EMC Review - Časopis za ekonomiju - APEIRON

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ISSN / EISSN : 2232-8823 / 2232-9633
Total articles ≅ 247
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Ognjen Erić, Goran Popović, Jelena Bjelić
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 63-78; https://doi.org/10.7251/emc2101063e

Abstract:
COVID-19 pandemic has caused the deepest crisis since the World War II. Many countries have slid into recession due to continuous GDP fall. Lockdown has an impact on unemployment growth, while the provision of health systems and state aid to vulnerable sectors and population are deepening fiscal deficits. Based on the example of 31 European countries (27 EU members and several countries with which the Union has different agreements), this research determines impact of key economic and social variables in period of the First wave of COVID-19 pandemic on the “Economic stimulus”, which is represented by composite index CESI. It is about a combination of variables: Democracy Index, Stringency Index, Final Consumption, Gross Investment, Health Expenditure, and Hospital Beds per Thousand People. Using the median method, the total sample has been divided into two groups, the one with less and the one with more infected people. The results of cross section regression analysis show that 52% variations in the Economic stimulus in the total sample is determined by predictor variables in the model. Analysis for the countries with less infected people shows that more than 75% variations in the Economic stimulus is determined by joint trends of the predictor variables, while the Analysis with more infected cases shows coefficient of determination (R2) over 71%. In general, the results of econometric analysis unambiguously show that democracy contributes to the economic policy response to pandemic in all three observed cases. Stringency index contributes to democracy in an inversely proportional sense, especially in the case of countries with larger number of infected persons. The same could be said for the variable Final Consumption in the case of the total sample of countries, where markedly reduced final consumption requires stronger economic reaction and the governmental aid of all the countries included in the sample.
Vlatka Bilas, Martina Sopta
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 217-226; https://doi.org/10.7251/emc2101217b

Abstract:
Competitiveness is a central issue of a growing open, interconnected and integrated global economy, but it is not yet uniquely defined. There are many factors that determine competitiveness, and they change with the development of globalization, and even today, under the conditions of Industry 4.0. The coronavirus (COVID-19) pandemic has also provoked a situation in which both policies to foster competitiveness need to be adapted. In order to achieve competitiveness, countries must create factors and develop policies that will create the conditions for better positioning in the global market. In order to successfully integrate into new markets, but at the same time highlight and continue economic development, reevaluation of competitiveness determinants, as well as past positioning strategies, is necessary. The paper analyses the theoretical settings and determinants of competitiveness, as well as the challenges of today that economies should respond to. Understanding new features of the competitiveness can help policymakers develop approaches for enhancing their economic performance.
Vinko Miličević, Danijel Knežević, Zoran Bubaš
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 201-216; https://doi.org/10.7251/emc2101201m

Abstract:
The problems in this paper belong to the field of migration and economy. The connection between migration and the economy has been proven on a global level, and as far as the Republic of Croatia is concerned, it is especially important to observe it through the City of Zagreb, which is the most important migration and economic center in the Republic of Croatia. Also, the accession of the Republic of Croatia to the European Union emphasized the observation and research of this connection because it created the preconditions for freer movement and employment of the population of the Republic of Croatia and the City of Zagreb within the European Union. The aim of this paper is to determine the contribution of migration to the economic growth of the City of Zagreb. The hypothesis presented in the paper is that there is a significant contribution of migration to the economic growth of the City of Zagreb. The disposition of the paper consists of six parts. The introduction explains the relevance of the topic, states the aim of the paper and hypotheses, explains the empirical part, the contribution of the paper and the disposition. The second part of the paper refers to the theoretical framework of the impact of migration on economic growth. The third part of the paper presents the migration processes of the City of Zagreb in the period from 2011 to 2018. The fourth part deals with economic activity in the City of Zagreb in the period from 2011 to 2017. The observed indicators of economic activity in the City of Zagreb are GDP and GDP per capita, and the graph in this part of the paper shows that GDP and GDP per capita in the observed period are higher at the end of the period than at the beginning. The fifth part of the paper refers to the empirical research of the contribution of migration to the economic growth of the City of Zagreb. The empirical part of the paper is based on correlations and regression analyses. This paper proves the hypothesis because the results indicate a significant impact of the variables of total and external migration on the GDP of the City of Zagreb and GDP per capita of the City of Zagreb. Decision-makers in the City of Zagreb can use the results of the research as a basis for maximizing the economic benefits they can get from migration. The conclusion provides an overview of the aim of the work, the results of the research, the limitations, the implications and the recommendations for future research.
Sandra Zajmi
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 294-306; https://doi.org/10.7251/emc2101294z

Abstract:
Issues of liquidity and solvency of companies, and not only issues of profitability, are crucial in the context of considering the future business of companies, and thus the economic sectors and the economy as a whole. For several years now, the required short-term funds are still not enough to service current liabilities. Liquidity rates are at half of a satisfactory level, while the growth of long-term loans, together with equity, is still not sufficient to finance fixed assets (solvency). Liquidity and solvency issues affect both the efficiency and productivity of the company, and indirectly the profitability. Based on the available information, the paper discusses the results of the real sector of the Serbian economy for the period 2018-2019, in the context of liquidity and solvency, as well as selected individual sectors, using generally accepted indicators. In the new crisis caused by the COVID 19 virus, companies have found themselves in a position where many of them need additional capital in order to improve and harmonize their financial structure. The illiquidity of the economy is a chronic problem, it is structural in its nature, which is the result of business inefficiency and a high degree of volatility on the impact of exogenous variables. In terms of solvency, we can conclude that one of the basic problems of all sectors is efficiency in inventory management, slow collection of receivables and late payment of liabilities. If we add the IMF forecasts, to this already disrupted structure of the solvency of the economy, ie the real sector, in which, the share of insolvent companies in developing countries will increase by between 14% and 30% in 2020, (due to the pandemic), we can be not optimistic. On the other hand, we must emphasize that the forecasts of economic growth for the countries of the region in 2021 are fairly optimistic, and for Serbia the predicted growth is 6.1%. The result of the analysis points to the conclusion that there will be no significant changes in terms of revenue and profitability of the real sector in the short term, but that the crisis caused by coronavirus will mostly affect small, micro and medium enterprises when it comes to liquidity and solvency, in this respect. In the long run, impaired solvency, and after that liquidity, will affect the still intact profitability of the sector. In that regard, solvency issues have a more significant impact, because in the long run, if corrective measures are not being taken, they will cause the inability of the companies to pay long-term overdue liabilities, and increase the number of companies operating without equity and the number of blocked companies. The sectors that will have the biggest problems in terms of liquidity and solvency are certainly transport, accommodation and tourism, art, entertainment and recreation, and very likely construction.
Maja Bašić, Davor Vlajčić
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 35-46; https://doi.org/10.7251/emc2101035b

Abstract:
Technology specialization is supported by processes combining inhouse and external innovation. Applying a macroeconomic and international trade theory approach (Linder, 1961), country specialization depends on international RiD cooperation partnerships. External, international RiD cooperation is essential for technology specialization, as it raises awareness of countries’ position on a global technology map. This paper studies international RiD cooperation as a determinant of countries’ technology specialization. Cross-country panel regression was done on a sample of 37 OECD countries for the period 1980-2018. The analysis examined the effect of international RiD cooperation on technology specialization. Data were obtained from the OECD database. Co-patenting with foreign inventors was used to indicate the level of international RiD cooperation. Patent per technology was used to calculate technology specialization based on the Herfindahl index. Results indicate a positive effect of international RiD cooperation on technology specialization. The effect of RiD cooperation on technology specialization is more pronounced when GDP and RiD expenditure were used as control variables. Additionally, the size of the GDP negatively affects technology specialization. This paper identifies international cooperation as a bridge for global information exchange, which results with countries’ technology specialization.
Dragana Došenović, Marija Todorović
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 141-157; https://doi.org/10.7251/emc2101141d

Abstract:
The concept of job satisfaction, which is most often defined as a satisfactory or positive emotional state that arises as a result of evaluating work or work experience, is one of the most important and most researched employee work-related issues. The relevance of the observed concept is the result of the belief that any changes in the level of job satisfaction have numerous positive, but also negative consequences, both for the individual and for the organization. In addition to the demographic or personal characteristics of employees, the cause of changes in the level of job satisfaction may be the related to the organizational elements through which the work environment is shaped. As the demographic characteristics of employees cannot be greatly influenced, the attention of researchers is usually focused on a group of organizational factors or characteristics. Precisely for that reason, the research problem presented in this paper is the influence of the process in the organization on job satisfaction in various organizations operating in the Republic of Srpska. The main goal of this paper is to investigate and determine the existence and nature of the relationship between defined process factors in the organization as independent variables and their impact on job satisfaction as dependent variables. In order to investigate the observed impact and prove the set hypotheses, an empirical research was conducted, using a custom-made survey questionnaire, on a sample of 738 workers employed in 283 organizations from the Republic of Srpska. Reliability analysis, expressed by the Cronbach’s alpha coefficient, shows a very high reliability of the developed instrument for testing satisfaction with organizational design. Testing of the set hypothesis was performed using correlation analysis, and the obtained results confirmed the hypothesis which claims that the processes in the organization affect job satisfaction.
Dejan Stankov
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 123-140; https://doi.org/10.7251/emc2101123s

Abstract:
The paper explores the income distribution as a channel of transmission of the effects of economic growth on poverty reduction. For that purpose, we analyse data for the CESEE countries with a focus on the Macedonian economy. Since the 1990s, in the transition process to market economies, inequalities within countries in the CESEE region have risen the most. The income distribution achieved in the last decade is not sufficient to neutralise the high inequality created after 1990. The Macedonian economy shows improved income distribution in the last decade as well, which influences the level of poverty. Still, income inequality and the relative poverty rate are among the highest in the CESEE region. The study sheds light on the effects of the predistributive and redistributive factors on the level of inequality and poverty. We consider the extent to which different parts of the income distribution are affected by the process of average income growth. The main conclusion from the empirical analysis for the CESEE countries is that the sign of the growth rate of the average income of the population, in most cases, is an important predictor of the income growth rate of the quintile groups. Correlation results show that the sign of the growth rates of the average income of the population is the most important determinant for the sign of the growth rates of the average income of the quintile group for the quintiles nearest to the average income of the population.
Elvis Mujkić
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 240-253; https://doi.org/10.7251/emc2101240m

Abstract:
In the modern business environment, the appearance of mergers and acquisitions, the sale of companies, as well as the disappearance of companies from the market are an everyday occurrence. In these, so called “transactions”, there is a need to determine the value of a company that is merged with another company, or that is being sold, or on the other hand that disappears from the market, i.e. goes into liquidation. The companies that are the subject of these “transactions” differ in a number of criteria. One of these criteria is the capital structure. The capital structure is conditioned by numerous factors, from profitability, creditor security, all the way to financial elasticity. Each of these factors implies a different ratio of equity and borrowed capital. The aim of the research is to determine the influence of the financial structure of capital on the estimated value of the company. The methods used to estimate the value of the company are: the method of discounting net cash flow, as a method of yield approach and the method of multiplier based on comparable transactions, as a method of market approach. The influence of the capital structure on the estimated value of the company was determined on the basis of regression and correlation analysis. The results obtained by applying the multiplier method based on comparable transactions, indicate that, with the increase of the share of borrowed capital in the capital structure, the estimated value of the company increases, which is in line with Modigliani - Miller theorem from 1964. However, as the costs of financial troubles increase with the increase in indebtedness, i.e. creditors lose trust in a given company, the question arises what is the upper limit of the company’s indebtedness that maximizes the estimated value of the company. To answer this question, the method of discounting net cash flows was applied. Applying the method of discounting net cash flows, it was determined that the relationship between the share of debt in capital and the value of the company is in line with the theory of static compromise. This means that with an increase in the share of debt in capital, the value of the company will grow to a certain level of that leverage, and after that level, the value of the company will decrease with an increase in the share of debt in capital. The level of debt participation in the capital that maximizes the value of the company differs from company to company, i.e. it is not unambiguously determined and it depends on the price of equity and borrowed capital, as well as the level of income tax rate. Taking into account the above-mentioned results, as well as the results of hypothesis testing, it can be concluded that the hypothesis was confirmed, according to which with increasing share of borrowed capital, the value of the company will grow to a certain level of leverage, and after that level with further increase of leverage the value of the company decreases.
Oleh Vysochan, Andriy Boychuk, Vasyl Hyk
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 94-108; https://doi.org/10.7251/emc2101094v

Abstract:
The article focuses on the study of the closeness of the relationship obtained from different sources and used in different areas, finance, with the effectiveness of innovation, measured by the number of developed innovative products and the number of introduced new technological processes. The input information was the data of industrial enterprises of Ukraine for the period 2015-2019, summarized in statistical reporting and presented on the official resources of the State Statistics Service. To accomplish these objectives, the methods of correlation-regression analysis and analysis of the dynamics and structure of statistical indicators of innovation of industrial enterprises of Ukraine were used. Possible causes of crisis phenomena of innovative activity of Ukrainian enterprises that hinder the economic development of the national economy are discussed. The basis for further research of complex and individual influence of factors on development of innovative activity of the enterprises of various branches of economy is provided.
Željko V. Račić, Đuro Mikić, Neven Mikić
EMC Review - Časopis za ekonomiju - APEIRON, Volume 21, pp 109-122; https://doi.org/10.7251/emc2101109r

Abstract:
The concept of examining decisions using abstract research constructions as virtual aids enables the design of the management platform and the creation of the behavior of the future state of the system. Checking the effects of decisions in a real system through an appropriate mathematical-logical apparatus certainly affects the reduction of randomness and spontaneity of management. The symbolic connection of the input that produces the combined input action and the output that manifests the reaction expressed by the degree of sensitivity and enables the translation of the imaginary expression of reality into the operative mathematical language. The commitment to this type of model is based on the fact of almost standardized procedures in terms of choosing the priority of including certain forms of resources, which makes it representative in terms of achieving the goal function defined by the criterion of optimality. In this sense, we can talk about a whole range of optimization problems with mutually inconsistent tactical goals and thus the need for their refined balance, and one of such challenges is the focus of attention of a specific research project. The mathematical model represents a formalized description of the action of physical contents, and we use it to support the decision-making process when the complexity of reality allows that. Accordingly, to express the regularity of functioning, a deterministic model of linear programming in the form of a set of relations describing the input-output effect of influential factors used in this paper. With a tolerant simplification of reality, the perception of the model, based on the coincidence with the structure of the original, actually shows an approximation that means analogous behavior demonstrated on the quantitative model or its derivative - the optimization model. This thesis supports the fact that the corresponding relationship between the model and the original allows the examination of the behavior of the observed hypothetical system, and the analysis of the sensitivity map of the variable, in the form of a goal function, becomes a source of modeling information. Also, the system is not influenced by a high rate of change that would mean expanding from deterministic to stochastic modeling, but all methodological resources are mobilized so that the model concept would not become a theoretical misconception that would lead to quasi-decision making. The author’s analytical thinking and logic try to give a chance to the imagination, which connects creativity and physical resources that indicates several alternatives, which contain future parameters. In this way, the authors use the model as an increment of knowledge to connect the a priori management reserve of their accuracy with the reality of hypothetical data within a rational approach.
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