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This paper investigates the factors that influence the relative efficiency of higher education institutions of economic orientation. The empirical analysis is carried out on 31 higher educational institutions of economic orientation in Croatia, Slovenia and Bosnia and Herzegovina, in three phases. In the first phase, relative efficiency of observed institutions is evaluated for three main areas of their activities: teaching, research and international activity. In the second phase, higher education institutions are clustered based on relative efficiency results of each individual area of their activity. In the last, third phase, key association factors of a particular cluster are determined using univariate binary logistic regression and odds for transition to a more favourable cluster are defined. The results indicate that odds for positioning in the more efficient cluster are higher in public institutions than in private ones, in institutions with more published professional papers, in those with higher expenditures per faculty, the larger number of enrolled students per faculty, as well as in those with more visiting researchers. The proposed model can serve as a design guideline for education policies and as a moderation guideline for national authorities.
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In the midst of the global health crisis caused by the COVID-19 pandemic, it is necessary to find strategic solutions for enterprises. One of such operational challenges is certainly the digitalization of business. The success of the implementation and management of digital transformation depends on the management and determination to implement it. When it comes to state-owned enterprises, we are aware of the situation in the Republic of Croatia where more and more state-owned enterprises are subject to new trends in their scope of work. Those who make a step beyond the standard core business and thus give their enterprise an additional competitive advantage are rare, and one of these enterprises is certainly Hrvatska pošta d.d. From the point of view of corporate growth, the practice that is closely related to investing in innovation is especially important, so that the procedures, processes and rules that management follows when making practical decisions about investing in innovation become important sources for expanding knowledge about corporate growth. The research of these specifics will complete the picture of the factors, conditions and circumstances that operate in the realization of the corporate growth of the Croatian state-owned enterprise.
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This article provides an overview of Modern Monetary Theory (MMT). This approach to economic policy emphasizes the autonomous role of the state, its monopoly status in terms of issuing currency and its ability to provide full employment via a job guarantee. The article presents the main theoretical and policy elements of MMT, followed by the main criticisms stemming from liberal, Keynesian and Marxist perspectives. Additionally, this article discusses the possibility that peripheral countries, like Croatia, apply the economic tools suggested by MMT. Given that MMT has transitioned from the relatively marginal terrain of academic debates onto the terrain of more visible public discussion, one can expect that it will be able to shape the economic agenda in coming years.
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There is a new phenomenon in corporate governance of companies – foundations as shareholders. Foundations are traditionally held as legal entities which strive to accomplish a public or charitable purpose. However, modern practice highlights foundations which control companies (foundation-owned companies) or invest in them, thus becoming shareholders. Denmark, the Netherlands, Germany and many other countries both in the European Union and outside are a home to big successful companies under the control of foundations. In this new form of corporate governance, relation between management of foundations and companies becomes crucial, especially the extent to which a foundation is actively involved in operating the company, and possible overlapping between managers of the foundation and the company. The goal of this article is to analyze corporate governance of companies which have foundations as their major or minority members/shareholders. This article shall also research into the Croatian foundations and their involvement in companies. The research is based on the publicly available data on portfolio of foundations, which shows if Croatian foundations invest in companies, and thus act as shareholders. This article contributes to the discussion on the importance of foundations in economic development of countries through both corporate and charitable activism.
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Public policies of each country are modeling economic growth based on resources, economic conditions and, especially, aspirations. In some countries, economic growth is just happing, while other countries are pursuing clear objectives. For the last couple of centuries, economic growth followed a quantitative objective and ignored the qualitative features of growth, ignoring environment and social policies. As a consequence, growth models departed from the nowadays long-term objectives of building sustainable, green, inclusive and smart economic activity. The new millennium arrived with an ambitious agenda regarding the sustainability of growth model, while the new Commission provoked the EU Member States to a new economic paradigm, where the green economy and digitalization are taking the driving seats of the European growth models. The health crisis caused by the new Coronavirus pandemic revealed the shortcomings of the current economic model – long production chains and, in many cases, weak economic governance. For many EU member states, the requirements of the green economy – the Green Deal - the digitalization and the need of strengthening economic governance are a big challenge that should be solved together, over medium and long term.
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The paper focuses on the exclusion of Roma women from the economic development market in Romania which is explained through the interaction of the intersectional discrimination with other constraints which jointly deepens the situation. Thus, the analysis is centered on the main identities of Roma women, gender and race, throughout several levels from individual to state level and presents the changing position among these core identities in different contexts. The paper completes this analysis with several recommendations to tackle the identified constraints in Roma women road to economic empowerment.
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For businesses, one of the greatest challenges of the 21st century is to flexibly adapt to the challenges of the new Fourth Industrial Revolution, to increase their individual performance and take the right steps at the right time to maintain their competitiveness with increasing competition and growing market coverage. Globalization creates an increasing market opportunity and, at the same time, a responsibility for companies to catch up with global/European economic players and stand their ground. They can meet global challenges by providing high-quality services and manufacturing excellent products, for which a high level of leadership and management competencies and effective application of disciplines such as controlling are essential. While it is completely natural for large companies, SMEs - especially small ones - may not know and recognize the importance of collecting and processing accounting data beyond mandatory reporting and the decisive role of management accounting and controlling areas in decision support. Among small businesses, there is less interest in controlling systems. What is the reason for this low interest? How could they be convinced of the benefits of a controlling system? What solutions would they choose?
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There are all kind of expectations from entrepreneurial education – because it has evolved more and more, from a gymnasium or high-school discipline, towards bachelor curriculum, master degree or even Ph.D. academic track in entrepreneurship or business administration. If medicine creates devoted doctors, if engineering delivers skilled engineers, if pedagogy gives very good professors, why entrepreneurial education should not produce creative entrepreneurs? The answer would be that there are a lot of uncertainties in a pupil’s or student’s mind when thinking of starting a business: let’s say that the financial factor could be coped with a bank loan or a non-refundable grant, but it takes skills and determination – such prerequisites that the school should deliver.
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In recent decades, innovation research has played an important role in exploring the drivers of local and regional economic development. Nowadays, it is part of the generally accepted scientific canon that various forms of innovation (technological, business and social innovation) play a defining role in the economic development and competitiveness of cities, regions and countries. The context above points out that innovation is an important factor in the spatiality of society, but at the same time geography, more precisely geographical distance or proximity, is a determining element of innovation. In the present study, we provide an overview of the latest theoretical and empirical research developments in the “geography of innovation”, more precisely in the “geography of social innovation”, with application in Hungary.
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Purpose: Some empirical findings of the role of foreign direct investment (FDIs) in a host country’s export performance was found by many researchers, since exports have been for a long time viewed as an engine of economic growth. But exports and imports are inter-correlated and some works proved that sometimes, the foreign-owned companies import more than they export in some economic sectors. The paper aims to establish the relation between total FDIs and the commercial balance (goods) and between FDI stocks in the manufacturing economic sectors and the commercial balance of manufactured goods in 11 Central and Eastern European countries during the crisis period and post-crisis period (2009-2018). We have tested the causality using Granger causality test to see if there is a uni-directional or bi-directional causality between those variables. We have tested for co-integration and we haven’t found a long-term relationship between those variables and we have applied the VAR technique. Our results have proved a bi-directional causality between FDI stockexports-imports and a stronger impact of FDIs stock on the trade balance of manufactured goods than the impact of total FDI stock on the commercial balance of goods in CEE countries. Design/methodology/approach: Granger causality tests, cointegration test, VAR analysis Finding: We have found no cointegration in the long-run between FDIs stocks and exports and imports in the CEE countries. We have found a bi-directional causality between those variables. We have found a stronger impact of FDIs stock on export and imports of manufactured goods than the impact of FDIs stock on total exports and imports in the CEE countries. Research limitations/implications: This research can be extended analysing a longer period of time and including more exogenous variables in the analysis such as labour productivity, labour cost and GDP growth. It can also be performed a panel analysis. The CEE countries should design adequate policies in order to attract more FDIs in the manufacturing sectors, given the strong impact of FDI stock for these sectors and given the large share of the manufactured goods of the total exports of the CEE countries. Originality/value: This research is important for CEE region because of the large share of the manufactured good of the total exports of these economies.
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Purpose: The objective of our study is to determine on one hand the effect of the exploitation of mineral resources on economic growth of CEMAC member countries, and on the other hand to examine the role of institutions in the transmission of these effects. Design/methodology/approach: To achieve our goals, we formulated an econometric model in panel data concerning countries of this economic community. Using the fixed effects method and two stage least squared method over the period 2002 to 2016, a period during which we observed not only a surge in the prices of natural resources in the markets but also a fall in the prices of basic resources following two large exogenous shocks. First, the “subprime” crisis and the 2015 oil crisis. Finding: From our findings, mineral rent has a positive and significant effects on economic growth. Subsequently, when we control our model with all the variables capturing institutions of governance (Voice and responsibility, Political stability and absence of violence / terrorism, Government Effectiveness - Regulatory quality, Rule of law, and Control of corruption), the results of our regressions were robust. In effect, good governance ensures the proper distribution of mineral rent throughout the economy and contributes to economic development. We came to the conclusion that these institutions of governance do not play a role in the transmission of the positive effects of mineral rent on economic growth. Research limitations/implications: The following where limitations encountered in our study. Firstly, the temporal dimension of our study (15 years). Secondly, the failure to take into account certain institutional variables such as democracy or the type of political regime. Originality/value: Our study enriches the literature of natural resource curse; it is in line with those who have shown that abundance in basic commodities or natural resource is not necessarily a hindrance to economic development.
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Purpose: The economic crisis has led to a series of transformations of the economic and population base of the contemporary spatial units. The present study aims to highlight the indirect impact of the economic crisis on the operation and spatial footprint of the business network in a region with a slight decrease in its population dynamics in the decade 2001-2011. Design/methodology/approach: The methodological approach focuses (i) on the spatial and intertemporal observation of the change in the spatial footprint of the businesses and population of Greek Regional Units and (ii) in the identification of spatial clusters with similar behavior of business establishments or deletions (hot-cold spots). For the delineation of the profile of the spatial units, business demography indicators were created, while the analysis was based on spatial statistics methods and spatial autocorrelation indicators, such as the Global and local Moran's I. The panel data used for the present study relate to the establishment and deletions of businesses’ during the period 2008-2018 as well as the population Censuses 2001-2011. Findings: It is evident that the crisis left its footprint in the Greek periphery. Examining the business network of two Greek Regional Units it is shown that during the crisis period a significant part of the businesses opened ceased in the early years after. Moreover, until 2016 there is a negative balance between business births and deaths. Especially Volos and Skiathos, despite that they presented an increase in their population, show higher intensity of businesses' deaths until 2014 than those of the establishments; after 2015 it is observed an inverse trend with positive establishments balance.The most important finding that confirms that space is not neutral is the autocorrelation in death rates in neighboring municipalities with simultaneous population decline. Research limitations/implications: The dependence of the external boundaries of a spatial entity on a neighboring one contributes to the possible effect on spatial patterns. In the present study, the spatial autocorrelation of the establishments and deletions of the businesses of Magnesia and the Sporades was examined, however, the influence of the adjacent area (the Regional Units of Larissa and Fthiotida) was not taken into account due to non-availability of the necessary data. Originality/value: The present study contributes to theory by highlighting the impact of the economic crisis in the footprint of a regions’ business ecosystem. The added value lies in the connection and dependence of regional economies and populations with space. Future research could build on this study by examining business behavior in other spatial units. Furthermore, this study could be additionally used by policymakers to potentiate awareness of the local development, revitalization, and depopulation challenge.
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Purpose: The aim of the paper is to evaluate the impact of CEFTA on exports and economic growth and development of its members. Regionalism is attractive to states and especially to developing countries, since they enhance their reliability on reforms to foreign investors and they raise their bargaining power in multilateral level, since they negotiate as a unit and not individually, especially within the WTO, achieving goals which would not had been achieved if they had acted individually. The paper is based on the theoretical context of Regional Trade Agreements. More specifically, Free Trade Agreements widens trade in goods and services, raises exports and increases distribution of production. Moreover, FTAs affect state’s reliability for inward investments, since they guarantee the implementation of domestic reforms. In particular, compared to WTO, within an FTA less countries are involved therefore, it is easier for them to monitor a state and if this state deviates from its commitments then it will face direct retaliation from other regional partners. Consequently, its members are considered more reliable and they experience a boost in economic growth and volume of trade. Design/methodology/approach: Methodologically it is based on analyzing quantitative macroeconomic data and qualitative data that have been quantified through a comparative analysis among members states. More specifically, the analytical framework consists of additional variables concerning economic and political freedom as well as trade volume, growth, development and income, since that all are correlated with trade liberalization. Findings: In the case of CEFTA, intra-regional trade seems to be neglected since all CEFTA members prefer trading with the EU. This does not mean that CEFTA’s economies could be more competitive than the EU, however, there are is no increase in intra-regional trade volume and when there is, this concerns only few of the partners. In addition, indexes show that economic environment remains protected and state centric. The fact that an FTA such as CEFTA seems that does not have any impact on GDP growth but at the same time GDP per capita and HDI are increasing, might show that there are other variables which affect these indexes. another paradox is that these positive developments happen in highly corrupted, state-centric and protectionist members of a Free Trade Agreement. Research limitations/implications: FDI were not examined due to lack of data. Originality/value: Up to now, there are contradictory arguments in the literature regarding the effects of CEFTA on its members. More particularly, there are scholars who argue that CEFTA'S impact on exports and economic growth and development of its members is positive while others claim that this impact is either very limited or no existent at all. The current research aims to assess CEFTA’s impact on growth and development taking into consideration the domestic economic and political environment. In addition, it extends recent work assessing CEFTA’s effectiveness on member-states focusing on trade, economic growth and development by taking into consideration additional macroeconomic variables as well as the domestic capabilities of each member.
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Purpose: This paper intends to provide a comparative analysis of the Czech, the Hungarian, the Polish and the Slovak railway development strategies in light of the evolution of transport needs, travel habits, freight volumes, and regional business relations. By offering a general SWOT analysis through real-life examples, the paper shall contribute to the better understanding of railway development trends in the Visegrád states. Design/methodology/approach: The research’s scope is to identify the real motives and triggers of railway modernization and construction policies in the Visegrád Four countries (the Czech Republic – “Czechia”, Hungary, Poland and the Slovak Republic – “Slovakia”). Through the quantitative research of international, national and corporate transport databases and surveys, as well as the analysis of EU strategies and V4 presidency programs, the paper concludes that the regional rail transport market has clear advantages with constantly growing traffic and every time more actively trading companies. Findings: The study found that the V4 railway integration is in major part powered by the EU’s development funds and communitarian regulations support the competitiveness of rail services in the region. However, the efficiency of train services ranks below the communitarian medium level in most of the V4 states. Therefore, if Visegrád countries wish to close up with their western neighbors, the frequency, the speed and the quality of train services must improve. Research limitations/implications: As this study provides a general insight to Visegrád railway development strategies from a market perspective, future researches might focus on the political motivations of such infrastructure projects. Further papers might also investigate the possible impacts of railway developments on the employment, cultural and business relations, travel habits, tourism, and environmental protection in the Visegrád area. Originality/value: By offering a general SWOT analysis through real-life examples (dated from these countries’ EU accession), the paper shall contribute to the better understanding of railway development trends in the Visegrád states. The research primarily focuses on the relationship, causal mechanisms, interactions, and dynamics between infrastructure investments and the concrete needs of the transport sectors of these states. The analysis has multiple levels including that of state actors, sub-state regional entities, railway undertakings, and transport corridors. In order to provide a global European view on the evolution of rail transportation, V4 statistical data is compared to European average numbers all through this study.
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Purpose: The aim of our paper is twofold. First, we examine the predictive ability of log bookmarket, dividend-price, earnings-price and dividend-earnings ratios on the most recent data set of the strongest securities in the UK economy; unlike the majority of the studies in this data set, our analysis is not limited on returns but further investigates dividend and earnings growth predictability under the presence of the most recent global financial recession. Second, we exploit the long-run equilibrium relationship in two systems, [pt, dt, et ] and [pt, bt, et ] and examine the predictive ability of our newly formed variables, namely pdet and pbet. Design/methodology/approach: In this study, we examine the most recent data set of Financial Times Stock Exchange 100 (FTSE 100) and analyze it based on the formation of size portfolios. The main focus is placed on the index’s returns, dividend and earnings growth rates and the predictive ability of the four financial ratios we have selected following their reputation as strong predictors. We also formulate two extra ratios based on their long-run equilibrium relationship. Finding: Our study’s main findings can be summarized as following. First, we retrieve evidence that in-sample return predictability is evident in the medium and large-sized portfolios and is better captured by pdet at 35% and 47% equivalently. Second, forecasts on dividend growth are even more linked to the size criterion we employ. Third, in-sample regressions of continuously compounded earnings growth rate show that most predictive benefits are obtained by dpt in the medium portfolio with an R2 of 45%. Research limitations/implications: A first constraint is the forecasters we employ; we have used the most indicative ones due to their popularity in similar data sets but there are other macroeconomic variables such as spreads and interest rates that could be tested in future research. Also, we could examine the sensitivity of our results on whether we use nominal, excess or real returns and then, attempt to alter our data’s frequency so as to address the seasonality effect observed mainly in dividends and earnings. Originality/value: We believe that our paper contributes to the ongoing debate of the traits that make return predictable and the information included in either dividends or earnings to explain that predictability. Finally, the novelty of this paper lies in the links it tries to retrieve among market capitalization value and predictability in a market whose predictive components have not been entirely explored. Our paper may prove informative to investors focused on short-term forecasting and interested in the effects of size in portfolio formation.
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Purpose: Zimbabwe experienced hyperinflation (2000-2008) followed by dollarization from 2009 onwards which had implications on dividend policy. In this context, this study isolates the main determinants and examines their behaviour across the distribution of dividend policy. Design/methodology/approach: The study employs quantile regression analysis and a sample of 30 firms listed on the Zimbabwe Stock Exchange (ZSE), covering the period 2000 to 2016. The fixed effects (FE) analysis is applied as a base model. Finding(s): The most robust determinants are ownership structure, earnings per share (EPS) and taxation. In our context, results are more informative, than those based on FE analysis by showing the change in the impact of each explanatory variable across the distribution. EPS has a positive and significant impact on dividend policy throughout the distribution in both sample periods. Its effect increases in magnitude as firms move from low to high quantiles. The other variables are useful in explaining dividend policy at selected points of the distribution. Thus, there is clear heterogeneity in the determinants of dividend policy. Research limitations/implications: The study shows the importance of developing dividend policy by focusing on the position of the firm on the distribution. Dividend policy should be developed in view of the earnings potential of the firm, ownership concentration and perceived changes in fiscal policy. A well designed policy should have a differentiated approach to influencing corporate dividends. Originality/value: This study enhances our understanding of dividend policy in unique markets. It confirms the applicability of dividend relevance theories. Furthermore, It shows that quantile analysis provides more reliable estimates than those obtained using standard panel data models.
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Purpose: While the relationships between energy or electricity consumption and economic growth are of great interest to economists, previous studies have not examined the dynamic effect of electricity production on industrial and agricultural output growth in Nigeria; this study attempts to fill the gap. This study thus investigates the dynamic effects of electricity production from renewable and non-renewable energy sources on industrial and agricultural output growth in Nigeria. Design/methodology/approach: This study disentangled electricity production by source - into renewable and nonrenewable - and employed a Structural Vector Autoregressive (SVAR) and other time series econometrics analysis. Findings: This study found that electricity production from both sources has a slight impact on the growth of the Nigerian industrial and agricultural sectors. In addition, this study supports the existing claim that economic growth and energy are linked and thus disproves the neo-classical assumption of the neutrality hypothesis. Research limitations/implications: This study considers annual data for all the variables due to the available data frequency for electricity production. However, the study assesses the validity of the estimated SVAR, and the results show that the analysis is robust for this study. Originality/value: This study contributes to the existing empirical literature by disentangling electricity production into renewable and non-renewable- and then examine their impacts on the crucial sectors of the Nigerian economy. This study shows that electricity production from the two energy sources contributes marginally to the growth of the industrial and agricultural sectors in Nigeria. Therefore, among other policy prescriptions, the author recommends that acceleration of projects that focus on off-grid electricity production under the Nigerian Energy Support Program (NESP) could minimize the current challenges of electricity production and its impact on the economy.
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According to the principles and standards of market economies and based on OECD principles, Corporate Governance should ensure the growth of the value of companies' assets. Besides, it should provide a balanced representation of stakeholders' interests, first of all, to owners, management, and employees. One of the key problems that newly created private enterprises and enterprises created through privatization is their incorporation or the creation of modern corporate governance structures which, as discussed in this paper, are of primary importance for the growth of these companies, for their sustainability, for access to capital and for their investment attractiveness. Achieving these standards in transition economies is proving to be quite problematic, especially in the Eastern and Southeast Europe. Theoretical discussions and empirical research largely conclude that the problems are not so much associated with the legal framework as much as they are concerned with their implementation, especially with the institutional environment and the problems that these countries have with law enforcement and corruption. This paper provides an overview of theoretical discussions on specific corporate governance issues in these countries and then based on the secondary resources and empirical studies in Kosovo's case, a brief comparative analysis of developments in this area in Croatia, Bulgaria, and Kosovo. The conclusions drawn from this analysis appear to be in line with theoretical discussions.
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An efficient firm infrastructure is considered as one of the key factors of the firm performance considering its impact on time and cost savings. The positive impact of the quality of infrastructure on firm performance is very cognitive, but the lack of adequate infrastructure remains an important obstacle especially on transition economies. Thus, primary objective of this paper is to provide information regarding the power outages as an obstacle to firm’s performance. This paper focuses on the cross-country comparison with the intention to show the progress done by governments in improving this obstacle to the private sector using survey data provided by World Bank in partnership with EBRD. This is the Business Environment and Enterprise Performance Survey (BEEPS) database which offers a wide range of topics of business environment. The results show that Kosovo leads regarding the average hours without electricity, number of power outages in a typical month and the percentage of sales loses due to electricity insufficiency. The panel data techniques, respectively the fixed effect model, show a negative and significant impact of the average number of power outages on the sales growth.
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