<abstract xmlns="http://www.w3.org/1999/xhtml">This paper studies the causal relationship between government revenue and government expenditure in Serbia, using quarterly data for the 2003 (Q1) - 2012 (Q4) period. In addition to the theoretical arguments regarding this causality, extensive empirical literature is also available. The problem of the fiscal deficit has been a significant burden for the economic system of Serbia for a number of years. Therefore, the relationship between government revenue and government expenditure represents an important issue that should be studied empirically in order to draw certain conclusions. In this paper, the Toda-Yamamoto long-run non-causality method is used to determine whether the causal relationship between government revenue and government expenditure exists in Serbia. The application of this method confirms the existence of a unidirectional (one-way) causality running from government expenditure to government revenue, which means that government expenditure Granger-causes government revenue.</abstract>

University of Kragujevac, Faculty of Economics, Serbia

The Causal Relationship Between Government Revenue And Expenditure In Serbia

<abstract xmlns="http://www.w3.org/1999/xhtml">The main objective of this paper is to present problems which get in the way of the implementation of planned structural changes brought about by restructuring. This is a very complex matter and a problem which currently troubles Serbia, considering the large number of enterprises which need to be restructured. As opposed to the practice of most developed countries, and even some transitional countries, with intense restructuring processes, these processes have been rather slow in Serbia. However, restructuring is becoming inevitable for a significant number of domestic enterprises. In some enterprises, restructuring needs to be implemented through the bankruptcy and liquidation procedure since there really are no grounds that support their assistance in the form of subsidies, which will indefinitely prolong their unprofitable operations without any chance for success in the market. Still, enterprises with a chance for success in the market can go a long way with the help of aggressive restructuring. With this in mind, the paper outlines some directions for development of corporate restructuring implementation plans.</abstract>

The Challenges Of Defining And Implementing Corporate Restructuring Programs

<abstract xmlns="http://www.w3.org/1999/xhtml">The purpose of the study was to assess poverty in Serbia in the period 2006-2010. This paper analyzes the percentage of the poor by: type of neighborhood, regional distribution, household type, age, involvement of children and adults, level of education and socio - economic status of the household. The following methods of descriptive statistics were applied: the average value of the appearance, the interval of variation, standard deviation, coefficient of variation and the rate of change. It points to the differences in the values of consumer units denominated in RSD, which is used as a threshold for determining the percentage of the poor population. The research results indicate that the poorest are multi-member households and adults at the age of 19-24.</abstract>

Institute of Agricultural Economics, Belgrade, Serbia

Trends Of Change Regarding Poverty In The Republic Of Serbia In The Period 2006-2010

<abstract xmlns="http://www.w3.org/1999/xhtml">The aim of this paper is to create a stable model of investment portfolio optimization through a high degree of diversification and reduction of sudden changes in the allocation with monitoring of the dynamics of the impact factor. In this sense, there is bootstrap application procedure, which, without an excessive number of constraints involved in the optimization process provides solutions based on uncertain information. Thus defined, the optimization method has been patented by Michaud (1999) entitled re-sampled efficiency. Accordingly, this paper offers a comparison of the performance block bootstrap optimization models and traditional Markowitz's model inside and outside of the sample by applying the most frequently traded stocks on the BSE. The results show a better performance out of the sample and the presence of a larger number of shares forming the portfolio through bootstrap methodology. However, only through the traditional optimization process could be attained optimum according to the required limits. Such effects can be observed by comparing the limits of efficiency obtained through these optimization models. However, optimization-based methods bootstrap finds its place in reducing errors of assessment resulting from the limited sample size.</abstract>

University of Novi Sad, Faculty of Economics in Subotica, Serbia

Testing The Performance Of The Investment Portfolio Using Block Bootstrap Method

<abstract xmlns="http://www.w3.org/1999/xhtml">There are numerous models which are under contemporary business conditions used for assessment of creditworthiness and forecasting bankruptcy possibility of a enterprise. One of these models is Altman Z – score model. On the basis of adjustments of original model for possibility of bankruptcy forecasting, which is applicable just to enterprises with whose stocks are traded on organized market, a modified model was developed which is applicable only to enterprises with whose stocks are not traded on organized market. Altman made additional modification of model and formulated Z’’ score model that is applied on production and unproductive enterprises, as well as on enterprises that operate in developing countries. Stated models separate financially successful enterprises from those that are threatened by bankruptcy proceedings. On the basis of Z’’ score model Altman classified credit rating of enterprises and with it developed Z’’ score adjusted model. In this paper, we conducted the analyses of credit rating for 33 enterprises in restructuring and 90 enterprises that are not in restructuring, by using Z’’ score adjusted model, as well as determined possibility of occurrence of bankruptcy of enterprise on the basis of Z’ score model. Authors concluded that approximately 57% of analyzed enterprises in restructuring have the lowest credit rating, while possibility of occurrence of bankruptcy in the next two years for those enterprises is more than 90%. On the other hand, approximately 60% of enterprises which are not in restructuring have high credit rating and operate in safe zone, while approximately 6% of enterprises have the lowest credit rating with high possibility of occurrence of bankruptcy in the next two years.</abstract>

The Enterprise Creditworthiness Evaluation – By Z” Score Model

<abstract xmlns="http://www.w3.org/1999/xhtml">The permanent existence of inflation in Serbia adversely affects achievement of macroeconomic stability. Its effects are reflected in a decrease in the real exchange rate, low price competitiveness of exports and deterioration in the balance of payments. The real exchange rate is an instrument which shows that in conditions of faster growth rate in a country than abroad, the domestic economy can't be competitive in the international market. Implementation of appropriate exchange rate regime inevitably leads to problems of exchange rate changes on import prices and inflation. The research aims to demonstrate the interdependence of inflation and depreciation, and the fact that the general price level increase is a main factor that hinders the realization of the positive effects of the national currency depreciation. Unstable monetary situation in the country undermines the goal of stimulating exports through an increase in the nominal exchange rate and by reducing export prices in foreign currency. Export becomes uncompetitive, while the depreciation of the national currency is quickly spread to inflation through the exchange rate pass-through.</abstract>

University of Niš, Faculty of Economics, Serbia

PhD student; scholarship from the Ministry of Education, Science and Technological Development of the Republic of Serbia

The Impact Of Exchange Rate Pass-Through On Serbian Export Competitiveness

<abstract xmlns="http://www.w3.org/1999/xhtml">Since the wide spreading of the European Union (EU) crisis begun, the research papers have been providing different definitions such as currency crisis, competitiveness crisis, banking crisis, balance of payment crisis, but the most frequent notion of EU crises is the sovereign debt crisis. In this paper, the researchers agree that the current European crisis can be identified as sovereign debt crises at its surface, but in order to search for solutions of EU problems, we must look deeper into the sources of this crisis. Through this paper, the multiplication of crisis is explained, whereby it is being concluded that one type of crisis led to another, while staying on the point that the Eurozone current crisis is basically a combination of two core crisis: balance of payment crisis and banking crisis. In order to support the hypothesis that sovereign debt crisis is deeply connected with balance of payment crisis, we have analysed the trade and capital flows of European countries. It was discovered that periphery countries mostly financed their current account deficit, trade deficits and public deficit through external borrowing from creditor countries. Further, the periphery countries have been cumulating not only trade deficit in trade activity with other European partners, but also in trade with the rest of the world. The key source of imbalances between the European countries seems to be a different level of competitiveness caused by different level of productivity. As the second face of EU crises, we recognised a banking crisis. We found that sovereign debt crisis and banking crisis are interconnected but banking crisis usually precedes the debt crisis. With the fast growth of international capital flows, financial integration was strongly regionally concentrated and became especially important within the EU. Through the analysis of the international investment position of creditor countries, it was concluded that these countries are more integrated within the euro area through financial flows than through real economic flows. Additionally, it was discovered that creditor countries’ banks were among the biggest investors in bonds of periphery countries such as Greece. In other periphery countries such as Ireland, banking crisis and subsequent measures for the rescuing of banking system led to the increase of public debt. In the other countries, banks were faced with solvency problems due to bad debt holdings. Having in mind that we found interconnection of the debt crisis with balance of payment crisis on the one side, and with the banking crisis on the other side, the conclusion is that sovereign debt crisis in the Eurozone is a result of two-core crisis: balance of payment crisis and bank crisis. Reckoning on the European Union history where each crisis usually led to the stronger integration, maybe the current crisis is a step further towards better and deeper integration.</abstract>

Wageningen University and Research Centre, Wageningen School of Social Sciences (WASS)

EU Crises Multiplier - From One Crisis To Another

AHEAD OF PRINT

Volume 61 (2023): Issue 4 (December 2023)

Volume 61 (2023): Issue 3 (September 2023)

Volume 61 (2023): Issue 2 (June 2023)

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Volume 59 (2021): Issue 4 (December 2021)

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Volume 58 (2020): Issue 4 (December 2020)

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Volume 57 (2019): Issue 4 (December 2019)

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Volume 56 (2018): Issue 4 (December 2018)

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Volume 55 (2017): Issue 4 (December 2017)

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Volume 54 (2016): Issue 4 (December 2016)

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Volume 53 (2015): Issue 4 (December 2015)

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Volume 52 (2014): Issue 4 (December 2014)

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Volume 52 (2014): Issue 1 (March 2014)

Economic Themes

 The Faculty of Economics in Niš publishes the journal Economic Themes within the Center for Publishing. According to the categorization of the Ministry of Education and Science of the Republic of Serbia the journal is classified as the leading journal of national importance (M51) and is issued quarterly (in Serbian and English). In the upcoming period we wish to implement two important aims: first, to continually enhance the quality of the journal in compliance with generally accepted standards and second, to improve the ranking of the journal in the following years. All articles sent for publishing are anonymously reviewed.  Rejection Rate   App. 28%  Archiving  Sciendo archives the contents of this journal in Portico - digital long-term preservation service of scholarly books, journals and collections.  Plagiarism Policy  The editorial board is participating in a growing community of Similarity Check System's users in order to ensure that the content published is original and trustworthy. Similarity Check is a medium that allows for comprehensive manuscripts screening, aimed to eliminate plagiarism and provide a high standard and quality peer-review process. 