Template-Type: ReDIF-Article 1.0 Author-Name: Stefan Vržina Author-Email: stefan.vrzina@kg.ac.rs Author-Name: Miloš Dimitrijević Title: Determinants of Profitability of the Agricultural Sector of Vojvodina: The Role of Corporate Income Tax Abstract: Due to considerable share in total employment and foreign trade exchange, agriculture represents an important sector of the Serbian economy. It is, therefore, necessary to continuously analyze the financial performance of agricultural companies and key determinants of financial performance. The objectives of this paper are to analyze the corporate income tax burden of agricultural companies in Vojvodina, as well as its impact on company profitability. Statistical tests showed that effective corporate income tax rates (ETRs) in agricultural companies are significantly lower than the statutory corporate income tax rate. Furthermore, nearly 69% of observations have both a current ETR and cash ETR of 0%, which indicates that agriculture is an industry with an exceptionally low corporate income tax burden. Panel regression showed that agricultural companies with lower ETRs are more profitable than companies with higher ETRs. Results of the analysis are not sensitive to changes in corporate income tax burden and profitability proxies. Keywords: agriculture, profitability, corporate income tax, Vojvodina Journal: The European Journal of Applied Economics Pages: 1-19 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-21368 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/determinants-of-profitability-of-the-agricultural-sector-of-vojvodina-the-role-of-corporate-income-tax.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/determinants-of-profitability-of-the-agricultural-sector-of-vojvodina-the-role-of-corporate-income-tax File-Format: text/html Handle: RePEc:sng:ejae01:120 Template-Type: ReDIF-Article 1.0 Author-Name: Chamil W. Senarathne Author-Email: chamil@whut.edu.cn Author-Name: Wei Jianguo Title: Herd Behaviour in The Cryptocurrency Market: Fundamental vs. Spurious Herding Abstract: This paper sets out to explore whether the investor herding in the cryptocurrency market induces correlations in cryptocurrency returns using the methodology of Chang et al. (2000) and Galariotis et al. (2015) from a daily data sampling period of 3/30/2015 to 5/24/2019. The initial regression results show that the cross-sectional absolute deviation of return can only be explained by GSCI oil and gold index return, but no relationship exists between cross-sectional absolute deviation of return and other regression variables, such as return on CCi30, US equity risk premium and US/Euro exchange rate return. The herding regression results under normal market condition show that a strong tendency exists to herd on non-fundamental information that explains cross-sectional absolute deviation of returns. As such, cryptocurrency returns cannot be predicted on the basis of fundamental economic information (e.g., major macroeconomic announcements). Herding on non-fundamental information is found to be more pronounced during an upward-trending period of the market and other than upward-trending period. No signs of herding on fundamental information could be observed under other market conditions. Although the theory suggests that herding on non-fundamental information results in more efficient outcomes, the above findings do not encourage the diversification of traditional assets with cryptocurrency on the basis of low correlation. Since cryptocurrency lacks intrinsic value, the exchange is shown to provide a pseudo-efficient trading platform for speculative investors. Implications for future research are discussed. Keywords: herd behavior, cryptocurrency, fundamental information, CASD, portfolio diversification, pseudo efficient, intrinsic value Journal: The European Journal of Applied Economics Pages: 20-36 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-22053 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/herd-behaviour-in-the-cryptocurrency-market-fundamental-vs-spurious-herding.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/herd-behaviour-in-the-cryptocurrency-market-fundamental-vs-spurious-herding File-Format: text/html Handle: RePEc:sng:ejae01:123 Template-Type: ReDIF-Article 1.0 Author-Name: Nenad Tomić Author-Email: ntomic@kg.ac.rs Author-Name: Violeta Todorović Author-Name: Božidar Čakajac Title: The Potential Effects of Cryptocurrencies nn Monetary Policy Abstract: All current cryptocurrencies are controlled by private entities, so that the issue of impact on monetary system becomes very important. Autonomous decisions by private entities concerning the money supply could diminish the ability of central banks to implement monetary policy effectively. The subject of this paper is the influence of alternative cryptocurrency forms on the monetary system. The aim of this paper is to determine the ability of central banks to conduct monetary policy successfully in conditions of widespread use of cryptocurrencies in payment transactions. The situation in the cryptocurrency market is compared with the phases of Internet development and the current situation on other markets of electronic payment systems. It is concluded that cryptocurrencies do not have the capacity to endanger the traditional monetary system at the current level. Bearing in mind the early maturity of this market, certain predictions of possible future trends have been made. In the case of private cryptocurrency usage growth, central banks could partially or completely lose influence over monetary policy. The proposed solution is the development of national cryptocurrencies that would ensure the retention of seigniorage to central banks and the prevention of further use of private cryptocurrencies in criminal activities. Keywords: monetary policy, cryptocurrencies, stablecoins, private money Journal: The European Journal of Applied Economics Pages: 37-48 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-21873 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/the-potential-effects-of-cryptocurrencies-nn-monetary-policy.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/the-potential-effects-of-cryptocurrencies-nn-monetary-policy File-Format: text/html Handle: RePEc:sng:ejae01:127 Template-Type: ReDIF-Article 1.0 Author-Name: Nataša Krstić Author-Email: krstic.natasa@gmail.com Author-Name: Sandra Nešić Title: The Impact of The Business Sector on Children’S Rights in Serbia Abstract: The business sector has a strong direct and indirect impact on children, at the workplace, on the marketplace, in the community, and through the supply chain, where risks arise in terms of endangering children and their rights. This paper aims to provide new evidence of the impact of the business sector on children’s rights in Serbia. The analysis of the impact of the Serbian business sector on children's rights was carried out through cabinet research of three sectors identified as a priority based on their influence on the economy and children's rights – ICT, food and agriculture, and financial sector. After interviews with managers responsible for corporate social responsibility in the leading companies from these sectors, their potential impact on children's rights has been mapped together with sectoral risks, while opportunities for shared-value engagement between businesses and organizations and institutions supporting children and their rights were extracted. Our research suggests that shared value in the context of the promotion of children's rights goes far beyond traditional corporate philanthropy, and audits how core business operations, assets and practices, advocacy initiatives, skills, and know-how can support children's rights in achieving Sustainable Development Goals. Keywords: business principles and children’s rights, corporate social responsibility, shared value, Serbia Journal: The European Journal of Applied Economics Pages: 49-66 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-22487 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/the-impact-of-the-business-sector-on-childrens-rights-in-serbia.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/the-impact-of-the-business-sector-on-childrens-rights-in-serbia File-Format: text/html Handle: RePEc:sng:ejae01:125 Template-Type: ReDIF-Article 1.0 Author-Name: Sanjib Bhuyan Author-Email: bhuyan@sebs.rutgers.edu Title: Is There Market Power in The U.S. Brewing Industry? Abstract: Increased consolidation in the U.S. brewing industry has raised legitimate concern about brewing firms’ ability to exert market power over the downstream. Using structural models of oligopoly behavior, this research estimates the market power in the U.S. beer (manufacturing) industry over a 30-year period, during which the sector experienced a rapid increase in concentration and the demise of many small firms. The results show that the beer market is price-sensitive, and that both distilled spirits and carbonated soft drinks were substitutes for beer. While we were unable to detect the impact of the labor and material costs for the price of beer, we found that the federal tax on beer increased beer prices. Our results indicate that while there was some indication of market power, U.S. brewers did not exert oligopoly power over downstream firms (distributors and retailers). Keywords: U.S. brewing industry, market power, NEIO Journal: The European Journal of Applied Economics Pages: 67-79 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-22500 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/is-there-market-power-in-the-us-brewing-industry.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/is-there-market-power-in-the-us-brewing-industry File-Format: text/html Handle: RePEc:sng:ejae01:124 Template-Type: ReDIF-Article 1.0 Author-Name: Donny Tang Author-Email: dnytng@gmail.com Title: Have Export Compositions Influenced Economic Growth of The European Union Countries in Central and Eastern Europe? Abstract: This study analyzes export composition effects on economic growth in the European Union (EU) countries of Central and Eastern Europe (CEE) during 1999-2016. The results confirm that the fuel and food exports have boosted growth after EU accession. As expected, agricultural exports have no effect on growth. Due to the different comparative advantages, the CEE countries have still relied on some raw material exports while developing manufactured exports. The results also indicate that the transportation equipment, textile, steel, and chemical exports have accelerated growth. This can be attributed to the economies of scale in production, given their greater access to EU markets. Keywords: export composition, economic growth, economic integration Journal: The European Journal of Applied Economics Pages: 80-103 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-23638 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/have-export-compositions-influenced-economic-growth-of-the-european-union-countries-in-central-and-eastern-europe.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/have-export-compositions-influenced-economic-growth-of-the-european-union-countries-in-central-and-eastern-europe File-Format: text/html Handle: RePEc:sng:ejae01:122 Template-Type: ReDIF-Article 1.0 Author-Name: Nemanja Lojanica Author-Email: nemanjalojanica@yahoo.com Author-Name: Saša Obradović Title: Does Unemployment Lead to Criminal Activities? An Empirical Analysis of CEE Economies Abstract: This paper attempts to shed light on the linkages between criminal behavior and unemployment, with special reference to Central and East European countries (CEE). The adequacy of this paper relies on the premise that an econometric modeling of the relation between these variables is very important for the explanation of economic and social growth. Our result is in line with the premise that crime goes up when unemployment rises. These findings suggest that, to combat crime, all strategies oriented to mitigate unemployment should be investigated. Furthermore, in order to successfully mitigate crime, governmental authorities in the CEE economies need to achieve macroeconomic stability. Keywords: unemployment rate, crime, panel data econometrics, Eastern and Central Europe Journal: The European Journal of Applied Economics Pages: 104-112 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-23673 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/does-unemployment-lead-to-criminal-activities-an-empirical-analysis-of-cee-economies.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/does-unemployment-lead-to-criminal-activities-an-empirical-analysis-of-cee-economies File-Format: text/html Handle: RePEc:sng:ejae01:121 Template-Type: ReDIF-Article 1.0 Author-Name: Aaron Rae Stephens Author-Email: stephensa@hartwick.edu Author-Name: Ramin Kasamanli Title: An Analysis of North Korean Trade Amid Warming Global Relations Utilizing RCA, RSCA, and TBI Abstract: Based on high profile meetings with South Korean and US leaders, North Korean denuclearization and global economic cooperation is within sight. This paper seeks to outline trade policy opportunities for North Korea given such breakthroughs. This research summarizes international trade in North Korea and identifies sectors of the economy that are poised to further develop the North Korean economy. Employing three measures of trade specialization – RCA, RSCA, and TBI, this paper analyzes time series trade data from 2011 to 2018 in order to reveal specialized export sectors in North Korea. Chinese and UN bans on exports have been particularly damaging to exports from North Korea based on 2018 data. North Korea has comparative advantages in several sectors: coal, fisheries, and apparel among other areas. Trade in North Korea would lead to rapid industrialization and development if the country opens its economy; a well-managed approach would serve to direct development in specific sectors without sacrificing others; moreover, this research advises which sectors can be used to develop North Korea in an early stage of openness. Keywords: North Korea, international trade, RCA, RSCA, TBI Journal: The European Journal of Applied Economics Pages: 113-127 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-24702 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/an-analysis-of-north-korean-trade-amid-warming-global-relations-utilizing-rca-rsca-and-tbi.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/an-analysis-of-north-korean-trade-amid-warming-global-relations-utilizing-rca-rsca-and-tbi File-Format: text/html Handle: RePEc:sng:ejae01:119 Template-Type: ReDIF-Article 1.0 Author-Name: Nikolina Kordić Author-Email: nikolinakordic83@gmail.com Author-Name: Snežana Milićević Title: The Influence of Human Resources on The Development of Leading Tourism Destinations in Serbia Abstract: The aim of this paper is to show that the number of tourism overnight stays and the number of beds are related with the scope and dynamics of employment in the hotel industry of Serbia. Serbia’s most developed destinations (in the field of city tourism Belgrade and Novi Sad, spa tourism - VrnjaÄ ka Banja and Sokobanja, and mountain tourism - Zlatibor and Kopaonik) were chosen as the subject of research. The first part of the paper discusses the connection between the study of tourist destinations, on the one hand, and human resources, on the other hand. In the second part of the paper, corresponding conclusions are drawn regarding the influence of human resources on the development of the leading tourist destinations in Serbia by using systematization and presentation of statistical data, by analyzing the quantification of the effect of employment on tourism overnight stays, based on regression analysis, using the analytic-synthetic and comparative methods. Keywords: tourism destination employment, overnight stays, accommodation capacity, Serbia Journal: The European Journal of Applied Economics Pages: 128-145 Volume: 17 Issue: 1 Year: 2020 DOI: 10.5937/EJAE17-21424 File-URL: https://journal.singidunum.ac.rs/files/2020-17-1/the-influence-of-human-resources-on-the-development-of-leading-tourism-destinations-in-serbia.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/the-influence-of-human-resources-on-the-development-of-leading-tourism-destinations-in-serbia File-Format: text/html Handle: RePEc:sng:ejae01:126 Template-Type: ReDIF-Article 1.0 Author-Name: Maja Ivanović Đukić Author-Name: Marija Petrović Ranđelović Author-Name: Miljana Talić Title: An Analysis of Factors Influencing the Development of Social Enterprises in the Republic of Serbia Abstract: The paper investigates the impact of different factors on the establishment and development of social enterprises (SPs). The aim of this paper is to identify the key stimulants and restrictions of development of SPs in the Republic of Serbia, and to propose measures, the application of which can increase their long-term sustainability. The paper is based on exploratory research using data covering 27 interviews with founders of social enterprises in the Republic of Serbia. By applying the methods of regression analysis, it was found that favorable financial resources (especially grants) are the key stimulants for the establishment of social enterprises, while the enthusiasm of managers of social enterprises has the greatest impact on their development. It was found also that legal regulations and the macroeconomic environment, as well as difficulties in accessing the market, are serious restrictions on the establishment of social enterprises, while lack of knowledge in the field of marketing and management limit the development of social enterprises in the Republic of Serbia. Keywords: Social enterprises, stimulants, restrictions, long-term sustainability. Journal: The European Journal of Applied Economics Pages: 1-18 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-27375 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/an-analysis-of-factors-influencing-the-development-of-social-enterprises-in-the-republic-of-serbia.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/an-analysis-of-factors-influencing-the-development-of-social-enterprises-in-the-republic-of-serbia File-Format: text/html Handle: RePEc:sng:ejae01:128 Template-Type: ReDIF-Article 1.0 Author-Name: Bojan Živadinović Title: Tourist Satisfaction With Quality of Service, Food, Atmosphere, and Value for Money in Restaurants of Major Cities of the Western Balkans Abstract: An important factor in modern-day tourism is restaurant guests’ feeling of satisfaction. Motivated by the desire to quantify this feeling and make it an operational element of recommendations for further development of one segment of restaurant tourism, this paper examines the expressed satisfaction of foreign tourists in restaurants of selected cities in the Western Balkans. The second goal of this paper is to show the extent to which local visitors and domestic tourists are satisfied with the service provided in the analysed catering facilities. Comments that are an integral part of the research part of this paper’s analysis were collected from one of the most popular websites in the field of restaurant industry ‒ Trip Advisor. Keywords: restaurants, foreign tourists, local visitors, Trip Advisor, tourist satisfaction. Journal: The European Journal of Applied Economics Pages: 19-33 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-27360 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/tourist-satisfaction-with-quality-of-service-food-atmosphere-and-value-for-money-in-restaurants-of-major-cities-of-the-western-balkans.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/tourist-satisfaction-with-quality-of-service-food-atmosphere-and-value-for-money-in-restaurants-of-major-cities-of-the-western-balkans File-Format: text/html Handle: RePEc:sng:ejae01:129 Template-Type: ReDIF-Article 1.0 Author-Name: Mahamat Ibrahim Ahmat Tidjani Title: An Exploratory Analysis of Financial Inclusion in Chad Abstract: This paper aims to explore the state of financial inclusion in Chad. Adopting a Multiple Correspondence Analysis (MCA) on a sample of 1000 individuals from the Global Findex (2017), the study measured the inclusiveness of financial systems in Chad through a Financial Inclusion Index (FII). Furthermore, it assessed the distribution of the FII using the factor decomposition of the Gini coefficient. The findings showed that the average FII was low, 24.89%, and it varied between 7.43% and 60.35%. Financial institution account, deposit, withdrawal, and debit card ownership were the most influential indicators of financial inclusion in Chad. Moreover, the paper revealed that, despite its low level, financial inclusion was not smoothly distributed among the Chadian population (Gini coefficient of 0.196). The analysis of the financial inclusion inequality profile showed that there was a persistent financial inclusion gender gap in Chad, exacerbated by discriminations in education and income. Thus, policy interventions should target the provision of formal accounts, a reduction of costs of financial services (withdrawal and debit cards), and promoting formal savings by developing adequate savings products, to foster financial inclusion in Chad. Furthermore, these policies should be gender-responsive while considering its interaction with education and income. Keywords: Financial inclusion index, multiple correspondence analysis, inequality decomposition, Chad. Journal: The European Journal of Applied Economics Pages: 34-53 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-27027 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/an-exploratory-analysis-of-financial-inclusion-in-chad.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/an-exploratory-analysis-of-financial-inclusion-in-chad File-Format: text/html Handle: RePEc:sng:ejae01:130 Template-Type: ReDIF-Article 1.0 Author-Name: Vlastimir Vučić Author-Name: Miljana Radović Vučić Title: Conceptualizing Integrated Policymaking: Does the Diversification of Environmental Policy Instruments Contribute to Increased Sustainability? Abstract: Most urgent societal issues are crosscutting the boundaries of established jurisdiction. The conventional environmental policy domain is unable to achieve environmental objectives by itself, and each policy sector must integrate environmental objectives. For instance, the lack of clarity of how the integration of environmental objectives into energy policy has transformed and modified energy policy is the reason behind the low levels of integrated policy-making achieved. The present research attempts to clarify how the diversification of environmental policy instruments contributes to integrated policy-making. The present research explicitly confirms that that an increase in the extent of inclusion of environmental policy instruments within relevant policy domains increases to the extent of diversification of environmental policy instruments; that an increase in the extent of inclusion of environmental policy instruments within relevant policy domains and structures that coordinate and monitor efforts within relevant policy domains increases to the extent of diversification of environmental policy instruments; and, that an increase in the extent of inclusion of environmental policy instruments within relevant policy domains ultimately resulting in a cross-sectoral instrument blend results in the increase in the extent of diversification of environmental policy instruments. Keywords: Sustainable development (SD), environmental policy integration (EPI), renewable electricity (RES-E), policy instruments, integrated policymaking. Journal: The European Journal of Applied Economics Pages: 54-56 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-26902 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/conceptualizing-integrated-policymaking-does-the-diversification-of-environmental-policy-instruments-contribute-to-increased-sustainability.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/conceptualizing-integrated-policymaking-does-the-diversification-of-environmental-policy-instruments-contribute-to-increased-sustainability File-Format: text/html Handle: RePEc:sng:ejae01:131 Template-Type: ReDIF-Article 1.0 Author-Name: Konstantionos Tsiaras Title: Volatility Spillover and Contagion Effects Between Eurodollar Future and Zero Coupons Markets: Evidence From Italy Abstract: This paper examines the time-varying conditional correlations between the Eurodollar futures market and the zero coupons of Banca Fideuram. We apply a bivariate dynamic conditional correlation (DCC) GARCH model in order to capture potential contagion effects between the markets for the period 2005-2017. Empirical results reveal contagion during the under-investigation period regarding the twenty-one bivariate models, showing that the Eurodollar futures market has a major impact on the zero coupons of Banca Fideuram. Findings have crucial implications for policymakers who provide regulations for the above-mentioned derivative markets. Keywords: DCC-GARCH model, EURODOLLAR future market, zero coupons, financial contagion, dynamic conditional correlations. Journal: The European Journal of Applied Economics Pages: 67-88 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-26893 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/volatility-spillover-and-contagion-effects-between-eurodollar-future-and-zero-coupons-markets-evidence-from-italy.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/volatility-spillover-and-contagion-effects-between-eurodollar-future-and-zero-coupons-markets-evidence-from-italy File-Format: text/html Handle: RePEc:sng:ejae01:132 Template-Type: ReDIF-Article 1.0 Author-Name: Ilinka Stojković Author-Name: Jelena Tepavčević Author-Name: Ivana Blešić Author-Name: Milan Ivkov Author-Name: Viktorija Šimon Title: The Influence of Sociodemographic Characteristics of Residents on the Perception of Tourism Development Impacts Abstract: Residents play an important role in the process of destination development, but a supportive attitude in regard to tourism is key to the success of the touristic destination. Various authors have examined residents’ attitudes towards the impacts of tourism development from different points of view. This paper aimed to investigate the impacts of sociodemographic characteristics of locals on their attitudes towards tourism development. The study was conducted on the territory of Sirinićka Župa, in the municipality of Å trpce. A total of 94 respondents were included in the research. The results indicated that gender and education level have not influenced residents’ attitudes. On the other hand, it has been found that the age and length of residents’ significantly influence residents’ attitudes towards tourism development impacts. Keywords: Sirinićka Župa, residents, tourism development, tourism impacts, sociodemographic characteristics Journal: The European Journal of Applied Economics Pages: 89-103 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-26800 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/the-influence-of-sociodemographic-characteristics-of-residents-on-the-perception-of-tourism-development-impacts.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/the-influence-of-sociodemographic-characteristics-of-residents-on-the-perception-of-tourism-development-impacts File-Format: text/html Handle: RePEc:sng:ejae01:138 Template-Type: ReDIF-Article 1.0 Author-Name: James Ochieng Author-Name: Daniel Abala Author-Name: Mary Mbithi Title: Infrastructure Development, Institutions, and Intra-Regional Trade: The Case of East Africa Abstract: This study empirically examines the relationship between infrastructure stock and bilateral trade flows using a panel of 11 countries in East Africa for the period 2000 to 2018. Infrastructure augmented gravity model was estimated using total bilateral exports for the countries in East Africa. Infrastructure was disaggregated into transport and information and communications technology (ICT) infrastructures. Two institutional variables, control of corruption index and regulatory quality, were incorporated in the model. By employing Poisson Pseudo Maximum Likelihood (PPML) estimator, the results confirm that both ICT and transport infrastructures and quality institutions positively impact on the volumes of total bilateral exports in East Africa. However, ICT infrastructure has a greater impact on trade flows compared to transport infrastructure. Therefore, more resources should be channelled towards increasing the stock of ICT infrastructure to propel trade and regional integration in East Africa. Keywords: Infrastructure Stock, Institutional Quality, Intra-regional Trade, East Africa Journal: The European Journal of Applied Economics Pages: 104-118 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-26791 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/infrastructure-development-institutions-and-intra-regional-trade-the-case-of-east-africa.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/infrastructure-development-institutions-and-intra-regional-trade-the-case-of-east-africa File-Format: text/html Handle: RePEc:sng:ejae01:137 Template-Type: ReDIF-Article 1.0 Author-Name: Radhia Zemirli Author-Name: Mohand Chitti Title: The Explanatory Factors of Sovereign Credit Default Swaps Spreads: A Quantile Regression Approach Abstract: This article aims to analyze the main risk factors that explain the manifestation and the aggravation of sovereign risk, particularly through the dynamics of sovereign CDS spreads in euro area member countries. The explanatory factors that will be analyzed are related to general risk aversion, which is explained by the volatility of the stock markets, liquidity risk perceived by the flight to quality phenomenon, idiosyncratic risk, which is explained by the deterioration of the state of macroeconomic fundamentals. We will adopt an econometric approach with the quantile regression method applied to panel data developed by Canay (2011), because it allows to estimate the effect of the independent variables on the different regions of the distribution, of the dependent variable and also makes it possible to overcome the problem of the presence of extreme values. Finally, our model has made it possible to identify, over time and different countries, the factors which significantly explain a sovereign risk, and whose deteriorated situation is likely to lead to payment defaults, which is very important to know, especially in the current unfavorable macroeconomic context. These include the volatility of the stock markets, which shows investor mistrust, the drying up of liquidity in the bond markets, which explains the phenomenon of flight to quality, the budgetary factor, which is explained by the unsustainable debt, and the economic factor, perceived by the level of wealth of a country. Keywords: CDS spreads, Sovereign risk, Fundamentals, Risk aversion, Quantile regression Journal: The European Journal of Applied Economics Pages: 119-135 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-26097 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/the-explanatory-factors-of-sovereign-credit-default-swaps-spreads-a-quantile-regression-approach.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/the-explanatory-factors-of-sovereign-credit-default-swaps-spreads-a-quantile-regression-approach File-Format: text/html Handle: RePEc:sng:ejae01:136 Template-Type: ReDIF-Article 1.0 Author-Name: Pambayun Kinasih Yekti Nastiti Author-Name: Apriani Dorkas Rambu Atahau Author-Email: apriani.rambu@uksw.edu Author-Name: Supramono Supramono Title: Is Working Capital Management Able to Increase Sustainable Growth Through Asset Utilization? Abstract: Working capital management has a strategic role to maintain a balance between liquidity and profitability so that firms have greater opportunities to operate sustainably. This study mainly aims to investigate the ability of working capital management to increase sustainable growth through asset utilization. We ran panel data regression on manufacturing firms listed in the Indonesian Stock Exchange for the years of 2010-2017 as our sample. By controlling for leverage, sales growth, and firm size, our empirical results demonstrate that working capital management negatively affects firms' asset utilization. Furthermore, the study also finds that asset utilization positively affects sustainable growth. Finally, we empirically show that asset utilization mediates the relationship between working capital management and sustainable growth. The findings imply that if Indonesian manufacturing firms manage to have efficient working capital management, they are more likely to utilize their assets efficiently which, in turn, will increase their growth optimally, without causing problems to their cash. Keywords: working capital management, asset utilization, sustainability growth, cash conversion cycle Journal: The European Journal of Applied Economics Pages: 136-146 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-26056 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/is-working-capital-management-able-to-increase-sustainable-growth-through-asset-utilization.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/is-working-capital-management-able-to-increase-sustainable-growth-through-asset-utilization File-Format: text/html Handle: RePEc:sng:ejae01:135 Template-Type: ReDIF-Article 1.0 Author-Name: Milica Perić Author-Name: Nemanja Stanišić Author-Email: nstanisic@singidunum.ac.rs Title: Fdi Inflow Effects on Western Balkan Area's Labour Markets Abstract: Labour market dependency on Foreign Direct Investments (FDI) inflow is very high in transition economies. This paper estimates the effects of FDI inflow on the employment rate and average net wages in Western Balkan economies in the period 2003–2017. The sample of economies (Albania, Bosnia and Herzegovina, Croatia, North Macedonia, Montenegro, and Serbia) was selected mainly because of the high legacy with FDI and unsaturated labour market. Presumably, FDI inflow has a positive impact on the employment rate and on average net wages in the Western Balkan countries. Employing linear mixed-effects models (LMM), the results indicate that FDI inflow changes have very low but positive and significant effects on both the changes in employment rate and on average net wages. Keywords: average net wage, employment rate, foreign direct investments, linear mixed model, random effects Journal: The European Journal of Applied Economics Pages: 147-160 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-25663 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/fdi-inflow-effects-on-western-balkan-areas-labour-markets.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/fdi-inflow-effects-on-western-balkan-areas-labour-markets File-Format: text/html Handle: RePEc:sng:ejae01:134 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Shehu Title: Does Urbanization Intensify Carbon Emissions in Nigeria Abstract: This study examines the urbanization and CO2 emissions nexus in Nigeria using the Autoregressive Distributed Lag (ARDL) method to analyze the annual time series data spanning from 1974 to 2015. Findings suggest that urbanization, GDP, energy use, and carbon emissions are strongly and positively correlated, while trade and carbon emissions exhibit a weak and negative correlation. The ARDL result shows a negatively significant short-term and long-term connection between urbanization and carbon emission in the Nigerian economy. In the short-term, GDP, trade and energy use positively affect carbon emission while in the long-term, trade and GDP negatively affect carbon emissions with energy use having a positive impact on carbon emissions. The study, therefore, concludes that urbanization does not cause carbon emission to rise in Nigeria, but energy use does. From the findings, it was recommended that there is a need for the use of energy-saving and environmentally friendly technology to reduce the amount of carbon emission in the economy. Keywords: ARDL, CO2 emissions, STIRPAT Model, Urbanization Journal: The European Journal of Applied Economics Pages: 161-177 Volume: 17 Issue: 2 Year: 2020 DOI: 10.5937/EJAE17-19472 File-URL: https://journal.singidunum.ac.rs/files/2020-17-2/does-urbanization-intensify-carbon-emissions-in-nigeria.pdf File-Format: Application/pdf File-URL: https://journal.singidunum.ac.rs/paper/does-urbanization-intensify-carbon-emissions-in-nigeria File-Format: text/html Handle: RePEc:sng:ejae01:133