scholarly journals AUCTION TRADE OF GOVERNMENT AND CORPORATE DEBT IN A CRISIS

2021 ◽  
Vol 2 (37) ◽  
pp. 414-424
Author(s):  
Ye. Krykavskyi ◽  
O. Mnykh ◽  
Ja. Binda
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Large Scale ◽  
Institutional Environment ◽  
Positive Impact ◽  
Government Debt ◽  
Scientific Work ◽  
The State ◽  
Secondary Market ◽  
Debt Management

Abstract. Debt securities auction is the kind of trading the most often used in a crisis. The market of bonds, government debt, and debt of private structures are the objects of empiric, scientific and applied researches. The goal of the current scientific work is to identify the peculiarities of auction trade and the state debt policy in a crisis situation basing on the foreign and domestic experience, to investigate the choice of formats of debt securities auction at the secondary market of securities and management of the factors for elimination of the distortion of such kind of trading at financial markets, contributing to the economic growth. The work specifies that in the institutional environment of development of the securities secondary market, where investment organizations and banks, including foreign ones, are the potential buyers of debt securities, the modern practice of auctions and new formats of their holding are determined by the new rules of trade, increasing importance of the private value of lots and informational support for the auction. At the stage of the economy digitalization and formalization of interrelated processes and transactions at the financial markets, it is necessary to develop an adequate mechanism of auction trade. It is confirmed that the mechanism of improvement of the auction practice and large-scale implementation of the new formats of their holding are inefficient with no agreement of the interests of investors, emitters, and different interested parties to eliminate the distortion of the debt securities auction at the financial markets. The research has determined significant deviations in the rates of the GDP growth and government debts, particularly in Poland, Japan and Ukraine that is explained by the level of confidence in the state and specialized institutions of debt management, target long-term economic strategy and monetary policy in the crisis conditions, particularly in the EU countries and in Ukraine. The authors of the article identify directions of the further scientific and applied researches to improve flexibility of the system of debt securities auctions amid the crisis and intensify their positive impact on the economic growth. Keywords: auction, economic crisis, debt securities, government debt, secondary market, investor, financial market, economic growth. JEL Classification E44 Formulas: 0; fig.: 5; tabl.: 0; bibl.: 28.

Restructuring of State Enterprises as a Prerequisite for Economic Growth in the Republic of Serbia

2021 ◽  
Vol 59 (1) ◽  
pp. 1-22
Author(s):  
Edvard Jakopin ◽  
Aleksandar Gračanac ◽  
Jugoslav Aničić
Keyword(s):  
Economic Growth ◽  
Institutional Environment ◽  
Legal Framework ◽  
The State ◽  
Balance Sheets ◽  
State Sector ◽  
Business Operation ◽  
Exogenous Shocks ◽  
The Republic ◽  
State Enterprises

AbstractThis study of the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While the “healthy” enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency, but also for the purpose of harmonization with the ethical and deontological requirements.

scholarly journals Debt finance as a public phenomenon: conceptual basics and prospects of democratization

2019 ◽  
pp. 35-50
Author(s):  
Olha Kyrylenko ◽  
Andrii Derlytsia
Keyword(s):  
Public Finance ◽  
Public Debt ◽  
Institutional Environment ◽  
Government Debt ◽  
Debt Management ◽  
Budget Process ◽  
Budget Deficits ◽  
The Public ◽  
Debt Finance ◽  
The Individual

Introduction. Issues of budget deficits, public credit and debt form the sphere of debt finance – a model established in a particular country for ensuring the balance of the budget, the organization of government borrowings, the system of public debt management in order to influence the development of the economy and the functioning of public finance. Methods. The methods of abstraction, comparison, institutional analysis and idealization have been used. Results. The study draws attention to the microeconomic fundamentals of debt finance, considering them through the prism of the individual interests. It has been found out that the developed Western countries are characterized by the public nature of debt finances as a result of the evolutionary democratization of public debt – the accessibility of government debt operations to the general public. It is revealed that due to a number of institutional restrictions, the democratization of this sphere in Ukraine has not been fully implemented yet. It is proved that the public debt manifests the same power as pure public goods: the indivisibility in consumption and the impossibility to exclude from the debt burden, which enable its study as public bads. The key features that determine the social nature of debt finance in developed democratic countries are revealed. It is proved that the determinants of debt finance are both economic and political and institutional imbalances, not only in the area of public finance, but also at the level of economic entities. The key components of the institutional environment of the functioning of debt finance are considered: political decision- making mechanisms, procedures of the budget process, the institutional organization of the financial market. It is argued that one of the key shortcomings of the domestic practice of servicing domestic public debt is the insignificant share of debt owned by citizens. Conclusions. The disadvantages and obstacles of democratization of the model of borrowing in Ukraine are studied in the paper. A promising mechanism of financial inclusion of the population in transactions with government debt is proposed.

scholarly journals Ways to improve the market of green agricultural products in Ukraine

2020 ◽  
Vol 12 (2) ◽  
Author(s):  
O. Yevtushevska ◽  
L. Holovachenko ◽  
J. Rudnichenko
Keyword(s):  
Human Health ◽  
Large Scale ◽  
Positive Impact ◽  
High Standard ◽  
Scientific Work ◽  
Environmental Safety ◽  
Standard Of Living ◽  
Natural Reproduction ◽  
Acti Vity ◽  
Livestock Products

Human has been influencing the environment since ancient times, but never has this impact been asintense as in the last century. The use of natural resources is currently occurring at such a large scale and atsuch a rapid rate that the natural reproduction of the environments used is not ensured. As a result, the mu ltifaceted centuries-old human activity has left deep traces on the modern soil and vegetation, air and waterenvironment, wildlife. Today, more and more consumers in the world are aware of the benefits and preferproducts that have a positive impact on the environment and human health. The environmental safety ofagri-food products, whether it is finished products, crop products or livestock products, is a global issue, as itcovers not only human health but also the country's economy. The standard of living of citizens, social acti vity of the person depend on quality of production, and also there is an influence on demographic aspect ofhis existence. Therefore, to ensure a high standard of living, the state must pay more attention to the environmental safety of finished products. The scientific work investigates and highlights the features and currentstate of the market for clean products in Ukraine, determines the level of populations attitude to organicproducts, outlines ways to improve the market for organic products in Ukraine.

scholarly journals An Attempt to Assess the Quantitative Impact of Institutions on Economic Growth and Economic Development

2014 ◽  
Vol 38 (1) ◽  
pp. 7-30
Author(s):  
Mariusz Próchniak
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Economic Freedom ◽  
Institutional Environment ◽  
Positive Impact ◽  
Policy Implications ◽  
Regression Equations ◽  
Solow Model ◽  
The Impact

Abstract This study aims at assessing to what extent institutional environment is responsible for worldwide differences in economic growth and economic development. To answer this question, we use an innovative approach based on a new concept of the institutions-augmented Solow model which is then estimated empirically using regression equations. The analysis covers 180 countries during the 1993-2012 period. The empirical analysis confirms a large positive impact of the quality of institutional environment on the level of economic development. The positive link has been evidenced for all five institutional indicators: two indices of economic freedom (Heritage Foundation and Fraser Institute), the governance indicator (World Bank), the democracy index (Freedom House), and the EBRD transition indicator for post-socialist countries. Differences in physical capital, human capital, and institutional environment explain about 70-75% of the worldwide differences in economic development. The institutions-augmented Solow model, however, performs slightly poorer in explaining differences in the rates of economic growth: only one institutional variable (index of economic freedom) has a statistically significant impact on economic growth. In terms of originality, this paper extends the theoretical analysis of the Solow model by including institutions, on the one hand, and shows a comprehensive empirical analysis of the impact of various institutional indicators on both the level of development and the pace of economic growth, on the other. The results bring important policy implications.

scholarly journals MODERN APPROACHES TO ASSESSMENT INFRASTRUCTURAL EFFECTS OF ECONOMIC GROWTH

2020 ◽  
Vol 1 (5) ◽  
pp. 270-276
Author(s):  
O.Yu. Patrakeeva ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Labor Productivity ◽  
Mobile Communications ◽  
Large Scale ◽  
Positive Impact ◽  
Economic Effects ◽  
Infrastructure Projects ◽  
External Effects ◽  
Per Capita

Infrastructure provides stimulus to the national and region economy. This paper develops theoretical and practical framework for estimating the economic effects generated from infrastructure. Its three types are considered: roadway, railway, and telecommunications. The hypothesis is that the infrastructure has a positive impact on regional economic development and there are spatial external effects. Estimation showed that road and telecommunications have a positive impact on economic development for Russia, and their external effects also appear. The contribution of railways to increasing labor productivity was insignificant for western and eastern regions. At the same time, the mobile communications per capita is a significant factor for western and eastern regions. The results indicate the necessity to adjust the strategy aimed at implementation of large-scale interregional infrastructure projects.

scholarly journals Approaches to evaluating the effectiveness of investments in higher education

2021 ◽  
Vol 53 (5) ◽  
pp. 512-529
Author(s):  
Aleksander P. Tsypin ◽  
◽  
Anna A. Firsova ◽  
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Institutional Environment ◽  
Positive Impact ◽  
Innovation Policy ◽  
Social Progress ◽  
Gdp Per Capita ◽  
Federal State ◽  
Higher Education System ◽  
Per Capita

Introduction. The role of the importance of higher education in the formation of human capital as a strategic resource of social progress and sustainable development of the country determines the relevance of studies that allow assessing the interdetermination of education and economic growth. The purpose of the article is to identify approaches to assessing the effectiveness of investments in higher education and modeling their impact on the economic growth of post-Soviet countries. Materials and methods. The methodological basis of the study is testing the author's hypothesis and econometric modeling of the influence of macroeconomic indicators characterizing the state of the higher education system on the resulting indicator of gross domestic product per capita as an indicator of economic growth according to data from 15 post-Soviet countries. Methods of economic analysis, statistical and econometric methods were used. For empirical analysis, we used statistical data from the Federal State Statistics Service of the Russian Federation, the World Bank, and the United Nations. Results. The research hypothesis about the positive impact of spending on higher education on the economic growth of the post-Soviet countries has been confirmed. The greatest response to GDP per capita is observed from the indicators "Spending on research and development" and "Admission of high school graduates to higher education". Prediction of the obtained models shows the possibility of a significant increase in GDP per capita with an increase in spending on higher education with a corresponding congruent development of the institutional environment of the post-Soviet countries. Taking into account the identified factors makes it possible to determine priorities for a balanced education and innovation policy in the post-Soviet countries. Conclusions. Empirically substantiated the need to increase investment in the higher education sector to accelerate economic growth and level economic inequality, which must be taken into account when implementing policies in the context of structural reforms in higher education in post-Soviet countries and determining the amount of investment in higher education.

The impact of the institutional environment on green consumption in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naman Sreen ◽  
Rambalak Yadav ◽  
Sushant Kumar ◽  
Mark Gleim
Keyword(s):  
Large Scale ◽  
Online Survey ◽  
Survey Methodology ◽  
Institutional Environment ◽  
Positive Impact ◽  
Theoretical Perspective ◽  
Institutional Framework ◽  
Content Type ◽  
Green Consumption ◽  
The Impact

Purpose This paper aims to develop an institutional framework to examine the role of governmental and social pressures on green product purchase intentions. Because of the increased focus on environmental issues in emerging markets, an examination of the institutional environment in India can provide unique insights into the drivers of green consumption. Design/methodology/approach A large-scale data collection is conducted via an online survey to test the validity of the theorized model. A survey methodology is used to collect responses from a sample of 400 consumers in India and analyzed via Smart PLS 3.0. Findings The findings suggest moral norms, injunctive and descriptive, have varying influences on consumers. Further, governmental influence, at least in India, may not have a positive impact one would expect. The results indicate the institutional framework developed in this research has a good predictive ability in green marketing settings and offers insights for businesses and policymakers to enhance consumers’ motivations to purchase green products. Originality/value From a theoretical perspective, this research is the first to examine the institutional environment on green consumption in India and provides unique insights into the influences of green consumption. The results suggest the institutional environment in India presents unique opportunities for practitioners and policymakers.

scholarly journals Investment and Growth Amidst Widening Government Debt: “The Ghanaian Story”

2019 ◽  
Vol 11 (1) ◽  
pp. 259
Author(s):  
John Kwaku Mensah Mawutor ◽  
Eric Boachie Yiadom ◽  
Richard Fosu Amankwa
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Inverse Relationship ◽  
Government Debt ◽  
Debt Management ◽  
Percentage Increase ◽  
Development Indicators ◽  
Unique Effect ◽  
Public Debt Management ◽  
World Development

The study revisits the debt-growth nexus and broadens the argument to examine the unique effect of government debt on investment in Ghana. Data from World Development Indicators on the Ghanaian economy were sampled from 1990 to 2015. The empirical results from the Multiple Linear Regression (MLR) suggest an inverse relationship between government debt and economic growth in Ghana. In addition, a percentage increase in government debt reduces investment by 0.65%; implying that government debt harms investment due to fungibility of debt and accompanying debt repayment responsibilities. Policy ramifications resulting from the study are that the Ghanaian government should restructure public debt management to eliminate debt fungibility and reduce debt to GDP ratio as well.

scholarly journals Research on Spatial Correlation Characteristics and Their Spatial Spillover Effect of Local Government Debt Risks in China

2021 ◽  
Vol 13 (5) ◽  
pp. 2687
Author(s):  
Xing Li ◽  
Xiangyu Ge ◽  
Wei Fan ◽  
Hao Zheng
Keyword(s):  
Local Government ◽  
Spatial Correlation ◽  
Positive Impact ◽  
Balance Sheet ◽  
Spillover Effect ◽  
Government Debt ◽  
Debt Management ◽  
Spatial Spillover ◽  
Division Of Powers ◽  
Spatial Spillover Effect

Scholars have proposed a series of methods, such as “sustainability of local government debt”, to measure local government debt risks. However, these methods have caused a lot of controversy. Based on a macro balance sheet, this study uses an improved “distance to distress” to measure China’s local government debt risks and applies a social network model to identify the spatial correlation characteristics, as well as the spillover effect. The results are as follows: (1) The data show multiple and heterogeneous spatial correlations for China’s local government debt risks; (2) there are some similarities between the subgroups and seven major geographic regions in China. The links among subgroups are randomly distributed and external; (3) the data manifest a “small world”, with a decreasing transitivity since 2014; (4) between these two significant factors, the positive impact of local government competition is more obvious than the division of powers and responsibilities; and (5) the spatial spillover effect of China’s local government debt risks results from the combination of local government competition, the division of powers and responsibilities, and local government intervention. This paper provides a scientific basis for obtaining a deeper understanding of China’s local government debt risks, and puts forward policy recommendations to strengthen China’s debt management.

scholarly journals Trends in Foreign Direct Investment and Economic Growth of India with Special Reference to Tamil Nadu

2019 ◽  
Vol 8 (2S10) ◽  
pp. 159-164
Keyword(s):  
Economic Growth ◽  
Global Economy ◽  
Tamil Nadu ◽  
Positive Impact ◽  
National Income ◽  
Secondary Data ◽  
Time Frame ◽  
The State ◽  
Foreign Direct Investments ◽  
The Impact

Foreign Direct Investments (FDIs) are welcomed by various host countries with multiple objectives such as capital infusion, technological up-gradation and managerial know-how. This measure is carried out at substantial cost of offering various incentives in terms of providing land for industrial investments, supply of uninterrupted power, ensuring problem free labour relation environment etc. These measures are taken by any government on a basis which will have a specific time frame, in order to not let investment become a drain on the economy of the host country. This study intends to evaluate the impact of FDI on the economic growth of India and in the state of Tamil Nadu, the most industrialised and urbanised economy in India. With proactive governance and path breaking policy initiatives and structural reforms, the state has emerged as one of the leading industrialised states of India. The period of this study has been taken for ten years from 2008-09 to 2018-19. The data on the inflow of FDI during this period and the flow of FDI from various source countries have been collected along with the data on various economic parameters pertaining to infrastructure such Gross National Income (GNI), Net National Income (NNI) and Per Capita Net National Income (PCNI). The data collected for the study are entirely the secondary data published by both the state and central governments. The analysed results of the study reveal that the inflow of FDI into India during the study period has been consistent and been growing significantly, as the economy of the country and the dynamic transformation of global economy demanded. This inflow of FDIs has consistently created a positive impact on the economic indicators, making it an essential factor to be very attentively looked after for a sustained growth.

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