in remittance inflows, exceeding FDI flows. Today the most important challenge facing SEE countries is how to grow at a higher speed to achieve faster economic convergence with the EU. The objective of the paper is to empirically examine the relevance of remittances as a factor of economic growth, using quarterly balanced panel data set of six SEE countries: Albania, Bosnia and Herzegovina, Croatia, Montenegro, the Republic of North Macedonia, and Serbia (SEE6) over 2008q1-2020q2. Panel regression with the fixed-effects model is employed to account for potential cross-section heterogeneity. This study provides original econometric evi- dence that remittances have a significant positive impact on economic growth in our panel of SEE6. Those results will be useful both to scholars and policymakers in the process of the creation of policies that will direct remittances into investments in the economy
THE EFFECTS OF BUDGET TRANSPARENCY ON THE BUDGET BALANCES AND EXPENDITURES OF CROATIAN LOCAL GOVERNMENTS
Full text linkThe purpose of this paper is to find out whether budget transparency (BT) allows for better control over public finances, especially in pre-election periods. Thus we investigate the impact of BT, i.e., the digital availability of five key budget documents, on the budget balances and expenditures of all 556 Croatian local governments (LGs) over the 2014-2019 period. The dynamic panel data analysis with several control variables shows that higher BT tends to increase expenditures and the probability of achieving deficits, especially in poorer LGs. Improved BT increases electorates’ confidence, making public goods and services more interesting to voters, ultimately increasing public expenditures. However, we found that BT limits political budget cycles (PBCs), i.e., ‘opportunistic’ expenditures and deficits in the pre-election period
EURO AREA PRODUCT MARKET INTEGRATION
Full text linkThe goal of this paper is to determine if there is product market integration in the euro area (EA). The paper employs LM and RALS-LM unit root tests with two breaks on the relative price series, constructed using the seasonally adjusted monthly Harmonized Index of Consumer Prices (HICP), from 1996:01 to 2017:05. The analysis shows EA-accession related breaks in price series for most of the EA11 countries, but, apart from Malta, no such breaks for the later-EA-joiners. However, there are breaks in both EA and non-EA countries at the time of EA formation. There is also evidence of greater product market integration and less adverse effects after negative shocks in the EA12. However, unit root analysis points to a conclusion that EA membership is not a sufficient condition for product market integration and integration is not necessarily related to being an EA member