Journal of Contemporary Economic and Business Issues (Archived)
IMPORTANT NOTE Journal of Contemporary Economic and Business Issues (JCEBI) does not accept manuscripts anymore. JCEBI from June 2020 continues under a new name "Economy, Business and Development: An International Journal". The web site of the new journal is https://journals.ukim.mk/index.php/ebd
Ss.Cyril and Methodius University in Skopje, Faculty of Economics - Skopje, RN Macedonia
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THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, OIL PRODUCTION, ENERGY CONSUMPTION AND CARBON DIOXIDE EMISSIONS: EVIDENCE FROM SELECTED OPEC COUNTRIES
The article aims to investigate the relationship between economic growth, oil production, energy consumption and CO2 emissions in five OPEC countries for the last four decades (1978–2017). We found that per capita energy consumption has a negative relationship with per capita GDP while per capita CO2 emissions positively affect per capita GDP. Per capita GDP negatively affects oil production, but per capita energy consumption has a positive relationship with oil production. Further, per capita CO2 emissions have a positive relationship with oil production. Per capita energy consumption negatively influences per capita CO2 emissions. We also found that there is a directional relationship running from per capita GDP to oil production, per capita energy consumption and per capita CO2 emissions and from per capita CO2 emissions to per capita energy consumption. The Johansen co-integration test shows that there is a long run relationship among variables. Our finding supports the conservation hypothesis that means the growth of GDP in these countries is found as a result of increasing energy consumption.
Copyright (c) 2025 Journal of Contemporary Economic and Business Issues (Archived)
CLUSTER ANALYSIS OF SEPARATE INDICATORS OF THE BANKING SYSTEMS OF NORTH MACEDONIA, THE EU MEMBER STATES AND THE BALKAN COUNTRIES
In this paper, a multivariate analysis of the computer statistics, i.e. the Cluster analysis of the banking system concentration indicators and the financial intermediation and portfolio quality indicators by applying the complete linkage and the Ward’s linkage method are presented. The main idea is to find out whether the level of banking system concentration and degree of financial intermediation in banking system of North Macedonia is similar or closer to any of the EU Member States or the Balkan countries. Furthermore, since the appropriately modified analyses were performed also with the structural indicators of the banking system and results obtained 10 years ago, the objective is to see whether there are any positive shifts in the similarity of the analysed characteristics of the banking system in North Macedonia to a particular country or group of countries. In the conducted cluster analysis made by applying the method of complete linkage to the indicators of concentration of the banking sector, North Macedonia is grouped first with the Slovak Republic and then with Croatia which means that the similarity of the values of these indicators of these countries is the largest. Regarding the outcome of the second cluster analyses, of the indicators of financial intermediation and portfolio quality by using two comparative clustering methods, North Macedonia is grouped with Montenegro in the penultimate cluster and then this cluster is grouped with Serbia, which confirms that the level of financial intermediation in these Balkan countries is lower compared to the EU Member States, but on the other side the quality of the portfolio is good.
indicators of the degree of financial intermediation
DETERMINANTS OF NON-PERFORMING LOANS AND THE RELATIONSHIP WITH MACROECONOMIC FACTORS: EVIDENCE FROM SOUTHEASTERN EUROPE
Despite significant progress in this area, the problem of non-performing loans continues to receive central attention in the banking systems of the SEE countries after the 2008/2009 crisis, reducing the profitability and resource utilization of banks. The purpose of this paper is to investigate the determinants of non performing loans and their effect on the macroeconomic situation in Southeast Europe. First, in order to test the relationship between credit risk and certain balance sheet and macroeconomic indicators, we create a model that uses annual panel data for 5 Southeast European countries for the period 2008-2017. The results show that profitability has a negative impact on nonperforming loans, while credit growth and capitalization rate have a positive and statistically significant impact on the nonperforming loan portfolio. The second part of the econometric analysis consists of examining the cointegration, i.e. long-term and short-term relationships between non-performing loans and macroeconomic variables. The results imply that in conditions of higher unemployment, slower economic growth and falling prices, credit risk increases in the long run. Such conclusions are robust when using alternative valuation methods on the longterm relationship. However, in the short run, only GDP has an inverse statistically significant relationship with nonperforming loans, while unemployment and inflation have proved to be statistically insignificant, although the relationship between them and nonperforming loans has the same direction as in the long- run model. Such conclusions are generally consistent with both the theory and the numerous studies that have been done on this topic.
FINANCIAL CRISIS IMPLICATIONS ON THE FISCAL AND MONETARY POLICY OF EU COUNTRIES WITH ECONOMETRIC MODELING SUPPORT
The financial crisis that hit Europe in 2008 affected many spheres of the EU members’ economies. It had drastic effects on the countries’ economic activity, consumer spending, banking system liquidity, as well as negative impacts on interest rates and budget balances of the EU member states. This paper will examine the reaction of the EU member counties to the financial crisis, specifically, the use of fiscal and monetary policy to deal with such negative shock, with greater emphasis on the econometric support and background of these practices. Although extensive research and conclusions can be made by analyzing the response and results of the policies to the financial crisis, this paper aims to provide concrete econometric support to some of the practices derived from the crisis. Econometric modeling will be carried out in order to give stronger support to previous statements concluded in the paper and test relationships between certain variables. All econometric analyzes were made using the EViews software package.
THE IMPACT OF DIVIDEND POLICY ON PRICE-TOEARNINGS RATIO – THE CASE OF WESTERN EUROPE
In a world full ofstudiesdealing withthe relationshipof price-to-earnings ratio and the dividend payout ratio, rarely noticeable are those examining the possibility that this relationship may be nonlinear.Although rare, studies that aim to fill this gap focus solely on the US capital market. The lack of those kinds of studies alongside with the absence of studies for Europewas main incentive for this paper. Therefore this paper aims to examine the conditional and nonlinear relationship between price-toearnings ratio and dividend payout ratio where by the inclusion of various factors the non/linearrelationship is conditioned on the comparative levelsof return on equity and the required rate of return. In order to explore this relationship, a fixed effects panel regression model is used. Main findings are based on an examination of an annual data of 69 companies from 11 European countries in the period from 2014 to 2018. The results show positive relationship and convexity between the price-to-earnings ratio and the dividend payout ratio, leading to the conclusion that European investors prefer dividends and “award” the increase in the dividend payout with increased priceto-earnings ratio. The findings imply that financial managers of Western European companies should pay more attention to the reduction of the payout ratio.
THE EFFECT OF HOUSEHOLD AND CORPORATE LOANS ON CURRENT ACCOUNT BALANCE: EVIDENCE FROM THE WESTERN BALKAN COUNTRIES
The economic literature indicates that the loans relative to GDP in the economy, are important factors that influence the current account movements in a country. Therefore, the purpose of this study is estimating and then quantifying the effects that household and corporate loans have on the current account balance in the Western Balkan countries (Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Serbia and Turkey). The expectations are that different kind of borrowers might vary in terms of the use of loans and thus might have different effects on macroeconomic variables. The results are obtained by estimating a Vector Error Correction Model (VECM), and they imply that household loans have negative effect on the current account balance, while there is evidence that corporate loans have positive effect for some countries (Bosnia and Herzegovina and North Macedonia) and negative effect on the external balance for the rest of the countries. The findings in this paper coincide with the ex-ante expectations, given the import pressures that household loans might induce and the positive/negative impact that corporate loans might have on the overall productivity and competitiveness of the economy. This paper is relevant for the policymakers, because it estimates and quantifies the impact that household loans and corporate loans have on the current account balance.
INCOME AND PRICE ELASTICITIES OF MACEDONIAN EXPORT AND IMPORT OF GOODS – A PANEL APPROACH
This paper uses a sectoral version of the conventional Imperfect substitutes model to motivate a parsimonious estimation of trade elasticities. The elasticities we compute depend directly on the specialization of trade across sectors, which is believed to add econometric precision to our estimates. On the other hand, estimates of income and price elasticities in the existing literature dealing with the case of North Macedonia are typically obtained from aggregate data, which tend to mitigate the importance of sectoral specialization. The basic assumption of the imperfect substitutes model is that neither imports, nor exports serve as perfect substitutes for domestic goods. Moreover, our import and export functions along with the income and price variables, consider some additional parameters as well, such as foreign direct investments and tariffs on imports. To this end, we were able to obtain theory-implied estimates of import and export income and price elasticities for North Macedonia – i.e. trade elasticities relevant to policy - and ultimately to calibration choices. The income and price elasticity coefficients, both in the import and in the export model, have the expected signs - increases in income positively affect exports and imports (coefficients of 0.29 and 0.85, consequently), while increases in prices lower them (coefficients of -0.23 and technically 0, respectively). Judging by the size of the coefficients, income effects appear to be much more substantial than price effects.
AZERBAIJAN – BANGLADESH: BILATERAL TRADE OPPORTUNITIES AND POTENTIAL EXPORTING SECTOR FOR AZERBAIJAN
Trade is an essential indicator for measuring a country’s economic condition. It is also an effective way of balancing goods and services among countries. No country in the modern world is self-sufficient in goods and services. That is the reason for emerging the economic concept of trade. The primary purpose of the study is to analyse the trade opportunities between Azerbaijan and Bangladesh, as well as to demonstrate the potential resurrection of cotton industry as an important export sector in Azerbaijan. The whole analysis relies on secondary data, such as articles, newspapers, and websites—mainly the International Trade Centre (ITC) and the State Statistical Committee of the Republic of Azerbaijan. The study concludes that there is an opportunity for potential bilateral trade relation between Azerbaijan and Bangladesh based on their export and import items. In addition, the cotton industry has an enormous potentiality to become an important export sector in Azerbaijan.
EMPLOYEE INVOLVEMENT EFFECT ON REDUCING JOB STRESS
This study has adopted the quantitative research approach for collecting data from different branches of the Bank of Khyber that are operating in the vicinity of the Saddar region, Peshawar city of Khyber Pakhtunkhwa province of Pakistan. The sample size consists of 60 employees. A total of 18 questions were asked based on the 5-point Likert scale responses. In order to perform numerous procedures, SPSS is used to analyse statistical tests in this study. Regression analysis is employed to test the hypothesis. Employee participation in the organization improves the overall productivity and contributes to organizational improvement. Job stress has a negative influence on the employee job performance. The results indicate that there is a negative and significant relationship between the employee’s involvement and employee job stress. Although job stress is a negative phenomenon and may have a positive impact on the performance of the employees and eventually the organization.
THE RELATIONSHIP OF PENSION FUNDS WITH FINANCIAL MARKETS DEVELOPMENT
This paper empirically explores the impact of pension funds on market development. The goal of the paper is to link the credit rating of a country and the development of the financial market. At the same time, we will make a link between the structure and size of pension funds and the development of financial markets across countries. The development of the market is expressed with the help of the FD index, the size of pension funds as a size related to GDP, the structure of pension funds, as a participation of shares or bonds in relation to total assets and in relation to GDP, and the size of funds is expressed in relation to the GDP of the country. The research question states: “Does the size and structure of pension funds influence the development of the financial market in the country”? The methodology applied consists of qualitative research techniques, such as analysis, comparative analysis, correlation between the two observed variables and synthesis. Thus, this research was provided during the summer of 2019. The selected group of countries was based on two criteria based on data from 2018: OECD countries and the others. Methodology used is based on some previous research related to the financial development index. The research refers to looking for answers to the question of what is the dependence like between the structure and size of pension funds on one hand, and the development of the financial market on the other. The contribution of the paper is reflected in the explanation of the possibilities that pension funds with their structure and size offer to the development of the financial market in the country. The result shows that pension funds can provide a significant support for financing the development of the country, local communities, but that between certain phenomena, such as the size and structure of funds and the size of the economy and the development of the financial market, there is only a poor determination. This paper has intentions to offer a special strategy for creating a portfolio and it is an initial step towards further analysis and directions on the portfolio management.
RESPONSE OF STOCK MARKET VOLATILITY TO FOREIGN EQUITY INVESTMENTS
This study evaluates the response of stock market volatility to foreign equity investments. Specifically, the study examines how foreign portfolio investment and foreign direct equity investment influence stock market volatility in Nigeria, using monthly data from January 2007 to July 2017. Results of preliminary analyses of stock market returns series show evidence of negative skewness, leptokurtosis, non-normal distribution, and average positive monthly return. Estimates from the GARCH-X (1,1) model show evidence of volatility clustering in the stock market returns. The estimates also show that stock market volatility responds to changes in foreign portfolio investment. On the other hand, changes in foreign direct equity investment do not influence stock market volatility. The key implication is for investors to adjust their portfolio to changes in the foreign portfolio investment, in order to mitigate stock market volatility, and for stock market regulators to encourage more inflow of foreign direct equity investment as a more stable source of foreign equity investment.
FACTORS CONTRIBUTING TO THE DEBT GROWTH IN THE HOUSEHOLDS SECTOR IN MACEDONIA AND ASSESSMENT OF ITS POSSIBLE IMPACT ON THE FINANCIAL SYSTEM
This paper reviews some recent developments in the finances of the household s’ sector in the Republic of Macedonia, where it was established that households are increasingly gaining importance as a debtor in the banking system. The aim of this paper is to determine the factors that contribute to the increase in the debt of the “households” sector in Macedonia and to assess its possible impact on the financial system. The main contributory factors for the debt increase are the favorable movements in the supply and demand of loans, the change in households’ attitude to borrowing, the favorable macroeconomic environment, the innovation in financial products and the favorable government policies. The assessment of the impact on the financial system is based on the financial indicators that are most commonly used in economy, such as debt in relation to GDP, debt in relation to disposable income and the debt service ratio. The results show that the possibilities for increasing the household debt are not yet exhausted.
KEY FACTORS INFLUENCING STUDENTS’ CHOICE OF UNIVERSITY FOR POSTGRADUATE STUDIES ABROAD: A MULTICRITERIA DECISION MODEL
The aim of the paper is to develop a multicriteria decision model for choosing a University for postgraduate studies abroad. The research has been conducted through a questionnaire distributed to the students from the fourth year of undergraduate studies at the Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje, in order to gain information on what is valuable for them, i.e. which factors are important for choosing a University for postgraduate studies abroad. Those factors that appear the most serve as inputs to the multicriteria decision model. Then, a group of 9 respondents made individual judgments for the importance of the criteria regarding the goal (choosing a University for postgraduate studies abroad), and by computing the geometric mean of the individual judgments, the group judgments are further acquired. The obtained results of the model are presented and discussed. This model will serve both students (for the purpose of choosing the most appropriate University for postgraduate studies abroad) and higher educational institutions (for the purpose of taking adequate next steps, i.e. making better decisions that will create value for students).
SOCIAL MEDIA SCREENING: IMPACT OF GDPR AND MACEDONIAN LEGAL FRAMEWORK
E-recruitment has been the focus both of research and commercial use in the past decade, with the addition of social media recruitment in the recent years. Public profiles and information on potential candidate have exploded with the emergence of profiles on social network web-sites, which is highly utilized by companies and recruiters in the employment process. Despite different ethical and practical issues, there are also legal ramifications for using personal data of candidates in the recruitment process. The paper focuses on the legal aspects of screening candidates, as part of the recruitment process, more specifically on the screening via social media. Our research examines the introduction of the new GDPR Law which is in effect in EU countries since May 2018, and comparisons are made with the existing laws for data protection of candidates in the Republic of Macedonia, as a candidate member state for the EU. The research shows that screening through social media for reasons other than job performance is considered as a breach in principles through GDPR, as well as considered as discriminatory and illegal in the Macedonian Labor Law. The comparison between GDPR and Macedonian Labor Law shows strong points such as clear lines for direct and indirect discrimination, as well as weak points such as not enough guidelines for transparency, protection and control over candidate data in the Macedonian law. Companies are subject to GDPR regardless of whether they reside in an EU country, making the law of tremendous importance to Macedonian companies which employ or recruit candidates who are permanent residents of the EU. Recommendations are made to engage technology changes in a timely manner, as well as to introduce regular checks on companies for their process of screening candidates through social media.
THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, FOREIGN DIRECT INVESTMENT AND UNEMPLOYMENT IN CENTRAL ASIA: A VECTOR AUTOREGRESSIVE MODEL APPROACH
The article investigates the relationship between economic growth, foreign direct investment and unemployment in five Central Asian countries between 1997 and 2016. We found that GDP has a positive relationship with FDI and this implies that the growth of GDP in Central Asian countries has attracted more FDI inflows. However, GDP negatively affects FDI in lag 4 and this reflects the fact that the growth of GDP in this region depends on other variables rather than FDI. Moreover, this result also suggests that the use of FDI to boost economic growth of Central Asian countries is ineffective. Results also indicate that FDI has a negative influence on unemployment and this implies that an increase of FDI can contribute to reducing the unemployment rate in Central Asia. We also found that GDP and unemployment do not cause other variables, while FDI causes other variables. Lastly, results indicate that there is a co-integration among variables.
THE LABOR THEORY OF VALUE STRIKES BACK: ULC + THE METHOD FOR MEASURING THE LEVEL OF NATIONAL COMPETITIVENESS
National competitiveness, macro-competitiveness, and competitiveness of states; those seemingly simple and common terms, are actually highly controversial. The interpretation of historical backgrounds and basic postulates which have been the foundations of methods for the measurement of macro-competitiveness since the 1970s to the present, is a matter of interest in the first part of this paper. Just after this, we will provide critical observations on methods used so far - which is necessary if we want to make a contribution to the further development of theory (and practice). The second part of this work, which is smaller in quantity but larger in quality, is committed to the development of the theoretical foundation for the development of the new fourth generation of methods for measurement of macro-competitiveness. We entitled this method ULC + the method for measurement of national competitiveness and it is based on the synthesis of Michael Porter’s idea that productivity is a synonym for competitiveness and the direct (outputs) methods for measurement of national competitiveness. We have done this by using working hours as a common measuring unit which would enable us to sum “apples and oranges”, meaning the cost of labor and the cost of capital.
THE IMPACT OF HUMAN CAPITAL ON THE ECONOMIC GROWTH IN MACEDONIA
The role of human capital in a country’s growth process is of great importance. As a separate factor of production, it contributes to solving key economic problems in the process of globalization, especially in economies based on knowledge. The aim of this paper is to illustrate the impact of human capital on the economic growth of Macedonia in the period from 2000 to 2016 through the usage of an econometric analysis of time series of human capital indicators which are widely accepted in theory and empirical research. It is about education and health, i.e. the educational qualifications of employees and their life expectancy. For that purpose, a regression analysis followed by an examination of stationarity of time series is used, as well as the necessary conditions for selecting the best model from all of the available alternatives. The results show that there is a positive link between human capital and economic growth in Macedonia. Also, educational qualifications and life expectancy have a positive effect on GDP per capita in Macedonia for the analyzed period. All of the variables show statistical significance, but higher education qualifications have proved to be an indicator of human capital with the greatest impact on the economic growth in Macedonia. Therefore, the economic policy-makers should accept and promote education and health as healthy economic investments which raise not only the quality of life, but also increase the productivity of the market and thus the output in the country.
FACTORS DRIVING THE PUBLIC DEBT DYNAMICS: THE CASE OF REPUBLIC OF MACEDONIA
The global financial and economic crisis has placed a significant strain on public finances in many economies. Since sound public finances are crucial for price and financial stability and for economic growth, concerns about rising debt commitments have led to a renewed interest in the analysis of debt sustainability in the last decade. This paper discusses the concept of fiscal sustainability and investigates the factors driving the public debt dynamics in the Republic of Macedonia over the period 2004-2021. Although the level of indebtedness is still moderate (below 50% of GDP), the public debt dynamics from 2008 is worrying (public debt has doubled in only 7 years). The starting point for assessing debt sustainability is the government budget constraint equation. This equation explains the evolution and accumulation of government debt by three main factors: the primary balance, the “snowball” effect, and the deficit-debt adjustment. The conventional debt sustainability analysis showed that the general government debt ratio over the period 2004-2017 increased moderately as a result of a significant increase in the primary deficit (by 16 p.p.), that was almost completely offset by the positive “snowball” effect. In addition, we found that in the pre-crisis period (2004-2008), the general government debt ratio declined significantly, mainly as a result of a positive “snowball” effect but also because of the primary surplus. Contrary to pre-crisis developments, the general government debt ratio increased significantly (by 19 p.p.) in the post-crisis period (2009-2017), due to the significant primary deficit increase, while the positive “snowball” effect was moderate.
ALGORITHMIC METHODS FOR SEGMENTATION OF TIME SERIES: AN OVERVIEW
Adaptive and innovative application of classical data mining principles and techniques in time series analysis has resulted in development of a concept known as time series data mining. Since the time series are present in all areas of business and scientific research, attractiveness of mining of time series datasets should not be seen only in the context of the research challenges in the scientific community, but also in terms of usefulness of the research results, as a support to the process of business decision-making. A fundamental component in the mining process of time series data is time series segmentation. As a data mining research problem, segmentation is focused on the discovery of rules in movements of observed phenomena in a form of interpretable, novel, and useful temporal patterns. In this Paper, a comprehensive review of the conceptual determinations, including the elements of comparative analysis, of the most commonly used algorithms for segmentation of time series, is being considered.
Euro-zone crisis: past trends,current developments and perspectives
After its launching in 1999 and rather successful decade-long performance, the euro-zone entered in 2010 into its first and extremely profound crisis. The crisis has been dragging on for almost four years and there isstill a lot of work to be done in order to reach a comprehensive and sustainable solution. The main objective of the article is threefold. Firstly, to present the main design failures of the original institutional structure of the euro-zone and its economic governance, secondly, to analyze the process of the euro-zone crisis management from its ad-hoc approach in 2010 to a more systematic approach applied over the recent 3 years, and thirdly, to discuss the key elements for a sustainable resolution of the euro-zone crisis. Looking in a more medium-term perspective, the solution of the euro-zone crisis is associated with an appropriate switch of the policy mix it applies. On the long-run, the resolution of the euro-zone crisis depends on the stabilisation of the public finances and, more specifically, on the reduction of the public debt level.
Determinants and measures of export performance – comprehensive literature review
As one of the key indicators of the firm’s ability to leverage successfully its resources and capabilities in the international context, export performance has been one of the most extensively studied phenomena. A plethora of studies have been conducted pertaining to provide better understanding of the factors (firm- or environment-specific) and behaviours (e.g., export strategy) that make exporting a successful venture. Following a comprehensive literature review undertaking in this study the current state of the export performance literature could be summarisedas (i) methodologically fragmented in that there is a variety of analytical and methodological approaches, (ii) conceptually diverse, a large number of determinants have been identified as having direct or indirect influence on the firm’s export performance, and a large number of indicators have been used to conceptualise and operationalise the export performance measures, and (iii) inconclusive, the studies have produced inconsistent results of the impact of different determinants on export performance.
Sustainable development orientation (SDO) practice and its impact on innovation performance
Changes in regulation and government policy have stimulated growth of ‘green innovation’ with sustainability emerging as a key concept. A review of the literature revealed gaps in research in this area of innovation management. The aim of this paper is to test the relationship between SDO practice and innovation performance of a large number of Australian companies in the manufacturing, services, construction and software sectors. Our study showed that proactive management of environmental protection issues and marketing of ‘green’ products were found to have a positive and significant association with ecological efficiency of products. On the other hand, the design of new products for energy efficiency was found to have a positive and significant relationship with the number of innovation adoptions. Our findings are consistent with the literature, which reveals a significant and positive relationship between SDO and innovation performance. The implications of the research are that SDO should not be considered an additional cost of doing business rather, managers should view SDO as an opportunity to improve innovation performance.
The effects of financial and technical assistance onemployment growth in Bulgaria and Macedonia
Using survey data on Bulgarian and Macedonian firms that participated in USAID programs providing technical and financial assistance for small and medium-sized enterprises (SMEs) and on firms that did not, we estimate the effectiveness of such assistance in increasing the growth of employment in the assisted firms. We control for firm characteristics, as well as for the business environment using a difference-in-differences methodology. We find that USAID assistance enabled firms in Bulgaria and in Macedonia to increase employment more rapidly, than firms that did not receive assistance did. In both countries this effect was evident over a two-year period following assistance, and in Macedonia the evidence suggests that the effect lasted for longer than this two-year period.
Antıtrust polıcy ın Serbıa: regulatory framework and enforcement mechanısm
The main goal of this academic paper is to provide an assessment of the current Antitrust regulatory framework in Serbia along with an analysis of Antitrust Commission practice in this field. This paper comprises of five sections. The first section focuses on the general provisions of Antitrust policy. The second part elaborates four segments of Antitrust policy. The third section gives an insight into the development of Serbian regulatory framework, as well as an overview of the current situation. In the fourth segment the analysis of practices used by Antitrust Commission based on the most important indicators is given. Conclusions and directions for further research are given in the last section.
Post-crisis changes in employment and educational structure of the labor force in Bulgaria
The report explores the main impact of the crisis on the Bulgarian labor market whereby the key points are focused on the relation between changes in employment and educational structure of the labor force in Bulgaria, which took place under the influence of the crisis, and the trends of their variation in the post-crisis period. By means of the methods and instruments of the theoretical and descriptive analysis it is proved that crisis development affects to a specific extent the groups involved in different levels of education. Special role for this is attributed to the existing industrial structure and business organization in the country. Certain arguments lead to the conclusion and expectation of a relatively slow recovery of the Bulgarian economy in view of the noticeable trends in the educational structure of employment in the period following the drop in 2009. By applying the means of comparative analysis, we can point out certain similarities and differences with the trends being developed in other European countries in terms of the post-crisis employment of various educational groups of the labor force.
Post-crisis recovery and efficiency of the labor market in Bulgaria
The report explores the impact of the crisis on the labor market efficiency in Bulgaria and the trends for its recovery. The main focus is set on one of the sub-criteria of the seventh pillar of the competitiveness evaluation, examined annually by the World Economic Forum. In particular, subject of the study are regulations applied in the minimum wage field, crisis and postcrisissocial dimensions connected to the consequences and recovery trends in households income, unemployment and employment indicators. By means of the methods and instruments of the theoretical and empirical descriptive analysis it is proved that in the field of minimum wage there is an improving efficiency and flexibility of the Bulgarian labor market, which does not yet occur as a prerequisite for a considerable increase in the competitiveness of the Bulgarian economy. Among retaining factors, the ongoing processes of rising unemployment and limitede mployment growth under the conditions of a positive economic growth after the crisis 2009 can be outlined.
competitiveness and efficiency of the labor market
Dissolving „the unholy marriage“: Hayek‘s recommendation on monetary and fiscal policy
The contribution by the Austrian economist Friedrich von Hayek to monetary theory stimulates a far-reaching debate on the role of the government in monetary management and the effects of alternative policies in regulating the issuance of money. Since the early 1930s Hayek had been concerned about the role of money in the theory of production (Hayek, 1931). Influenced by Eugene Bohm-Bawerk’s theory of capital, Hayek deeply examined the effects of monetary policy on the process of capital accumulation. As regards investment decisions, Hayek considered that an inflationary credit expansion by the central bank can lead to capital misallocation over time caused by artificially low interest rates. Indeed, the fundamental problem in economics, for Hayek, is that of coordinating the plans of many independent individuals.The main advantage of a competitive economic order, in Hayek’s view, is that rational agents respond to price signals, which convey the relevant information available in the markets, for the purpose of economic calculus. In his view, competition, through the price market system, leads to such coordination. The underlying critique relies on arbitrary interventions related to the presence of the state in economic systems (see, for example, Hayek, 1944). After the Second World War, Hayek discussed the redefinition of the legitimacy of the state and stressed the need to defeat the growing state intrusion in a democratic framework. Besides, he privileged the analysis of the values that shape the interrelations of individuals in a free society. Assessing the practical superiority of the free market dynamics over governments’ actions, Hayek believed that no government can know enough to effectively plan the future path of the economy and society. Further, central banks do not have the relevant information to correctly manage the money supply. Frederic von Hayek, in fact, restated the relevance of concepts and ideas proposed by the classical liberal philosophy so as to rebuild the foundations of constitutional governments to face the institutional decay in contemporary societies. As a result, in the 1970s, Hayek proposed the abolition of the government’s monopoly over the issue of fiat money to prevent price instability (Hayek, 1976). His defense of a complete privatization of money supply stemmed from his disappointment with central banks’ management, which, in his opinion, had been highly influenced by politics. He warned that political interference over monetary policy and price stability is incompatible with social cohesion. At that time, Hayek’s proposal of institutional reform relied on denationalization of money in the framework of a free market monetary regime where only those currencies that have a stable purchasing power would survive. In Hayek’s contribution to monetary policy, although employment and price stability are not necessarily in conflict, priority should be given to monetary stability. Aware of the price stability challenges, Hayek strongly highlighted the dangers that arise from monetary financing public spending. Considering this background, our aim is to rethink the theoretical foundations of Hayek’s recommendation for the dissolution of “the unholy marriage” (Hayek, 1976, p. 117) between monetary and fiscal policy, which, in his opinion, had formally consecrated the victory of “Keynesian” economics after the Second World War.
Environment conscious consumers’ opinion on selective waste management
Consumers have become environmentally conscious, they are keen on energy efficiency and the increasing importance of the environmental values in general has made this research relevant. We analyse the special elements of eco-marketing so that we can see which are the tools and marketing activities which might help in forming the eco-conscious attitude and behaviour. We have realised that it was not enough to inform people about different types of ecological problems globally and locally, but that they also need to be motivated to become really active. After completing the literature review we also considered the already available and relevant studies.The eco-conscious consumer behaviour was surveyed through the attitude towards selective waste collection. A standardized questionnaire based survey was carried out to analyse the consumers' selective waste collection habits as a primary research. The data was processed with SPSS. At the end of the research we made recommendations concerning the methods of marketing communication, the promotion tools and the motivation of citizens to become more eco-committed.
CHANGES IN THE SATISFACTION WITH CONSULTING SERVICES ACCORDING TO THE OPINION OF ENTREPRENEURS IN NORTH-EASTERN HUNGARY 2001-2016
The Institute of Business Sciences of the University of Miskolc carried out a survey of management consulting firms and enterprises in 2001, 2005-2006 (Szadai, 2007), 2011-2012 (Tokár-Szadai, 2014), and 2015-16 in North-eastern Hungary. The goal of our surveys was to determine the status (importance) of business consulting in our region (North-eastern Hungary) and examine the changes in the entrepreneurs’ experiences with consulting services over the last 15 years.The satisfaction with consultants and the results of consulting services have improved a little, but haven’t changed significantly in the last 15 years. According to our surveys, more solutionoriented proposals would make the consultants more convenient to their clients.
SUBNATIONAL REGIONAL COMPETITIVENESS: ANALYSIS OF HUNGARIAN MANUFACTURING FIRMS
It is one of the key targets of both national governments and the EU to reduce regional development differences. This paper reviews the proof of existence and potential explanations of subnational regional deviations in competitiveness. Then, the financial data of a sample of Hungarian manufacturing firms from the 2010-2014 period is analysed for regional effects. Based on this data, we cannot reject the existence of regional effects; however, they mainly show up in export intensity, labour efficiency and wage level, rather than in entities’ profitability. Compared to the dispersion among firms within the same region, sub-sector, and size-category, the effect of regional factors seems to be modest. One of the main contributions of this article is to contrast the EU regional competitiveness index with financial statement data in order to show that firm-level competitiveness in Hungary is hard to track by regional indices, as some factors are over-weighted while other variables are missing from those measures. In particular, spatial characteristics like the proximity of more developed areas and central location within a given wider country area are missing.