Threshold Effects of Import Dependence on Economic Growth in Nigeria

This study uses annual time series data spanning 1981–2018 to investigate the threshold effects of import dependence on economic growth in Nigeria. The ordinary least squares (OLS) and the fully modified OLS (FMOLS) techniques are employed for estimation of a quadratic regression model to determine the nature of the relationship between aggregate import dependence and economic growth. It is found that the relationship is concave, that is, it follows an inverted-U shape. The conditional least squares estimator is thereafter employed to estimate the threshold model specified to determine the threshold level of import dependence. The study finds a threshold level of 26% for aggregate import dependence. Below this threshold, import dependence positively affects economic growth; above the threshold, the growth effect of import dependence is adverse. Furthermore, it is found that the long-run growth effect of Inflation is adverse, and investment is favourable to long-run economic growth. Based on these findings, the paper recommends efforts by Nigeria’s government to reduce import dependence below the estimated threshold of 26%, control inflation and encourage investment so as to enhance the growth of the nation’s economy.

The Financial Crisis in the 2000s: Further Effects Regarding Lending, Regulation and Efficiency

The global financial crisis starting in 2007 was a central element of the new millennium and had a major impact on the global economy. This paper deals with the underlying causes and fundamental conditions as well as research and insights on the financial crisis in the area of liabilities and future lending, effects of regulations and bank resilience, as well as the changes in the banking industry in relation to the determinants of profitability. With three hypotheses developed on the basis of existing literature, that is critically evaluated and appraised, the paper aims to explore the global economic crisis from perspectives and origins beyond the often analysed triggers. The focus is on the pivotal point of the economic crisis: the banks and their international interconnectedness regarding lending, durability, and efficiency. Among other things, the findings revealed that the effect of the external funding shock on banks' domestic lending is significant, strong regulation, characterized as one-size-fits-all international best practice, is not always the blueprint for bank resilience and that efficiency has been a determining factor in bank profitability. Furthermore, no paradigm shift took place after the global economic crisis, and banks still seem to have to be rescued by the state in the event of bankruptcy due to their size.

How Selected Macroeconomic Factors Affect the Corporate Profitability of Transportation and Storage Companies in Selected European Economies

The goal of most companies is to make a certain amount of profit, to which all-important business decisions are a subject. The importance of this goal is evidenced by the fact that profitability indicators belong to the key indicators of business success. Unfortunately, profitability is affected by many often-unpredictable factors, which usually come from the external environment of the company. In this research, these factors are represented by GDP growth rate, inflation rate, reference interest rate, unemployment rate, gross fixed capital formation and the exchange rate against the euro. The aim of the research is to find out whether selected factors influence the company’s profitability or not. Companies of the transportation and storage industry coming from eight selected economies of Central and Eastern Europe are the subject of the analysis. The industry will be analysed at the level of fifteen sub-industries using the Generalized Method of Moment. The data cover the period 2010–2018 and provide information on approximately 25,000 companies. The size of the sample does not allow the results to be summarized in one sentence, but they showed that companies in the selected industry are for the most part negatively affected by the reference interest rate of the economy.

The Rise or Decline of Craft Trades? Evidence from Czech Republic and Poland

Entrepreneurial activity in the field of craft professions is an integral part of national economies. The aim of the authors is to prepare an overview article, which would simultaneously compare selected business activities in the Czech Republic and Poland in the field of craft trades with an emphasis on young people and their employability in the labour market. In line with the aim of the article, the authors identified four research questions, which they answered based on the analysis of secondary data. They drew data from databases of statistical offices, ministries and associations. Data were processed using a descriptive statistics apparatus. In the Czech Republic, interest in the study of crafts has stagnated for a long time. In recent years, the number of graduates of craft apprenticeships has been growing. Crafts in the field of mechanical and electrical engineering are preferred, e.g. car mechanic, repairman, mechanical locksmith, electrician. Decrease in the number of graduates is recorded in the food and most construction professions. After finishing the apprenticeship, graduates often leave their field. In Poland, most companies operate in the field of trade and repair of motor vehicles. Measured by the number of graduates, the predominant field is the machinery industry, wellness professions and professions in the food industry. The interest among young people in the studied craft trades is declining in most fields, the field of metal machining shows a growing trend. It is also necessary to confirm the craftsman's expertise with a master craftsman’s certification. It is desirable to expand the possibilities of educating pupils and students in a real work environment. It is important that mutual communication between the worlds of practice and education is functional and effective.

The Influence of the Quality of Education on the Knowledge Economy: the Czech Republic in International Comparison

The knowledge economy consists in the creation of added value based on the use of knowledge not only due to manual production but especially due to the growing importance of education and the use of scientifi c knowledge in terms of the overall competitiveness of the country. The education of the population is thus a crucial factor determining the level of economic development and quality of life. The educational structure of the population aff ects the performance of the whole economy, as well as the performance of individual companies. Human development indicators, which are published in the UN Human Development Report, include education quality indicators. The paper aims to perform a comparative analysis of education quality indicators in the Czech Republic and an international comparison. Based on selected statistical results of comparative analysis, determine the order of states in the evaluation of the quality of education. Furthermore, using the results, compile a SWOT analysis of the quality of education in the Czech Republic, based on which the fundamental problems of Czech education will be defi ned and recommendations for improving the quality of education in the Czech Republic as one of the key determinants of the knowledge economy.

Are Real Estate Prices Evolving into an Asset Price Bubble?

The development of real estate prices is of extraordinary importance for the fi nancial and economic system, as undesirable developments could endanger fi nancial stability – as seen in the fi nancial crisis of 2008 and 2009. This applies not only to speculators, but also to private households, which have to borrow to pay the purchase price. The market has been “fueled” in particular by the monetary policy of the central banks – expansion of the money supply and low interest rates. Investors are looking for investment opportunities due to the money glut, and the real estate market still promises a return. Furthermore, many people looking to build are willing to go into debt to buy a property. This demand ultimately has a driving eff ect on real estate prices. The aim of this paper is to compare and analyze the development of real estate prices in the most important OECD countries with those of Germany. A model of real estate prices is presented, which takes into account the most important indicators and provides information on when a price bubble exists. The model shows that asset price bubbles can be identified in some OECD countries. In Germany, on the other hand, there are only signs of a price bubble in a few major cities. Since private debt is low, it does not seem to be a problem across the board in Germany. A general problem remains with regard to the timely detectability of price bubbles.