European Journal of Economic Studies

447-458

Authors: Salman Ali Shah, Chen He, Mao Yu, Wang Xiaoqin

This paper empirically examines the effects of civilian and military portions of government expenditure on economic growth of five key emerging economies Brazil, Russia, India, China and South Africa (BRICS). We ran separate Cointegration and Granger causality tests for each country using data taken from WDI and SIPRI while taking account of the limitations of time series data. We got interestingly different effects of military expenditure on economic growth across countries especially for the three nuclear powers Russia, India and China. India and Brazil showed negative, Russia and China showed positive while South Arica showed no effect on economic growth in terms of government civilian expenditure.

470-475

Authors: Mikhail N. Dudin, Natalia P. Ivashchenko

This paper’s relevance resides in the fact that, under present-day conditions, when the national economy is going through a stage of turbulence, there is a need to seek out new solutions that could help ensure the sustainability of national social-economic development in keeping with global trends. The paper explores the issue of ensuring Russia’s sustainable economic development via boosts in the innovation activity of entrepreneurship, which it is sought to achieve via a number of ways, including the creation of small enterprises at institutions of higher learning. The authors examine the experience of Russian and foreign educational institutions as to the creation of small innovation enterprises, look into the major forms of partnership between business and college, and describe a possible mechanism for implementing innovation projects at institutions of higher learning.

486-491

Authors: Branimir Kalaš, Nada Milenković, Jelena Andrašić, Miloš Pjanić

International banking devotes considerable attention to the minimum supervisory standards, which banks have meet in order to get and therefore retains the license to do business. Today, banking organizations have to ensure three fundamental principles like security, stability and profit. Security and stability in banks is relevant, because only in this way they can gain the customer trust and confidence. The subject of this paper is importance and implementation of Basel standards in banking. First, it's presented history of Basel Committee on Banking Supervision and basic principles for effective banking. Second, authors reflect three main Basel standards like Basel I, Basel II and Basel III and determine difference between them by using equations and tables.

516-526

Authors: Ameer Mahdi Nassrullah Mzwri, Filiz Katman

This article is focused on how OPEC policies have historically shaped global economic outlook; with a case example of United States of America (USA). The main aim of this study is to reflect the role of USA in strengthening of global economy using OPEC’s policies as the frontline mechanism and demonstrate an understanding of the key challenges confronted by world economies (especially emerging countries) by OPEC policies influenced by the super-power USA. This also mentions how USA has made efforts in reducing its overdependence on OPEC for oil, and how it aims to preserve and enhance national resources so as to gain oil independence. The study is directed using mixed methodologies to examine how the consequences of OPEC policies are helping shape world economies, especially of the USA since it does not have very good relations with the OPEC member states in particular.

367-392

Authors: Murad Harasheh, Stefano Gatti

The present study aims at investigating the relationship between Initial Public Offerings (IPOs) variables mainly underpricing on one hand, and the brand value measures on the other. Our final data set is 104 international brand companies. We implement empirical approach using hierarchical OLS regression and descriptive statistics. We show that underpricing is positively related to brand value, which emphasizes the marketing role of going public and underpricing in enhancing brand equity through the product market, which additionally confirms some information asymmetry models. We also find that on average brand companies have not been recognized as brands at the IPO time. Moreover, we show the positive role of private equity in enhancing brand value, additionally, the non-linear association between underpricing and brand value is not evident. Finally, we draw some policy implication and suggestions for future research.

405-414

Authors: Sulejman Hibić, Mersid Poturak

With the modern development of economics and marketing, brands are having a more important place in our lives each day. We may neglect it, but we all find brands extremely attractive, whether it is because they make us feel wealthier or more self-confident, because we think they have a higher quality than generic ones, or for any other reason. Inspired by this psychological impact of brands on life and consumers, in this case consumer purchasing, the purpose of this article was to find out whether and how brands impact consumers’ decision-making processes and do they (and why) prefer branded products over generic. The data for this article was collected in the form of an online survey. 225 respondents took part in filling out the survey in the period of one month. 125 of the respondents were male, while 100 were female, all between the ages of 18 to 60. The results of the survey show that there is a high impact of branding on consumer decision-making processes and their purchasing decisions. More precisely said, consumers prefer buying branded products to generic for many reasons, and their choice is affected by the status of the product.

421-428

Authors: Galina Romanova, Sergey Romanov, Marina Maznichenko

The article is devoted to comparative analysis of Russian and European experience of training of personnel for the sphere of tourism and hospitality and provision of interconnection of the system of professional education with labor market. The purpose of the article is to determine the best European practices that could be implemented in Russia for the purpose of provision of integrated educational environment, expansion of educational and economic cooperation, and actualization of current Russian educational standards and programs. The objects of the research are professional and educational standards, educational programs, qualification requirements, service instructions, and results of labor market analysis. The authors perform comparative analysis of qualification requirements to specialists with higher education in the sphere of tourism and hospitality in Russia and Europe, goals, content, methods and technologies of their training in higher educational establishments, and educational standards and programs. As a result of the research, the authors came to the conclusion that it is necessary to reconsider the competences formed with graduates of specialties “Hotel business” and “Tourism” and bring them in correspondence with requirements of employers, tendencies of labor market, and the best European practices.

435-443

Authors: Emmanuel Kwame Yeboah, Daniel Marboye Quaye, Samuel Buame, Michael Asiedu

Ghana has witnessed burgeoning expansion of the micro-finance sector in the past decade. Most of these new microfinance institutions have erupted from people who were previous employees of traditional banks (spin-offs). This study seeks to investigate the triggers of these individual spin-off companies within the Ghanaian microfinance sector. Additionally, it will assess the relationship between spin-off and parent firms, and its likely impact on the spin- off firm. The study employed the qualitative method to seek a detailed and in-depth analysis to understand the issue by way of in-depth interviews. The purposive and snowballing sampling approach were used to select the microfinance spin-off firms, whereas the snowballing approach was used to identify more spin-offs within the sector. Five respondents were interviewed due to theoretical saturation and difficulty in finding any more spin-offs. Three major themes emerged from the study as triggers/drivers of spin-offs in the micro-finance sector. These included necessity, opportunity and need for self-actualization. It is recommended that the spin-off phenomenon should be encouraged to accelerate entrepreneurship and innovation in the Ghanaian economy. Results from this study have implications for research, education and policy.

302-308

Authors: Mariana Bil

The theoretical substantiation of priorities of socio-cultural development of regions of Ukraine in conditions of high dynamics of internal migration in the article was made. The tendencies of forced migration from the eastern regions of Ukraine were analyzed. The necessity and the main approaches to the formation of strategies of socio-cultural development of Ukraine's regions in case of high population migration activity were proved. Typology of the concept of social and cultural acceptance of migrants to the host society in the context of acculturation opportunities and acceptable level of multiculturalism was proposed. The essence of socio-cultural development of the region according to conditions of high migration activity rate and its extreme scenarios was determined. Basic socio-cultural norms of the host society that outline integration plane of migrants were characterized. Conceptual priorities of socio-cultural development of regions of Ukraine according to the conditions of high population migration activity, covering sustainability of social and cultural norms of nation consolidation character, the perception of migrants at the host society as propulsion, potential development, level of social cohesion, and ensuring their integration potential were highlighted. Nation-consolidating socio-cultural norms-archetypes of Ukrainian society were described. Priorities for social and cultural development of regions of Ukraine under conditions of high migration activity were proposed.

331-344

Authors: Yuriy I. Dreizis

In article, it is shown that management of coastal sea regions has to have, in comparison with traditional management, a number of the specific features connected with broad coverage of the considered problems of natural, anthropogenous, social and economic, cultural and ethical character. In order that coastal management was complex, it has to consider a coastal zone as uniform natural, social and economic system.

353-357

Authors: Suleman Sarwar, Wasim Hussan

The study attempts to examine the relationship between oil prices and stock prices; for the case of Karachi stock market and Dhaka stock market over the period of 1990 to 2014. By using the regression estimation method, the results confirmed the significant positive relationship between oil price and both the stock market prices. In the regression analysis, the variable’s R shows the interdependence of all prices and the stock prices of both KSE and DSE, while R-Sq shows the factors affecting the stock market other than oil. This paper has concluded that the international oil prices hold a great importance in the Asian oil importing countries which affect their stock markets.

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.

198-205

Authors: Zeeshan Ahmad, Meng Jun, Muhammad Abdullah, Mazhar Nadeem Ishaq, Nguyen Nhu Bang, P.O. Bunnika, Majid Lateef

This paper identifies the basis for agricultural development constraints. For this we have taken 2013 year as the foundation period then a linear programming model has been established for Punjab Province’s agricultural production structure for year 2020. Later as response to the impact of the current situation of agricultural production structure in Punjab Province and the macroeconomic environment, three kinds of different emphases of production structural adjustment programs will be suggested. At the end, to provide a reference for the development of a specific quantity of agricultural production structural adjustment policies, will be conducting the optimization analysis.

212-220

Authors: Yasir Tariq Mohmand, Aneel Salman, Khurrum S. Mughal, Muhammad Imran, Nedim Makarevic

In this study, the gravity model of trade is used to analyze the export environment of Pakistan. As clear from trade data, Pakistan’s share in world exports is marginal and imports dominate the trade balance. The inability of diversification both in terms of products and markets is regarded as the main cause behind this trade deficit. This research highlights the main influencing factors affecting the export environment of Pakistan. The results of the gravity equation are used to calculate the export potentials of Pakistan with its partner countries. The results suggest Pakistan still has plenty of export potential with most of the partner countries and as such Pakistan can possibly reduce or control the trade deficit by targeting these countries.

231-238

Authors: Zurita Jose Estalin Vergara, Maria F. Mizintseva, Anna R. Sardaryan

The article is dedicated to the determining of the role of education as the most important element influencing on economic growth in developing countries. Nowadays, Ecuador is among those countries. This article examines the problems and tendencies of education developing, provides the literacy rates. The article also reviews the main directions of Government’s activities in terms of the human resources educational level in Ecuador.