THE CURRENT STAGE OF BASEL III APPLICATION AND ITS CONSEQUENCE ON FINANCIAL STABILITY: EVIDENCE FROM KOSOVO

Author(s): Muhamet J. Spahiu / Language(s): English Issue: 1/2022

The study aims to explore the divergences around the implementation of the Basel III agreement, since this agreement is considered the core of the international regulatory response to the financial crisis, setting the strictest criteria for capital structure and risk assessment. This paper explains the current level of legislation that applies in Kosovo, as well as possible divergences with the criteria set by Basel III. It is argued that the national authority, explicitly the CBK, to decide on the implementation of Basel III, had to agree on three aspects and potentially conflicting between them: the stability of the banking sector, competition, and care for economic growth. Finally, the study concluded that Kosovo is implementing Basel III regulations with greater ease and attention, contributing to banking sector stability, competitiveness, and economic growth.

State Capitalism in Poland

Author(s): Piotr Kozarzewski,Maciej Bałtowski / Language(s): English Issue: 1/2022

Theoretical background: The article is devoted to the knowledge gap in understanding processes of growing state interventionism in a number of post-communist countries, Poland being one of the most notable examples. This evolution is still understudied in the literature, both in terms of evidence and proper theoretical framework. Existing theoretical perspectives have been created for studying other types of economies an do not fully fit the transition ones. Among these perspectives, the state capitalism (SC) one seems to be the most promising. Purpose of the article: The task of this paper is to study the growing state interventionism in Poland using the state capitalism approach which had to be refined by the authors in order to be more applicable for analyzing transition economies. Using this framework, the history of SC formation and its present state in Poland are studied, including specific features of Polish state capitalism, e.g. the importance of the state-owned enterprise (SOE) sector as the source of rents, as well as the varieties of the state control over the enterprise sector. Research methods: The article makes use of mostly qualitative methods, quantitative ones playing an auxiliary role by systematizing evidence used in qualitative research. The study was based on analysis of the existing literature and evidence of interventionist practices of the Polish government. The authors attempted to fine-tune the SC approach both through refining its definition and including areas previously mostly neglected by SC studies such as relationships between the state and the enterprise sector. They created a typology of SC phenomena in transition economies which made it possible to study the Polish case in a comprehensive way. Main findings: At this stage, the authors think that no strict definition of state capitalism is possible because of its highly contextual character. Thus, the outcome of the study may not be universal, but the authors believe that their concept of six basic features of state capitalism may be applicable not only to Poland, but to other transition economies as well. Besides, the article raises awareness of the importance of state-controlled enterprises in studies on state capitalism. The article also identifies challenges for further research and the still existing knowledge gaps. Among others, the questions remain, whether the statist trends in Poland and other countries lead to a system change and what are the roots of these trends.

Abstract nature of demand guarantee as source of efficiency and risk of fraud

Author(s): Ana Cvetković / Language(s): English,Serbian Issue: 2/2017

Autonomy and abstractness of demand guarantee provide simple collection process where the bank cannot issue complaints towards beneficiary which, on the other hand, can be issued by the principal, acting as debtor, towards beneficiary. This specific characteristic of demand guarantee provides advantage of fast and efficient collection, but also brings the risk of fraud. In practice, demand guarantees are often identified as unconditional guarantees or conditional guarantees as documentary guarantees. Therefore, considering it as useful, this work covered some theoretical and practical facts of the demand guarantee, it further explained some terms and guarantee types and it explained Uniform rules for demand guarantees, legal relations and essential elements of demand guarantees as well as abuse during collection process. The aim of this work is to examine the characteristics and acceptability of the demand bank guarantee acting as security means regarding the non-performance of contractual obligations in real-time conditions. Conclusion of this work shows that, for a good reason, the demand guarantee is one of the most used security means regarding fulfillment of contractual obligations, because it provides fast and efficient protection to its beneficiaries, but on the other hand, the fraud possibility should not be overlooked, which must be acceptable ground for payment suspension.

Response to Wysocki on indifference

Author(s): Walter E. Block / Language(s): English Issue: 72/2022

Nozick (1977) was a critique of the view of Austrian economics which rejected the notion of indifference in human action. This author claimed that this stance was incompatible with the notion of the supply of a good, and, also, with diminishing marginal utility, both of which were strongly supported by this praxeological school of thought. Block (1980) was an attempt to rescue the Austrian school from this brilliant intellectual challenge. Hoppe (2005; 2009) rejected Nozick’s challenge, and, also, Block’s (1980) response. Block (2009a) and Block and Barnett (2010), defended Block’s (1980) analysis of indifference. The latest contribution to this ongoing discussion is Wysocki (2021) who maintains that Hoppe was correct in his rejection of Nozick, while Block was not. The present paper is a rejoinder to Wysocki (2021).

Impact of digital economy on the digital habituses of the Russian population

Author(s): Boris Podgorny,Natalia Volokhova / Language(s): English Issue: 07+08 (2)/2021

During the analysis of the results of digitalization, it becomes necessary to take the sociological component, along with statistical and financial ones, into account. Sociological index consists, first of all, in the understanding by the population of certain regions and countries of the processes and activities that are being held, the attitude to them and the readiness for the changes introduced by digital economy. This article provides data on the digital habituses of the population and their impact on the attitude to the development and implementation of digital technologies and the actions of the community within the framework of the current situation with digital technologies. It is shown in our research that about 25 percent of the population have habituses that do not explicitly or covertly support the development of new digital technologies. The influence of the habituses of the population on the attitude to the development and implementation of digital technologies, levels of digital literacy, protection of personal information, self-assessment of digital literacy and user level is determined.

Financial Partnerships in the 19th Century – Relationship between Bulgarian Merchants and Galata Sarrafs

Author(s): Mustafa Güripek / Language(s): English Issue: 1/2022

In this study, 19th century Bulgarian financial developments will be discussed in parallel with the commercial developments. The focus of the study is the network of relations established by important merchant families that emerged in the 19th century with the sarrafs of Istanbul (Galata) and important merchants like Georgiev, Puliev, Çalıkoğlu, Tezvetoğlu etc. They had established strong financial ties with the Galata bankers/sarrafs. I will try to answer some questions such as following ones. What factors were important in establishing these ties? Was this relationship necessary? What were the benefits of the money changers and Bulgarian merchants from these financial cooperations? What was the role of the state in this relationship? What was the role of local administrators in the network of sarrafs and merchants?

Етрополе – предизвикателствата пред един дербенджийски, рударски и книжовен център през XVI и XVII век (по непубликувани османски документи)

Author(s): Krasimira Mutafova / Language(s): Bulgarian Issue: 1/2022

Although it is a village, according to the way it is designated in the Ottoman register material from the 16th and 17th centuries as ‘qarye’, Etropole has established itself as a significant mining (madanci), craft and literary center during this period. A circumstance that undoubtly is of a particular importance and has impacted on its significance as a mining, derbentci and literary center, is its designation as a passage zone of centuries-old importance. The location and natural conditions of the region, favorable and encouraging for trade contacts and the development of a number of crafts, are also important. An opportunity to trace the development of Etropole as a Derbentci and later mining center, as well as its overall economic characteristics and socio-economic profile of its inhabitants from the second half of the 15th to the first half of the 17th century, gives the voluminous and still unpublished compact information contained in several mufassal (detailed, nominal) defters from 1516–1517, 15141–1545, 1613–1614 and 1642–1646, selected for the purposes of the study. The annotated register data reveal a rather heterogeneous socio- economic profile of the residents of Etropole. It is difficult to determine which status of the settlement – derbentci or mining (madenci) – during the Ottoman period proved to be the leading one for its economic and cultural development. But it is indisputable that the economic rise of Etropole in the 16th and 17th centuries coincided with the activation of the literary and spiritual life, attested in the available sources published by the great Bulgarian medievalist Petar Mutafchiev, as well as in a number of attributions and author's notes of writers, priests and wealthy residents of Etropole. The comparative analysis of the newly translated and summarized register data convincingly highlights the close connection between the heyday of mining, the Ottoman fiscal and legal privileges granted to the residents of Etropole and the overall literary and educational activity of the Etropole Monastery “St. Troitsa” – an important cultural and spiritual center.

Стопанско-търговската мрежа на Евлоги Георгиев през 1839 година

Author(s): Aleksandar Zlatanov / Language(s): Bulgarian Issue: 1/2022

The following research intends to examine and uncover the economic and trade network of Karlovo’s entrepreneur Evlogi Georgiev in 1839, based on his earliest preserved trade notebooks as a source kept today in the Historical Museum of Karlovo. It was precisely on 1 January 1839 that the famous “Pulievi – Georgievi” Company was established. The partners, Evlogi and his uncles Pulievi, signed the contract and distributed their roles and functions. The entity had three headquarters across the Balkans – Karlovo (operated by Hristo Puliev), Bucharest (operated by Evlogi Georgiev) and Galați (operated by Nikola T. Puliev). Thus, the main relationship and points of commercial and economic activity was as follows: Karlovo– Bucharest – Galați. The sources showed that the model of economic activity and trade includes the purchase of goods (mostly raw materials and semi-finished products) mainly from Karlovo and the region, which were sent through the network of associates on several main routes to the Danubian principalities for sale. Almost all exported commodities were transferred via Svishtov and Zimnicea on the Danube. The main products that “came out” of Karlovo region were woolen braid lace, woolen and cotton yarn, lining, leathers, bags, rice, baize, coarse woolen cloth or frieze, silk, madder, rose oil, etc. Evlogi Georgiev’s network operated in a considerable geographical area. The range extended into the hinterland of the European part of the Ottoman Empire (Rumelia), along the Danube River and to the north of then free-trading Danube principalities. The network itself of “Pulievi – Georgievi” Company relied exclusively on social capital – the Bulgarian emigrants and merchants along the Danube River. In this way, an effective structure of trusted collaborators and commissioners was built invital topographical points along the Danube River, which was of capital importance. Such network of trusted partners with fast contacts and exchanged information make the commercial activities efficient. Skillful coordination and leadership at the operational level by the Karlovo’s entrepreneurs, together with honest relationships throughout the network, increased the added value. The high quality Bulgarian goods, the main subject of trade, were also an important element of the success. All this leads to the conclusion that the economic and trade network for a long distance operations of E. Georgiev and his uncles built in 1839 was precisely the necessary stable and effective foundation, the first most important step, for the transformation of the Karlovo’s entity into one of the largest Bulgarian companies in the 19th century.

Пари дадени с лихва. Възможности за развитие в микрообщество (по примера на еленския първенец хаджи Теодор и неговия наследник от 30-те години на XIX век до Освобождението)

Author(s): Stanimir Dimitrov / Language(s): Bulgarian Issue: 1/2022

The practice of giving money with interest is a long tradition in different societies. Today’s examples are studied by the microeconomics. This paper investigates the case of Ivan Hadzhi Teodorov and his family. The study in based mainly on unpublished documents from his archive at the Museum of the Revival Period – AIK “Daskalolivnitsa” in town of Elena and from the Bulgarian Historical Archive at the National Library “St. Cyril and St. Methodius”- Sofia. The main emphasis of the research is giving of money with interest, following the example of the Elena’s notable Hadzhi Teodor and his successor from the mid-19th century. In the process of research, several conclusions were drawn: the interest on the allocated matches does not exceed the percentage of other money lending examples presented by authors from the same period. The research shows that Elena’s notables were not only lenders but also borrowers of money. The documents reveal the existence of an orphanage fund, created by Hadzhi Theodor – a practice in which there is something human and noble.

Финансова политика и бюджет като инструменти за местно развитие – по примера на община Свищов (1879–1886)

Author(s): Margarita Marinova / Language(s): Bulgarian Issue: 1/2022

The article traces the policy of the municipality of Svishtov in the field of local finances and budget in the period 1879-1886. The research is based on previously unused empirical material, mainly the protocol books of the city administration. When drawing up the budgets, the Svishtov City Council strives, on the basis of the law, to match them with the real possibilities of the taxpayers and the urgent needs of the city. By using the comparative approach, the conclusion is reached that for the period 1884-1886, the fees from the withdrawal and measurement of the goods and from the barrier fee, inherited from the Ottoman legislation, have the highest high relative share in the budget revenues. It is concluded that the funds invested in the local infrastructure, for the fire service, for the maintenance of the schools and for health care contribute to the improvement of the living and working conditions of the citizens. The results achieved are modest, since at this stage the legislation cannot yet provide municipalities with regular and secure sources of income.

За стопанската дейност на Евстати Селвели през 1843 г.

Author(s): Veselin Goranchev / Language(s): Bulgarian Issue: 2/2022

The article presents information about the economic activity of Eustati Selveli in 1843, a prominent Renaissance entrepreneur and public figure of the 19th century. It is a continuation of two previous publications that examined this activity of his in the period 1831–1842. In 1843, Eustati Selveli took active part in at least two business structures – the trading company called “Hadji Mincho Hadji Tsachev and Company,” founded together with Hadji Mincho hadji Tsachev, and the trading company called “Eustati Hadji Nikolaou Selveli and Company,” established together with Atanas hadji Nikolaou. Both were set up in 1841. The main part of the information presented in this article was acquired on the basis of Greek-language documents that are stored in the State Archives of Veliko Tarnovo and in the archives of the Regional Museum of History in Veliko Tarnovo. These include contracts concluded between Eustati Selveli and Atanas hadji Nikolaou, a commercial notebook that belonged to their partnership, and a personal notebook of Eustati Selveli. The indicated historical sources contain information about the material and financial condition of Eustati Selveli and about his joint business activity with Atanas hadji Nikolaou. The article presents information about the business partners of Eustati Selveli and Atanas hadji Nikolaou in the year under review; the items which the partners traded in and their prices; the monetary units they used when paying for supplies and their value equal to grosh (the local coin at the time); the ways of delivery of the goods, etc.

Perceived income adequacy, family support, financial anxiety, and tax non-compliance of Indonesian working women during the Covid-19 pandemic

Author(s): Priandhita Sukowidyanti Asmoro / Language(s): English Issue: 1/2023

In high-risk situations like the Covid-19 epidemic, it is believed that perceived income adequacy, family support, financial anxiety, and tax non-compliance have a strong relationship. This study applies the Conservation of Resources (COR) theory in building research models to fill gaps in previous research. According to the COR theory, individuals safeguard the quality and quantity of their financial resources by avoiding threats to their existence, including taxes. Thus, maintaining limited financial resources during the Covid-19 pandemic to meet needs and wants leads to tax avoidance. The cross-sectional data were collected using an online survey and analyzed using the PLS-based SEM technique. Purposive sampling was used to identify 371 Indonesian working women for the study sample. The study’s findings confirmed that perceived income adequacy for current needs and wants and perceived family support directly impact financial anxiety. However, this study can only demonstrate the direct effect of perceived income adequacy for current wants and tax non-compliance. Financial anxiety has also been proven to mediate the relationship between the three exogenous factors and tax non-compliance. This study can strengthen the concept of COR theory, which has never been used to investigate tax non-compliance behaviour and can be considered by authorities to design tax policies that take gender into account to achieve tax compliance.

ПОТЕНЦИЈАЛ РЕПУБЛИКЕ СРПСКЕ ЗА РАЗВОЈ МАЛИХ И СРЕДЊИХ ПРЕДУЗЕЋА

Author(s): Lazo Roljić / Language(s): Bosnian,Croatian,Serbian Issue: 4/2006

The experiences in developed countries shown that small and midlle enterprises has become the generator of development of whole economy and employing of people. The small enterprises are much more reliable on market demand, and they are able to rich a better financial results but by angaging of less business assets (fixed assets and working capital). They also contribute to permanent increase of employment. Just from that reason, the role of SME in total economy development of Republika Srpska in some last years has become more apparent. Small economy is dominant part of total economy meassured by number of business subjects, by financial results, and also by number of employed people, compared by whole economy of Republika Srpska. The number of registered enterprises in Republika Srpska for the last four years has been double increased, and from 8,441 registered subjects in 2000-th that number has grown on 16,019 in 2003-rd. However, that number, meassured in relation to the number of citizens and compared directly by the number of registered subjects in neighbour countries and in EU countries, is minored. Identical comparing is possible to be done by GDP and by gross added value per epmployee. Developed countries have timely realized that SME’s are the „supporting pillar” of national economy development, and they have made the frames in which those enterprises have opportunity for progress. By different system’s supporting meassures for development of SME’s and entrepreneurship, the governments of developed countries do latent dimensioning the development of their whole economy. The government of Republika Srpska have to justify a policy and to take the measssures for stimulating of mass establishing of SME’s, and also to find quicker, chieper and most contamporaneous mean for their registering and to getting a work approval licence. By the author’s meaning, that would be path that from quantity originates the quality, which would lead to increasing of employment and to holding up of increasing of population poverty. That task, after all, belongs to all governments in neighbour countries, or they have taken it as priorited task in their economic policy.

ПРЕДУЗЕТНИШТВО И КУЛТУРНЕ ВРЕДНОСТИ

Author(s): Ivan Šijaković / Language(s): Bosnian,Croatian,Serbian Issue: 4/2006

In this work, the author studies the influences of culture, cultural flows and cultural values on economic development, entrepreneurship initiative and social progress. In the previous decade, many works were written that strove to show a large significance and influence of culture and tradition on economy and economical development. A large gap in economical development between specific states and regions in the world initiated the issue whether the culture is the obstacle for faster development. It has been shown that some cultures and systems of values are giving the support and accelerate the economic development through entrepreneurship, innovation, creation, competition and initiative. On the other hand, there are the cultures that by their traditional values and positions prevent the innovations, creativity and freedom of creativity, which negatively influences the economical growth and economical development. Some cultures create favorable entrepreneurship climate, some not. In order to change that situation, it is necessary that cultural turn and change of cultural values in particular environment and society appear. We find many examples in history that show that cultural turns favourably influenced economical and social development. Such examples are Protestantism, Confucianism, enlightenment, meigi reformation, liberalism, pragmatism. There are also examples that show that cultural turns had negative influence on already achieved level of economical growth and economical development. In the work, we further explore which are the cultural values that favourably influence the development of entrepreneurship in modern societies. We conclude that entrepreneurship initiative, innovation and creation are revealed in cultures characterized by decisiveness, willingness to compete, dynamism, safety, creativity, creation, long-term work, education, knowledge and responsibility. In the end, in the work, the thesis is presented that entrepreneurship is the type of activity that does not disappear „naturally” or spontaneously in societies or by an individual. Entrepreneurship is learnt through education, informing and research.

Rekabet Üstünlüğü Elde Etmede Toplam Kalite Yönetiminin Etkileri

Author(s): Süleyman Ağraş,Merve Çoban / Language(s): Turkish Issue: 1/2022

The ability of an organization to produce quality products or services is an important competitive tool. The relationship between quality and competitiveness has become quite evident today. The management philosophy that comes to the fore in the institutionalization of quality is total quality management (TQM). Total quality management is an understanding that directs the course of quality in businesses and shows continuous improvement in linewith customer demands and needs. TQM philosophy consists of seven main themes: leaderhip of top management, customer focus, teamwork, full participation, directed approach, worker training and continuous improvement. The aim of this study is to examine the effects of total quality management philosophy on competitive advantage in the context of airline companies. For this purpose, a research was conducted and document analysis and interview methods were used to obtain the data. The effects of total quality management on gaining competitive advantage are discussed in the research. The qualitystudies of Turkish Airlines (TA), the flagcarrier airline of Türkiye, were discussed in the research. As a result of the research, findings showing the principles of total quality management in TA'spolicy documents and practices were determined.

Теория на парите без теория за ценността. Подходът на Петър Бернгардович Струве (1870–1944)

Author(s): Nikolay Nenovsky / Language(s): Bulgarian Issue: 3/2023

In the article are presented the main logical points through which Peter Struve (1870–1944) explained the functioning of exchange and the coordination of individual economic activities. Value and the theory of value are eliminated. In its mildest form, it is subordinated to the theory of price and the theory of money. Accounting and statistics, as well as legal norms, became leading mechanisms for measuring individual human efforts. Peter Struve can be seen as a prominent representative of monetary analysis (if one follows Joseph Schumpeter's famous classification in his History of Economic Analysis).

A NEW RENEWABLE SOURCE OF ENERGY USING THE SULFIDES IN THE DEEP BLACK SEA WATERS

Author(s): Venko Beschkov,Vladislav Hristov / Language(s): English Issue: 2/2023

There is one for now non-developed renewable energy source (RES). It is the energy of hydrogen sulfide dissolved in the deep waters of the Black Sea. Bulgaria could obtain additionally energy potential equivalent to 50 TWh due to the annual increase of hydrogen sulfide content. This amount is comparable to the annual energy consumption of Bulgaria. The technology may be of benefit not only Bulgaria and the Black Sea countries but for the entire Balkan Peninsula (currently heavily relying on lignite coal) and the EU.

Нов принос в регионалните изследвания. Рец.: на: Николай Тодоров. Овчарската аристокрация. Икономиката на Котел и Добруджа през 30-те – 40-те години на XIX век

Author(s): Ivan Rusev / Language(s): Bulgarian Issue: 1/2023

University business incubators and opportunities for collaboration with companies within the start-up 2

Author(s): Saken Kazhenov / Language(s): English Issue: 1/2023

Business incubators based on the university mainly target social impact by creating opportunities for job creation, and profit is not the primary objective. However, companies are doing business, and there should be strong reasons to attract them in collaboration with the university. This paper aims to find the possibilities for collaboration between university business incubators and companies. To achieve this purpose, we used the data from scientific articles. The review is based on the content analysis of the relevant papers in the three-level approach (individual, organisational and institutional). Similar to other entrepreneurship-supporting organisations, university business incubators connect start-ups with mature companies or industry leaders to allow faster growth for new ventures. This research illustrates that the most significant types of collaboration for all three levels (individual, organisational and institutional) are mentorship and networking. The suggestions of this paper give an overview of the incubation process to entrepreneurship researchers.

PERSPECTIVES OF THE 1940’S ROMANIAN ECONOMY IN VIRGIL MADGEARU'S VISION - LESSONS FOR TODAY

Author(s): Alina Georgeta Ailincă / Language(s): English Issue: 25/2021

Concerned with the course of the world, but especially with the economic, political and social course of Romania, together with other leading Romanian economists of the early twentieth century, such as Dimitrie Gusti, Vasile Pârvan and Victor Slăvescu, Virgil Madgearu realized, with extreme fine attention, a diagnosis of the Romanian economy. A graduate of the University of Leipzig, and later a professor and policy maker, Madgearu reassembles ideas and approaches according to the Romanian needs of the time, promoting modern principles regarding credit, cooperatives, exchange rates, banks, foreign trade, agriculture, industry, financial markets, but also the functioning of monetary and fiscal-budgetary policies. At least some of these ideas are found in a crystallized form in the mature works of the author, being extremely current today. Thus, the article aims to describe and analyze elements of the perspectives of the Romanian economy as seen by Virgil Madgearu in 1940. Although the historical perspective can be considered obsolete, we can easily see from the analysis, the striking degree of similarities with the current period and a number of lessons from that time that can be learned even today.