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David Umoru, Sylvester Ohiomu and Richard Akpeke

Abstract

The paper analyses the influence of oil price volatility on Exchange Rate Variability, External Reserves, Government Expenditure and real Gross Domestic Product using the methodology of Vector Auto-Regressive (VAR) to carry out regression analysis, impulse response function and factor error variance decomposition for robust policy recommendations. The results of the research show that unstable oil price exerts varying degrees of deleterious effect on exchange rate variability, external reserves, Government expenditure and real gross domestic product (GDP). Based on the findings of the study, we recommend the need for the country to branch out its revenue sources. This will further shield the dangle effect of the fluctuation in prices of oil. Serious policy attention should be attached to agricultural reformation, industrial policy drives, mines and mineral development to diversify Nigeria’s economy following the downward slide in the oscillations in oil prices to address the problem of excessive dependence on crude oil exportation. This will help to achieve sustainable growth and development in Nigeria.

Open access

Marian Cosmin Gabriel

Abstract

The process of administrative decentralization of the education system in Romania proceeded in chaotic steps. It was done under the pressure, on one hand, of the EU integration requirements and, on the other hand, of the local administrations who wanted more control over how their money were used in the schools and of the parents committees that wanted to have a say in the local schools. The road was scattered with new reform legislations coming with every change in government composition and ministers. The result was a combination of local autonomy and central control that had the potential to produce confusion and conflict. The multiple and complex blend of divided responsibilities and powers turned out in the process of setting up the new form or entry grade in the Romanian primary education cycle in a rational strategic play scholarly designated as anticommons. Each separated actor tries to obtain a maximizing share of the cooperatively generated benefit for a minimum possible cost. The interactions are modeled as a Game of Chicken where, because actors calculate separately, each selects a higher price/lower quantity position than is optimal, resulting in a lower net payoff both individually and collectively.

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Ruud De Mooij, Shafik Hebous and Milena Hrdinkova

Abstract

Until 2018, Belgium had a unique corporate income tax system due to its notional interest deduction, also known in public finance literature as the allowance for corporate equity. At the same time, it had one of the highest corporate tax rates in Europe at 34 percent. The latter came under severe pressure to reform and, as of 2018, the government has started to reduce the rate, gradually to reach 25 percent in 2020. The reduction is accompanied by other measures, including a limitation of the notional interest deduction. This paper argues that the lower CIT rate is likely to be conducive to economic growth. Yet, the effects on growth would have been more favorable if the notional interest deduction would have been strengthened, rather than diminished.

Open access

Value of the Firm in Capital Structure Perspective

(Case study of tourism companies in IndonesiaStock Exchange)

Ngatemin, Azhar Maksum, Erlina and Sirojuzilam

SUMMARY

This study aims to examine whether profitability, firm size, institutional ownership, growth affect the capital structure and whether profitability, firm size, institutional ownership, growth affect the value of the company through the capital structure. The sample used in this research is the tourism industry sector companies listed in Indonesia Stock Exchange 2007-2014 period, which has complete financial report and published in Indonesian Capital Market Directory (ICMD) as many as 19 companies. The data collected were analyzed using Path Analysis. Path analysis obtained that Return on Equity (ROE), Institutional Ownership (KIS), Growth Assets (GA) and Debt Asset Ratio (DAR) is the direction or positive with Value of the Firm (PRICE) where every increase ROE, KIS and GA followed by a rise in PRICE. On the other hand Firm Size (SIZE) has a negative relation to PRICE where every increase of SIZE is followed by decrease of PRICE.

Open access

Agnieszka Przybylska-Mazur

Abstract

Fiscal policy includes the government decisions on the size of taxes that affect the size of the government deficit. There are different types of government deficit. The aim of the analyses is to examine the relation between the type of deficit and the optimal level of tax rate. In this article we verify the hypothesis that the type of deficit considered affects the tax rate. For the hypothesis verification, we use the feedback rules that are the solution of the quadratic-linear problem.

Open access

Adriana Manolică, Corina-Elena Mititiuc and Teodora Roman

Abstract

We hear more and more often that positive things make our life more beautiful and make us more optimistic. But is it really true? If until a few years ago, the products had usual names, now it is desired for them to have a catchy name that would remain in the memory of the target audience. In this research I have analysed the attitude that young people have towards energy drinks with negative brand names, the impact of these energy drinks on them and also the influence they have on the decisional act of purchase. Among secondary objectives was the establishment of the notoriety of energy drinks that have negative names in the case of young people. Another secondary objective consisted in the comparative analysis of the impact that energy drinks with negative names have on men and women. Also, for the determination of the attitude that young people have towards energy drinks with negative names, it was necessary to get one at the time the feelings, the conviction offered by these energizers and also the intent of buying them among young people.

Open access

Constantinos Challoumis

SUMMARY

This paper aims to the analysis of the most common methods of controlled transactions, and the interpretation of the arm’s length principle under the view of the tax income comparison between countries with high and low tax rates. Moreover, the factors of comparability scrutinized with a mathematical approach which shows how the tax factors interact within the countries’ economies in the frame of a global view.

Open access

Nadia Nora Urriola Canchari, Pradeep Baral and Lanhui Wang

SUMMARY

The economic contributions from forestry sector remain relatively important in all developing economies. Over the past few decades, value added in the forestry sector of these economies has gradually increased. Consequently, the need for a detailed and accurate assessment of the economic contribution of the sector has grown in order to gain the attention of the policy makers and to highlight its importance in poverty alleviation and sustainable development. Contrarily, In Peru, forestry sector continues to be left behind due to faster growth in other sectors of economy. Despite having considerable forest resources, the full extent of economic contributions of the forestry sector to local as well as the national economy is still poorly understood. Sparsity of up-to-date data on value added in the forestry sector and a general disregard to any forests other than Amazonian rainforests have compounded the already existing situation. In this context, this paper aimed at making an empirical analysis of the direct contributions of the forestry sector to the local economy of Peru in the short run using an annual time series data from 2007 to 2016. The Pinus radiata plantation forests of the Department of Ayacucho located in the Southern Peruvian Andes served as a case for this study. The results revealed nominal but significant contributions of the Pinus radiata forests to the economic growth of the Department of Ayacucho. As our study was limited only to direct cash benefits, future studies should also take into account informal and non-cash benefits in order to fully apprehend the economic contributions of the forestry sector to local and national economy.

Open access

Teguh Sugiarto, Ludiro Madu, Ahmad Subagyo, Sugiyanto and Achmadi

SUMMARY

More recently, significant fluctuations in the Indonesian economy justify the need to pay more attention to this issue. In this case, the main purpose of this research is to know the relationship between two issues related to Indonesian macro economy called consumption and GDP for data period during 1967 until 2014. This study investigates the relationship between GDP variables and Indonesian consumption consumption variables using the test ARDL, cointegration and Granger causality. The result of the research can be concluded that, there is long-run equilibrium relationship between GDP and consumption with long-term ARDL model, 10% change of consumption will produce long-term change of 44% in GDP. It is not surprising that there is no short-run equilibrium relationship between GDP and consumption. 10% of consumption will result in a short-term ARDL model change of 95% in GDP. The variables and consumption of GDP are cointegrated in the long run significantly at lag interval 10, whereas the use of lag interval 1 and 5 is not credited in the long run. Using a cointegration test with lag interval 1, 5 and 10 indicates significant for all usage slowness. So it can be summarized in the context of GDP and coordinated short-term economic consumption for all the prevailing interval lags. concluded that long-term causality test results between GDP variables and significant consumption with time intervals 5 and 10. intervals 1, 15 and 20 have no long-term causality relationship between GDP variables and consumption variables. a short-term causal model. With lagging intervals of 1, 5, 10 and 15, there is a short-term causal relationship between the variable GDP and consumption. As for the use of delay interval 20 there is no causal relationship in the short term between the variable GDP and consumption in Indonesia.