A cross-country panel data regression was performed for non-performing loans (NPL) in Denmark, Estonia, Finland, Latvia, Lithuania and Sweden covering a period of years 1998-2014. The main objective was to determine the major factors that were driving the NPL in the selected countries. Also, we expected to draw the differences in the banking industry between emerging economies in the Baltic countries and Western economies in the Scandinavian region. The selected variables were banking industry-related (net interest margin, ROA, ROE) and macroeconomic variables (GDP growth, RE prices, Unemployment), of which the majority is included as the Financial Soundness Indicators by the IMF. Key findings of the research show that NPL in both regions were mostly dependent on GDP growth and Unemployment, whereas the banking industry variable ROA had a very moderate effect only on a country level. The research is contributing to a better understanding of financial stability in the banking industry during the last decade, and it may have possible implications for the macroprudential policy.
The phenomenon of globalization has greatly influenced migration in recent years in the European Union. In this article we aim to analyze the benefits of migration in the economy by emphasizing the impact of remittances on the economic development of a country. Remittances are considered as an external source of important, stable funds that help the economic development of a country. We identify also the macroeconomic determinants of remittances. For the statistical and econometric analysis of these factors, we have chosen to use the Panel Data Regression for the countries of the European Union. To analyze the benefits of remittances, the most appropriate macroeconomic indicator is GDP. So in the first part of the article we will present the impact of globalization and migration on remittances, and in the second part we will highlight the economic growth through the presence of remittances. This article examines the role of migrants as a particular segment of the market and as a resource for development. All aspects to be analyzed will outline an overview of population emigration and factors that influence the development of the economy at a time when globalization is on the rise.
In prevailing competition-based market economy, organizations have to search factors influencing advertising effectiveness. This research aims at developing the model of the influence of advertising appeal on advertising effectiveness. While achieving the aim of the article, the analysis and synthesis of scientific literature is provided. Furthermore, traditional marketing research methods as well as neuromarketing research methods are applied in order to determine the influences of different advertising appeals on advertising effectiveness. As a research result, the model of the influence of advertising appeal on advertising effectiveness is elaborated. Accordingly, this research fills the gap in scientific literature by determining the influences of emotional and rational appeals on print / outdoor advertising effectiveness in the context of convenience product category. Moreover, by answering the research question, the contribution to the field emerges in integrating both marketing theory and neuroscience in order to analyze and evaluate consumer behavior.
Innovations can provide small and medium-sized enterprises (SMEs) a significant competitive advantage considering the ambiguous business environment. SMEs may face lower capacity and more constrained funding for long-term investments, however, understanding innovation in a broader sense and looking into organizational structures, behaviors and processes, SMEs have an opportunity to become more competitive. This study analyzes the impact of ethical behavior as a part of an organizational culture on organizational innovation performance in SMEs. Six hundred SMEs in Latvia were surveyed to assess whether employees follow the principles of business ethics in their work and what is the organizational innovation performance in these enterprises. We found that more ethical behavior leads to better organizational innovation performance, and that the size of enterprise is the most significant factor affecting this relationship. The study proposes insights that contribute to theoretical and practical discussions on fostering small businesses innovation in small economies.
Human capital, affected by the demographic determinants, nowadays becomes a novel driver of change and regional development. Changes in the modern economy determine the future leading role of human capital, especially its creative dimension in the development of modern, sustainable competitive advantages of countries and regions. Considering the negative demographical tendencies in the Baltic States, the aim of this paper is to analyse and forecast the development of creative potential in Lithuania, Latvia and Estonia. Our methodology is based on the estimation of a regression model describing the relations between Global Creativity Index (GCI) and its components with the available demographic data in 28 European Union member countries. Model estimation results indicate a particular importance of population age composition for all GCI components, while education attainment levels appear to be highly significant for the technology and talent components. Using the estimated model parameters, authors elaborate a simple forecast for the three Baltic States using the current demographic projections, while outlining the strengths and potential weaknesses of each country in the long-term perspective.
The paper attempts to present a comprehensive picture of the main characteristics of Romanian university-educated youths in their journey to employment. The persisting demographic decline and significant labor shortages point out to the importance of having an effective transition from school to work (as reflected in several Europe 2020 policy targets) so that youth and young adult cohorts are able to contribute to the Romanian economy to the full extent of their abilities. Analysis of the latest data available reveals that Romanian university graduates’ path to employment often involves a complete switch from study to work. Despite a lack of previous work experience, they enjoy high employment rates, relatively long job tenure that starts on, or shortly after, graduation, and have jobs that match their education. They also tend to be proactive in their job search and over 90% are not willing to change residence in order to start employment. Inactivity patterns that consider both work and education, and early leavers from education show significant fluctuations during the economic cycle. Results indicate the strong and weak areas with respect to labor market integration of youths and young adults, and can provide a starting point for policies to optimize their successful integration. It also points out to potential research areas to address key aspects of transitions from school to work that may clarify unsolved issues and guide effective policy interventions.
The economic growth of the national economy, within international bodies, as well as in the European Union, is a priority under the present conditions. Capital placement in geographic areas is based on effective opportunity studies. Such an analysis involves access to databases that satisfy the criteria for selecting the place of investment. At the same time, the media interested in attracting national or international investments can take such a decision on the basis of the data that will lead it to the optimal decision. Usually study of the market and the investment fields is insufficient and as such the effectiveness of the project is reduced. Under the very big data base, investors will have the chance to have information that needs to be used in a short time, and such opportunities need to be endowed with ultra-modern information systems. The issue of national and international investment is of utmost interest for any Member State of the European Union. In this respect, major projects will be developed involving as many member countries as possible, provided that everyone has the supremacy (to provide benefits) in a particular project sub-domain. Only specialization can provide the path to a viable and yet prolific economic and scientific cooperation. Through its directives, the European Union pursues both the individual development of each country and, above all, the complex development of the whole of the Union. In the big data era, investments, attracting them or entering into intra-Community economic cooperation provide a much faster course.
The problem of production, export, import, and consumption of food was always topical for the long history of Georgia. At all stages of the society development, people need to take food and meet other of their elementary needs. Issues of food supply assurance of the Georgian population differ according to time periods. For example, in Shota Rustaveli’s poem The Knight in the Panther’s Skin it is described that the living standard in the 11th–13th centuries was quite high. At that period of time, Georgia was fed with its own grain. Along with wealth, Shota Rustaveli also characterizes poverty. Most of the state’s income was spent on the poor people, so there was a large gap between the rich and poor population.
In the 16th and 17th centuries, the problem of poverty and wealth of the population was highlighted by prominent public figures: Sulkhan – Saba Orbeliani and Vakhushti Bagrationi. Ilia Chavchavadze describes the problem of poverty in the country by the end of the 19th century. Poor living conditions of the population were noted during the initial phase of Georgia in Soviet Union and during World War II. Better conditions existed at the last stage of socialism.
Meeting the population’s demand for principal foodstuffs and providing near-rational norms of such foodstuffs has always been a major objective of the governments of all times.
The prolonged transformation process of the economy of Georgia with its social characteristics was particularly painful. A sharp decline in the standard of life started from the 1990s. Before the economic collapse, a monthly rated wage in Georgia with its foodstuff purchasing power parity almost equaled that of developed countries.
, 2012. Report on Public finances in EMU. European Economy. DOI: http://dx.doi.org/10.2765/18911 Fatas, A., and Mihov, I., 2009. The Euro and Fiscal Policy. NBER Working Paper, 14722. DOI: http://dx.doi.org/10.3386/w14722 Fiscal Council of Romania, 2012. Annual report: Macroeconomic and budgetary developments and prospects Retrieved from http://www.consiliulfiscal.ro/Raport2011.pdf Havik, K., Mc Morrow, K., Orlandi, F., Planas, C., Raciborski, R., Röger, W., . . . Vandermeulen, V., 2014. The Production Function Methodology for Calculating Potential Growth Rates
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