European Journal of Economic Studies

459-469

Authors: Murat Cetin

The developments in Turkish economy indicate that energy, trade openness and financial development are critical determinants of economic growth. This study aims to investigate the impact of energy consumption, trade openness and financial development on economic growth in case of Turkey over the sample period 1980-2014. The results of unit root tests reveal that the variables are integrated at I(1). The results of ARDL bounds test and Johansen-Juselius technique reveal that there exists a long-run relationship among energy consumption per capita, trade openness, domestic credit provided by banking sector and real GDP per capita. Energy consumption and financial development have a positive impact on economic growth while there do not a statistically significant relationship between trade openness and economic growth in the long run. The VECM Granger causality results show that there exist a uni-directional causal linkage running from energy consumption, trade openness and financial development to economic growth in the long run. The empirical findings can provide several policy implications for Turkish economy over the period.

476-485

Authors: Marina Gunare, Evgeniya V. Vidishcheva

The brand is a harmonic combination of social and cultural life, modern infrastructure, authorities and business activities, attractive investing climate and historical heritage. In a modern world territory brand formation and its successful integration is a key aspect in ensuring of well-being and development of society. Geographic mobility is increasing and it influences welfare of territories. Complex of branding activities provides a sustainable place in a market for territory. Russian experience in tourism development demonstrates that each ruble spent on tourism promotion returns to growth of tourist flow, tax revenues and local producers’ incomes. So territory brand promotion expenditures can give a heavy impact to socio-economic development of the region. The brand of territory is directed to diverse target audiences, the most important of whom are investors, tourists, consumers of goods and services in the external market, residents. The article considers the touristic territory branding experience of Russia and Latvia. Research aims to analyze how the implementation of branding activities contributed to achieving a new level in tourism and investment attractiveness of cities, and if it allowed creating an image of unique place for visiting.

492-515

Authors: Aliu Muhamet, Sahiti Arbana

The concept of the credit risk management has gained momentum in recent years with financial institutions developing techniques aiming at minimizing credit risk and regulatory bodies coming up with policies ensuring banks adequately manage their risks. This study was carried out to quantitatively determine how risk management affects the banks profitability. PCB, RBKO, NLB, TEB were selected as the sample banks for this study. The methodology involved extracting time series data from the annual reports of the banks to calculate the return on equity which was used as a measure of profitability and also to calculate the nonperforming loan ratio which was used as a credit risk management measure along with the risk asset ratio. Return on equity was expressed as a function of the risk asset ratio and non-performing loan ratio and substituted into a multivariate regression model. The data was run using SPSS software. To further examine the relation a simple linear regression was carried out along with a trend analysis. The output showed a substantial relation between the variables and reflected that a higher risk asset ratio would result in a marginal decline in profitability while higher nonperforming loans had a positive and more substantial effect. Further analysis showed a predominantly negative effect, highlighting the possible inadequacy of the multivariate model.