1 A Study of the Impact of Managerial Innovation on SME Performance in Africa: The Case of Cameroon , Ben Boubakary ; University of Yaounde II-Cameroun Doumagay Donatienne Moskolaï ; University of Yaounde II-Cameroun Gladys Che Njang ; University of Bamenda-Cameroon
Purpose. Managerial innovation, if it constitutes a real lever for transformation and performance of companies in developed countries, in Africa, only a tiny part of SME managers make it a priority. At the same time, most African economies continue to be at the forefront of the adoption of global technological innovations. Given the fact that managerial innovation has proven itself in the Western context, and that the context of Sub-Saharan Africa is still unclear, it is important to develop management methods in this context by adapting them to new ones economic models, new objectives, new processes in order to see its impact on improving the productivity and performance of SMEs. Design/Methodology/Approach. A survey instrument based on the questionnaire was used to collect quantitative data to explain the performance of SMEs through the adoption of managerial innovation. For data analysis, multiple linear regression analysis was used. Findings and implications. The findings indicate that, managerial innovation, through its two main components, "change in management practices" and "change in organizational structure", make it possible to increase market share, production efficiency, the bottom line and, in turn, improve the overall performance of the business. Overall, the results of the study show that the fit model is of good quality and can be used to explain the theory. Limitations. The results of this study may not be generalisable to all African SMEs because they are based only on a sub-Saharan African country and the sample size therefore remains small. Originality. The contribution of this article is manifold: it supports the theories of contingency and resource dependence that organizations are adaptive systems that introduce changes to function effectively and improve their performance. Second, it allows SME managers to optimize the chances of sustainability for their businesses, because managerial innovation allows them to: differentiate themselves from their competitors by inventing new offers. Finally, it allows SME managers to no longer confine themselves to the technological aspect of innovation (products, processes) whose lifespan is constantly shortened. Studies of this nature can lead to stimulating managerial innovation in emerging and developing countries, by developing horizontal or networked organizational structures and no longer vertical and pyramidal structures which no longer meet current requirements.
2 The Perceived Value of Higher Education and University Competitiveness - The Rubik Cube Metaphor , Costinel Dobre ; Marketing and International Economic Relations Department, West University of Timisoara, Romania Gheorghe Preda ; Marketing and International Economic Relations Department, West University of Timisoara, Romania Anca Milovan ; Marketing and International Economic Relations Department, West University of Timisoara, Romania Remus Ionut Naghi ; Marketing and International Economic Relations Department, West University of Timisoara, Romania Sorin Ioan Prada ; Marketing and International Economic Relations Department, West University of Timisoara, Romania
Purpose. Over the past two decades, concerned with how stakeholders perceive the value of their services, universities have adopted entrepreneurial orientations and relationship marketing approaches into their activities. The fierce competition on the global higher education market, forced university managers to innovate, to look for new ways to build their offer. Relationship marketing and the knowledge regarding the stakeholders, primarily the students’ perception of their offerings, can provide universities with a competitive advantage. As such, university managers need to carry out satisfaction surveys, inquiries regarding the universities image or the perceived value of the academic programs and services offered, need to plan and organize offline and online integrated marketing communication campaigns. Methodology /Design/Approach. Based on the resemblance of perceived value with a Rubik's cube, university marketers can constantly innovate through the way they match the various dimensions of perceived value or facets of the cube to meet the stakeholders’ expectations. Result /Findings. This research highlights the dimensions of the perceived value of the educational offer and determines the extent to which factors such as the university image, the source of financing the studies and the duration of the student - university relationship have an influence on the perception of value. For this purpose we conducted a quantitative research on a sample of 320 students from the largest faculty from the West University of Timi?oara, Romania. To perform the statistical data analysis, the following steps were carried out: (1) the reliability of the measurement scales analysis; (2) the opportunity to perform the factorial analysis verification; (3) the exploratory and confirmatory factor analysis and (4) the research hypotheses testing. Research results showed that the perceived relational value affects the student’s perceptions on the quality of learning, the usefulness and quality of the acquired knowledge, the employment opportunities. The institutional image has a positive influence on the perceived value of the educational offer. For university or faculty managers, it is important to know how to combine the various facets of the perceived value-technical value, relational value, social value, temporal value- in order to provide the value expected by their stakeholders, primarily by students.
3 Impact of Technological Innovation, Research and Development on the Defense Economy - Iran Country , Bahman Khanalizadeh ; Department Economics, College of Economics and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran Dr. Neda Ranjandish ; Department Economics, College of Economics and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran
The Purpose. This research is to investigate the relationship between the variables of technological innovation, research and development costs, economic growth, sales and export of weapons and military costs in Iran for the years 2000 to 2017. Design/Methodology/Approach. In this study, we examine using Autoregressive Distributed Lag (ARDL) method to explore the estimating the impacts of technological innovation, research and development costs, economic growth, sales and export on military costs. Findings/Implications. The results of this study showed that the impact of technological innovation and research and development costs on military costs is negative in short-term and long-term. Although the effect that these two variables have on military spending in the short-term is very close, in long-term the effect that research and development costs have on military spending is far greater and more significant. Also, the impact of economic growth on Iran’s defense economy is much less than the variables of technological innovation and research and development costs. So that this effect will be less in long-term. But, the amount of arms sales and exports in the short-term has a positive effect on defense spending, but in long-term it becomes negative and increase in arms sales and exports can help Iran’s defense economy. Originality. The countries defense economy can always have positive effects on military and civilian research and development, scientific innovation and technological progress, in this condition that the country’s macroeconomics can spend military spending on research and development and support innovation and inventions. Eventually adopt arrangements that use the innovations of the defense industry in the civilian sector, which will lead to economic growth. This is the experience of many developed countries that have been able to use the technological advances and innovations of the military sector in the civilian sectors as well, and to cause the economic progress and development of their country.
4 Corporate Governance and Financial Performance of Money Deposit Banks in Nigeria , Bilqis Bolanle Amole ; Accounting and Business Administration Department, Distance Learning Institute, University of Lagos, Akoka, Lagos. Nigeria Ik Muo ; Department of Business Administration, Olabisi Onabanjo University, Ago Iwoye Ogun State, Nigeria Kamaldeen A. Lawal ; Department of Entrepreneurship Studies, Faculty of Management Sciences, National Open University of Nigeria, Victoria Island, Lagos
Purpose. The main cause of distress in the majority of Nigerian banks is poor corporate governance in the country. Corporate governance (CG) is a contemporary subject attracting the consideration of the corporate world, practitioners, consultants, academia and society at large. As a result, this study explores the financial performance (FP) of money deposit banks (MDBs) in Nigeria as a result of corporate governance put in. It went on to investigate the impact of board size and composition, as well as the audit committee, on bank financial performance. Methodology. A descriptive design method was adopted, while secondary data in the form of yearly financial reports of banks selected for the study were obtained and relevant documents via electronic search of databases. Descriptive statistics were used in analyzing the data and an econometric model of panel least square (PLS) regression test was employed for the study. Findings and Implication. The findings affirmed that the correlation between size of board of directors and bank performance was significant, however negative. The results of the study show that the board of directors (BOD) composition significantly influences the FP of MDBs. The study results further reveal that the correlation between size of the audit committee (AC) and FP of MDBs is significant and also a negative one. As a result, based on the empirical findings of the study, it is concluded that CG has a statistically significant influence on the FP of Nigeria’s listed money deposit banks. Mechanisms such as the large size and composition of the board as well as the size of the audit committee encourage a negative impact on the FP. In line with the foregoing, the study recommended that an effort be made to improve CG, in the sense that the number of directors on board should be kept to a desirable level, and that the ratio of executive directors to non-executive directors, as well as the size of the audit committee, is kept at an optimal level.
5 Information and Communication Technology Capabilities and Business Performance: The Case of Differences in the Czech Financial Sector and Lessons from Robotic Process Automation between 2015 and 2020 , Martin Zelenka ; Department of Informatics, Faculty of Economics, Technical University of Liberec, Liberec, Czechia Marek Vokoun ; Department of Economics and Management, Faculty of Social and Economic Studies, Jan Evangelista Purkyne University, Usti nad Labem, Czechia
This paper analyzes the rapid onset of Robotic process automation (RPA) technologies in the Czech financial sector between 2015-2020. The development and experience from the “hype-and-fear” phase contributed to business process integration and technological spillovers are expected in the future. If ICT capabilities are the source of performance differences, then most likely candidates are inventory and finances business process integration and implemented Enterprise Resource Planning and Customer Relationship Management systems. The RPA should not be seen only as simple automation but as a complex instrument offering a lot of advantages with a focus on benefits for internal and external stakeholders. PURPOSE. The goal is to qualitatively analyze the experience with RPA implementation and quantitatively assess ICT capabilities via analysis of differences between various organizational ICT activities and types of companies in the Czech financial sector. DESIGN/METHODOLOGY/APPROACH. The qualitative case study was performed in the bank ?SOB, a.s. in 2019, respondents, owners of processes in the final part of automation, were chosen randomly from different departments of the bank. Data for the quantitative part comes from the ICT survey (Czech Statistical Office), business performance dataset (EMIS) and a case study about ICT capability implementation. Differences are assessed and indirectly interpreted using goodness-of-fit approach. FINDINGS AND IMPLICATIONS. The results from the RPA case study revealed that the Czech financial sector is past the “hype and fear” phase and many companies focused on their return on investment and are beginning to focus more on other stakeholders. According to this development, the requirements and outputs are suggested in the phases of RPA implementation. The possible source of rofitability performance differences are integrated business processes. LIMITATIONS. Financial sector data are anonymized in ICT surveys and the measurement of the competitive advantage of ICT capabilities is only indirect. Qualitative approach is suggested with focus on technological efficiency measurement using data envelopment approach. ORIGINALITY. This paper provides an understanding of the strong experience in RPA in Czech financial sector. Certain initial setbacks in RPA are expected and this paper suggest to focus on knowledge management (lessons learned) and other requirements influencing the successful RPA prototyping and implementation process.
6 The Nexus between Agricultural Productivity, Oil Prices, Economic Growth, and Financial Development in the USA , Turgut Tursoy ; Department of Banking and Finance, Near East University, North Cyprus Andrea Simbarashe Rabson ; International University of Erbil, North Iraq
Purpose. The study aims to examine the nexus between agricultural productivity by connecting oil prices, economic growth, and financial development. Design/Methodology/Approach. A newly formulated ARDL model was used to estimate an agricultural productivity nexus model using annual time-series data from 1962 to 2016. Innovation and additive structural break unit root tests were applied to determine the existence of unit roots, and the results reaffirmed that all the variables were stationary at first difference. The Chow Breakpoint test was applied to confirm a structural break in the year 2008 caused by the effects of the 2008 financial crisis. Findings and Implications. The results depicted a long-run relationship linking agricultural productivity, oil prices, economic growth, financial development and a financial crisis. The results also showed that financial development and economic growth have positive effects on agricultural productivity. The empirical findings further suggested that an increase in oil prices and the prevalence of a financial crisis have severe adverse effects on agricultural productivity. Originality. The study provides a novel viewpoint of agricultural productivity by connecting oil prices, economic growth, and financial stability and development. The study successfully demonstrated that the financial sector and oil price stability are pivotal for enhancing agricultural productivity initiatives. This study highlights the policy implications of the estimated results for policymakers seeking to boost agricultural productivity by addressing economic misfortunes induced by oil shocks and a financial crisis.
7 AN AUTOREGRESSIVE ANALYSIS OF THE DETERMINANTS OF PRIVATE SAVINGS IN NIGERIA , Adeniyi J. Adedokun ; Department of Economics,Dominican University, Ibadan, Oyo State, Nigeria Olabusuyi R. Falayi ; Department of Economics,Dominican University, Ibadan, Oyo State, Nigeria Adebowale M. Adeleke ; Department of Economics, University of Ibadan, Ibadan, Nigeria
Purpose. Despite the increasing trend of private savings in Nigeria, the country is still characterised by low investment and output growth, thus, suggesting that the average saving rate is still far from being impressive. This study investigates the determinants of private savings in Nigeria. Methodology. Autoregressive Distributed Lag (ARDL) Model using annual time series data from 1981 to 2016 within the theoretical framework derived from the life-cycle hypothesis is employed in this study. The key variables under investigation are private savings, income, dependency ratio, real interest rate, social security payment, financial development and macroeconomic stability. The data used for analysis are sourced from Central Bank of Nigeria Statistical Bulletin (2016) and World Development Indicator (2016). Findings. The results show that lifetime income and social security payment have significant positive relationship with private saving in the long-run, while adult dependency has significant negative relationship. In the short-run, adult dependency and social security payment have significant positive relationship with private savings. In addition, the result shows that 62% of deviation from the long-run equilibrium level of private savings is annually corrected for by the model estimated. Originality. This research investigates both the long-run and short-run effects of the various determinants of private savings in Nigeria. Thus, the study can serve as eye opener to the important variables that can improve the level of private savings in Nigeria.
8 IMPLEMENTATION OF FLEXICURITY IN SLOVENIA   , Suzana Laporšek ; Faculty of Management, University of Primorska, Koper, Slovenia
Flexicurity remains an important policy instrument in the EU and will be especiallyimportant in the changing economic and labor market environment, characterized with changing nature of work and development of new forms of work. Purpose. This paper examines the implementation of flexicurity policies in Slovenia and compares them with the EU countries. Design/methodology/approach. As there is no uniform measure of flexicurity, the analysis is structured in accordance with four elements of flexicurity policies, developed within the EU, and suitable indicators: (i) flexibility of contractual relations; (ii) lifelong learning; (iii) active labor market policies; and (iv) social protection system. Analysis uses descriptive statistics for last available years and compares these data with crisis year 2010. Data for international comparisons were obtained from the European Commission, Eurostat and Organization for the Economic Co-operation and Development, Statistical Office of the Republic of Slovenia and the Employment Service of Slovenia. Findings and iImplications. Slovenia has in the past already performed labor market reforms that relate to flexicurity components, yet there is still room for improvement. These are especially needed in the field of lifelong learning and expenditures for active labor market policies, where Slovenia is at the tail of the EU countries. In the front of flexibility, a significant decline in the employment protection was noticed with the last legislative change in 2013, which aimed at reducing segmentation and increasing labor market flexibility. In the front of social protection, Slovenia is among the EU countries with the most generous social systems, which, on the other hand, create high work disincentives. Limitations. This study focuses only on the presentation of the recent indicators of flexicurity components, which is one of its major limitation. Future research should study in more detail the effects of flexicurity on labor market, reconsider the importance of flexicurity in assuring decent work and develop a more comprehensible measure of flexicurity. Originality. The paper adds to the existing literature on Slovenia by giving an overview of recent developments of flexicurity concept, pointing on the areas that require policy response.
9 PUBLIC FAMILY SPENDING, LABOUR PRODUCTIVITY, INCOME INEQUALITY AND POVERTY GAP IN THE GROUP OF SEVEN COUNTRIES: EMPIRICAL EVIDENCE FROM PANEL DATA , Andy Titus Okwu ; Department of Economics, Babcock University, Ilishan-Remo, NigeriaDepartment of Economics, Babcock University, Ilishan-Remo, Nigeria Rowland Tochukwu Obiakor ; Department of Economics, Babcock University, Ilishan-Remo, Nigeria Timothy Chidi Obiwuru ; Department of Actuarial Science, University of Lagos, Akoka, Nigeria Margret N. Kabuoh ; Department of Business Administration and Marketing, Babcock University, Ilishan-Remo, Nigeria Emeka Okoro Akpa ; Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria
Purpose. Comparable data on distribution of family income provide reference point for determining economic performance of any country, opportunity to assess effects of income inequality and poverty drivers that are either country- or region-specific. This study analysed the effectiveness of composite indices of public spending on family benefits, labour productivity, macroeconomic performance indicators and moderating factors in reducing income inequality and poverty gap in the Group of Seven (G7) countries from 1980 to 2019. Methodology. The study employed fixed effects Least Squares regression model in panel environment within the framework of empirical econometric methodologies. The composite indices comprised public spending on family benefits in cash and kind, unemployment allowance payments, tax on personal income, labour productivity, harmonised unemployment rate, consumer price index, real GDP growth rate, GDP per capita and per hour worked, fertility rate and trade. After graphical analysis of the data, order of integration was via unit root tests. Hausman test was carried out to choose between fixed and random effects models. Subsequently, parameters of the models were estimated and evaluated for significance at the 0.05 critical level. Findings. The results showed that percentage changes in income inequality and poverty gap indices differed for same percentage change in components of the composite indices. Some variable-specific percentage changes in income inequality and poverty gap were statistically significant, while others were not. However, the overall percentage changes was statistically significant. The paper concluded that while some specific effectiveness of the explanatory variables in reducing income inequality and poverty gap was not significant, their joint effectiveness significantly reduced poverty. Therefore, it is pertinent that family-oriented fiscal policy thrusts should be strengthened and sustained so as to continually reduce income inequality and, ultimately, narrow poverty gap in the countries. Limitations. The study considered the G7 countries for a period of 40 years. The limitations were that the variables considered to influence income inequality and poverty gap in the countries were both exhaustive. Also, the results were conditioned to the method used, and different methods can alternatively be used by other researchers and the results compared with this. Originality. The study is original research paper. It has neither been published in any other peer-reviewed journal not under consideration for publication by any other journal.
10 IMPACT OF COMMERCIAL BANK CREDIT ON AGRICULTURAL OUTPUT IN NIGERIA , Aduralere O. Oyelade ; Department of Economics, University of Ibadan, Ibadan, Oyo State, Nigeria
Purpose. The purpose of this study was to investigated the impact of commercial bank credits on agricultural output in Nigeria over the period 1980 to 2015 by setting three specific objectives which are to examine the trend of commercial bank credit and agricultural output in Nigeria; to investigate the effect of commercial bank credit on agricultural output in Nigeria and to investigate the effect of commercial bank credit on subsector of agriculture in Nigeria. The trend analysis and the impact of commercial bank credit on subsector of agriculture in Nigeria make this work unique and different from other studies in this area. Trend analysis was used to achieve the first objective and fully modified ordinary least square (OLS) for objective two and three. Methodology. The study employed Fully Modified Ordinary Least Squares (FMOLS) approach. Findings. It was evidenced that interest rate on commercial banks’ credit to agriculture and deposit money bank’s assets are statistically significant in determine agricultural output in Nigeria within the period considered. Also, commercial bank loan on agriculture and deposit money bank’s assets determine the output of crop production in Nigeria; commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of livestock production in Nigeria and commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of forestry in Nigeria while commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of fishing in Nigeria. Limitations. This study is limited because the study does not include other variables that determine the output of agricultural sector in Nigeria. Also, other theories and methods can still be used by other researcher to make it different from this work. Originality. This is an original work and has neither been published in any other peer-reviewed journal nor is under consideration for publication by any other journal.
11 THE GRAVITY MODEL OF TRADE: A THEORETICAL PERSPECTIVE , Saleh Shahriar ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China Lu Qian ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China Sokvibol Kea ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China Nazir Muhammad Abdullahi ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China
Purpose. The purpose of this study is to trace the theoretical developments of the gravity model of trade. The key question is: what are the dominant features of the development of the gravity trade model? Methodology. This research is conducted by employing a number of methods that include the historical, descriptive and analytical methods. The main contribution of this paper is to trace the historical and theoretical development phases of the gravity model. Findings. This study is a novel attempt in terms of the identification of the four distinctive phases of the development of the gravity model. This work would, therefore, expand the existing literature on the gravity model. We argue that the development of the gravity model is the outcome of many research efforts. A large body of literature has given the model a solid theoretical foundation. But there is no consensus about the proper econometric estimation methods of the model. The gravity model is significant both historically and analytically. It is a useful tool for the analysis of international trade. It has become a popular research device used by the researchers and policy makers around the world. The gravity is regarded as one of the most successful models in the literature of international economics. Originality. The original contributions of this paper lie in streamlining the consistent historical development of the gravity model over a longer period of time-frame, ranging from 1885 to 2018. Limitations and Implications. This work is theoretical aspects of the trade gravity model. Future researchers could overcome the limitations by combining the theoretical and empirical studies in a paper. This paper can help the future researchers in dealing with the broad body of literature of gravity model. Acknowledement. This study was supported by the National Natural Science Foundation of China (grants No.71673223 & 71473197), and a PhD scholarship from the China Scholarship Council (CSC). The first author would like to thank the CSC for the financial support. He also acknowledges the invaluable research advice and guidance received from Dr. Yoto V. Yotov, professor at the School of Economics of the Lebow College of Business at Drexel University, Philadelphia, USA. The authors are highly grateful to the anonymous reviewers, managing editor, and the editor-in chief for their kind help and critical comments on the earlier drafts of the paper. However, the authors are responsible for the contents and limitations of the study. They declared no conflict of interests.
12 EXPLORING THE EFFECTS OF HOTEL DEVELOPMENT, ECONOMIC GROWTH AND EXCHANGE RATE ON TOURISM INDUSTRY: EVIDENCE FOR IRAN , Bahman Khanalizadeh ; Department Economics, College of Economics and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran Neda Ranjandish ; Department Economics, College of Economics and Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran
The Purpose. This study is to investigate factors affecting the attraction of international tourists to Iran for the years 1983 to 2015. Design/Methodology/Approach. In this article, we examine using Autoregressive Distributed Lag (ARDL) method to explore the estimating the impacts of economic growth, hotel development, real exchange rate on tourism industry. Findings/Implications. The results of this study showed that the effect of all variables hotel development, merchandise trade, real exchange rate and real gross domestic product on international tourism In Iran, in the long-term and short-term positive and also bilateral relationship is between them. Also, the greatest impact on the increase in the number of tourists entering Iran is the real effective exchange rate and real GDP and a very important point that the results of this research show is that the development of hotels can increase both the short and long term of the number of international tourism to Iran, so in this regard, the development of the necessary technologies to increase this industry should be It will be on the agenda of the private and public sector of Iran. Originality. Given the increasing number of international tourists and the growing role of the tourism industry in the economies of the country, identification of effective factors in attracting international tourists is more than necessary. Governments and the private sector need to identify the factors affecting the tourism industry in order to develop, compete and survive in the tourism industry.
13 THE CAUSALITY BETWEEN ECONOMIC GROWTH AND GOVERNMENT EXPENDITURE IN NIGERIA , Damian Chidozie Uzoma-Nwosu  University of Ibadan, Nigeria
The Purpose. The paper studies the causal relationship between economic growth and government expenditure between 1970 and 2016. Design/Methodology/Approach. The study employed modern co-integration techniques, Granger causality test within an error-correction modeling framework and variance decomposition analysis. Findings/Implications. The co-integration test found that a co-integration relationship exists between economic growth and government expenditure. The Granger Causality test result shows that there exist both short run and long run bidirectional relationships between the variables with causality stronger from economic growth to government expenditure than the opposite direction as proved by the variance decomposition analysis. Originality. The Granger Causality test results found that both economic growth and government expenditure have a cause effect on each other, suggesting that both variables are growing substantially. Using the variance decomposition analysis result as a basis for policy formulation, the government should ensure that resources are well managed and allocated efficiently among competing needs to accelerate economic growth.
14 THE CAUSALITY BETWEEN ECONOMIC GROWTH AND GOVERNMENT EXPENDITURE IN NIGERIA , Damian Chidozie Uzoma-Nwosu  University of Ibadan, Nigeria
The Purpose. The paper studies the causal relationship between economic growth and government expenditure between 1970 and 2016. Design/Methodology/Approach. The study employed modern co-integration techniques, Granger causality test within an error-correction modeling framework and variance decomposition analysis. Findings/Implications. The co-integration test found that a co-integration relationship exists between economic growth and government expenditure. The Granger Causality test result shows that there exist both short run and long run bidirectional relationships between the variables with causality stronger from economic growth to government expenditure than the opposite direction as proved by the variance decomposition analysis. Originality. The Granger Causality test results found that both economic growth and government expenditure have a cause effect on each other, suggesting that both variables are growing substantially. Using the variance decomposition analysis result as a basis for policy formulation, the government should ensure that resources are well managed and allocated efficiently among competing needs to accelerate economic growth.
15 EXPLORING THE EFFECTS OF HOTEL DEVELOPMENT, ECONOMIC GROWTH AND EXCHANGE RATE ON TOURISM INDUSTRY: EVIDENCE FOR IRAN , Bahman Khanalizadeh ; Department Economics, College of Economics and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran Neda Ranjandish ; Department Economics, College of Economics and Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran
The Purpose. This study is to investigate factors affecting the attraction of international tourists to Iran for the years 1983 to 2015. Design/Methodology/Approach. In this article, we examine using Autoregressive Distributed Lag (ARDL) method to explore the estimating the impacts of economic growth, hotel development, real exchange rate on tourism industry. Findings/Implications. The results of this study showed that the effect of all variables hotel development, merchandise trade, real exchange rate and real gross domestic product on international tourism In Iran, in the long-term and short-term positive and also bilateral relationship is between them. Also, the greatest impact on the increase in the number of tourists entering Iran is the real effective exchange rate and real GDP and a very important point that the results of this research show is that the development of hotels can increase both the short and long term of the number of international tourism to Iran, so in this regard, the development of the necessary technologies to increase this industry should be It will be on the agenda of the private and public sector of Iran. Originality. Given the increasing number of international tourists and the growing role of the tourism industry in the economies of the country, identification of effective factors in attracting international tourists is more than necessary. Governments and the private sector need to identify the factors affecting the tourism industry in order to develop, compete and survive in the tourism industry.
16 THE GRAVITY MODEL OF TRADE: A THEORETICAL PERSPECTIVE , Saleh Shahriar ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China Lu Qian ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China Sokvibol Kea ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China Nazir Muhammad Abdullahi ; College of Economics and Management, Northwest A&F University, Shaanxi, P.R. China
Purpose. The purpose of this study is to trace the theoretical developments of the gravity model of trade. The key question is: what are the dominant features of the development of the gravity trade model? Methodology. This research is conducted by employing a number of methods that include the historical, descriptive and analytical methods. The main contribution of this paper is to trace the historical and theoretical development phases of the gravity model. Findings. This study is a novel attempt in terms of the identification of the four distinctive phases of the development of the gravity model. This work would, therefore, expand the existing literature on the gravity model. We argue that the development of the gravity model is the outcome of many research efforts. A large body of literature has given the model a solid theoretical foundation. But there is no consensus about the proper econometric estimation methods of the model. The gravity model is significant both historically and analytically. It is a useful tool for the analysis of international trade. It has become a popular research device used by the researchers and policy makers around the world. The gravity is regarded as one of the most successful models in the literature of international economics. Originality. The original contributions of this paper lie in streamlining the consistent historical development of the gravity model over a longer period of time-frame, ranging from 1885 to 2018. Limitations and Implications. This work is theoretical aspects of the trade gravity model. Future researchers could overcome the limitations by combining the theoretical and empirical studies in a paper. This paper can help the future researchers in dealing with the broad body of literature of gravity model. Acknowledement. This study was supported by the National Natural Science Foundation of China (grants No.71673223 & 71473197), and a PhD scholarship from the China Scholarship Council (CSC). The first author would like to thank the CSC for the financial support. He also acknowledges the invaluable research advice and guidance received from Dr. Yoto V. Yotov, professor at the School of Economics of the Lebow College of Business at Drexel University, Philadelphia, USA. The authors are highly grateful to the anonymous reviewers, managing editor, and the editor-in chief for their kind help and critical comments on the earlier drafts of the paper. However, the authors are responsible for the contents and limitations of the study. They declared no conflict of interests.
17 IMPACT OF COMMERCIAL BANK CREDIT ON AGRICULTURAL OUTPUT IN NIGERIA , Aduralere O. Oyelade ; Department of Economics, University of Ibadan, Ibadan, Oyo State, Nigeria
Purpose. The purpose of this study was to investigated the impact of commercial bank credits on agricultural output in Nigeria over the period 1980 to 2015 by setting three specific objectives which are to examine the trend of commercial bank credit and agricultural output in Nigeria; to investigate the effect of commercial bank credit on agricultural output in Nigeria and to investigate the effect of commercial bank credit on subsector of agriculture in Nigeria. The trend analysis and the impact of commercial bank credit on subsector of agriculture in Nigeria make this work unique and different from other studies in this area. Trend analysis was used to achieve the first objective and fully modified ordinary least square (OLS) for objective two and three. Methodology. The study employed Fully Modified Ordinary Least Squares (FMOLS) approach. Findings. It was evidenced that interest rate on commercial banks’ credit to agriculture and deposit money bank’s assets are statistically significant in determine agricultural output in Nigeria within the period considered. Also, commercial bank loan on agriculture and deposit money bank’s assets determine the output of crop production in Nigeria; commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of livestock production in Nigeria and commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of forestry in Nigeria while commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of fishing in Nigeria. Limitations. This study is limited because the study does not include other variables that determine the output of agricultural sector in Nigeria. Also, other theories and methods can still be used by other researcher to make it different from this work. Originality. This is an original work and has neither been published in any other peer-reviewed journal nor is under consideration for publication by any other journal.
18 PUBLIC FAMILY SPENDING, LABOUR PRODUCTIVITY, INCOME INEQUALITY AND POVERTY GAP IN THE GROUP OF SEVEN COUNTRIES: EMPIRICAL EVIDENCE FROM PANEL DATA , Andy Titus Okwu ; Department of Economics, Babcock University, Ilishan-Remo, NigeriaDepartment of Economics, Babcock University, Ilishan-Remo, Nigeria Rowland Tochukwu Obiakor ; Department of Economics, Babcock University, Ilishan-Remo, Nigeria Timothy Chidi Obiwuru ; Department of Actuarial Science, University of Lagos, Akoka, Nigeria Margret N. Kabuoh ; Department of Business Administration and Marketing, Babcock University, Ilishan-Remo, Nigeria Emeka Okoro Akpa ; Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Nigeria
Purpose. Comparable data on distribution of family income provide reference point for determining economic performance of any country, opportunity to assess effects of income inequality and poverty drivers that are either country- or region-specific. This study analysed the effectiveness of composite indices of public spending on family benefits, labour productivity, macroeconomic performance indicators and moderating factors in reducing income inequality and poverty gap in the Group of Seven (G7) countries from 1980 to 2019. Methodology. The study employed fixed effects Least Squares regression model in panel environment within the framework of empirical econometric methodologies. The composite indices comprised public spending on family benefits in cash and kind, unemployment allowance payments, tax on personal income, labour productivity, harmonised unemployment rate, consumer price index, real GDP growth rate, GDP per capita and per hour worked, fertility rate and trade. After graphical analysis of the data, order of integration was via unit root tests. Hausman test was carried out to choose between fixed and random effects models. Subsequently, parameters of the models were estimated and evaluated for significance at the 0.05 critical level. Findings. The results showed that percentage changes in income inequality and poverty gap indices differed for same percentage change in components of the composite indices. Some variable-specific percentage changes in income inequality and poverty gap were statistically significant, while others were not. However, the overall percentage changes was statistically significant. The paper concluded that while some specific effectiveness of the explanatory variables in reducing income inequality and poverty gap was not significant, their joint effectiveness significantly reduced poverty. Therefore, it is pertinent that family-oriented fiscal policy thrusts should be strengthened and sustained so as to continually reduce income inequality and, ultimately, narrow poverty gap in the countries. Limitations. The study considered the G7 countries for a period of 40 years. The limitations were that the variables considered to influence income inequality and poverty gap in the countries were both exhaustive. Also, the results were conditioned to the method used, and different methods can alternatively be used by other researchers and the results compared with this. Originality. The study is original research paper. It has neither been published in any other peer-reviewed journal not under consideration for publication by any other journal.
19 IMPLEMENTATION OF FLEXICURITY IN SLOVENIA   , Suzana Laporšek ; Faculty of Management, University of Primorska, Koper, Slovenia
Flexicurity remains an important policy instrument in the EU and will be especiallyimportant in the changing economic and labor market environment, characterized with changing nature of work and development of new forms of work. Purpose. This paper examines the implementation of flexicurity policies in Slovenia and compares them with the EU countries. Design/methodology/approach. As there is no uniform measure of flexicurity, the analysis is structured in accordance with four elements of flexicurity policies, developed within the EU, and suitable indicators: (i) flexibility of contractual relations; (ii) lifelong learning; (iii) active labor market policies; and (iv) social protection system. Analysis uses descriptive statistics for last available years and compares these data with crisis year 2010. Data for international comparisons were obtained from the European Commission, Eurostat and Organization for the Economic Co-operation and Development, Statistical Office of the Republic of Slovenia and the Employment Service of Slovenia. Findings and iImplications. Slovenia has in the past already performed labor market reforms that relate to flexicurity components, yet there is still room for improvement. These are especially needed in the field of lifelong learning and expenditures for active labor market policies, where Slovenia is at the tail of the EU countries. In the front of flexibility, a significant decline in the employment protection was noticed with the last legislative change in 2013, which aimed at reducing segmentation and increasing labor market flexibility. In the front of social protection, Slovenia is among the EU countries with the most generous social systems, which, on the other hand, create high work disincentives. Limitations. This study focuses only on the presentation of the recent indicators of flexicurity components, which is one of its major limitation. Future research should study in more detail the effects of flexicurity on labor market, reconsider the importance of flexicurity in assuring decent work and develop a more comprehensible measure of flexicurity. Originality. The paper adds to the existing literature on Slovenia by giving an overview of recent developments of flexicurity concept, pointing on the areas that require policy response.
20 AN AUTOREGRESSIVE ANALYSIS OF THE DETERMINANTS OF PRIVATE SAVINGS IN NIGERIA , Adeniyi J. Adedokun ; Department of Economics,Dominican University, Ibadan, Oyo State, Nigeria Olabusuyi R. Falayi ; Department of Economics,Dominican University, Ibadan, Oyo State, Nigeria Adebowale M. Adeleke ; Department of Economics, University of Ibadan, Ibadan, Nigeria
Purpose. Despite the increasing trend of private savings in Nigeria, the country is still characterised by low investment and output growth, thus, suggesting that the average saving rate is still far from being impressive. This study investigates the determinants of private savings in Nigeria. Methodology. Autoregressive Distributed Lag (ARDL) Model using annual time series data from 1981 to 2016 within the theoretical framework derived from the life-cycle hypothesis is employed in this study. The key variables under investigation are private savings, income, dependency ratio, real interest rate, social security payment, financial development and macroeconomic stability. The data used for analysis are sourced from Central Bank of Nigeria Statistical Bulletin (2016) and World Development Indicator (2016). Findings. The results show that lifetime income and social security payment have significant positive relationship with private saving in the long-run, while adult dependency has significant negative relationship. In the short-run, adult dependency and social security payment have significant positive relationship with private savings. In addition, the result shows that 62% of deviation from the long-run equilibrium level of private savings is annually corrected for by the model estimated. Originality. This research investigates both the long-run and short-run effects of the various determinants of private savings in Nigeria. Thus, the study can serve as eye opener to the important variables that can improve the level of private savings in Nigeria.
21 FOOD PRICE VOLATILITY EFFECT OF EXCHANGE RATE VOLATILITY IN NIGERIA , Edamisan Ikuemonisan ; Department of Agricultural Economics, Faculty of Agriculture, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria Igbekele Ajibefun ; Department of Agricultural Economics, Faculty of Agriculture, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria Taiwo Ejiola Mafimisebi ; Department of Agricultural and Resource Economics, School of Agricultural and Agricultural Technology, The Federal University of Technology Akure
Purpose. There are sufficient evidences in the literature that welfare of food producers and consumers is easily compromised due to unfavorable food price volatility dynamics. Therefore, this study investigates the volatility dynamics in food price index returns (FPIRETURNS), imported food price index returns (CIFCPIRETURNS), price of dollars at bureau de change (BDCRETURNS) and inter-bank rate (EXRETURNS). Design/Methodology/Approach. In view of the increasing quest to account for volatility behavior such as non-linear and time-varying risk premium in food price series using an appropriate tool, this paper adopts exponential generalized autoregressive conditional heteroscedasticity (EGARCH) model. This is because it allows error terms to be conditional heteroscedastic, and the dynamics process generating the underlying heteroscedasticity to be asymmetric. That is, the model introduces a parameter that can reveal how conditional variance respond to both positive and negative shocks of equal magnitude (asymmetric effect). Findings and Implications. The study finds leverage effect and high persistence in some of the selected models. Also, exchange rate volatility affects volatility of FPIRETURNS, but it is more pronounced on the volatility of CIFCPIRETURNS. Limitations. Inadequate data especially for CIFCPIRETURNS is a huge limitation in this study. Originality. However, this study has sufficient empirical evidences that instability in forex market flows into the Nigerian food market with pronounced leverage effect and persistence in food price volatility. The recommendation is, government should implement stabilization policy in the forex market as a precursor to ensuring stability in domestic food market.
22 STUDY ON THE SERVICE QUALITY E-RETAILING VARIABLES AFFECTING BRAND LOYALTY , Art Shala, Driton Balaj
Purpose. The study aims to study four attributes of the electronic retailing service quality [website design, reliability/fulfillment, security/privacy and customer service] based on the implications each one of them has towards brand loyalty [being measured through intentions to repurchase from the same brand on upcoming occasions and customer incentives to pay a price premium for the brand]. This process in two contexts, when respondents are faced with a local vs global brand. Design/Methodology/Approach. Through literature review the study has used the model of mapping electronic service quality variables introduced by Wolfinbarger and Gilly (2003) in their eTail Quality model. Related to data collection we have conducted two focus groups each being prompted with local and global renown brands, respectively. Considering that the study aims to measure perceptions, and knowing that the best way to express them is through linguistic terms, which is the way humans express their feelings on daily basis, the analysis is based on fuzzy logic by using triangular fuzzy sets as means of analysis. The process through the analysis phase has followed the (i) fuzzification process, where linguistic terms have been converted to triangular fuzzy sets, (ii) fuzzy averaging to find group opinions, (iii) clarifying weak and/or strong conditions in between the importance and satisfaction degrees, lastly (iv) defuzzification process in order to convert triangular fuzzy sets in linguistic terms. Findings and Implications. The analysis suggests that when customers are faced with global brands, service quality elements such as website design, customer service and reliability/fulfillment are good predictors for the creation of behavioral intents towards the brand. Whereas when customers faced with local brands, service quality elements such as security/privacy, reliability/fulfillment and website design, have high implications towards customers’ behavioral intents. Limitations. The study represents an innovative approach to measuring service quality variables in the apparel purchase online context. Due to its generic nature as a model the conceptual framework and methods of analysis could be tested in other industries, apart from the apparel online purchase. Furthermore, in order to enforce external validity, the study is recommended to be replicated within the same or other contexts. Originality. This scientific paper presents an innovative approach to measuring online service quality in the apparel industry. Furthermore, the understanding of underlying factors impacting customers purchase online from local or global brands makes it unique in its nature for the context applied. The use of fuzzy logic and triangular fuzzy sets has allowed the research to use linguistic measurements (which belong to the nature of how humans’ express feelings) and their conversion in fuzzy triangular sets allowing for deeper analysis in descriptive and predictive statistics without comprising the reliability of either of them.
23 THE DYNAMISM OF EXCHANGE RATE SHOCKS: EVIDENCE FROM NIGERIA    , Umar Faruq Quadri, Omokhagbo Mike Imafidor
Purpose. The main objective of this study is to investigate the dynamics of exchange rate shocks in Nigeria. Methodology. The researcher used Error Correction Model (ECM) with annual time series data covering the period of 36 years; 1981 through 2016 as the estimation technique. The estimated co-integration test shows that the macroeconomic variables in the system do share a long run relationship with the exchange rates in the period under investigation. Accordingly, each variable in the system tends to adjust proportionally to bring in the system back to its long run equilibrium. Findings and Implications. The estimation result shows that increase in productive output (gross domestic product) leads to depreciation of the exchange rate in the short run but with insignificant effect in the long run. This, hence, implies that the dwindling trend in domestic production has remained one of the major causal factors of the persistent fluctuation in exchange rate in Nigeria. The persistent rise in price level is equally found to lead to appreciation of the exchange rate simply because of over reliance on cheap and more sophisticated foreign goods and materials, in the short run but with insignificant effect in the long run. The domestic interest rate, as reveal by the estimation results, is found to be significantly impacted on the fluctuation of exchange rate in Nigeria. Limitations. The main limitation of this study is in the area of data availability and model specification. The VAR model as popularized by Sims, (1980) is such that all the variables in the framework are assumed to be endogenous with the exception of exogenous variable. This problem may raise the tendency of for multicollinearity and the statistical insignificance of the regressors co-existing with high overall statistical significance of the regression model (Gujarati, 2005; Brooks, 2008). Originality. To the best of my knowledge, at the time of conducting this research, many of the studies in Nigeria have employed other methods other than Vector Error Correction Model (VECM). And, we affirm that this work is original and not being considered elsewhere for publishing. Therefore, this study will contribute to existing literature on the dynamics of exchange rate shocks in Nigeria.
24 PUBLIC-PRIVATE PARTNERSHIPS AS A MODEL FOR THE DEVELOPMENT OF EDUCATION INFRASTRUCTURE AND PEDAGOGICAL STANDARDS: THE CASE OF VARAŽDIN COUNTY, CROATIA , Ivona Hu?ek ; University of Applied Sciences Burgenland, Eisenstadt, Austria Dean Sinkovi? ; Juraj Dobrila University of Pula, Pula, Croatia
Purpose. The aim of the paper is to analyse the model of public-private partnership in Varaždin County for the purpose of developing educational infrastructure and strengthening the pedagogical standard. Design. A public-private partnership stands for a joint activity of the public and private sectors in the production of public goods or the provision of public services, either at the central government level or at the local self-government unit. The need for public-private cooperation is more common at the local level because global trends such as decentralization bind the local self-government to search for effective responses on their responsibilities. Based on the theoretical background of public-private partnership and the analysis of the external environment of the public-private partnership model on the example of the Varaždin County in the field of education, key factors that influence the model of public-private partnerships have been identified. Moreover, the effects of such partnerships between the public and private sector have been identified too, as well as the weaknesses, opportunities, and threats in applying such a model at the local and regional level and in the education sector. Findings. In order to increase the efficiency of the country in the terms of publicprivate partnership, the benefits of a public-private partnership model should be recognized and the limitations should be reduced by providing the set of standards for the co-financing the model of public-private partnership for each sector separately (education sector, public transport, healthcare, environment, public order and safety, energy and etc.).
25 REVERSE LOGISTICS AND MANAGEMENT OF WASTE PRODUCTS: THE NIGERIAN MANUFACTURING FIRMS EXPERIENCE , Bilqis Bolanle Amole ; Accounting and Business Administration Department, Distance Learning Institute, University of Lagos, Akoka, Lagos, Nigeria Sulaimon Olanrewaju Adebiyi ; Department of Business Administration, University of Lagos, Akoka, Lagos, Nigeria Kayode Kingsley Arogundade ; Department of Business Administration, Ekiti State University, Ado-Ekiti, Ekiti State. Nigeria
Purpose. The paper explores reverse logistics activities such as product return, reuse of materials, and waste disposal impacts on the management of waste products in the Nigerian manufacturing companies. This is with a view to examining the awareness of reverse logistics to the management of waste products in Nigeria and determines the importance of reverse logistics activities and process to the management of waste products of Nigeria manufacturing firms. Methodology. Using a cross-sectional survey research design, 300 staff of selected manufacturing firms that deal with waste product were selected in Lagos and a well-structured and validated questionnaire was administered. From this, 250 copies were returned, while 246 were valid for the purpose of analysis. Data generated were analysed using descriptive statistics, analysis of variance test of significance and Friedman rank test. Findings and Implication. The findings revealed that the respondents convinced that their reverse logistics activities arising from return of goods may be as very important to developing efficient and effective management of waste products of Nigeria manufacturing firms. The results also indicates that reverse logistics is highly significant in achieving the organizational goals (p < 0.05), company's future success (F = 8.18, p < 0.05), the functioning of a manufacturing company (p < 0.05) and strategically positioning the company. The study therefore recommends the need for a growing focus on various sections of reverse logistics processes in waste products’ management of manufacturing company in order to achieve organisational goal and enhances sustainable business performance.
26 MARKETING COMMUNICATION IN THE VISIT PHASE THROUGH GUEST.NET - AN INDESTINATION, LOCATION-BASED SYSTEM AT MAISTRA HOTEL CHAIN IN CROATIA , Iva Slivar; Juraj Dobrila University of Pula, Faculty of economics and tourism “Dr. Mijo Mirkovi?”
Hoteliers have always endeavoured to retain guests within their facilities, to profit maximally by offering them additional services. Informing guests of various options is performed within in-house marketing techniques, whereas some are ICT based. Purpose. Hotel chain websites are aimed at the acquisition of guests and as such are inadequate for displaying detailed, service and current information that guests need during their stay in a tourist destination (e.g. happy hour offer at the lobby bar). What about information provided to guests once in the tourist destination? This paper will present one such solution: the Guest.net. It is an in-destination, location-based website accessible from all Maistra Inc. properties, representing a good solution for hotel chains with various nearby positioned tourism facilities aimed at retaining guests within chain facilities. Design/Methodology/Approach. The approach used in this paper is the case study method. Findings and Implications. Klante, Kroschel and Bolls theoretical information model (2004) was expanded by adding the planning in situ phase in tourism. Benefits of the application of similar guest services for hotel chains have been listed. Limitations. Limitations steam from the case study method and relate to the minor geographical area researched. Originality. There is an evident lack in research of customers in tourism during the visit phase, regarding their decision making process, especially in the evaluation of alternatives and their purchase decision in situ (Law, Buhalis, Cobanoglu, 2014), thus this paper broadens the identified gap in the information collection phase in the destination.
27 ECONOMIC GROWTH AND MACROECONOMIC DYNAMICS IN NIGERIA , Babatunde Solomon Johnson, Adegbemi Babatunde Onakoya, Olufemi Akeju
Purpose. The role of macroeconomic variables in shaping the economic status has been debated in the literature. The management of these factors has been epileptic and sometimes contradictory with consequential implications for sustainable economy. This study therefore examined the relative significance of macroeconomic factors (inflation rate, interest rate, exchange rate and unemployment rate) on current national income. In addition, it sought to ascertain the relative importance of prior income (past GDP) on current national income (current GDP) based on data obtained between 1975 and 2015. Methodology. The study deployed pre-estimation descriptive statistics and stationarity tests using the Augmented Dickey Fuller test and Phillip Perron tests. Johansen cointegration test was applied for establishing the long run relationship of the variables. The final phase is the post estimation tests to confirm the robustness of the estimated model. These are the Breusch-Godfrey test to check for any form of auto correlation among the variables, the heteroskedasticity test and the Impulse Response analysis of the dependent variable with respect to shocks in the explanatory variables. Findings.The result findings revealed that inflation contributes negatively to economic growth. Interest rate, exchange rate and unemployment impact economic growth positively. The entire explanatory variables have no short-run effect. The result of the Breusch-Godfrey LM and Breusch-Pagan-Godfrey test indicated the absence of serial correlation and heteroscedasticity respectively. In effect, by itself, macroeconomic stability does not guarantee sustainable high rates of economic growth in the absence of key institutional and structural measures. The study recommended diversification of the economy and the use of inflation targeting which would be commensurate with the level of economic growth should be pursued by policy makers Limitations. This research examined the impact of the various macroeconomic variables on the economy over a period of 41 years. A structural break analysis of the impact before and after major policy shifts like Structural Adjustment Programme (1986), Financial Sector reform (2004), Global Financial Crisis (2007 - 2008) etc. should be explored by new studies. Originality. This study is an original work. It has not been published in any other journal and is not being considered for publication by another channel.
28 ECONOMIC GROWTH NEXUS IN NIGERIA: EVIDENCE FROM NONLINEAR ARDL AND CAUSALITY APPROACHES , Anthony Enisan Akinlo, Olufunmilayo Olayemi Jemiluyi
The kernel of the debate on the relation between government spending and economic growth is whether the former causes the latter or the latter causes the former. In addition, there is the issue of possibility of nonlinearity in the relation between government expenditure and economic growth. Purpose. The purpose of this paper is to examine the relations between government expenditure and economic growth in Nigeria. Design/Methodology/Approach. The nonlinearity and causality in the relation between government expenditure and economic growth are examined using nonlinear autoregressive distributed lag model (NARDL), vector error correction model (VECM) and causality. Findings/Implications. The findings show the existence of cointegration and nonlinear effect on the relation between government expenditure and economic growth in both long- and short-run. The results equally show unidirectional causality that runs from economic growth to government expenditure thus providing support for Wagner’s law in Nigeria. Originality. The findings from this study suggest that nonlinearity and asymmetry should be taken into account when examining the nexus between government expenditure and economic growth.
29 HUMAN CAPITAL TRAJECTORY: PERFORMANCE OF ALBANIA AND SERBIA IN CATCHING UP THE EU COUNTRIES , Eglantina Hysa
Purpose. This paper focuses on the measurement of the human capital level in Albania, Serbia and European Countries and in identifying the gaps between them. In addition, it focuses on the link between human capital and the Gross Domestic Product (GDP), by extending the analyse in finding the gender disparity of human capital and GDP relationship. Lastly, this study estimates the growth rate of the human capital level for Albania and Serbia and make a comparison with the average human capital of the European Countries. Methodology. The methodology used in the calculation of the growth rate of human capital is exponential trend method which makes possible the estimation of the years needed for Albania and Serbia to catch up the average of EU-28. The data employed mostly in the above-mentioned analysis is the data set taken from Barro and Lee (2010) corresponding the Educational Attainment Data from 1950 to 2010. For the estimation of the growth rate of the human capital level, additional data until 2015 have been used compiled from the UIS database and UN population database, respectively. Findings. The findings show that Albania has a higher probability of an earlier convergence than the Serbia has. Even though the proxy of human capital for year 2010 for Albania (9.85), is lower than Serbia (10.97), Albania is experiencing a rapid increase in the average years of schooling. Limitations. But again, the study is limited to data related to only the years of schooling without considering the quality of education and skills acquired. Originality. This study can serve as a contributor to the performance examination of Albania and Serbia to the EU community with regard to human capital accumulation.
30 ANALYSIS OF CLASSIFICATION ALGORITHMS ON DIFFERENT DATASETS , S. Singaravelan, R. Arun, D. Arun Shunmugam, K. Ruba Soundar, R. Mayakrishnan, D. Murugan
Purpose. Data mining is the forthcoming research area to solve different problems and classification is one of main problem in the field of data mining. In this paper, we use two classification algorithms J48 and Sequential Minimal Optimization alias SMO of the Weka interface. Methodology. It can be used for testing several datasets. The performance of J48 and Sequential Minimal Optimization has been analyzed to choose the better algorithm based on the conditions of the datasets. The datasets have been chosen from UCI Machine Learning Repository. Findings. Algorithm J48 is based on C4.5 decision-based learning and algorithm Sequential Minimal Optimization uses the Support Vector Machine approach for classification of datasets. When comparing the performance of both algorithms we found Sequential Minimal Optimization is better algorithm in most of the cases. Originality. This is the first implemented research work up to my knowledge, data sets classification problem handled in data mining using SMO with Weka interface.
31 BOOK REVIEW: CONTEMPORARY LABOR MARKET , Aleksandra Krajnovi?, Jurica Bosna
32 ECONOMIC GROWTH NEXUS IN NIGERIA: EVIDENCE FROM NONLINEAR ARDL AND CAUSALITY APPROACHES , Anthony Enisan Akinlo, Olufunmilayo Olayemi Jemiluyi
The kernel of the debate on the relation between government spending and economic growth is whether the former causes the latter or the latter causes the former. In addition, there is the issue of possibility of nonlinearity in the relation between government expenditure and economic growth. Purpose. The purpose of this paper is to examine the relations between government expenditure and economic growth in Nigeria. Design/Methodology/Approach. The nonlinearity and causality in the relation between government expenditure and economic growth are examined using nonlinear autoregressive distributed lag model (NARDL), vector error correction model (VECM) and causality. Findings/Implications. The findings show the existence of cointegration and nonlinear effect on the relation between government expenditure and economic growth in both long- and short-run. The results equally show unidirectional causality that runs from economic growth to government expenditure thus providing support for Wagner’s law in Nigeria. Originality. The findings from this study suggest that nonlinearity and asymmetry should be taken into account when examining the nexus between government expenditure and economic growth.
33 A BOUND TESTING ANALYSIS OF BANK CREDIT SUPPLY DETERMINANTS IN NIGERIA , Adebowale M. Adeleke, Olabanji B. Awodumi
Purpose. Attention of macroeconomists and financial experts has focused on the determinants of bank credit, with more attention on the demand side analysis. However, few existing study on the supply side determinants of bank credit are reported with inconsistent results, though they emphasized the role of economic growth. By employing Autoregressive Distribution Lag estimation technique, this study specifically focuses on the short-run dynamic and long-run effects of bank credit supply determinants in Nigeria using the data that span 1970-2015. We found that exchange rate, money supply, net foreign liabilities and real GDP all have a positive long-run impact on bank credit to private sector in Nigeria, whereas the effect of the general price level is negative. In the short run, the effect of money supply, net foreign liabilities and reserve requirement on bank credit to the private sector is positive with only inflation exerting a negative influence. In conclusion, policymakers are required to implement policies that stabilize the financial system and boost per capita income in order to promote a sustained and stable growth of bank credit to private sector in Nigeria. Bankers also should, however, monitor the rate at which they create credit which has implication for the overall money supply.The study was set out to estimate both the short and long-run relationship as well as dynamic effect of supply side factors on bank credit to private sector in Nigeria between 1970 and 2015. Methodology. The study employed Linear Autoregressive Distributed Lag (ARDL) co-integration test as suggested by Pesaran, Shin and Smith, (2001). Findings. It was evidenced that exchange rate, money supply, net foreign liabilities and real GDP all have a positive long-run impact on bank credit to private sector in Nigeria, whereas the effect of the general price level is negative. In the short run, the effect of money supply, net foreign liabilities and reserve requirement on bank credit to the private sector is positive with only inflation exerting a negative influence. Limitations. This study is limited only by its focus on the supply size analysis. A new line of study is suggested that can possibly investigate both the demand and supply size analysis together in one paper. Originality. This is an original work and has neither been published in any other peer-reviewed journal nor is under consideration for publication by any other journal.
34 EXCHANGE RATE, FISCAL POLICY AND INTERNATIONAL OIL PRICES IMPACT ON OIL PRICES IN PAKISTAN: A VOLATILITY AND GRANGER CAUSALITY ANALYSIS , Saqib Anwar Saddiqui,, Muhammad Jawad, Munazza Naz, Ghulam Shabbir Khan Niazi
Purpose. Crude oil is an important and most demanded commodity throughout the world. There are various oil processes like electricity production, manufacturing processes and transport sector. Oil is the basic necessity thus is important to study the volatility in oil prices because oil price volatility reduces the aggregate output for short run and as a result uncertainty increases and investment also decreases (Guo and Kliesen, 2005).This research analysis the effect of exchange rate variation and the fiscal policy changes on the oil price volatility and granger causality of macroeconomic variables. Lee (1998) defined volatility as the standard deviation in a given period. She submitted that Volatility has a negative and significant impact on economic growth immediately, while the impact of oil price changes delays until after a year. She concludes by stating that it is volatility/change in crude oil prices rather than oil price level that has a significant influence on economic growth. Methodology. GARCH (1,1) test define the exchange rate has not a significant relation with the local oil price but fiscal policy effect and foreign oil price has a significant relation on the local oil price. Granger Causality test indicate that oil price volatility does not granger cause on public sector investment and gross domestic production does not granger cause on public sector investment is significant. Except these relationship, all other variables relationship exist and possible. Findings. This research identify the effect of exchange rate, fiscal policy and international oil prices on oil prices of Pakistan. Different econometrics tests are utilized for analyses. Due to shortage of time, money and resources, this study only focus on Pakistan but this type of study can also implemented in Asia or more developing countries for more generalize effects and conclusion. Originality. This is the first implemented research who define the magnitude, direction and effects among the variable in context of Pakistan. Before this research, there is only opinions are founds by different economists, politicians and analysists.
35 VOLATILITY PATTERNS OF THE LARGEST POLISH COMPANIES: SOME EVIDENCE FROM HIGH-FREQUENCY DATA , Krzysztof Drachal
Purpose. The article is focused on the empirical properties of the high-frequency data of 20 selected stocks from the Warsaw Stock Exchange (in particular the ones listed on WIG 20).The intraday data from at least more than 1 year were analysed. In particular, correlation between returns and durations were checked. Methodology. Also, the heterogeneous autoregressive model for realized volatility (HAR) was analysed and an attempt to construct the UHF-GARCH model was taken. The HAR model is a linear model and the UHF-GARCH is based on a certain adjustment of physical durations. Then, the standard ARMA-GARCH approach can be considered. Moreover, the hypothesis of Diamond and Verrecchia predicting a negative correlation between price changes and the time passed between transactions was checked. The analysis was done in R statistical software. Findings. The presented research can serve as an introduction to some further (and more thorough and narrow) researches. Except a direct presentation of outcomes from the study of the selected stocks from the Warsaw Stock Exchange, the paper contains quite an extensive literature review on high-frequency data.
36 VALUE ADD FINANCIAL MEASURES USED BY GERMAN DAX 30 CORPORATIONS AS PART OF HIGHLY PROFESSIONALIZED CORPORATE GOVERNANCE MANAGEMENT , Guenter Blendinger ; Technical University Kosice, Slovakia, University of Applied Sciences Heilbronn, Germany Grzegorz Michalski ; Department of Labor and Capital, Wroclaw University of Economics, Poland
Purpose. This research paper shows which value add measures are used by German DAX 30 corporations in their 2015 annual reports. It explains how different measures like shareholder value, economical value add (EVATM), return on capital employed (ROCE), return on equity (ROE) and others are calculated and how they correlate. Corporate governance has been highly professionalized which clearly shows in the annual reports of all firms. The requirement for “sustainable creation of value” as stated in the German Corporate Governance Codex (Regierungskommision Deutscher Corporate Governance Kodex, 2015) is made transparent as a core element in the companies’ annual reports. Design. 70% of the DAX 30 firms show value add data and some of them even highlight that value add has been made part of their corporate management approach. In turn this means that 30% of the firms are not showing value add data in a prominent way. The paper focuses on the 70% showing value add data and how EVA, company specific EVA-like measures or ROCE are the most used ones. Findings. The paper shows that ROCE with a factor of 0,97 correlates best with EVA and in absence of an EVA calculation is the best measure to represent value creation. Originality. As part of a dissertation the aim is to develop a best in class measurement system and comparison for corporate governance theoretical and empirical analyses. The paper has been presented at 21st European Scientific Conference of Doctoral Students - PEFnet2017 organized by the Faculty of Business and Economics of Mendel University in Brno, taking place on November 30, 2017 on the campus of Mendel University in Brno, Czech Republic.
37 EMOTIONAL INTELLIGENCE AND MANAGERIAL EFFECTIVENESS , Saqib Anwar Saddiqui, Muhammad Jawad, Munazza Naz, Ghulam Shabir Khan Niazi
Purpose. In this research we have tried to identify the impact of emotional intelligence on the managerial effectiveness. Design. The domains of emotional intelligence identified by the dr. Daniel Goleman namely self-awareness, self-regulation, social skill & empathy have been tested to include in the listing of 16 managerial skills namely confidence in subordinates, communication and task assignment, networking, colleagues management, discipline, informal communication, management of market environment, conflict resolution, integrity and communication, client management & competence, motivating, delegation, image building, welfare management, consultative, & inspection and innovation - the scale developed by seeta gupta in 1996. Statistical package for the social science is used for analysis. Descriptive analysis is used to define the key aspects and sample formation. Two tailed pearson correlation was applied to check and test the relationship among the variables used in the research. Regression analysis was used to identify the significance, magnitude and direction of the variables. Findings and implications. We have concluded that all four traits of emotional intelligence have been found significant, therefore suggested to include them in the scale of managerial effectiveness.
38 THE ROLE OF TECHNOLOGY PARKS IN THE ENTREPRENEURIAL PROCESS: THE CASE OF TECHNOLOGY PARK VARAŽDIN , Anica Hunjet, Emilija Iveti?, Goran Kozina
Purpose. The entrepreneurial process is a complicated structure defined by interaction of many factors. When analyzing entrepreneurship in the context of modern - day development of new technologies, technology parks are also being introduced in this process. Technology parks are specific forms which started their growth in the middle of twentieth century. They are viewed as places where technology, entrepreneurship, knowledge, innovation and creativity are being combined together in order to nurture the process of creating visions, ideas and new values. Technology parks are the nexus between academic community and ventures. The aim of this paper was to present the interaction between entrepreneurship and technology parks, and to identify the role of technology parks in today's entrepreneurial venture. Design. Over time industrial economy has developed into information economy, which also has many forms. That lead to acknowledgement of the strength of connection between industry and know - how. Therefore this paper foremost defines the concepts of entrepreneurship and technology parks through their historic evolution and modalities of their interaction, that being the base for a case study. A case study was conducted in Technology park Varaždin in the period from March 7th to March 13th 2016, using following methods. Firstly secondary data analysis was conducted (data acquired from available literature and business reports) which gave basis for a decision regarding primary data collecting and hypotheses proposal. Afterwards primary data analysis was conducted (data acquired using online survey method). Survey was conducted on population consisting of entrepreneurs whose companies are tenants of Technology park Varaždin. The mentioned research survey consisted of twenty questions divided into four sections. Findings. Total of three hypotheses were proposed and tested in order to make tenants profiles and analysis of their habitat in Technology park Varaždin, and finally in order to identify the role of Technology park Varaždin in their entrepreneurial process.
39 ON THE DETERMINANTS OF UNEMPLOYMENT IN NIGERIA: WHAT ARE THE ROLES OF TRADE OPENNESS AND CURRENT ACCOUNT BALANCE? , Isiaka Akande Raifu
Attention of international trade and macroeconomic experts has focused on the effect of international trade, precisely trade openness, on economic growth and by extension on unemployment rate, albeit with mixed results. However, scanty attention has been drawn towards the effect of current account balance on unemployment rate despite the arguments from different quarters trailing such relationship. By employing Autoregressive Distribution Lag estimation technique, this study specifically focuses on the short-run dynamic and long-run effects of trade openness and current account balance on unemployment rate in Nigeria using the data that span 1981-2014. We found that trade openness worsens unemployment rate both in the short-run and long run. We also discovered that in the short run, current account balance increases unemployment rate but reduces it in the long run. Control variables used in the study such as inflation rate, exchange rate, and FDI followed a priori expectation while real GDP, wages and government consumption expenditure failed to follow a priori expectation. We, therefore, concluded that there is need for sound trade and macroeconomic policies to aid domestic firms’ production to ensure international competitiveness of these firms so as to guarantee employment generation.
40 SYNCHRONICITY AND SIMILARITY OF BUSINESS CYCLES; CROATIA VIS À VIS NEW EMU COUNTRIES , Daniel Tomi?, David Demanuele
The introduction of the euro for Croatian citizens meant the abandonment of the deutsche mark, a reliable currency, which had been used for a long time for comparison purposes and savings. Today, Croatia is a small, opened, indebted and highly euroised country, in which frequently mentioned introduction of euro is seen as a solution that could improve country’s economic position. The question of a common monetary policy is closely related to the issue of business cycle coherence between the members of such an area. By analyzing two measures of business cycle coherence, namely synchronicity and similarity, between Croatia and new EMU members, we want to reconcile with vast empirical evidence supporting the hypothesis that monetary integration process results from a greater business cycle convergence and leads to an optimal currency area which finally leads to greater economic welfare in each of the member countries. Estimations are based on deviation cycle approach. Results in general indicate relatively similar cycle dynamics across the observed variables, suggesting that Croatia satisfies this selective criterion for its inclusion into the monetary union. Nonetheless, monetary integration is far more complicated issue, hence it requires further scientific verification and conceptualization.
41 AN EVALUATION OF THE IMAGE OF POLAND AS A NATIONAL BRAND PERCEIVED BY YOUNG FOREIGNERS , Marzena Lemanowicz
The article provides an overview of the literature on notions including national image, national brand and national branding, then presents selected campaigns promoting Poland in the international arena. It evaluates how Poland, as a national brand, is perceived by young foreigners. Empirical studies were conducted among foreigners at the age of 20-25. 103 respondents from 23 countries participated in the research. The most common associations respondents had with Poland were history, Pope John Paul II and Polish vodka. Warsaw and Krakow are definitely the most recognizable Polish cities. Many respondents expressed positive opinions about Poland’s nature, landscapes, mountains and seaside. Among numerous events organized in Poland, the most well-known were the European Football Championship EURO 2012, the Woodstock Festival and Wroclaw – European Capital of Culture 2016. I believe Poland continues to be perceived through stereotypes, with associations to the Pope, vodka and religion predominating. These were enumerated as the main associations in a 2011 study and since then, despite Poland’s numerous promotional work in the international arena, there has been no success in creating new associations, such as Poland being an innovative and modern country or its people being entrepreneurial, to name two.
42 MONETARY POLICY AND THE SUSTAINABILITY OF THE MANUFACTURING SECTOR IN NIGERIA , Adegbemi Babatunde Onakoya, Grace Oyeyemi Ogundajo, Babatunde Solomon Johnson
The conflicting results in relationship between monetary policy and the sustainability of the manufacturing sector necessitated this research. The study carried out some preliminary tests including the descriptive statistics and the Augmented Dickey Fuller unit root tests. The optimal lag length criteria, and the Johansen Co-Integration test were applied to verify long run association among the series. The Vector Error Correction model was estimated as a verification of the short run adjustment. The Breusch-Godfrey Serial Correlation Lm test, Durbin Watson Statistic, and Breusch-Pagan Heteroscedasticity tests were conducted. The results confirmed the existence of a long run relationship among the variables. A positive relationship between monetary policy and manufacturing sector performance in Nigeria was observed at the 5% level of statistical significance. No short run association between the external reserves and inflation rates was recorded. The study therefore recommends that the government avoid monetary policy summersaults.
43 SELF-EVALUATION OF THE NECESSARY SOCIO-ECONOMIC AND DIGITAL COMPETENCE OF SCHOOL STUDENTS OF INVESTMENT IN EDUCATION IN THE PROCESS OF ´EVER RISING´ IMMIGRATION , Mirela Toli?, Marcus Philip Muller
Globalization is frequently viewed in economic and environmental terms. Goods and services move easily across regions and national boundaries. The United States, the European Union, and countless other nation-states and political bodies are struggling to define attitudes and policies towards immigrants and immigration for the 21st Century. The debate over language is often a heated one. Most nations encourage newcomers to learn the national language. Language can be seen as a mechanism for integration and acculturation. For full participation in the national and political life of a country, immigrants benefit from knowledge of the language. Just an Investment in Education in the process of learning the language immigration country Germany considers very important socio-economic factor in the process of socialization of immigrants. Where language differences are accepted, there are costs such as bi-lingual education, multi-lingual signs and instructions, and a constant need for qualified interpreters. Language is fluid and constantly changes, especially in terms of the development´s informational and communication technologies where it´s necessary adoption of digital competence. Digital society implies a transformation of the traditional way of life and the economic, industrial, educational, and labor changes as well as changes of personal and individual way of existence, but also the question of the "new" partnership in education. The study was conducted on N=185 students of higher education institutions in German among various constituents (faculties and departments) in Mannheim, Mainz, and Heidelberg. The research was conducted during winter semester 2016/2017 academic year, from November 9 to January 14. The survey instrument used was the first part of the questionnaire to record students’ opinions on different variables related to various multimedia foreign language learning tool. Research results show that students feel that it’s necessary to invest in the Education of immigrants in order to prevent the demolition of (inter)national identity, as well as to facilitate the realization of the process of socialization and more employment.
44 WEB BASED DOCUMENT RETRIEVAL USING ADVANCED CBRS , Shanmugasundaram Singaravelan, Anthoni Sahaya Balan, Dhanushkodi Murugan
Multi-document summarization is an automatic procedure aimed at extraction of infor-mation from multiple texts written about the same topic. Resulting summary report al-lows individual users, such as professional information consumers, to quickly familiar-ize themselves with information contained in a large cluster of documents. This pro-posed work CBRS (Cluster Based Ranking with Significance) summarizes the multi document with semantic meaning of the terms in the documents. Such that it produces a good results while clustering and ranking with retrieving document. As a clustering result to improve or refine the sentence ranking results. The effectiveness of the pro-posed approach is demonstrated by both the cluster quality analysis and the summarization evaluation conducted on our simulated datasets.
45 THEORETICAL PROPOSAL FOR EXPANSION OF ROE WITH NEW SUB-RATIOS , Danilo Dorovi?
ROE is the ratio of profitability which can be separated into three ratios in Du Pont model. The question is - can it be even more comprehensive with more than three Du Pont ratios; that is can it also include liquidity, market share, break-even point, plan vs. actual, structure of assets and liabilities, structure of fixed costs, etc.? If these can be included in calculation, the financial, management accounting and strategic analysis could be more integrated into one more rounded system. Financial ratio analysis would also integrate into one ratio the usually different areas of analysis, like structure of assets, structure of liabili-ties, liquidity, turnover, financial leverage, etc. Strategic management and management accounting ratios, developed in the literature and used in business practice, are represented. The article in front of you presents a theoretical proposal through deduction method of how mentioned measures can potentially be included in ROE, resulting in potential benefits in planning and controlling. Integrated different areas of financial ratio analysis, manage- ment accounting and strategic analysis each represented with its ratios in profitability measure ratio, provides potentially better view of conditions, profit multiplicators and risk the profitability is achieved by. Integration inside profitability measure gives a special qual-itative advantage, having in mind that achieved profit is the main goal for owners of the company`s equity.
46 BALANCE OF SUPPLY AND DEMAND OF THE CEREAL AND INFLUENCING FACTORS IN CHINA: FROM THE PERSPECTIVE OF THE COST , Bingqiang Li
The balanced supply and demand of the cereal is essential for achieving economic sustainable development in China. The wheat and products, the rice (including the milled equivalent), and the maize and products are three main cereals in China, the three cereals but the rice (including the milled equivalent) in China were enerally seriously comparatively insufficient before 1997, and then became fully sufficient. The co-integrative test demonstrated that there existed long-term equilibrium between balance of supply and demand and influencing factors, and the correcting coefficient was about 2.2 percent. As for balance degree of supply and demand, increase of machinery cost, daily-average labor price and indirect cost would improve it, increase of fertilizer expenditure and labor-input quantity would deteriorate it at short-term. The Granger causality test implied that balance of supply and demand owned interactive effect with laborer-input quantity, but not with the other cost. The highlight of this article was evaluating hypothesis of “Who will feed China” and influencing factors from perspective of the cost, achieving that the above hypothesis was not a real problem in China.
47 TIME MANAGEMENT AMONG MANAGERS IN THE POLLOG REGION , Izet Zeqiri, Brikend Aziri, Jeton Mazllami
Time, the only non-replaceable resource is quite difficult to manage, although as it has been studied over and over again time management can be of crucial importance for a contemporary business organization. Individuals and managers in particular, must learn how to make the best out of their time and use time management as a tool in gaining and maintaining a competitive advantage. Although, researchers from throughout the world have managed to identify and develop hundreds if not even thousands of different time management approaches and techniques, it can be easily argued that such techniques are unknown when it comes to business in the Republic of Macedonia in general and the Pollog region in particular. But, the lack of a scientific approach does not necessarily mean a lack of dedication to a better usage of time by employees and managers alike. The paper strives to present the results of a rather extensive field research on time management implemented by the authors in over fifty business entities in the region.
48 A NEXT GENERATION OF INNOVATION MODELS? AN INTEGRATION OF THE INNOVATION PROCESS MODEL BIG PICTURE © TOWARDS THE DIFFERENT GENERATIONS OF MODELS , Benjamin Taferner
The competition on every market grows harder and harder every year. Innovation is seen by most companies as the only way to survive. For finding good innovations, innovation processes are needed to implement within the firm. This paper deals with the generations of those models. The first part of the paper lists the different generations described in the literature. In the second part the BIG Picture © model created by Dipl.-Ing. Dr. Lercher is introduced and compared to the criteria found in the described models. Therefor the aim of this paper is to give the reader an overview of the existing models and an understanding of the classified model. The estimated results were a classification in the current generation. However, the model shows additional criteria which have not been set by any of the review authors. The point, if this model is still a sixth generation model or already a seventh generation model, was let open for discussion in this paper. Methodology includes an analyses of the described generations of the most frequent cited authors and an evaluation of the new model.
49 AN ANALYSIS OF HUMAN CAPITAL DEVELOPMENT AND PRODUCTIVITY GROWTH- CASE STUDY, NIGERIA , Opeyemi Oluwabunmi Adejumo, Akintoye Victor Adejumo
In order to address the direction of causality between human capital and productivity growth in Nigeria, the study first investigated the pattern of productivity growth in Nigeria between 1970 and 2010. Following the endogenous growth model, which argued that technical progress, through an effective labor force, could lead to long-run growth which can be determined from within an economy; but it actually depends on the efficiency with which resources available to such an economy are utilized. This is against the exogenous growth model which emphasized that long-run growth can be attained by some unexplained technological progress, which is exogenous to any economy. Based on this controversy in literature, this study empirically determined the productivity growth in Nigeria, as well as the causal relation between human capital development and productivity growth in Nigeria using the Engle-Granger causality test. The results revealed that productivity growth has been very low and unstable in Nigeria as it oscillated between -1.5% and 0.6%. In addition, the nexus between human capital and productivity growth was examined. The findings revealed that while productivity growth caused human capital development, human capital development did not cause productivity growth.
50 THE CHALLENGES OF BUSINESS ETHICS: THE BASIC PRINCIPLES OF BUSINESS ETHICS - ETHICAL CODEX IN BUSINESS , Anton Jamnik
Past several decades management has become a vital concern to society. If we look at pools, we notice that the public does not have good opinion about management ethics and business. For the management community to turn this situation around, significant efforts are required. It should be understood what management ethics means, why it is important and how it should be integrated into decision making. Principles of ethics from moral philosophy and management theory are available to inform interested managers. Further requires that managers understand, and be sensitive to, all the stakeholders of the organization and their stakes. If the moral management model is to be achieved, managers need to integrate ethical wisdom with their managerial wisdom and to take steps to create and sustain an ethical climate in their organizations. When all that will be done, the desirable goals of moral management will be achievable.
51 THE LONG-RUN EFFECT OF INWARD AND OUTWARD FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: EVIDENCE FROM DEVELOPING ECONOMIES , Waqar Ameer, Helian Xu
In this paper, we investigate impact of inward and outward foreign direct investment on economic growth in developing economies over time period 2005-2014 annually. From 2005-2014, had inward and outward foreign direct investment had significant long-term effects on economic growth in developing countries. In this paper, we have used a different approach to examine the impact of FDI outflows and inflows on economic growth using Ordinary Least Squares (OLS) and Generalized Method of Moments (GMM) on the basis of macroeconomics panel data in developing economies over time span 2005-2014 annually. Our findings are as follows: (1) there is positive and significant impact of foreign direct investment outflows and inflows on economic growth in the long run among developing economies and (2) The positive and significant effects of FDI inflows and outflows on economic growth are highly robust by applying different econometric techniques (3) From our econometric results, we infer that control variables play significant role in defining exact relationship between inward FDI, outward FDI and economic growth. The control variables should be relevant and related with the econometric model to derive accurate relationship between inward FDI, outward FDI and economic growth.
52 DOES COUNTRY CREDIT RATING AFFECT CURRENT DEFICIT ACCOUNT: THE CASE OF TURKEY (1992-2014) , Ahmet Gulmez, Furkan Besel, Fatih Yardimcioglu
In this study the presence and direction of the relationship between the current account deficit and credit rating index for Turkey has been tested using Gregory-Hansen co-integration test, which considers structural breaks and Toda-Yamamoto causality analysis for the period of 1992-2014. Based on the results of empirical applications, it has been concluded that both series are not stable and there is a long-term relationship between the variables. As a result of the Toda-Yamamoto method based on the Granger causality analysis, it has been determined that there is a one-way causal relationship between the variables from current account deficit towards credit rating index.
53 AID SELECTIVITY PRACTICE AND AID EFFECTIVENESS IN SUB-SAHARAN AFRICA , Adeniyi Jimmy Adedokun, Abiodun O. Abiodun O. Folawewo
Foreign aid strategies have undergone restructuring as donors adopt aid selectivity practice to improve aid effectiveness. This study investigates the impact of aid selectivity practice on aid effectiveness (aid-growth relationship) in Sub-Saharan Africa (SSA) and several groups of countries within SSA from 1980 to 2012. Employing system generalized methods of moments (system GMM) technique; the study produces strong evidence that there is significant improvement in aid effectiveness due to aid selectivity practice.
54 IMPACT OF THE FDI ON UNEMPLOYMENT RATE IN COUNTRIES OF WEST BALKAN , Dijana Grahovac, Senad Softi?
Modern economy is facing many challenges, in global terms. One of them is the high unemployment rate in many countries. That is a crucial problem, which jeopardises economic, social and political stability. Many factors have an impact to it, and some of them are globalisation, fast development of high technology, global economic crisis and expressed instability of financial markets. In addition, the relation of offer and demand is highly expressed in favour of the offer, the excess of capital at the global level is evident and seeks opportunities of investment as profitable as possible. The situation where the interests of big capital opposed to the costs is becoming more pronounced, which is reflected in the increasing growth of FDI in countries with lower operating costs. On the other hand, underdeveloped and developing countries spread the range of measures for attracting foreign direct investment (FDI), since it is one of the ways for increasing employment rate. This matter has already been the subject of numerous studies, particularly during the period of transition of countries in CEE. However, in modern frameworks, it is actualized again, with different circumstances and motives. In this article global unemployment rates, flows of FDI, their correlation in the Western Balkan countries and comparative analysis with chosen countries are presented. The period observed is 2000-2014. The paper is devoted to the influence of foreign direct investment on labour market. The interdependencies between FDI and unemployment were econometrical. The analysis showed that since 2009, there is a significant reduction of net investments, which is more obvious in the case of FDI due to a lower domestic and external demand as a result of the global economic crisis what led to a decreasing number of employees and rising unemployment. Results, also, show the absence of a positive impact of FDI on employment, which was present in most CEE countries during the transition period, as shown in numerous empirical studies.
55 RELATIONSHIP BETWEEN INWARD FOREIGN DIRECT INVESTMENT, DOMESTIC INVESTMENT, FORMAL AND INFORMAL INSTITUTIONS: EVIDENCE FROM CHINA , Waqar Ameer, Helian Xu
This study examines relationship between Inward FDI and domestic investment in China, using co-integration and Granger causality analysis (Including bivariate and multivariate Granger causality models). We have used auto-regressive distributed lags(ARDL) econometric methodology technique to define relationship between inward FDI and domestic investment using time series data for China. Our study examines long run effects of FDI inflows on domestic investment over time span 1990-2014 for China using informal, formal institutions and key macroeconomic variables as control variables in the model. The results suggest that conclusions drawn from bivariate model may not be valid because of omission of important control variables. Our results of multivariate model show that there is positive unidirectional causality running from IFDI to DI in the long run. In the short run, both inward FDI and domestic investment do not allow Granger causality.
56 TROUBLES OF THE ITALIAN BANKING SYSTEM AND THE SMOTHERED HOPES OF EUROPE , Mitja Stefancic
The crisis of many Italian banks, be them large commercial banks or small local mutual banks, is adversely affecting the European banking system. Confidence in Italian banking firms has decreased substantially in Italy and abroad. Financial intermediaries have specific shortcomings and specific problems to solve. Necessary improvements include better management of costs and risks, less influence by political parties on banks, improved selection mechanisms of managers, and more productive allocation of credit. Bank balance sheets should be improved in order to facilitate lending and thereby strengthen the real economy. This will take time since it is not easy to repair bank balance sheets and update the governance of banks. Rehabilitation of banks should essentially be matched by a proper cultural twist in the mindset of Italian citizens. On the other hand, the ability to secure a healthier banking sector is very much dependent on the recovery of the real economy and, therefore, on the ability for corporations to have access also to capital markets. Without such improvements, however, Italy may pose a serious challenge to the idea of a competitive European Union as advocated in the past for instance by former President of the European Commission Romano Prodi (1999).
57 IS WORKING CAPITAL MANAGEMENT IMPORTANT? EMPIRICAL EVIDENCE FROM MANUFACTURING COMPANIES IN GHANA , Joseph Kwadwo Tuffour, John Adjei Boateng
The objective of the study is to empirically examine the effect of working capital management on performance of manufacturing firms in Ghana. The study used six listed manufacturing companies on the Ghana Stock Exchange for the period 2008-2014. Correlation and regression analyses were used to analyze the effect of working capital management on manufacturing firms’ performance. The study examines the effect of different components of working capital management on firm’s performance. The study finds that the current ratio, average collection period and the accounts payable period have positive effect on profitability. However, only the current ratio has statistical significance. Also, while inventory conversion period as well as the cash conversion cycle have negative effect on performance, they are all statistically insignificant. It is recommended that finance managers should implement efficient and effective ways of managing working capital management. Emphasis should be placed on average payment period, improving sales growth and maintaining higher current ratio.
58 DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN NIGERIA: A MARKOV REGIME-SWITCHING APPROACH , Akinlo A. Enisan
Several studies have analyzed the movement of foreign direct investment in Nigeria using linear approach. In contrast with all existing studies in Nigeria, this paper runs several non linear FDI equations where the main determinants of FDI are determined using Markov- Regime Switching Model (MSMs). The approach enables us to observe structural changes, where exist, in FDI equations through time. Asides, where FDI regression equation is truly nonlinear, MSMs fit data better than the linear models. The paper adopts maximum likelihood methodology of Markov-Regime Model (MSM) to identify possible structural changes in level and/or trends and possible changes in parameters of independent variables through the transition probabilities. The results show that FDI process in Nigeria is governed by two different regimes and a shift from one regime to another regime depends on transition probabilities. The results show that the main determinants of FDI are GDP growth, macro instability, financial development, exchange rate, inflation and discount rate. This implies liberalization that stems inflation and enhance the value of domestic currency will attract more FDI into the country.
59 IMPACT OF OIL PRICE VOLATILITY AND MACROECONOMIC VARIABLES ON ECONOMIC GROWTH OF PAKISTAN , Muhammad Jawad, Ghulam Shabbir Khan Niazi
This research analyses the effect of oil price volatility and macroeconomic variables (Trade balance, private sector investment and public sector investment) on economic growth of Pakistan. Linear regression describes the Public sector investment and Trade Balance has significant and oil price volatility and private sector investment has insignificant effect on gross domestic production of Pakistan. Johenson co integration test described the long run relation among the variables. Vector Autoregression, impulse response function and variance decomposition conclude that effect of variables was stable within 10 years and the major part on the variable is due to itself rather than other variables.
60 A STUDY ON THE RISK-ADJUSTED PERFORMANCE OF MUTUAL FUNDS INDUSTRY IN INDIA , Shivangi Agarwal, Nawazish Mirza
Investing through mutual funds has gained interest in recent years as it offers optimal risk adjusted returns to investors. The Indian market is no exception and has witnessed a multifold growth in mutual funds over the years. As of 2016, the Indian market is crowded with over two thousand mutual fund schemes, each promising higher returns compared to their peers. This comes as a challenge for an ordinary investor to select the best portfolio to invest making it critical to analyse the performance of these funds. While understanding and analysing the historical performance of mutual funds do not guarantee future performance, however, this may give an idea of how the fund is likely to perform in different market conditions. In this research we address multiple research issues. These include measuring the performance of selected mutual schemes on the basis of risk and return and compare the performance of these selected schemes with benchmark index to see whether the scheme is outperforming or underperforming the benchmark. We also rank funds on the basis of performance and suggest strategies to invest in a mutual fund and therefore, our findings have significant relevance for investing public.
61 FISCAL AUSTERITY POLICY IMPACT ON WELFARE , Romina Pržiklas Družeta, Marinko Škare
The ongoing global financial and economic crisis has caused a dramatic fall in growth, increased deficit, higher unemployment rates and strong price fluctuations. To achieve a balanced budget and reduce the national debt, the most of the national government have sacrificed the employment - one of the main indicators that reflect societies’ well-being and implemented fiscal austerity policy. The aim of this paper is to contribute to the literature on this topic and assess the short analysis of fiscal consolidation. Despite the ongoing debate and numerous studies no consensus about whether and when austerity is likely to be beneficial has been achieved. Further, there are still open issues to understand the impact of austerity on poverty and welfare because of the difficulty of defining poverty and welfare also. The main conclusion is that the emphasis should be placed on correctly defining austerity methodology in a broader economic and social context.
62 INTERDISCIPLINARY APPROACH TO NEURAL NOISE AND PERCEPTION BIAS IN FINANCIAL DECISION MAKING , Ana Njegovanovi?, Krešimir Petar ?osi?
The general goal of the interdisciplinary work refers to the research of complex experimental interactions and theoretical works on the subject of neural mechanisms in the perception of decision making; economic and perceptual decision making; high and low volatility bias of the investors perception, and the perception bias during the duration of the stimuli, according to the theory of subsequent effect. The work shows the complex interweaving of scientific achievements in the process of decision making. The given scientific and applicative research leads us towards understanding the levels of complexity of financial decision making with the principles of universality; spatial and temporal fluctuations of input in perceptual decision making (perception can be under the influence of attention and can surface subconsciously without conscious consciousness), possible extending of current results and models from two alternative choices and are they different in respect to spatial and temporal fluctuations ( our capability of deciding can result from random fluctuations in the background of electric noise in the brain) effects on the results of decision making. The focus of this research paper is the analysis of testing the perception of investors which shows us the subsequent effect of volatility, which further indicates the twisted perception after prolonged exposure to extreme levels of volatility. This established framework can give us key insight in the domain of deductive reasoning. Bias in deductions is questioned using the VIX index.
63 INNOVATION IN SENIOR TOURISM: CREATING ENERGY EFFICIENT AND HEALTH SUPPORTED TOURIST OFFER , Anes Hrnji?, Nedim Šuta, Amila Pilav-Veli?
Recent studies show that seniors will soon become one of the major prospective segments in hospitality and travel industry. Given that population aged 65+ is usually retired with pensions, they have leisure time for travelling at any time of the year. They are also the most demanding expecting services excellence and high-level security while at the same time 63% of seniors aged 65-74 reported some sort of chronic illness. Hence, energy-efficient and health-focused facilities can be a significant potential for tourism development in Sarajevo region, which is a popular destination considering its unique nature, rich gastronomic, cultural and historical heritage. However, currently there is no market segmentation tailored to specific needs of senior tourists and research aims to explore opportunities for this type of services with the objective of introducing accommodation facilities for elderly based on eco-smart solutions with highlighted focus on well-being and health. Setting of still water machines and installation of renewable energy system for electricity, ventilation and heat can have various positive effects increasing security, providing more healthy conditions, influencing life expectancy and counteracting the aging. Methodology includes feasibility study of eco-smart and health-oriented facility for seniors while practical implications for future actions are given in the conclusion.
64 THE ANALYSIS OF ORGANIZATIONAL CULTURE VALUES IN PUBLIC SECTORS IN LATVIA , Maija Ivanova, Ir?na Kokina
Organizational culture is an important issue because of its` big influence on enterprises’ productivity and consequently on realization of their objectives and goals. The validation and harmonization of organizational values and employees’ values has an important role in increasing operational efficiency. It has long been established that enterprises and organizations, where creative and interested employees who support and understand the organizational values of the company work, operate more effectively. In this article elements of organizational culture are studied with a particular focus on the meaning of organizational culture values. This article also reveals an evaluation of the organizational culture in public sectors in Latvia (based on publicly available data and sources of information). In the research there is an indepth analysis of official public organizational culture values included. The analysis has been done in the context of rating different leaders’ organizational values. In this article we analyze the conclusions of various writers on the subject of organizational culture framework characterization. The research of values guidance as well as a view of cultural meaning and influence on both individual and organizational development is described here. The authors analyze the results of empirical research about official public values of companies and the results of a public leaders’ survey (as well as the personal values of employees) which provide an opportunity to compare organizational employees’ values with the common results of organizations. Conclusions shows public characterization of values and values distribution in potentially limitative and positive values. The in-depth research of organizational values is based on A. Maslow’s (Maslow 2000) hierarchy of needs approach and developed on R. Barrett`s (Barrett 2006) sample of seven levels of consciousness.
65 INNOVATION IN TOURISM: PERCEPTION OF TOURISM PROVIDERS FROM CROATIA AND SERBIA , Iva Slivar, Sanja Boži?, Anka Batkovi?
Innovations represent a challenge that every company faces during its life cycle no matter what kind of business sector it operates in. In today’s world of competition and fastgrowing industries, it is paramount to be innovative, especially in tourism. The main aim of this study was to determine how businesses and their employees in two countries - Croatia and Serbia, are directed toward new innovations, which innovations are most important to them, what are the main barriers to implementation and if there is a difference between innovation implementation in those two countries. For this purpose, the study was conducted in 13 tourism companies in Croatia and 20 in Serbia, in the period July-October 2016. The results indicate that companies in Croatia (M=3.86) are more open to innovations than Serbian tourism companies (M=3.50). Furthermore, the study showed that respondents have similar wishes and motives when implementing new ideas or innovations, such as educated workforce, health and well-being of people or improved business management. However, when it comes to key areas for innovation implementation, in Croatia emphasis should be on training and education of the workforce, while in Serbia emphasis should be placed on the introduction of new technologies. In addition, the key limiting factors of innovation implementation that stood out only in Serbia are lack of funds and poor ownership structure. However, there is willingness to implement innovations and readiness to work towards it. Education and a capable workforce are deemed essential to accomplish and implement new innovations in most companies.
66 MOTIVES AND BARRIERS TO THE CONSUMPTION OF INNOVATIVE FOOD PRODUCTS BY POLISH AND UKRAINIAN CONSUMERS , Anna Jasiulewicz, Marzena Lemanowicz
The significant increase in the number of new food products means consumers have the opportunity to choose from among a wide range of innovative foods, which bring a variety of benefits to consumption, but can also, for some, raise uncertainty, opposition and suspicion. The article reviews the literature on innovative food products and their acceptance by consumers. The results of own research on the purchase motives and barriers to consumption of such products are presented in the context of theoretical considerations. The study is presented in relation to the issue of consumer innovativeness as a determinant affecting the approval or rejection of new products. The respondents’ degree of innovativeness was evaluated according to Rogers’ concept and the impact of this variable on the respondents motives of to purchase innovative products. For the comparative analysis of Polish and Ukrainian consumers’ behaviour on the innovative food products market, international research was conducted in 2015 on a sample of 340 Polish and 255 Ukrainian respondents (595 respondents in total). The results clearly show consumer types differing from the Rogers distribution, as well as differences between Polish and Ukrainian consumers’ appetite for innovation. Analysis of the literature and the research results together indicate that the motives and barriers to consuming innovative food products come down to features of the innovation (including price, functionality, healthiness, convenient packaging, taste), consumer characteristics (neophilia, neophobia, innovativeness) and environmental characteristics (trends in consumption, marketing and social communication). Those consumers who are innovators play an important role in shaping the positive attitudes of buyers in relation to innovative food products. Products possessing attributes consumers consider to be essential may also help in the desire to adopt innovation. Basing on the research results certain implications for managers responsible for introducing new food products to the market were presented in the paper.
67 REVIEW OF METHODS FOR THE SURVEILLANCE AND ACCESS CONTROL USING THE THERMAL IMAGING SYSTEM , Mate Krišto
This paper presents methods for human detection for application in the field of national security in the context of state border surveillance. Except in the context of state border security, the presented methods can be applied to monitor other protected object and infrastructure such as ports and airports, power plants, water supply systems, oil pipelines, etc. Presented methods are based on use of thermal imaging systems for the human detection, recognition and identification. In addition to methods for the detection of persons, are presented and methods for face recognition and identification of the person. The use of such systems has special significance in the context of national security in the domain of timely detection of illegal crossing of state border or illegal movement near buildings, which are of special importance for national security such as traffic infrastructure facilities, power plants, military bases, especially in mountain or forests areas. In this context, thermal imaging has significant advantages over the optical camera surveillance systems because thermal imaging is robust to weather conditions and due to such an infrared thermal system can successfully applied in any weather conditions, or the periods of the day. Featured are procedures that has human detection results as well as a brief survey of specific implementation in terms of the use of infrared thermal imagers mounted on autonomous vehicles (AV) and unmanned aerial vehicles (UAV). In addition to the above in this paper are described techniques and methods of face detection and human identification based on thermal image (thermogram).
68 CHANGES IN HIGHER EDUCATION: A COMPARISON OF KEY FACTORS CONCERNING UNIVERSITIES IN AUSTRIA AND SWITZERLAND , Robert Rybnicek, Alfred Gutschelhofer, Katharina Suk, Julia Plakolm
Society has changed sustainably and universities have thus faced new requirements. As a result of competition and globalization, education and knowledge management had to be adapted. Universities were forced to establish a modern management system primarily known from the private sector and governments had to reconsider their legal and economic relationship to universities. In recent years, many countries have implemented new rules for their universities. Two of these countries were Austria and Switzerland. But even when they pursued the same goals, they have chosen quite different approaches and as a matter of fact achieved very differing results. The objective of this study was twofold. Firstly, we analyzed the challenges and contradictions when implementing a modern university model. Secondly, we investigated specific characteristics of the university systems of Austria and Switzerland to identify factors that may have impacted the performance and success of the universities. Referring to our first objective, a literature review has revealed severe contradictions between modern university management and the traditional understanding of it. While the traditional scheme has focused mainly on research, teaching is becoming more relevant in the new demand orientated university. Also, the freedom of science and teaching is limited by the strong orientation on goals that have been agreed upon with the government. Further contradictions can be identified in autonomy, budgeting, leadership, hierarchy, and employee participation. To examine the second research aim, we reviewed national and international databases and reports. Our results emphasize the importance of monetary aspects, the student-teacher-ratio, autonomy, and the relevance of the universities’ reputation and acceptance within society and politics. Our findings can help to understand the different approaches which have been chosen to cope with global changes in higher education. They might serve as basis for decision-making in higher education policy.
69 BUSINESS TRANSFER ECOSYSTEM IN CROATIA - MISSING COMPONENTS AND INTERACTIONS , Alpeza Mirela, Singer Slavica, Mezuli? Juri? Petra
Business transfer is an important issue that the European Commission has been actualising since the early 1990s, when the first recommendations for the improvement of national business transfer ecosystems of the EU countries were created. Neglecting business transfer as a critical phase in the development of a company can have significant negative implications for companies, their owners and wide network of stakeholders. Business transfer is a particularly important topic for the Croatian economy where more than 5,300 businesses with around 57,000 employees represent a risk group whose owners underestimate the complexity and longevity of the business transfer process. The aim of this paper is to analyse the structure and quality of the business transfer ecosystem in Croatia. For this purpose, secondary research and a qualitative study in the form of interviews with representatives of key stakeholders were conducted. The Croatian business transfer ecosystem is benchmarked to the national business transfer ecosystems of Spain, Finland, Sweden and France, based on the data collected through the EU project BTAR. The research results indicate low level of development, interconnection and complementarity of individual components of the business transfer ecosystem in Croatia. Policy recommendations for improving the quality of the business transfer ecosystem in Croatia were identified.
70 EUROPEAN FUNDING - IMPACT ON RESEARCH CAPACITY IN CROATIA , Vesna Kotarski
Limited national budgetary resources for R&D in period from 2007 to 2013 imposed a need for Croatian researchers to apply for European research grants. A challenge for effective absorption of European Structural and Investment Funds in the period 2014 to 2020, highlight a need to assess the impact of this external funding on research capacity in Croatia in 2007-2013 period. Qualitative interviews with grant recipients from Ruder Boskovic Institute revealed intangible achievements in terms of research career, enhanced interaction and knowledge transfer to business community, improved research management competences and possibilities for collaboration with internationally recognized research teams. Similar results from studies carried out in other countries indicates the importance of intangible achievements of research grants, which are becoming more and more relevant in the context of public policies (networking, cooperation, strategic planning, knowledge management). The use of EU funds is an extremely complex process which requires a change of approach to the use of public funds and the introduction of the principle of transparency of procedures for all stakeholders in the process, equal access to information and sound financial management. Weaknesses of the Croatian scientific system and absence of will to support excellent research through competitive funding present real threats to successful participation of Croatian researchers in the European framework programs and other external research funding programs. Findings of the study provide valuable insight for national authorities in terms of effective management of national research and innovation programs while maximizing the potential impact of EU funds allocated.
71 INNOVATIONS AND IMPLICATIONS OF THE TRANS-PACIFIC PARTNERSHIP AGREEMENT , Joseph A. McKinney
Twelve Pacific Rim countries that account for forty percent of world output and more than a quarter of world trade have signed a Trans-Pacific Partnership (TPP) agreement. Assuming that the agreement is ratified and implemented by the signatory countries, the TPP will have important implications for the world trading system. New ground is broken in this mega-regional agreement in a number of areas where progress has not yet been possible in the more comprehensive World Trade Organization negotiations. This paper provides an analysis of the innovations in the agreement, assesses their significance for the broader world trade regime, and considers the feasibility of extending them to the multilateral trading system. Synergistic effects on other ongoing mega-regional negotiations are also considered.
72 INNOVATION AND ENTREPRENEURSHIP IN THE COOPERATIVE ENTERPRISE: A HORNET? , Antonio Matacena, Maria-Gabriella Baldarelli
In European economy system, one part consists of cooperatives. This paper aims to answer the following research question: “May cooperatives be considered an innovative ideal type of socially responsible enterprise?”. The goal is to demonstrate that the mutual cooperative enterprises are the ideal type of innovative socially-responsible businesses and as such they have the strategic important vocation to disclose social and environmental information towards both internal and external stakeholders.
73 TALENT ENGAGEMENT FRAMEWORK AS A JOURNEY TO PERFORMANCE , Maria Jakubik
This conceptual paper proposes a framework for engaging talents at work that leads to business performance. The framework is built on concepts that are evolving and they are defined in several, in many cases confusing, ways in the literature. The research methodology is literature review. Therefore, the paper starts with overviewing the concepts of the knowledge economy, skills, knowledge, talents, work engagement, and organizational performance. Then, the suggested framework is presented and discussed. The paper contributes to a better understanding of the underlining conditions and processes of value creation through talent engagement, calling for more discussion around this phenomenon.
74 Application of Cournot's model on a couple's budget allocation , Katarina Kosteli?
Budget allocation of the couples belongs to the field of family finance management, but also represents a source of dispute among them, which directed the research of this topic towards family therapy and psychology. This paper will offer quantitative approach, implementing Cournot’s duopoly model to a situation of a couple’s budget allocation. That will emphasis the underlying economic principles, as well as show that there exists an equilibrium solution or an equilibrium set of possible solutions.
75 A review of theoretical and empirical research on human capital quality in Croatia , Katarina Justi? Jozi?i?, Marinko Škare
Human capital is an important factor of economic growth. Its quality affects the level of available labour’s competitiveness. The aim of this paper is to determine human capital quality in Croatia. This paper also tends to indicate the human capital factors in Croatia. Human capital quality is determined by the quality of the education system, than the investment in education and also participation rates in education. When considering the education quality, mainly is to observe the quality of the formal education. The quality of Croatian education system can be measured by quantitative indicators such as numbers of completed years of schooling. But also, by qualitative indicators, which are based on an international comparative research of educational student achievement of different countries. One of these international comparative researches is PISA1for pupils in which Croatia is included since 2006. This paper will point out the importance of investment in human capital in Croatia. Insufficient investments in human capital can become the limitation factor to economic growth. According to data from UNESCO2, the Croatian public expenditure on education in 2011 amounted to 4.16% of GDP. With that, Croatia is placed below the average3 of OECD countries which amounted in average of 6.1% or to EU countries 5.8% of GDP. An important indicator of human capital quality is also the rate of participation of Croatian population in education. According to the last population census in 2011, Croatia has sufficient educational structure: illiterate less than 1%, with only primary school about 30%, most with secondary education 52%, and the share of highly educated 16.4% (increases over 4% from the last one in 2001). This paper is primarily focused on the review and systematization of the existing literature and studies on the quality of human capital in Croatia. Many researches about the topics on human capital have been indicating to its high importance. The intention is to show if Croatia has recognized the importance of human capital and its quality in comparison to other countries.
76 Revealed comparative advantage index: an analysis of export trade in the Austrian district of Burgerland , Doris Granabetter
The Austrian District of Burgenland is located in the eastern part of the country. In the last decade, the region has benefited from different subsidy programs from the European Union. The aim of this paper is to analyze and evaluate the export competitiveness of Burgenland in relation to the foreign trade of Austria as a whole from 2010 to 2014, which is the period showing the highest increase in exports since the Iron Curtain fell. The Revealed Comparative Advantage index (RCA) was used to determine the development of the region’s exports. The RCA index is used in international economics for calculating the relative advantage or disadvantage of a certain country in a certain class of goods or services. The findings show that Burgenland has important exports of agricultural products and that economic relationships with neighbouring countries are deepening. This study is an important contribution towards demonstrating the development of former Objective 1 area countries in the European Union.
77 The importance of human resources for companies with energy profiles and their influence in raising the operating efficiency , Fisnik Osmani
Human resources are the most important part of the operation in an enterprise. Based on this logic, companies must continuously invest in increasing the performance of internal capacity through the creation of their strategies which will define clear developing objectives. Enterprises, be it large or small companies, private or public, especially companies with energy profiles such as power plants or district heating, to offer their services, an internal organization of a high level is needed. This arrangement inevitably must include human resources. In our case, we have analysed the functioning of District Heating “Termokos” in Pristina, which for a year now operates with a new system of providing thermal energy - cogeneration project. Of course this also requires changes in the functioning of the enterprise reorganization, since we are dealing with the creation of new departments which require qualified and professional framework. During the analysis, we will focus on current data that we have from District Heating. To process the data we are using recognized statistical methods and similar models through which we will give our recommendations, for better functioning of the enterprise.
78 INVESTIGATION OF UNIVERSITY STUDENTS’ EFL WRITING APPREHENSION: A LONGITUDINAL STUDY IN CROATIA , Moira Kosti? Bobanovi?
Writing apprehension defines a person's ability to write under various stress types. Depending on a situation, an average person might perform below expectations, or be less apprehensive about writing than a professional. The purpose of this research is to investigate Croatian University students’ English as a foreign language writing apprehension. For the purpose to determine if the variables of students' gender and academic level (age) play a role in their writing apprehension, we adapted WAT (Writing Apprehension Test) so this would be tailored to our study popu-lation. A longitudinal study was conducted among the students who were studying at the University of Juraj Dobrila, Pula. The participants were tested twice: in the first and in the third year. The results of the study indicated that, in contrary to respondents’ gender, academic level was significant variable in their estimates of writing apprehension. In accordance with the findings stated above, a number of recommendations for handling writing apprehension were set.
79 DEVELOPING MARKETING STRATEGY OF POULTRY MEAT SUPPLY IN EU- 28 COUNTRIES: MULTIVARIATE ANALYSIS APPROACH , Miro Simoni?, Ksenija Dumi?i?, Berislav Žmuk
To create a concept of the marketing strategy, it is necessary to analyse the factors affecting the purchasing decisions of consumers. For the variables: production, import, export, and manufacturer's price we examine their impact on the marketing of poultry meat in the EU-28 in 2009 and 2011. Countries are grouped into clusters, their properties are analysed in relation to the mentioned variables. With multiple regression analysis, we find that there is a statistical correlation between high production and de-pending on the variable, and between the imports and exports as the independent vari-ables. Based on the analysed data in the researched countries, we conclude that the qualitative development of the production of poultry meat required implementing sophis-ticated agricultural policy with low inputs prices and exploit all available spare re-sources.
80 THE LINK BETWEEN STUDENTS' SATISFACTION WITH FACULTY, OVERALL STUDENTS' SATISFACTION WITH STUDENT LIFE AND STUDENT PERFORMANCES , Zoran Mihanovi?, Ana Barbara Batini?, Jurica Pavi?i?
Customer satisfaction has long been recognized as a central concept of all business activities. Satisfaction can serve as an indicator of success of the company, both in the past and present, as well as an indicator of future performance. High quality service to students is a prerequisite of maintaining competitiveness in the market of higher education. A relationship that is created between the expectations of students and their satisfaction with the quality of service that provides educational institution plays an important role in shaping the reputation of academic institutions. Academic institutions are becoming aware of the importance of student satisfaction, because satisfaction positively influences their decision to continue their education at this institution, and the positive word of mouth that will attract prospective students. Satisfaction will affect student motivation, and therefore their performance. This paper provides insight into the marketing aspects of customer satisfaction, primarily insight into the satisfaction of students in the educational sector. The aim is to establish the influence of satisfaction various factors related to the university and higher education to the satisfaction of student life, and does student life satisfaction affect the overall happiness and student performance. The research was conducted on the student population of the University of Split, on a sample of 191 respondents. The research was conducted with the help of online survey questionnaire. The claim that student’s satisfactions with housing affect the satisfaction with the quality of student life is rejected. The results confirmed that the student’s satisfaction with university contents, university bodies and services, teaching, teaching methods and academic reputation affects the satisfaction of student life and student life satisfaction affect the student performance.
81 THE DRAWBACKS AND REFORM OF CHINA’S CURRENT RURAL LAND SYSTEM: AN ANALYSIS BASED ON CONTRACT, PROPERTY RIGHTS AND RESOURCE ALLOCATION , Guo-ping He, Hou-qing Luo
This article analyzes the drawbacks of China’s current rural land system (the Household Contract System based on the collective ownership) mainly from the perspectives of contract, property rights and resource allocation. This article defines the Household Contract System as a lease where the collective (landowner) leases land to its members to farm independently. The drawbacks of China's current rural land system mainly include instability of the peasants’ land use right and insecurity of their land income right weakening peasants’ enthusiasm for investment in land, and a lot of restrictions on the transfer of peasants’ land leases obstructing the flows and optimized allocation of labor, land and capital. According to analysis, the drawbacks of China’s current rural land system result mainly from the collective ownership and the government-run nature of the collective. This article then makes and elaborates the proposition of the privatization of rural land to peasants. It also analyzes the government’s land rights in private ownership of land and refutes the popular arguments against the privatization of rural land.
82 CORRELATION BETWEEN THE PENETRATION STRATEGIES AND MARKETING MIX OF INTERNATIONAL HOTEL CHAINS IN ROMANIA , Adina Cosma Smaranda, Cristina Fleseriu, Marius Bota
On the Romanian market there are 21 international hotel chains, having 51 hotels. The goal of the research paper is to analyze which are the marketing mix policies and strat-egies used by the hotels, belonging to an international hotel chain on the Romanian market. For this purpose, a descriptive research was implemented through investigation of all the hotels that are part of an international hotel chain. The research reveals that hotels operate by abiding the norms established by contract. The higher the risk, the investment and control are, the more influence the hotel chain has regarding the pricing strategies. Hotels use their own channels but also the parent chain channels. Promo-tion strategy takes into account global, regional and local issues encountered. The ma-jority of the hotels have the possibility to decide some internal elements for their per-sonnel. All the hotels apply norms and standardized procedures regarding the quality of the services. The most expected advantage for a hotel that belongs to an international chain is the visibility at international level.
83 THE EFFECTIVENESS OF INNOVATION PROJECTS IN POLISH INDUSTRY , Jan Zwolak
The objective of the study was to determine the dependency of the net income from the sales of new and significantly modernised products on the expenditure on (1) marketing and staff training as well as on the expenditure on (2) land, buildings and structures; machinery, technical equipment and tools; and means of transportation within the scope of product and process innovations in Polish industry in 2010. Furthermore the study was intended to determine the effectiveness of the abovementioned expenditure aggregated to descriptive variables (1 and 2). In the study, the correlation and regression methods as well as the least squares method was applied.The estimation resulted in the determination of functional dependency of net sales income on the expenditure on marketing and staff training (0.5040) as well as on the expenditure on land, buildings and structures; machinery, technical equipment and tools; and means of transportation (0.8064) in the field of innovative processes in industry. The net sales income increased more than proportionally relative to the combined effect of the aforementioned expenditure (1.3104). The total increase in the aforementioned expenditure by 10% resulted in the increase in net sales income by 13.1%. The determined power regression model may have practical implications for the economic evaluation of expenditure in innovative processes in Polish industry in the future, as well as for the forecast (prediction).The expenditure application in innovative processes may also have social implications connected to the increase in the value-in-use of products and with the increase in the social efficiency of work in Polish industry.
84 CAUSAL PEER EFFECTS IN FINANCIAL DECISION MAKING , Ana Njegovanovi?, Krešimir Petar ?osi?
The research paper connects three key elements from the study (conducted using neural database of experimental asset market that have tested the fundamental mechanisms that generate peer effect, the neural database was measured using functional magnetic resonance imaging (fMRI); Cary Frydman, 2015- University of Southern California-Marshall School of Business) relating to: experimental control in the laboratory of random peer assignment,; neural activity in testing new prediction explaining peer effect and neural activity in the conduct of trade. The methodology used in the research of peer effect relies on the theory of predicting error, the signal which measures changes in anticipation of the net present value which generates new information. Cognitive neuroscience shows that the prediction error is measured in a certain part of the brain known as the ventral striatum. Measuring the potential value gives insights to economists on which factors affecting the subjective utility. Testing is constructed with 48 patients who were given ... There are two difficulties in identifying causal peer effect in economic behavior (Minsk, 1993). Correlated behavior between two representatives may potentially be the engine by common shocks of the peer group or endogenous election in the peer group. In addition to the prediction that deals with causal peer effect, there have been further developed predictions that generate different mechanisms of peer effects using neural database. Focus on neural prediction is the neural activity that generates the moment when peers allocation investment is published, respectively the display of "peer decisions". This display is exclusively linked to the processing of information as opposed to considering solutions. This is significant because neuroscience is characterized by neural activity that generates new information in decision making. Thus, neural prediction is determined by the ventral striatum, which predicts the occurrence of peer decisions. The large part of the literature in social psychology suggests that people have a direct need to follow others, especially manifested in situations where there is no objectively correct action, so the cause of intermediaries used peer action as a social anchor on which it bases its behavior. Certain dialectical relationship between neuroscience and neurofinance determines a deeper understanding of financial decision making which leads to different results and different cognitive operations. Our thoughts, although abstract in form, determine procedures of certain neural circuits within our brain. The goal of neuroscience is uncovering these circuits and the possibility of deconstructing complex thought processes in individual components and determine how they integrate into our thought process. The results lead towards the understanding of decision making which shape our future and fate. The market implications, from the aspect of neurofinances, is vital in uncovering deeper knowledge about the effect of emotions and states such as attitudes towards risk, excessive trust, heuristic bias and gender, which finally results in financial decision making on an individual and institutional basis. The implications of fear and corruption in the financial industry can be explained through neurofinance and even give us more choices in the decision process. Social decisions demand an evaluation of costs and benefits for oneself and others. Connected with emotions and caution, the amygdala is involved in decision making and social interactions. The harm caused by the amygdala deteriorates social interaction, while the social neuropeptide oxytocin affects social decisions by changing the function of the amygdala in one aspect. Empirical research, conducted on a sample of randomly selected subjects who were given identical information, shows that on the basis of the neural database gathered from experimental asset market for testing underlying mechanisms which generate peer effect (Cary Frydman, 2015). Experimental evidence of peer effect in individual behavior of trade and neural data were used for testing of experimental mechanisms generating peer effect. Although the mechanisms which create peer effect in laboratory experiments don't suit the quantitative norm they can ensure settings for probing mechanisms using neural database. The methodology of neurofinance replicates the behavior of trade in laboratory conditions which are robustly found in the field.
85 DEVELOPMENT OF FRANCHISING IN CROATIA OBSTACLES AND POLICY RECOMMENDATIONS , Mirela Alpeza, Aleksandar Erceg, Sun?ica Oberman Peterka
Franchising is very popular growth model but despite the wide application of franchising in the developed countries of the world, its impact on the Croatian economy is still marginal. The purpose of this research is to identify the obstacles and challenges to a wider application of franchising in Croatia and generate policy recommendations for removing the identified obstacles. Obstacles and recommendations are identified on the basis of a conducted longitudinal qualitative research, the first phase of which was conducted in 2006, and second in 2014. The overall results of this research were presented in a form of PEST analysis and compared with the results of the 2006 research aiming to detect changes (improvements/ deterioration) in individual areas of the research political, economic, legal and technologic factors of influence on the development of franchising in Croatia. Based on the detected changes, conclusions and policy recommendations were identified.The obstacles can be divided in two categories: franchising specific barriers and general business related obstacles for doing business in Croatia. Without removing most of these obstacles, it is unrealistic to expect high growth of franchising activities in Croatia in near future.
86 COMPETITIVE INTELLIGENCE: IMPORTANCE AND APPLICATION IN PRACTICE , Šaban Gra?anin, Edin Kalac, Dejan Jovanovi?
Paper represents positive effects of competitive intelligence (CI) usage in the process of strategic decision making within the company. We analyze current state of CI awareness in Serbian businesses, and influence of CI on business performance of companies operating in Serbia. Study provides empirical comparative data on competitive intelligence implementation practices in developed countries and Serbia. Survey results, based on summarising and comparative analysis of field data, indicate that there are small differences in practical implementation of CI between companies in Serbia and those in EU. We indentified differences between the CI practices in Japan and USA on one side, and EU countries and Serbia on the other. Research aim is to make an assessment of competitive intelligence systems application in practice, and to provide necessary recommendations for companies based on the “best CI practices” in most developed countries, as well as basis for future studies.
87 CURRENT CRISIS IN THE EU IN THE LIGHT OF THE CONTRADICTIONS OF THE CORE - PERIPHERY DEVELOPMENT MODEL , Natalija Nikolovska, Daniela Mamucevska
This paper deals with the essential problems of the current economic crisis in the European Union analyzed from the aspect of the core – periphery development model. In the first part of the paper theoretical concepts are presented for explanation the reasons for divergence in the economic development among regions. In the second part of the paper special attention is given to the real convergence among the selected EU member countries. Regarding this, the paper arises the dilemma thus the stabilization programs, will be successful recipe for solving the problems of the current crisis.
88 CAUSES AND MEASURES FOR PREVENTING FUTURE CRISIS IN EU , Siniša Višnji?ki, Jurica Bosna
Authors summarized major causes of current financial crisis in EU on global and regional (European) level. On a global level these are credit rating agencies and compensations of CEO directors in financial sector. On regional level these are structural imbalance, increasing debts of EU countries, foreign trade imbalance among EU countries and loss of confidence in debt of EU countries. Measures for preventing future crises in EU according to the authors are improved debt management, application of Keynesian ideas for overcoming the crisis, reform of the criteria for entering the Eurozone, creation of a fiscal union, exit of the PIIGS countries from the Eurozone, taxation of the financial sector and creation of a banking union.
89 DO FINANCIAL STATEMENTS PROVIDE ADEQUATE INFORMATION ABOUT THE CAPITALIZATION OF COSTS RELATED TO INTANGIBLE ASSETS?: AN EMPIRICAL RESEARCH ON ITALIAN LISTED COMPANIES , Stefania Vignini
The aim of our research is to verify if Italian listed companies financial statements provide adequate information about the capitalization of costs related to intangible assets and if the information provided are reliable. Moreover, we investigated if they merely comply with law or provide additional information on cost capitalization and reveal if internal control systems (especially managerial accounting systems) or other information systems are applied to support the measurement process and the cost control, thus guaranteeing the verifiability and representational faithfulness of the information disclosed. This paper is an empirical analysis and is concerned to investigate the financial statements of 250 Italian listed companies.
90 EMERGING TRENDS IN TOURISM: NEED FOR ALTERNATIVE FORMS IN MACEDONIAN TOURISM , Nikola Cuculeski, Ilijana Petrovska, Tatjana Petkovska Mircevska
The purpose of this paper is to research the development of tourism, taking into consideration the growing competition and new consumer intentions. The aim of this research is to analyze the alternative forms of tourism as a crucial factor for long term sustainability. As a basic research method used is an interview with tourist providers in Macedonia (travel agencies – DMC companies and tourist guides), regarding their experience for alternative tourism forms. Results are showing growing trend of alternative forms of tourism considering different tourist nationalities. These results are valuable for further scientific research in consumer analyzes, and presents an input for the national tourism in this region.
91 VARIATIONS BETWEEN FINANCIAL RATIOS FOR EVALUATING INANCIAL POSITION RELATED TO THE SIZE OF A COMPANY , Ana Ježovita
The paper includes analysis of financial ratios for evaluating a financial position. It is possible to assess the financial position of a certain company by using and combining liquidity, solvency and activity ratios. Preferable values of financial ratios should be related to the different factors, including industry, geographical position, size of a company. For research purposes appropriate parametric and non-parametric statistics is used. The research includes analyzing differences between financial ratios related to the size of companies in Croatia. Obtained results of the conducted research shows existance of statistically significant differences between financial ratios for evaluating financial postition for different companies sizes.
92 IMPACT OF FOREIGN DIRECT INVESTMENT (FDI) ON DOMESTIC INVESTMENT IN REPUBLIC OF CROATIA , Igor Ivanovi?
The aim of this paper is to investigate how foreign direct investment (FDI) affects domestic investment in the Republic of Croatia. More precisely, the general purpose of this study is to determine the impact of net inflow of foreign capital on domestic investment in order to gain a clearer picture about the sensitivity and efficiency of domestic investment. After parsing domestic investment and FDI in Croatia, according to Croatian Bureau of Statistics and the Croatian National Bank, a historical overview of their movement from 1995 to 2014 was analyzed. In the following an overview and comparison of studies from around the world which deal with similar topic was made. In the empirical part; domestic gross fixed capital formation, changes in domestic stocks, net FDI and GDP growth rate was used as variables. Quarterly time series data ranging from the Q1 2001 to Q4 2014 were processed with the subset VAR (vector autoregressive) econometric model. The results shows that FDI have negative influence on domestic investment in the Republic of Croatia with time lag.
93 THE ROLE OF TECHNOLOGY AND CITIZENS’ INVOLVEMENT IN SMART, INCLUSIVE AND SUSTAINABLE URBAN DEVELOPMENT , Ružica Bukša Tezzele, Raffaele De Amicis
Human participation and the use of technology are considered as key factors for smart and sustainable urban development. Over the past decade, governments, academic community and organized civil society have been turning their attention to solving urban problems with the new tools of advanced technology. Based on three years of R&D, this paper aims to identify crucial factors for citizens’ involvement in development and adoption of smart city services. It will bring out the results of citizens’ involvement in the i-SCOPE project and explore why some European communities have succeeded in involving their citizens, and the others have not.