862 article(s) in Ekonomika

Exchange Market Pressure And Monetary Policy: The Turkish Case

the purpose of this study is to determine the relationship between monetary policy and the exchange market pressure index in turkey for the 2002–2018 period with monthly data. to obtain the foreign exchange market pressure index, this study uses the model developed by l. girton and d.e. roper and is based fundamentally on the monetary approach to exchange rate determination and the balance of payments. the calculated exchange market pressure index is in accordance with the developments lived in financial markets and changes in monetary policy during the period under investigation. as for the relation between exchange market pressure index and monetary policy, a var model was set up and a granger type causality analysis was carried out. according to granger causality test results, there is a unidirectional causality running from domestic credit expansion to exchange market pressure and from domestic credit expansion to interest rate differential while there is a bidirectional causality between exchange market pressure and interest rate differential. since increasing exchange market pressure means a depreciation of the turkish lira, the estimated var model’s results support the view that the central bank will increase the interest rate to temper the exchange market pressure Show More ... ... Show Less

  • Exchange Market Pressure
  • Monetary Policy
  • Pressure Index
Short-Term Forecast Of Ukrainian Economy Including Shadow Sector Using Causal Simulation Model

a new causal simulation model of economic development was created, which comprehensively in detail and fully reflects various types of legal and shadow economic activities and their interrelations.the model is used to forecast the whole (legal and shadow) country’s economy up to 2022.the dynamics of shadow and legal indicators are different.the biggest and most important difference is about exports and imports. official statistics give a negative balance of the ukrainian foreign trade of ukraine in 2019-22. however, total export, determined by the model, considerably exceeds imports, so actually we expect a surplus.this is very important for the national bank: its policy based on the official (legal) negative balance of ukraine foreign trade should be one (throw foreign currency reserves into the market or to devalue the hryvnia), but with the actual balance that includes shadow flows and is positive, - contrary one (to buy currency on the market or to revalue the national currency).our model calculates how the production volumes of all types of goods and services should change to ensure that supply and demand are balanced. these numbers can serve a reference for manufacturers.we suggested that the relevant ukrainian authorities take an active position in the implementation of the developed forecast for the economic development of ukraine: measuring actual rates of changes in the production of these types of goods during the year, they provide recommendations to producers to increase or decrease their production Show More ... ... Show Less

  • Economic Development
  • Simulation Model
  • Foreign Trade
  • Negative Balance
  • Short Term
Exploring The Tourism-Poverty Alleviation Nexus In The Brics Groupof Nations

the tourism-poverty alleviation nexus is becoming an increasingly significant subject of academic inquiry within the tourism economics discourse. using time series data from the world bank (1995–2017) in a p-ardl model, the present study explores the relationship between tourism (receipts from exports, the travel subsector, hospitality and accommodation subsector) and poverty alleviation (final household consumption) with tourism arrivals as the control variable within the context of the brics group. the results suggest that receipts from the travel subsector and exports met the a priori expectation – positively influencing poverty alleviation within brics nations in the long run. contrastingly, receipts from the hospitality and accommodation subsector did not meet the a priori expectation of a positive sign, with the results indicating statistical insignificance in the long run. however, receipts from the hospitality and accommodation were found to only influence poverty alleviation in the short run. relatedly, the results suggest that increases in consumption associated with growth in tourism arrivals did not influence poverty in the brics. the results point to the heterogeneity of the influence of tourism on poverty alleviation, whereby certain dimensions of tourism contribute to poverty alleviation in the long run and others do so in the short run. based on these findings it is recommended that brics countries harness their tourism potential and promote intra-brics tourism to maximise the positive impact of travel and tourism export receipts on household consumption, which catalyses poverty alleviation Show More ... ... Show Less

  • Poverty Alleviation
  • Long Run
  • A Priori
  • Household Consumption
  • Tourism Arrivals
The Evaluation Of The Impact Of Macroeconomic Indicators On The Performance Of Listed Real Estate Companies And Reits

using quarterly data from 2006:q1 to 2019:q3 (55 observations), this paper examines 18 eurozone macroeconomic variables that represent monetary policy, external and construction sectors’ performance, economic growth, investment, households’ earnings, inflation and assesses their impact on the performance of the european listed real estate companies and reits. empirical results demonstrate that the european listed real estate market is strongly influenced by the supply side: the construction sector and the inflation of producers’ prices; while the demand side is strongly affected by the expansionary monetary policy of ecb. furthermore, some primary findings propose that us expansionary monetary policy shocks have an effect on the european listed real estate market. this conclusion demands further thorough research Show More ... ... Show Less

  • Monetary Policy
  • Real Estate Market
  • Economic Growth
  • The Impact
The Model Of A Second-Hand Goods Resale Exchange Under Transactional Pricing Strategy

a modern effective business model involves the use of an appropriate pricing strategy. however, not only a short-term profitability matters but also long-term clients’ loyalty. the main purpose of this paper is to present a specific transactional pricing strategy for a second-hand goods resale exchange platform, which allows to avoid possible negative outcomes of being associated with consumer discrimination. using simulation modeling approach, it was shown how customer segmentation combined with transactional pricing can help to gain higher profitability. the model is based on the work of intelligent agents that recreate the full product lifecycle. changing the input parameters of the model, it is possible to simulate different scenarios of a company’s activity and market conditions. the model supports the inclusion of any number of products, while its intelligent agents’ methods are still flexible to replace with other techniques. the simulation model has shown that the use of transactional pricing can increase the profitability of a business, while keeping its clients loyal Show More ... ... Show Less

  • Pricing Strategy
  • Intelligent Agents
  • Simulation Model
  • Negative Outcomes
  • Input Parameters
R Effects Of Energy Consumption On GDP: New Evidence Of 24 Countries On Their Natural Resources And Production Of Electricity

because of rapid economic expansion, china, the usa, and india have become the largest energy producers and sources of co2 emissions in the world. they burned over 45% of global fuels in 2016. meanwhile, the developing strategies of 24 polluted states to decrease fossil energy consumption without additional economic output. this paper explores the effect of world top polluted countries’ co2 emission, their gdp and production of electricity by potential indicators and identifies the basic factors that contribute to changes in an environment where petroleum, natural gas, coal, nuclear, biomass, and other renewable energy and hydroelectric sources are examined with gdp per capita. we estimate our data for the period from 1968 to 2017 and use the glm model. the results show that more production of electricity is causing abnormal co2 emissions. the granger causality test shows that there is a unidirectional relationship between energy consumption and economic advancement. also, there is a short-run bidirectional causality that exists among the energy indicators. we find a unilateral causality between energy consumption and economic growth. therefore, the consumption of energy might be conductive of 24 (polluted) countries and better economic development; the consumption of energy may be failsafe and guaranteed, while we should limit the resources of countries Show More ... ... Show Less

  • Energy Consumption
  • Co2 Emissions
  • The World
  • Gas Coal
  • Energy Indicators
The The Relationships Between Economic Growth, Energy Efficiency And CO2 Emissions: Results For The Euro Area

the article aims at ascertaining the relationship between indicators affecting the green economic growth of the eurozone countries. despite extensive research, scientists have not yet found a clear answer as to whether economic growth and climate change mitigation can be aligned. another important aspect of the study was to investigate the possible effect of environmental policies on macroeconomic variables such as gdp, investment, employment, and trade. the authors of the article applied the pvar econometric model to measure the impact of energy consumption, co2 emissions, and some of the macroeconomic indicators on gdp growth in 19 countries of the eurozone for years 2000–2016.based on the results, we cannot yet state explicitly that economic growth in the eurozone countries has been decoupled from climate change mitigation; however, green transition is on the right track Show More ... ... Show Less

  • Economic Growth
  • Co2 Emissions
  • Climate Change Mitigation
Employment At 55+: Do We Want To Work Longer In Lithuania

 the lithuanian population is aging, and it causes many difficulties for public finances by increasing expenditures on health care, long-term care, and pensions, and also for the labor market by creating labor shortages. one of the ways to cope with demographic aging is to rise the employment rate of older people. according to eurostat, the employment rate of the elderly aged 55–64 years increased from 49.6 percent in 2005 to 68.5 percent in 2018 in lithuania and it is higher than the average employment rate of older workers in european union, which was 58.7 percent in 2018. this paper focuses on older people in lithuania, aged 55 and over, trying to answer a question whether the elderly in lithuania willingly work or try to find alternatives such as receiving long-term social insurance benefits. the research findings show that the activity of older people in the labor market grows, and even the share of people with disabilities staying in the labor market increases. however, this analysis also shows that older people are more under risk to lose their job during an economic crisis, and this suggests that trying to find work alternatives can be closely related to one’s economic situation. moreover, health problems remain one of the main factors limiting the activity of older people in the labor market. it is also noticeable that some labor force reserves exist among people with disabilities and this supposes that creating better adapted working conditions for older and disabled workers in lithuania could probably contribute to meeting the needs of an aging workforce Show More ... ... Show Less

  • Older People
  • Labor Market
  • Employment Rate
  • Long Term
  • The Elderly
Ekonomika
  • 2020;
Universal Model Of Lost Profits Calculation

consequential (or indirect) losses in the form of lost profits are usually suffered and claimed in civil cases of breaches of supply or service contracts, unfair competition, bankruptcy cases, and other instances where a defendant’s wrongful actions cause lost profits to the plaintiff’s performance.in litigation practice, we see a quite different approach, when the lost profits are calculated as gross margin less income tax, and in others – by multiplying the lost revenues by the company’s net profit ratio.methods of indirect loss calculation applied do not consider the cost structure of the plaintiff and the impact of the variation of variable and fixed costs to the lost profit calculation before and after the wrongful action of the defendant. in case lost revenues would have been received, fixed costs would remain the same, while variable (incremental) costs, which were avoided, would be generated to receive lost revenues.based on the international experience and practices, this article provides for a universal model of lost profits calculation as well as a mathematical formula of the method Show More ... ... Show Less

  • Universal Model
  • Fixed Costs
  • Indirect Losses
  • Lost Profit
  • The Impact
Some Problems Of Food Safety In Georgia

the problem of production, export, import, and consumption of food was always topical for the long history of georgia. at all stages of the society development, people need to take food and meet other of their elementary needs. issues of food supply assurance of the georgian population differ according to time periods. for example, in shota rustaveli’s poem the knight in the panther’s skin it is described that the living standard in the 11th–13th centuries was quite high. at that period of time, georgia was fed with its own grain. along with wealth, shota rustaveli also characterizes poverty. most of the state's income was spent on the poor people, so there was a large gap between the rich and poor population. in the 16th and 17th centuries, the problem of poverty and wealth of the population was highlighted by prominent public figures: sulkhan – saba orbeliani and vakhushti bagrationi. ilia chavchavadze describes the problem of poverty in the country by the end of the 19th century. poor living conditions of the population were noted during the initial phase of georgia in soviet union and during world war ii. better conditions existed at the last stage of socialism.meeting the population’s demand for principal foodstuffs and providing near-rational norms of such foodstuffs has always been a major objective of the governments of all times.the prolonged transformation process of the economy of georgia with its social characteristics was particularly painful. a sharp decline in the standard of life started from the 1990s. before the economic collapse, a monthly rated wage in georgia with its foodstuff purchasing power parity almost equaled that of developed countries Show More ... ... Show Less

  • World War
  • Public Figures
  • Time Periods
  • Poor Population
  • Georgian Population
The Impact Of External And Internal Factors On Strategic Management Of Innovation Processes At Company Level

the impact of external and internal factors on organization of operation at company level is studied. the necessity for implementing strategic management of innovation processes at company level is substantiated. the structural interactions of external and internal factors on the organization of company operation are determined; a classification of factors of external and internal environment in the context of strategic management of innovation processes at company level is constructed Show More ... ... Show Less

  • Strategic Management
  • Internal Factors
  • Management Of Innovation
  • Innovation Processes
  • The Impact
The Role Of Marketing And Business Approach On SME Development

almost two decades after the war, kosovo is an import-based consumption economy. its weak export does not get any closer to imports, and this makes the country dependent on foreign assistance and remittances. the structure of the economy, with trade as a dominating undertaking, a sustenance-based agricultur,e and very limited production facilities, is a very fragile ground for economic development. incentives to attract fdi were not competitive with neighboring countries and the country development is still lagging behind. in this respect, the lack of a proper marketing and business approach is present too. theory and practice from developed countries show that firms that want to increase sales produce what is needed or/and wanted from costumers. in most of the market economy countries, when one wants to engage in business, the first step to start is market research; this rarely happens in kosovo, people go in business almost ad hoc. evidence shows that firms do neglect marketing by being mainly sales-oriented; they do produce what they think is good for the costumers and then use lots of resources to convince them that this is what they need. in general, this paper analyses the dynamics of economic development in kosovo in post-conflict time, the government efforts to change the economic structure, its constraints with emphasis on perception of marketing and the role of consumers for smes in the country. in particular, the paper tries to explain why companies need to change their way of doing business; hence, it recommends the change of their business approach. the research, done with 200 small and medium enterprises (smes) in kosovo, shows there are rather few firms that understand marketing and through it fight competition and strive to establish long-term relationships with their customers Show More ... ... Show Less

  • Business Approach
  • Economic Development
  • Post Conflict
  • Good For
The Impact Of Excise Tax Increases On Ethyl Alcohol Sales In Lithuania

this article provides empirical evidence that the demand for ethyl alcohol in lithuania is price elastic and the root cause of this elasticity is the competition between lithuanian and polish sellers. the basis for the emergence of competition lies in the price differences between the countries, which arise as a direct consequence of the lithuanian government’s policy in the alcohol sector, which is directed towards reckless increases in excise duties. the increase in lithuanian excise duties leads to a wider price gap between countries and in the first months after the increase results increases in prices. in subsequent months, lithuanian importers and manufacturers tend to revise the assortment and costs, replacing more expensive goods with cheaper ones or slightly alter the markups. these changes are the main reason why demand in the domestic market gradually recovers. the price elasticity of demand predetermines the gradual recovery of the ethyl alcohol market, but each increase in excise duty reduces the manufacturers’ markups and (or) leads to the changes in product range, where higher-costs products are displaced by lower-cost products Show More ... ... Show Less

  • Ethyl Alcohol
  • Excise Duties
  • Empirical Evidence
  • Price Elasticity
  • The Impact
To Work Or Not To Work: Factors Affecting Bridge Employment Beyond Retirement, Case Of Lithuania

this paper investigates bridge employment beyond retirement, as nowadays it is one of solutions often mentioned to stabilize pension systems in the context of an aging population. the aim of this paper is to identify individual, financial, and other factors that influence retirees to work beyond retirement in lithuania. this research was done using unique administrative lithuanian data, allowing to analyze post-retirement employment in lithuania for the first time. the sample consists of 26,000 new old-age pension recipients from 2015 to 2017. by applying binary models of the probability of being employed beyond retirement, it is found out that a greater acquired retirement record, a higher average wage before retirement, and living in a bigger city with a higher employment rate were positively associated with accepting bridge employment, while a higher sickness rate, higher old-age pension, and earlier receipt of an unemployment benefit were inversely related to accepting such employment. moreover, being a professional or manager increases the likelihood of bridge employment in comparison to unskilled workers. this probability increases even more if a person works in the public sector. finally, some social groups were excluded, finding that widows with disabilities or widowed women with worse health are not likely to work beyond retirement and are consequently under a bigger risk of poverty. to sum up, retirees who should stay in the labor market in their old age because of their bad financial situation are less likely to do it. this suggests that persons with bigger needs, lower-skilled workers, and women deserve particular attention in labor market reforms Show More ... ... Show Less

  • Bridge Employment
  • Old Age
  • Skilled Workers
  • Labor Market Reforms
The Impact Of The Ease Doing Business Indicators On Foreign Direct Investment In The European Transition Economies

the objective (aim) of this paper is to explore the impact of the ease of doing business indicators on fdi on transition economies in europe. authors have used the dynamic panel methodology, by using three methods: pooled ordinary least square (pols), fixed effect (fe), and two step-system generalised method of moments (gmm) estimation techniques. by referring to the gmm technique, it can be seen that variables such as: starting a business, registering property, getting electricity and resolving insolvency have a positive and significant impact in attracting fdi in 16 european transition countries, while variables as: dealing with construction permits, getting credit, paying taxes, protecting minority investors, have shown negative impact, whereas trading across border and enforcing contracts have not shown any impact on attracting fdis in european transition countries. this paper contributes to the enrichment of existing literature in this field by using these three methods Show More ... ... Show Less

  • Transition Economies
  • Transition Countries
  • Doing Business
  • The Impact
  • Foreign Direct Investment
The Impact Of Economic Crisis On The Financial Performance Of The European Companies

financial-accounting information plays an important role in assessing and forecasting firms’ financial performance. but besides that, there are other external factors affecting the firm’s performance, such as the economic and financial crisis that causes imbalances over the economy and affect the business environment. thus, based on financial statements data, in this paper, the determinants of financial performance are examined and also the impact of financial crisis on these factors is analysed using the fixed and random effects panel estimators. for this research it was used a sample of non-financial firms from european countries considering annual data from 2006 until 2015. the results achieved by panel data analysis show that crisis exerts a significant positive effect over financial performance as well as liquidity, assets turnover and labour productivity inducing that firms tend to do higher efforts to keep financial performance in face of a crisis. financial performance is significantly and negatively influenced by leverage independently of the crisis effect showing that return on assets is lower than average interest rate Show More ... ... Show Less

  • Financial Performance
  • The Impact
  • Economic And Financial Crisis
  • Positive Effect
The R.B.Q. (Rational, Behavioral And Quantified) Model

[full article and abstract in english] this paper is about the classic methods used in the analysis of economics. more precisely, the r.b.q. (rational, behavioral, and quantified) model is about rational economics and behavioral economic analysis in conjunction with the quantification procedure (q.e. method). therefore, in this work are submitted the most common methodological approaches used in economics including a form of their combination. what follows is a critical examination that extendedly scrutinizes the terminology of axiomatic methods. one of the aims of this paper to represent the special characteristics of rational economics in comparison to the case of behavioral economics. then provided is an analysis wherein the issues relevant to this are represented, and on the basis of which the main differences between the two concepts are showed. hence, the aim here is to show the crucial attributes of these concepts. this study also uses a quantification method to show the behavior of these two economic theories within their relation to one another, demonstrating a complete view of them in a single economic model Show More ... ... Show Less

  • Full Article
  • Economic Analysis
  • Behavioral Economics
  • Economic Theories
  • Methodological Approaches
A Simple Model For The Integration Of Goods And The Capital Market With Unionized Labor Markets

[full article and abstract in english] the present work analyzes the effects of goods and capital market integration on welfare. in an imperfectly competitive industry with unionized labor, openness to competition via exports, the possibility of holding minority stakes into a rival company and undertaking greenfield foreign direct investment (fdi) exemplify product and capital market liberalization, respectively. challenging the “lieu commune” that liberalization a priori improves the social welfare of an economy, making use of a game-theoretic approach, it is shown that a domestic government should design the appropriate interventions in product and capital markets depending on the precise pattern of economic integration Show More ... ... Show Less

  • Capital Market
  • Full Article
  • Foreign Direct Investment
  • Simple Model
  • Game Theoretic Approach
A Comparison Of Lithuanian And Swedish Old Age Pension Systems

[full article and abstract in english] the aim of this study is to compare lithuanian and swedish pension systems from the point of view of their design and performance in order to elaborate reasonable recommendations to lithuanian pension policy based on the best swedish experience. swedish income, premium and guaranteed old-age pensions system are compared with the analogous lithuanian system of the “first,” “second” pillars and the “social” pensions. the main features of the systems are discussed, and the performance of the systems, mainly from the point of view of adequacy, is compared. the differences in system design and performance are identified, and the possible reasons of these differences are examined. special attention is paid to differences in financing and the approach to the definition of benefits. the lithuanian pension points approach is compared to the swedish notional defined contribution (ndc) approach. each system is analyzed, and the relevance of transforming the lithuanian first pillar pensions into a ndc system is examined Show More ... ... Show Less

  • Old Age
  • Point Of View
  • Pension Systems
  • And Performance
  • Notional Defined Contribution
Evaluating The State Of Health Care Institutions: The Case Of Lithuanian Municipalities

[full article and abstract in english] huge differences between the territories that are divided into the city and district municipalities are found after examining theoretical and methodological literature, obtaining abundant statistical information on the status of health care institutions in lithuania, disclosing the system of indicators describing that status, and taking into account the analysis of the data of all the statistic residents of the territorial health insurance funds (thif) and those registered at the outpatient primary personal health care institutions (opphci). the number of residents who have registered at the opphci of city municipalities is different from the rates provided by the statistics. therefore, in the calculation of health indicators, a meaningful selection of them will more accurately reflect the status of health care facilities. of these indicators, it is important to select not only those that best describe the existing medical care level in the municipalities but those that are also informative. the system of indicators was selected on the basis of the delphi method. this article analyzes the state of the health care institutions in lithuania and the qualitative and quantitative indicators of health care and their evaluation at the municipal level. the authors of this article used multivariate statistical methods in evaluating the state of health care institutions. the reliability and the validity of the obtained results are verified by two models; thus, the stability and suitability of the models are tested in investigating the state of health care institutions in lithuania. the final aim of the study is to evaluate the administrative units of different territories and, from the medical level perspective, identify the best performing and most lagging municipalities Show More ... ... Show Less

  • Health Care Institutions
  • The State
  • State Of Health
  • The Status
Are There Multiple Bubbles In The Stock Markets? Further Evidence From Selected Countries

[full article and abstract in english] in this study, the existence of multiple bubbles in 15 selected countries is researched by means of the gsadf unit root test developed by phillips, shi, and yu (2015). the data set consists of a weighted average of the monthly price/earnings ratios with the different start dates for countries whose data could accessed. as a result of the conducted analysis, the existence of multiple bubbles was detected for all the countries examined. the results demonstrate that bubbles in stock markets occur before the local and global crisis periods. we therefore conclude that the gsadf method may be used as one of the early warning systems of a financial crisis. it is significant for policymakers and investors to know these signs in terms of financial stability and profitable investments Show More ... ... Show Less

  • Multiple Bubbles
  • Stock Markets
  • Full Article
  • Financial Crisis
  • Start Dates
The Determinants Of Corporate Dividend Policy In Poland

[full article and abstract in english] the purpose of this research is to examine the factors that determine the dividend policy of non-financial firms listed on the warsaw stock exchange (wse) in poland and that of the annually paid dividends. up to now, many empirical studies related to dividend policy were carried out, showing the differentiation of factors affecting the dividend policy and their interaction. thus, with this study, it would be possible to give a view on the dividend policy of corporations listed on the wse for the period from 2008 to 2016. the study covers non-financial companies listed on the wse in poland. the tobit regression is used to identify the impact of factors influencing the companies’ distribution of dividends. the variables that may explain a firm’s dividend decision and that were used in this study are selected based on the theory and available empirical researches and then also determined by data availability. these are profitability, investment opportunities, measures of size, leverage, and liquidity. as a result of this study, the factors that determine the dividend policy of companies were verified in the context of the companies listed on the wse. moreover, it indicates which of the existing theories on dividend policy could be applied to the capital markets of poland. thus, it provides new insights into the theory of dividend policy Show More ... ... Show Less

  • Dividend Policy
  • Full Article
  • Factors Influencing
  • Investment Opportunities
  • The Impact
Loan And Grant Support For Students In The Context Of The Diversification Of Funding Sources For Higher Education

[full article and abstract in english] this paper considers the mechanism of direct state support for students in european countries using loans and grants: their functions, forms, schemes, and conditions for provision. the peculiarities of the state preferential educational loan in ukraine and the reasons for its curtailment since 2011 are determined. nowadays, it is established that the main form of state support for ukrainian students who receive higher education in public procurement comes with academic and social scholarships, whereas students who receive higher education under a contract of preferential state lending yet after the curtailment of the program are deprived of any state support. the necessity of restoring the program of preferential state lending for students and the directions of its improvement, such as the establishment of an interest rate on a loan based on the level of inflation, the establishment of a minimum amount of annual payments on a loan as a percentage of the minimum salary, the distribution of the risk of non-repayment of a loan between the state, the borrower and his parent, are all substantiated. this is done taking into account the financial capabilities of the ukrainian state and the high levels of hidden income. we consider the establishment of conditions needed for the development of a system of commercial educational loans, by providing for the provision of a state guarantee on it and partial state subsidy of interest rates. we consider the areas of improvement of scholarship support of students and substantiate the necessity of introducing education at least for orphans, children deprived of parental care, and disabled children Show More ... ... Show Less

  • Higher Education
  • State Support
  • The State
  • Full Article
  • Partial State
The Importance Of External Audit In Detecting Abnormalities And Fraud In The Financial Statements Of Public Enterprises In Kosovo

[full article and abstract in english] this paper focuses on determinants and their impact on the audit of public enterprises in kosovo. in addition, it analyzes the impact of audit quality on improving the transparency and accountability of those enterprises. the study also assesses factors that affect the effectiveness and ineffectiveness of information in the audit reports of the kosovo national audit office. the data were obtained based on observations, documentation, questionnaires, and interviews. respondents were internal auditors of public enterprises in kosovo as well as external auditors of the kosovo national audit office. this research was designed using primary and secondary sources of data and was carried out in accordance with statistical analysis methods using the average algebraic size method and absolute variation indicators. the findings of this paper suggest that external auditors consider the potential risk of errors and fraud as being high, that they have aversive attitudes against errors and fraud, and that there exists for them a negative relationship between errors, fraud and financial reporting. also, the quality of external audit positively affects the detection of fraud and anomalies within financial statements Show More ... ... Show Less

  • Public Enterprises
  • Financial Statements
  • National Audit
  • External Auditors
Consumer-Side Decision Factors On Their Selection Of Bottled Water Brands: Statistical Method Study In A Kosovo Sample

nowadays, to meet people’s needs in daily life for drinking water, many companies provide bottled drinking water. as this industry grows and more competition occurs, the companies should know the aspects that influence people to buy the products that are bottled drinking water. although this increase in several bottled water producers can be attributed to market demand and technology modernization, the fact that consumers migrate from one brand to another is significant and indicates that there are factors that affect the consumer’s decision when choosing the bottled water brand. the aim of this paper is to identify and analyze the factors that influence consumers the most when choosing a bottled water brand in the market, using kosovo as a case study. to define factors based on the consumer’s preferences and valuations of the importance, the principal component analysis was applied based on a correlation matrix, using a component extraction method with a varimax rotation and a kaiser-meyer-olkin adequacy test. the findings show that the consumer’s decision is influenced mostly by six key factors, namely quality, marketing, consumer perception, price, preference and practicality. the research provides new insights into the bottled water manufacturing industry and marketers in positioning themselves in a competitive environment Show More ... ... Show Less

  • Bottled Water
  • Bottled Drinking Water
  • Decision Factors
Forecasting Firm Performance: Evidence From Romanian Furniture Firms

the aim at this paper is to propose an econometric model for analyzing economic performance in the furniture industry in romania, conducted on a sample of 293 firms. the net profit was considered as a dependent variable and the turnover, expenses with employees, value added, current liabilities and inventories as independent variables. five hypotheses were proposed, tested and validated by using multiple linear regression. the most significant results show that there is a positive significant relationship between net profit and value added and a negative significant relationship between net profit and expenses with employees. since the model has been validated statistically, we consider that it can provide useful predictions in terms of economic performance analysis in the furniture industry.keywords: multiple linear regression, anova, durbin-watson test, net profit estimation, value added Show More ... ... Show Less

  • Net Profit
  • Value Added
  • Multiple Linear Regression
  • Significant Relationship
Electricity Price Forecasting Using Monte Carlo Simulation: The Case Of Lithuania

the main purpose of this article is to determine the practical use of the monte carlo simulations in electricity markets for forecasting future prices. first, we review the structure of the electricity markets – how they work, what implications do they have and how they’ve evolved during the last decades. second, we discover that there are only few researches that have been made on this topic as well as there haven’t being made any researches regarding the lithuanian electricity market. then, we will carry out an analysis on how to use a monte carlo simulation approach in electricity markets. a mean-reverting process method will be introduced, which, at first, was used to predict oil prices. also, we analyze the essence of price spikes and find a solution on how to predict them Show More ... ... Show Less

  • Electricity Markets
  • Monte Carlo Simulation
  • Process Method
  • Mean Reverting Process
Price Rigidity In Norway In The Nineteenth Century

this paper analyzes nominal price development in norway from 1830 to 1920 and fills a gap in the literature on nominal price rigidity in europe during the nineteenth and the beginning of the twentieth centuries. the research question: how did the nominal price rigidity change in norway during this time period? the focus on norway is justified because of the availability of historical data and gaps in literature concerning the nominal rigidities.the analysis of some of the digitized data for oslo, bergen and stavanger during the period of 1830–1913 indicate that: a) the flexibility of prices did not change much during the classical gold standard in norway; b) the change in price rigidity mainly came because of the changing magnitude of price changes; c) the decrease in magnitude might have happened before the gold standard took effect in norway Show More ... ... Show Less

  • Price Rigidity
  • Gold Standard
  • Nineteenth Century
  • Historical Data
  • Price Development
An Overview Of Foreign Trade And Economic Relations Of The Republic Of Belarus With The EU And Lithuania

foreign trade fosters not only companies but national economies to maximize their gains for the benefit of a better living standard. in developing countries, such as belarus, the volume of foreign trade depends on the path of liberalization and integration into the trade with the eu. this paper analyzes foreign trade and economic relations between the eu, lithuania and belarus Show More ... ... Show Less

  • Foreign Trade
  • The Eu
  • Economic Relations
  • Developing Countries
  • Living Standard
The Relationship Between Public Expenditure And Economic Growth In Kosovo: Findings From A Johansen Co-Integrated Test And A Granger Causality Test

in the scientific literature, there are two opposing views on the relationship between public expenditure and economic growth. the keynesian view states that public expenditure is an exogenous factor that influences economic growth and can be used as a policy instrument. this point of view is in contrast to the wagner view that the public expenditure is seen as an endogenous factor or an outcome, not a cause, of economic growth. the primary objective of this study is to test the views of keynes’s versus wagner’s in the case of kosovo by using public expenditure (g), gross domestic product and three other components of gdp: foreign direct investment (fdi), export (exp) and total budget revenue (trtax); the variables used in this analysis are quarterly time series data spanning from 2004–2016. to accomplish the set objectives, the johansen co-integrated technique is used to investigate the long-run relationship between public expenditure and economic growth, while the granger causality test is used to know the direction of flow between variables. this study discovers that there is a unidirectional causality between government expenditures and economic growth in kosovo. it is also found that there is a bidirectional causality between total budget revenue and public expenditure. on the other hand, results also provide evidence that there is a bidirectional causality between export and economic growth. moreover, the results for kosovo indicate that data for the period considered support the keynesian view Show More ... ... Show Less

  • Economic Growth
  • Public Expenditure
  • Granger Causality
  • Causality Test
  • Budget Revenue
Explaining The Changes Of Agriculture Land Prices In Lithuania

this article investigates the recent changes of agricultural land prices in lithuania and quantitively assesses the most important factors affecting it. land is one of the main scarce resources and it distinguishes itself among others by the inelasticity of price change to quantity, meaning that the changes in land prices are affected by demand and in very limited extend by supply. taking this into account, it is important – from the practical as well as the theoretical points of view – to know these factors and, if needed, take regulatory measures. as the case of lithuania suggests, the recent rapid growth of land prices is mainly driven by general economic performance (gdp), eu and national financial support provided to the lithuanian agriculture sector and the regulation of agriculture food prices (the setting of purchase prices Show More ... ... Show Less

  • Land Prices
  • Economic Performance
  • Rapid Growth
  • Regulatory Measures
  • Points Of View
The Knowledge Economy And The Activation Of Scientific And Technological Progress: Contemporary Challenges

this article is dedicated to the problems and processes of the activation of scientific and technological progress in the context of contemporary challenges of the creation of a knowledge-based society and knowledge economy. the main focus here is on activating innovations, scientific and technological progress and creating various preconditions for the development of a knowledge-based society and knowledge economy.the contemporary processes and phenomena of innovations of scientific and technological progress and of its activation are analyzed in a complex manner; the needs for the purposeful activation and acceleration of scientific and technological progress, in particular in response to the aspirations of the knowledge-based society and the creation of a knowledge economy, are investigated in the presented material.the role and importance of innovation activities and the acceleration of scientific and technological advance in the context of the creation of a knowledge-based society and a knowledge economy are revealed and highlighted. new ideas of the search and use of synergetic effects, as well as a new theoretical approach based on the so-called universal principle of the creation of a “new quality,” are described.the results of the presented research can be used for preparing practical recommendations and methodologies that could be applied in the creation and implementation of the managerial and economic instruments and support systems aimed at the purpose of activating the processes of innovations and scientific and technological progress. these recommendations and methodolies could also be utilized in the development of international relations in the context of what is required in the creation of a knowledge-based society and knowledge economy.it is shown that the problems and processes of scientific and technological progress can be appreciated as an extremely important and viable field of scientific research on the creation and development of a knowledge economy. keywords: knowledge economy, scientific and technological progress, innovation, synergy, networking Show More ... ... Show Less

  • Technological Progress
  • The Creation
  • Knowledge Economy
  • Knowledge Based
  • Innovation Synergy
INCOME INEQUALITY AND CARBON EMISSIONS IN POST-SOVIET NATIONS, 1992–2009

we assess the relationship between national-level income inequality and carbon dioxide emissions for a sample of eleven post-soviet nations during the 1992 to 2009 period. our findings suggest that both total and per capita emissions are positively associated with income inequality, measured as a gini coefficient. these results are consistent with analytical perspectives that highlight how income inequality could lead to increases in carbon emissions as well as recent sociological research on income inequality and emissions for samples of nations in other structural and geographical contexts Show More ... ... Show Less

  • Income Inequality
  • Carbon Emissions
  • Carbon Dioxide
  • Gini Coefficient
  • Per Capita
THE INTERNATIONAL ENTRY CHOICES OF ITALIAN SMES IN EMERGING MARKETS: A CASE-BASED ANALYSIS

the paper addresses the factors influencing the smes’ entry choices in international markets and explores two factors: one related to the external environment and one dependent on firms. the first factor is the institutional context as the whole of formal and informal rules of the country target. the second is the market commitment, intended as resources committed in a particular market area: the experience firms get in foreign markets and a general attitude to maintain the international presence for a long period are the main sources of market knowledge. the aim of the study is to understand the effect of company-specific factors and of context-specific factors, namely the market commitment and institutional context, on smes’ entry choice mode in foreign markets. the paper develops a multiple case study analysis of four small international italian firms. built on the institutional theory and on the market commitment construct, the paper offers a conceptual model that shows that the institutional context strongly influences the amount of resources involved in the internationalization process, while the market commitment affects more the complexity – and intensity – of the process Show More ... ... Show Less

  • Institutional Context
  • Foreign Markets
  • Specific Factors
  • Factors Influencing
  • Case Based
PROFIT EFFICIENCY IN LITHUANIAN CREDIT UNIONS – A DEA APPROACH

the paper proceeds by discussing the different definitions of credit unions. the research focuses on the efficiency of the credit unions in lithuania. indeed, efficiency is the degree to which the rational use of limited economic resources is ensured. more specifically, we focus on the economic efficiency of the credit unions. the methodology that is followed in the paper comprises the measures of cost and profit efficiency. further on, profit efficiency is defined in terms of both standard profit efficiency and alternate profit efficiency. the measures of efficiency are implemented via the data envelopment analysis (dea). the frontier model comprises the two outputs and the three inputs. the calculations confirm the operationality of the proposed methodology for rating credit unions according to the efficiency of their activity Show More ... ... Show Less

  • Credit Unions
  • Profit Efficiency
  • Data Envelopment Analysis
  • Economic Efficiency
  • Dea Approach
ISLAMIC BANKING AS AN ALTERNATIVE TO BANKS IN THE WESTERN COUNTRIES

after the last banking crisis in the western world, which provoked an economic recession in many countries, the attention to islamic banking has increased. islamic banking took a more important place in global banking, since the economic and financial crisis there was of smaller scope than in the banks of western countries. the principles of islamic banking are based on shariah requirements, which emerged from the koran. the most important fact is that islamic banks cannot seek profit, which does not require any risk or efforts. they do not use any financial instruments, which are not covered by assets (derivatives). on the other hand, islamic banks, while granting loans, assume all or a part of risk, if in the case of implementation of project some losses appear. they responsibly appreciate the possibility of granting the loans, the main goal of which is to finance projects and promote business development; they share the risk with the clients and value mutual cooperation. the goal of the article is to investigate the peculiarities of islamic banking. the article investigates the formation of islamic banking’s main characteristics and principles, its accounting peculiarities and the instruments that are applied. research methods include the analysis of collected information, comparison, critical assessment and induction Show More ... ... Show Less

  • Islamic Banking
  • Islamic Banks
  • Western Countries
  • Global Banking
  • Economic And Financial Crisis
CREDIT-RELATED SHOCKS IN VAR MODELS: THE CASE OF LITHUANIA

this article provides empirical evidence on the role played by credit-related shocks over the business cycle in lithuania. to this end, we estimate a vector auto regression (var) with credit and housing variables and identify credit-related shocks. using sign restriction, we identify credit supply shocks; while using zero restrictions, we identify credit spread shocks. we find evidence that credit-related shocks have a significant effect on housing and credit market variables, while the effect on gdp is less pronounced but still significant. while credit supply shocks weighed down on economic growth during the period from 2008 to 2014, the effect turned positive in 2014 Show More ... ... Show Less

  • Credit Supply
  • Supply Shocks
  • Economic Growth
  • Vector Auto Regression
THE PROFITABILITY AND RISK EFFECTS OF RUSSIAN BANKING INSTITUTIONS’ INVOLVEMENT IN BANCASSURANCE: MERGER SIMULATION METHODOLOGY

this paper presents the methodology taken to evaluate the potential profitability and risk effects of russian banking institutions’ involvement in bancassurance. an original methodology is applied, which was developed by boyd and graham, to conduct merger simulations between commercial banks and insurance companies. the methodology is based on mergers between firms, like the accounting principle of consolidation by pooling. this principle entails summing up the balance-sheet indicators of previously independent firms to simulate a hypothetical merger Show More ... ... Show Less

  • Risk Effects
  • Banking Institutions
  • Commercial Banks
  • Balance Sheet
  • Insurance Companies
THE SPREAD OF THE SHADOW ECONOMY AS A MORAL DILEMMA

the shadow economy remains a significant problem in post-soviet countries and less economically developed economies. even though there are a lot of economic and social arguments for the emergence of the shadow economy, it remains the question how much of the shadow economy, as well as an intrinsic willingness to pay taxes, could be explained by social norms, business ethics and illegal business practices that come from the cultural and historical background. this paper focuses on the ethical dilemma and tries to figure out how morality reflects in the tendency to participate in shadow economy. a qualitative approach is applied in this paper to find linkages between moral norms and an acceptance of the shadow economy. this paper supports the idea that people’s backgrounds, their moral norms and close relationships affect how they perceive tax evasion and how much they are willing to participate in such illegal activities Show More ... ... Show Less

  • Shadow Economy
  • Moral Norms
  • Business Ethics
  • Willingness To Pay
  • Business Practices
“EURO SUSTAINABILITY”: FIVE POLICY PROPOSALS TO MAKE THE EURO SUSTAINABLE FOR THE EUROPEAN ECONOMY

the provided economic analysis and the economic policy proposed in this article are the natural verifications and continuations of a research that was started with the author’s described theory in single currency, economic development and local economies. a critical analysis of the economic policy of the euro (1998). he emphasized the presence of important critical factors on the economic and monetary union (emu) which, if not solved, would undermine its existence; however, the importance of emu’s policy was not questioned. this article offers a sustainability strategy of the euro, called a “push investment approach,” which provides complementary public and private investment, strengthens the euro area governance and gradually eliminates the maastricht criteria. furthermore, the policy makes the euro sustainable for all the acceding countries, constitutes development as well as the competitive factor and it is not critical to enterprises Show More ... ... Show Less

  • Economic Policy
  • Economic Development
  • Economic Analysis
  • Local Economies
  • Competitive Factor
KEY FACTORS OF NON-PERFORMING LOANS IN BALTIC AND SCANDINAVIAN COUNTRIES: LESSONS LEARNED IN THE LAST DECADE

a cross-country panel data regression was performed for non-performing loans (npl) in denmark, estonia, finland, latvia, lithuania and sweden covering a period of years 1998-2014. the main objective was to determine the major factors that were driving the npl in the selected countries. also, we expected to draw the differences in the banking industry between emerging economies in the baltic countries and western economies in the scandinavian region. the selected variables were banking industry-related (net interest margin, roa, roe) and macroeconomic variables (gdp growth, re prices, unemployment), of which the majority is included as the financial soundness indicators by the imf. key findings of the research show that npl in both regions were mostly dependent on gdp growth and unemployment, whereas the banking industry variable roa had a very moderate effect only on a country level. the research is contributing to a better understanding of financial stability in the banking industry during the last decade, and it may have possible implications for the macroprudential policy Show More ... ... Show Less

  • Banking Industry
  • Gdp Growth
  • Net Interest Margin
  • Cross Country
  • Research Show
THE RELEVANCE OF REMITTANCES IN FOSTERING ECONOMIC GROWTH IN THE WEST BALKAN COUNTRIES

the remittances of diaspora workers, resulting from international migration, have attracted the attention of academics and policymakers for their role and importance in macroeconomic variables in their countries of origin. the purpose of the paper is to explore the effects of remittances and other variables, such as exports, capital formation, foreign direct investment, and labor force on economic growth in the six former western balkan communist countries (albania, kosovo, macedonia, montenegro, bosnia and herzegovina and serbia). this study utilizes a strongly balanced panel data over the 2005-2015 period for the six western balkan countries using the ordinary least squares method (ols), i.e., the pooled regression model, to evaluate the parameters. according to the regression results, we can conclude that remittances have a positive impact on economic growth in the west balkan countries, so remittances can foster economic growth in those countries. also, we find a statistically significant positive relationship between economic growth and other variables included in the model, such as exports, capital formation, and labor. the relationship between economic growth and foreign direct investment has turned out to be statistically insignificant and negatively related Show More ... ... Show Less

  • Economic Growth
  • Balkan Countries
  • Foreign Direct Investment
  • Capital Formation