European Journal of Economic Studies

242-258

Authors: Mona Akbar, Aneel Salman, Khurrum S. Mughal, Fahad Mehmood, Nedim Makarevic

In recent era, stock market trading has increased rapidly; rapid trading can give benefits to brokerage firms. Stock market of country is an indicator of economic growth and development of country. Individual investment decision making is increasing rapidly so it is necessary to know the behavior of individual investors. The study identifies the factors that affect the investment decision making. The study used adapted questionnaire to gather the primary data from 253 individual investors of Islamabad stock exchange. The advanced econometric techniques are used to conduct in-depth analysis of gathered data with the help of SPSS 22. The descriptive statistics, regression analysis and exploratory factor analysis are employed. The findings of present study reveal positive significant relationship between advocate recommendations, neutral information, self-image/firm image coincidence and individual investor investment decision making. The study did not find any evidence on relationship between accounting information, classical wealth maximization and personal financial needs. It can say that most of investors in Pakistan are not making rational decisions on the basis of accounting information and most of times their decisions depend on the recommendations of stock brokers, co-works, friends and family. It is suggested that higher authorizes should focus on this issue because stock markets can be easily manipulated if investors rely on other recommendations while making investment decisions.

267-282

Authors: Goran Rajović, Jelisavka Bulatović

Territory of Montenegro covers a total of 1.216 rural settlements, of which 1948 were only 212 rural settlements with fewer than 100 inhabitants, while according to the data of the Statistical Office of Montenegro (2004) in 2003 in the category of rural settlements to 100 residents is even 660 villages. According to the Census of Agriculture (2010) on Montenegrin households today live 98.949 people, which also represent the labor force households. Of the total working-age population of them 23.204 are over the age of 65 years. Least is of those that are will in progressive are households should be the highest; only 7 % of the workforce Montenegrin households are younger than 24 years. Bearing in mind the experience of developed countries in solving the problems the economic and demographic devastation of rural areas, it is clear that the policy of sustainable rural development, in addition to support agricultural development, must be directed at supporting the development of non-agricultural economy. The complexity of adjustment rural policy standards and procedures of the EU is not enough accepted. Adjustment the faster takes place in the domain of legislation and secondary legislation, and much more slowly in domain strengthening the existing and establishment of new institutions for their implementation and control. For Montenegro is particularly instructive experience of Ireland, which is in the European Economic Community entered in 1973, as a backward country. For a short time this country achieved not only an impressive economic development, but also the radical social transformation. In fact, Ireland is at the beginning of the transition, his concept of rural development conceptualized not only on agriculture but is integration of rural areas a practiced and through non-agricultural activities.

292-298

Authors: Qamar Uz Zaman, Zhang Donghui, Muhammad Imran

This study presents the new regression estimates of the relationship between unemployment and economic growth for 13 selected European Union member countries over the period 1993-2012. Pooled OLS and Fixed effect techniques are used to analyze the panel data for measuring group effects, individual country effects, and time effects while exploring the relationship between unemployment rate and economic growth. Results demonstrate that higher unemployment rate has significant negative impact on GDP per capita (a proxy for economic growth). The results also investigated that economic growth seems to be significantly affected by Internet users and Military expenditures. Based on results the author has concluded that reduction in unemployment rate would be a better option for more and sustained economic growth and also improving the welfare of the people.