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Determinants of foreign direct investment from EU-15 Countries in Poland

Abstract

During the last two decades, Poland has become a large recipient of inward foreign direct investment (FDI). This article uses standard panel data techniques to study empirically the determinants of inward FDI in Poland during the period 1996–2015 made by multinational enterprises coming from the old European Union (EU)-15 member states. The estimated specification is derived from the knowledge-capital (KC) model and includes two types of capital: human and physical. The assembled empirical evidence points to the horizontal motive as the primary reason for undertaking FDI in Poland by multinational firms based in the old EU-15 member states. Moreover, the KC model does not seem to explain better the pattern of inward FDI in Poland compared to the standard ad hoc gravity model of international capital mobility.

Open access
Evaluating the Relationship Between Financial Sustainability and Socio-Economic Development of Countries

Abstract

This paper examines the mainstream theories of “financial sustainability” and “financial development”. It is suggested understanding “financial development” as the complex dynamic characteristics of the financial sector, which is formed under the influence of financial and economic policy factors and the financial market functioning. The paper provides the methodology of relationship between financial sustainability and socio-economic development of countries evaluation. Based on the matrix method, it is proved that the differences in developed and developing countries occur due to the relationship between financial sustainability and financial development.

Open access
The unobserved economy and the Dutch national accounts after the benchmark revision 2015

Abstract

In 2018, Statistics Netherlands carried out a general benchmark revision of their national accounts statistics. The base year was 2015. Special attention was paid to the exhaustiveness of the estimates. Among other, these include estimates for illegal activities and tax evasion. In the first step, the main (illegal and off the record) activities that were not included in the regular data sources underlying the national accounts were identified. In the second step, estimates were made for each identified activity, based on the scarce information data sources available, supplemented with assumptions. This paper describes the second step. The value added of illegal activities in 2015 was estimated at 4.8 billion euros, which is 0.7% of gross domestic product (GDP). The explicit adjustment for tax evasion was about 3.9 billion euros, which is slightly <0.6% of GDP.

Open access
Adjusting Bank Recruitment to the Specifics of the Millennial Generation as Conditions of Attractiveness Decline for Employment in the Banking Sector

Abstract

The article discusses the problems of commercial banks related to the deterioration of their image as employers, especially in eyes of the millennial generation, which soon will become the most attractive category for employment in modern business. The main criteria that guide the millennial generation when choosing a future job are identified. A detailed analysis of the strengths and weaknesses of banks as employers has been carried out, and advice for image improvement has been formulated, aimed at the young audiences of potential bank employees. It was proven that banks should build not only an effective PR campaign to create a powerful image of a reliable employer, but at the same time they should establish a reliable system to counteract unfair competition, ultimately aimed at destabilizing financial institutions, which are most sensitive to image problems.

Open access
Analysis of Macroeconomic Factors Effect to Gross Domestic Product of Bosnia and Herzegovina Using the Multiple Linear Regression Model

Abstract

This paper presents the application of the multiple regression analysis model in macroeconomic research using the model of Bosnia and Herzegovina in the period from 2005 to 2018. The objective of the research is to evaluate the effects of macroeconomic factors (independent variables) to gross domestic product (dependent variable), and based on theoretical and methodological research. Applying the Enter method, out of six independent variables, they are all included in the regression model, whereas the sequence of inclusion in the model is the following: foreign direct investments, Import, Export, Growth rate, unemployment and inflation. Numerous research indicate positive connection between gross domestic product as the dependent variable and foreign direct investments, Import, Export, Growth rate, unemployment and inflation, as independent variables. Other factors negligibly explain the most important indicator of economic activities of a country. Our assignment is to either confirm or reject the abovementioned statement.

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The Analysis of the Economic Impact of VAT on the Economic Growth in Southern Europe

Abstract

The Southern Region of Europe is economically well-developed with highly industrialized urban areas and with great agricultural potential. The empirical analysis is based on an econometric assessment that measures the impact of the VAT on the rate of economic growth for years between 1996 and 2017. The empirical evidence highlighted a significant positive impact of VAT on economic growth, but a poor and ineffective use of the tax revenues during the period under review. Moreover, evidence revealed relatively high rates of VAT in the countries analyzed, with negative impact on the aggregate consumption and a diminishing effect of the consumer’s income.

Open access
Application of the T-Test in Health Insurance Cost Analysis: Large Data Sets

Abstract

In this paper will be analyzed the application of the t-test against the nonparametric Mann - Whitney test in the analysis of health insurance benefit costs in the Republic of Srpska on large samples. This research aims to examine which method produces better results when testing statistical hypotheses. The adequacy of the statistical tests will be tested on primary health insurance cost data for 1,044,690 insureds in 2017. For two samples of size 4,000, the sampling distribution of the difference in two means has a skewness coefficient of 0.05 and a kurtosis coefficient of 3.09. Jarque - Bera test does not reject the hypothesis of normality of distribution with a p-value of 0.135. On the other hand, in the Mann - Whitney test, the real risk of the first species, when there is a difference in skewness between the samples, may be less than 0.001 compared to the nominal risk level of 0.05. Based on the results obtained, it is suggested to use the t-test instead of the Mann - Whitney test if the sample is large enough, which should be verified by the bootstrap method.

Open access
Business-Government Interaction: A Thematic Analysis

Abstract

The article analyzes the interaction between business and government, the purpose of which is to identify the leading thematic blocks, where the most significant issues underlying this interaction are concentrated. Highlighting two meanings in the practice of interaction between business and the state, in one of which the state merges with business, and in the other - disagrees with it on key issues, the author proposes to use the theory of stakeholders of I. M. Jawahar and G. L. McLaughlin. The use of this theory allows to identify several types of interaction, including six main functions: facilitating, stimulating, control, sanctions, arbitration and regulatory. The content of these functions is concentrated in the list of basic activities of authorities in the field of regulation of business processes. For the purpose of complex and systematic consideration of these functions, the article proposes a 3D model of interaction between government and business. On the basis of this model the author carries out the content analysis of materials of the leading among businessmen of the Omsk region newspaper “Commercial news” on the basis of which the leading thematic blocks of interaction of the power and business updated by various types of lighting are allocated (analytical article, interview, reportage, a note). The important role of the media in assessing and structuring the relationship between public authorities and business structures determines the usefulness content analysis and the choice of the object of the study. The study highlighted a number of leading thematic blocks of interaction, updated on the pages of the weekly in the period from 2018 to mid-2019. Based on the study, the author identified and ranked thematic blocks considered in the context of his proposed 3D- model, formulated the most characteristic problems of interaction between business and government at the present stage.

Open access
Can Corporate Social Strategy Create Shared Value Toward Creative Business? “Volvo Social Strategy Model”

Abstract

Purpose: This paper aims to provide corporate social strategies as an entrance to create shared value, in addition to that we aims to provide a theoretical and practical contributions that ground understanding the concept of creating shared value.

Design/methodology/approach: The authors analyze a single case study of Volvo corporation. The objective is to evaluate whether the corporate social strategies can yields to a shared value creation.

Findings: We found that corporate social strategies followed by Volvo Corporation yields to a shared value creation.

Research limitations/implications: This single case study provides an entrance to create shared value; however, more research is needed to find other entrances.

Practical implications: The paper has practical implications that relate to the design of shared value model. We provide practical well known strategies that could be apply by corporations to reach shared value creation.

Originality/value: A unique view of corporate social strategy and creating shared value concept.

Open access
Can Sleep Duration Help Explain Differences in the Happiness Index Across Nations?

Abstract

Inadequate sleep is an important public health problem that can affect one in every three adults; however, it received little attention in the economics of happiness research. The objective of this article is to examine whether sleep adequacy contributes to the explanation of variation in happiness index levels across countries. Analysis was undertaken using ordinary least squares regression method. The dependent variable is the self-reported happiness index developed by the Gallup poll and published in the World Happiness Report. Two alternative model specifications were used. The first included average sleep minutes per country, GDP per capita(purchasing power parity), unemployment rate, and environmental performance index. The second model specification included average sleep minutes per country, GDP (purchasing power parity), and economic freedom index. Both model specifications met several robustness checks, and showed overall significance and significant coefficients. Results showed that an increase in average sleep duration by 10 minutes is associated with an improvement in the happiness score by 0.1 and 0.15 points in the first and second model specifications respectively, noting an average happiness score of 6.2 in the country sample. The conclusion that sleep duration contributes to explaining variation in happiness levels across countries is a call for policy makers to consider policies targeting improvement in sleep adequacy as priority, and to direct more resources to further research in the area of sleep economics. Previous studies in the area of happiness economics did not consider sleep in explaining differences in happiness among countries, and previous studies in the area of economics of sleep did not consider the happiness index at a global level.

Open access