bluuebunny/crossref_metadata_2025 huggingface dataset:
IS THERE A PERSPECTIVE FOR A NEW PARADIGM IN ECONOMICS?
Authors: Čičinskas Jonas
Published: January 2019

It was long before the current economic crisis has triggered a new wave of criticism towards the very foundation of capitalism – the market system, that a discontent with deepening divergence between the pure economic theory and the agenda the economic policy has been dealing with was proliferating. Aattempts of refining the paradigm or its replacement with a new one were undertaken. The objective of the study was to review the main failures and incapacities the neoclassical economic theory is experiencing and to identify the possible trait components most appealing for modification and refining. The vast and unstoppable waste of resources (labour, but not only) by the modern market system, negation of the permanent and necessary presence of state in the economy as an integral economic agent, distortion of goals of economic activity by limiting them by the quantitative maximization of produce – these are the main traits of failure of the current theoretical model in satisfying requirements for a better understanding of modern economy. They are also the arguments for the criticism of its paradigm.The analytical method was used to penetrate the current discussion and other data in order to disclose the paradigmatic content of the theoretical perception of modern economy. The results of the whole study are new in terms of the fulfilled attempt to systemize criticisms of market system failures and to point out the possible components of its paradigm, which pretend to be modified. The conclusion is drawn that the paradigm of mainstream economics has no alternatives, but the growing mismatch between the realities of modern economic life and presumptions and the conclusions of the neoclassical model of economy asks for its revision or modification.
THE IMPACT OF THE EURO ADOPTION ON NASDAQ OM X BALTIC STOCK EXCHANGE. ANALYSIS BY STRUCTURAL BREAK TESTS
Authors: Jakučionytė Eglė
Published: January 2019

Although the euro adoption in Estonia in 2011 and changing the trading and clearing currency at the NASDAQ OMX Vilnius for euro on 22 November 2010 were foreseen as a possibility to attract more foreign investors, last year the Baltic stock exchange underwent some extreme fluctuations, both positive and negative.In this paper, shown are statistically significant euro adoption-caused trend breaks underlying the data set of NASDAQ OMX stock exchanges in Tallinn and Vilnius. Also, the possible factors that may have been driving them are discussed. The assessment is carried out using three different structural break tests.
EVALUATION OF THEORETICAL AND EMPIRICAL RESEARCHES ON TRANSFER PRICING
Authors: Novikovas Martynas
Published: January 2019

This article is structured as follows. The introduction provides a brief explanation of transfer pricing and its significance to practitioners and researchers. The purpose of transfer pricing is next considered. Then the conception and assignment of transfer pricing are discussed. This leads to a review of major theoretical and empirical researches on transfer pricing. The paper finally calls for further researches which should preferably be grounded on field work within a theoretical framework.
BUSINESS PROCESS MATURITY LEVEL DETERMINATION: A METHODOLOGICAL OUTLINE
Authors: Klimas Darius
Published: January 2019

Extensive literature on business process management (BPM) suggests that organizations could enhance their overall performance by adopting a process view of business. Hammer (2007) states that, in virtually every industry, companies of all sizes have achieved extraordinary improvements in cost, quality, speed, profitability, and other key areas by focusing on, measuring and redesigning their customer-facing and internal processes. In reality, many things need to be changed to harness the power of processes, but how to ensure what exactly need to be changed, how much, and when? In the article, a methodologically extended Hammer’s business process maturity model framework and its methodological implementation guidelines are presented. The developed framework serves as a diagnostic tool for the identification of organization process maturity level and to do reasoned optimal improvements which lead to a better overall organization performance.
MARGINALISATION IN THE DANISH LABOUR MARKET
Authors: Laužadytė Agnė
Published: January 2019

In this paper, I estimate different time hazard models of the exit from different labour market states – unemployment, employment and inactivity – in Denmark. I find that women and individuals over fifty are more likely to experience long-term unemployment and inactivity. The less educated and unskilled workers are found to be another risk group to face marginalisation. Being previously employed reduces the risk of inactivity and increases the probability of re-entry to employment, while long-term unemployment or inactivity makes workers more likely to return to these labour market states in the future. Living in biggest Danish cities where job competition is high is a disadvantage, but it has a positive effect on labour market performance of persons over fifty. And finally, I find that those who have stayed in job for one year tend to remain employed, while persons inactive for longer than one year face a much higher risk of marginalisation.
DATING BUSINESS CYCLES IN LITHUANIA BY SIMPLE UNIVARIATE METHODS
Authors: Kučinskas Simas
Published: January 2019

In this paper, we use three basic univariate techniques, namely, BBQ algorithm, time series filtering, and Markov-switching models, to date and characterize Lithuanian business cycles from 1995 to 2010. We find that economic growth in Lithuania was relatively balanced after the Russian Crisis until late 2006. After that, the economy experienced an extreme, although relatively brief, period of an overheated economic climate before plunging into a very deep recession at the end of 2008. Using the BBQ algorithm, we provide some simple comparisons of the two recessions as well as international data obtained in other studies. Our Markov-switching regression exercise, confirming the findings above, additionally indicates that recessionary periods may have shocks with non-finite variances and economically significant permanent effects on output.
LOOKING FOR THE E-COMMERCE QUALITY CRITERIA: DIFFERENT PERSPECTIVES
Authors: Guseva Natalija
Published: January 2019

To assure a successful development of e-commerce, it is necessary to define the criteria that could guide the choice of a competitive e-commerce system and its quality evaluation. The aim of this study was to bring together and analyze the e-commerce quality criteria proposed in the scientific literature, by e-commerce experts, and important for customers. Analysis allowed to identify a triple set of e-commerce quality criteria, as well as the differences among the criteria provided by invoked sources.
APPLICABILITY OF CONTRARIAN INVESTMENT STRATEGIES IN SMALL CAPITALIZATION MARKETS: EVIDENCE FROM NASDAQ OMX VILNIUS
Authors: Paškevičius Arvydas , Mickevičiūtė Rūta
Published: January 2019

This study reviews previous research on the contrarian investment strategy as first analyzed by De Bondt and Thaler (1985), and aims at deepening and complementing the existing research on the subject. The paper analyses the results of applying the strategy to NASDAQ OMX Vilnius stocks over the period 2003–2010, dividing the testing into two groups: prior to the economic crisis and the crisis periods, based on the movement of the OMXV index. The method uses holding period returns in evaluating the standard contrarian investment strategy. The paper explains the methodology in detail and presents the findings which show no considerable holding period returns from the strategy in NASDAQ OMX Vilnius during the decline period; however, contrarian strategy seems to be a better option than a standard market index based portfolio during the periods of rapid growth when stocks are overrated.
KEY DETERMINANTS OF LITHUANIA’S SOVEREIGN CREDIT RATING
Authors: Pačebutaitė Aušra
Published: January 2019

The topic concerning the determinants affecting sovereign credit ratings of a country became extremely relevant after the recent economic turbulence which brought relentless downgrades, especially for Central and Eastern European (CEE) countries in their sovereign credit ratings. In the face of economic downturn around the world, causing the reduced availability of global capital flows and the appetite for risk, it becomes essential for the countries to secure the high market grade ratings in order to be able to issue foreign debt to ensure the solvency of the country’s finances and to pursue a sound economic growth.The aim of the study was to elucidate the key determinants of the Lithuanian sovereign rating during the financial turbulence of 2008 and to explain their importance and dynamics through external borrowing costs of the country.
THE IMPORTANCE OF COMPETITION POLICY IMPLEMENTATION IN A SMALL ECONOMY: THE CASE OF THE LITHUANIAN FUEL TRADE MARKET
Authors: Baužytė Inga , Kučaidze Karina
Published: January 2019

The paper deals with the importance of competition policy implementation in a small market economy. The Lithuanian fuel trade market has been chosen for the analysis. To ensure that the fuel trade market is working efficiently and is fairly priced is one of the key priorities for the government of Lithuania. Competition policy plays an essential part in the country’s economy. Therefore, in order to understand the characteristics of small market economy and how competition policy is working in such market conditions, it is neassary to realize the complexity of the analysis. The paper offers a brief theoretical overview of the specifications of competition policy in a small market economy, together with a thorough interpretation, empirical research and discussion of the Lithuanian fuel trade market.
ASSESSING THE APPLICATION OF SECURITISATION IN LITHUANIA
Authors: Miškinis Algirdas , Čipkutė Eivilė
Published: January 2019

The aim of this article is to analyse the application possibilities of the securitisation mechanism in Lithuania. Securitisation has been used for a few decades by banks as an instrument to decrease credit risk and broaden the sources of funding. The increasing demand for asset-backed securities has prompted the development of this mechanism. Nevertheless, despite its benefits, if used irresponsibly, this mechanism can also create risks to financial stability. Foreign capital banks dominate in the Lithuanian banking sector, and their financing structure is highly based on parent bank loans, which is the second largest financing source after deposits. As the recent economic crises have shown, the flow of this resource is unstable and pro-cyclical. Therefore, banks ought to seek additional funding sources. The issue of securities backed by bank loans could be one of those sources. The authors of this article, with the help of regression analysis, have assessed a possible effect of additional credit flow, which could be attracted by banks using securitisation, on country’s GDP. The analysis has shown that certain types of loans can significantly impact the country’s GDP growth. The most significant effect on GDP would be reached, if banks would securitize new loans issued to households and use the obtained funds to issue more loans to households.
STATE PROPERTY: ECONOMIC ANALYSIS AND MANAGEMENT
Authors: Mackevičius Jonas , Ragauskienė Erika
Published: January 2019

State property serves as an essential provision for ensuring the improvement of society‘s quality of life, the growth of economic welfare, social security, political stability and cohesive development in all facets of life. The purpose of the article is to analyze the current variety of property classifications, to perform an analysis of state property values and their management system. When transforming the state property management system towards a higher level of effectiveness, it is necessary to perform a comprehensive state property valuation which would fully reflect the structure of state property in both a quantitative and a value sense.
CLUSTERIZATION: EFFECTS ON SOME INDUSTRY SECTORS OF LITHUANIA
Authors: Kulikauskas Darius , Viselgaitė Daiva
Published: January 2019

In this paper we focus on clusterization in Lithuanian wood products manufacturing and in computer, electronic and optical products manufacturing industries. These sectors were chosen upon analyzing Jucevičius (2003) and Jucevičius (2009) who describe them as having undergone a clusterization process. We use graphical and statistical analysis to find that clusterization has had a positive effect on the mentioned industries. Our analysis also covers a brief review of clusterization theory, development and current state. We also note that clusterization is supported in the European Union, which might be one of the major reasons why it has been accepted in Lithuania. Finally, we argue that competent practitioners who focus on clusterization professionally are scarcely available in the labour market, and clusterization theory is far from mature and requires a lot of academic input.
ALTERNATIVE INVESTMENT FUNDS: REGULATION, CHARACTERISTICS AND DEVELOPMENT IN LITHUANIA
Authors: Jarašius Gytis
Published: January 2019

This article deals with the operations of alternative investment funds (AIF) and their legislation in Lithuania. Currently, the AIF registered in Lithuania face difficulties, since the majority of them are not able to attract investors and are forced to discontinue their operations. Nevertheless, the size of the AIF capital in Lithuania is consistently growing and contributes to the increasing share of capital among all investment funds. The legislation of AIF on the global scale before the financial and economic crisis in 2008 was rather weak; nevertheless,currently this trend is changing, a new legislation is put in place in the EU and USA in order to tighten AIF legislation and to limit their operations. However, AIF registered in Lithuania are rather small; therefore, this trend will not have a significant influence on Lithuania.
THE EFFECTIVENESS OF INTERNAL DEVALUATION IN LITHUANIA AND LATVIA
Authors: Medaiskytė Rūta , Klyvienė Violeta
Published: January 2019

In the face of economic crisis, Baltic governments had to choose between internal and actual devaluation. Eventually, the first path was chosen to tackle the external and domestic macroeconomic instability. The aim of this study was to evaluate the effectiveness of the internal devaluation policy in the Baltic economies. Using qualitative research methods and graphical analysis, we have evaluated whether the choice of internal devaluation or deflation was appropriate in the exceptional recession period and whether it helped to eliminate the imbalances of the boom period. Obviously, fiscal consolidation helped to ease the tensions and restore confidence in the markets. However, we believe that the internal devaluation policy was efficient only temporarily in Latvia and Lithuania. This policy was hampered by the sectorial mismatches between labour demand and supply, which resulted from a strong surge in unemployment. A. detailed cos–benefit analysis of the internal devaluation policy option requires a more formal econometric analysis which will be implemented in the future research.
CAUSES AND CHARACTERISTICS OF BUSINESS CYCLE IN LITHUANIA: A STRUCTURAL VARAPPROACH
Authors: Proškutė Aurelija
Published: January 2019

We investigate the structural disturbances underlying the business cycle in Lithuania in the bivariate time series framework. In the structural VAR model constructed productivity, hours of work and output fluctuations over the business cycle are composed of technology and non-technology shocks. We find that a technology shock has a persistent positive effect on all three variables. Non-technology disturbance has a long-term impact on working hours and output, but it has a negligible short-run effect on productivity.Differently from Gali (1999), the study has revealed no significant correlation between productivity and working hours under the effects of technology shocks on Lithuanian data. In contrast with the results of developed countries, non-technology shocks result in a significant negative correlation between the working hours and labour productivity in Lithuania.Historical decomposition of output, productivity and working hours series allows distinguishing four different episodes of Lithuanian economy during the analysed timeline. In 1999, negative technology shocks played the biggest role in pushing the output down. During the period 2001–2004, the real GDP growth was supported by productivity increase due to technology shocks; in 2005–2008, non-technology shocks and the higher working hours were fuelling output growth together with a positive impact of the technology shock on productivity growth. Finally, 2008–2011 is the period of negative technology and non-technology shocks.
WAVELET ANALYSIS OF THE CRISIS EFFECTS IN STOCK INDEX RETURNS
Authors: Kravets Tetyana , Sytienko Anastasiia
Published: January 2019

Abstract. The article considers local peculiarities of the world stock indices in 2007–first half 2012 and offers a comparative analysis of the indices. The research is based on the time series decomposition of the most liquid European, Asian, USA, and Brazil stock indices. The aim of the research was to localize and describe the crisis effects on index dynamics in time and scope by using wavelet decomposition techniques. This approach allows to identify clusters of stock indices and to study their common and individual features. The window transformation method is used for the investigation of index returns’ volatility dynamics. This method allows to investigate the nature and characteristics of the identified critical waves in the stock markets studied. The combined application of wavelet transform, neural networks and SSA is proposed for the prediction purposes. This approach is used for the return forecast of the German index DAX30.Key words: economic crisis, stock index returns, the wavelet transform, neural networks, SSA
TESTING THE WEAK-FORM EFFICIENCY HYPOTHESIS IN THE UKRAINIAN STOCK MARKET VERSUS THOSE OF THE USA, RUSSIA, AND POLAND
Authors: Khrapko Vladimir
Published: January 2019

Abstract. Objective. This empirical research was made to test a weak-form market efficiency of the stock market index in Ukraine as compared with other countries’ stock indexes. Data. Daily data were investigated for the period from August 2008 to October 2011. Methods. We applied different statistical tests to verify the hypothesis that the Ukrainian stock market follows a random walk. Main results. The main research findings are: the daily returns are not normally distributed; I.I.D. tests and the Kendall test support the random walk hypothesis. Test results on autocorrelation and variance stability were ambiguous. The reported results may be considered as the first approach to the further research on the efficiency of the Ukrainian securities markets.Key words: Ukraine, stock market, efficiency, test
HUMAN CAPITAL OF POLISH NON-GOVERNMENTAL ORGANISATIONS: FROM MACROECONOMIC CONTEXT TO MICROECONOMIC IMPLICATIONS
Authors: Dyczkowski Tomasz
Published: January 2019

Abstract. The paper1 aims at emphasizing the importance of a proper recognition and disclosure of human capital in non-governmental organizations (NGOs) on the example of Poland. Although NGOs do significantly contribute to social well-being, the economic focus paid to commercial businesses and public institutions causes that a scope of civil initiatives is not recognised to a sufficient extent. It is, therefore, a role of the Third Sector to promote its activities and to inform extensively on the effects generated. The issue which requires particular attention in this respect is the human capital which propels all benevolent activities.The author analyses, firstly, the historic, economic, and legal circumstances that shaped the modern Third Sector in Poland. Subsequently, an analysis of human resources available to Polish NGOs in comparison to the situation of their German and British counterparts is conducted. The results of a study on the attractiveness of the non-governmental sector as an employer are discussed next. The paper is concluded with a presentation of methods which enable to quantify and valuate human capital in a non-commercial environment, including the ratios used to monitor the development of that capital.The results presented in the paper clearly demonstrate that it was possible due to involvement of socially sensitive people to rebuild social activities in Poland after the long period of the state’s exclusivity in defining and addressing social issues. Those people made the initial human resources of Polish NGOs as their members, governors or volunteers. Nonetheless, the development of a comprehensive legal framework stimulating co-operation between the state and NGOs, and an extensive use of European funds helped to extend the labour force of the sector by 120 000 employees. A priority for now proves to be sustaining that growth by attracting young people. The results of the author’s study on the perception of the Third Sector by students show that most of them still know NGOs from mass media only, and one third of them would not consider working for an NGO in future. On the other hand, opinions of those who already work in a non-commercial environment prove to be positive, what entitles to formulate the conclusion that a better knowledge of the ways NGOs work is vital to build their human capital. If social managers develop proper systems of measuring and reporting human capital, such as the one presented in the paper, they will gain a tool to demonstrate that human capital of their organisations is used to make social initiatives as effective and efficient as possible.Key words: non-governmental organisation (NGO), the Third Sector, human resources, human capital
ANALYSIS OF THE ECB MONETARY POLICY MATCH FOR THE NEEDS OF THE EURO AREA COUNTRIES NEEDS
Authors: Reichenbachas Tomas
Published: January 2019

Abstract. In this paper, using the Taylor rule (Taylor, 1993), the European Central Bank (ECB) monetary policy in 2000–2012, as well as individual interest rate needs of the euro area (EA) countries are analysed. It is assumed that the estimated Taylor rule interest rates are optimal for individual members. We have analysed whether the actual ECB interest rates and the calculated rates are different and have become more balanced towards individual countries’ needs. The work focuses attention on the last period (2008–2012) when the EA faced economic problems and an asymmetric shock. The analysis shows controversial results: on the one hand, the interest deviation mean decreases (just a little), but an increasing gap between individual needs can be seen: some countries are becoming increasingly divorced from the general EA needs. It makes them very vulnerable, and there is a risk that these countries in the face of asymmetric challenges can be “left behind” by the ECB focusing on the EA as a whole. Also, in this paper, the stationarity of the calculated deviations is analysed to help understand their nature. This approach is new, and the author is unaware of similar works. Analysis of the optimal interest rate dynamics has revealed that Germany needed the interest rates that were opposite to the needs of Spain and Greece and susceptible to divergence, so this led to the ECB difficulties in determining the proper interest for all countries’ needs. The EA as a currency area is most optimal for Belgium, Cyprus, Finland, France, Italy, and the Netherlands from the interest rate setting perspective.Key words: the Taylor rule, optimal monetary policy, asymmetric shocks, optimal currency area
COMPARATIVE ANALYSIS OF THE PROSPECTS OF UKRAINIAN COAL MINES BY THE COPRAS-G METHOD
Authors: Zhylinska Оksana , Balan Valery , Petrovska Tatiana
Published: January 2019

Abstract. The article covers the elaboration of a methodical toolkit of assessing the prospects of coal mines, which allows for the differentiation of enterprises by an integrated index of their prospects as regards mining and the geological conditions of each coal mine. Is proposed An algorithm for the coal mine prospects assessment, of containing the stages of selecting the characteristics of mining and geological conditions, the use of a multi-attribute assessment by the COPRAS-G interval data, and the rating of coal mines. A comparative analysis of the prospects, employing the COPRAS-G method, was tested on an the example of 14 coal mines of the Central district Donbass of Ukraine.Key words: comparative analysis, prospects, coal mines, multi-attribute assessment, imprecise data, COPRASG method, CEE
THE MODIGLIANI–ADDO–BRUMBERG LIFE-CYCLE MODEL: APPLYING TO UKRAINE’S ECONOMY
Authors: Bazhenova Olena V. , Krytsun Kateryna I.
Published: January 2019

Abstract. The authors investigate and analyze the possibility of the Modigliani–Ando–Brumberg life-cycle model to describe the relationship among income, consumption, savings, and inheritance of individual households of Ukraine’s economy by using the state statistics data of Ukraine. The features and contradictions of the assumption that a person has the desire to stabilize consumption and make it uniform throughout his life to Ukrainian households are tested.Key words: life cycle model, savings, income, debt, retirement, consumption, wealth, inheritance, constant consumption
ANALYSIS AND MODELING OF THE SOCIAL SECURITY INDEX IN UKRAINE, LITHUANIA, AND SCANDINAVIAN COUNTRIES
Authors: Stavytskyy Andriy V. , Sadovenko Oksana V.
Published: January 2019

Abstract. The social security of acountry is a situation which is positively regulated by legal norms where the government uses all democratic management practices to maintain decent living standards and ensure theability to meet basic needs for the development of the country and society.The Scandinavian economic model provides for a comprehensive social protection and social benefits to all segments of the community. That is why we used a comparative analysis and the modelling of the social security index in Ukraine, Lithuania, and Scandinavian countries.In the paper, we identify a unique method for calculating the indicator of social security, using three main components: income, demographic situation, and labour market.We have studied the impact of macroeconomic indicators on the level of social security, made an analogy with the Nordic countries, and determined which model should be used for the best results in ensuring the social protection of society.The research has shown that high tax rates combined with a full public confidence in the government and a transparent system of income redistribution are important factors in the development of socially-oriented Scandinavian countries.A regression analysis was conducted to analyse the relationship of tax revenues and social security index; the models of dependence for each country were constructed.We have defined the basic types of taxes and their impact on the economic situation in a country. It is concluded that, in most cases, increasing tax rates should lead to negative changes in the social security of a country.Key words: social security, public policy, fiscal policy, stability, society
EVALUATION OF REGIONAL EFFICIENCY DISPARITIES BY EFFICIENT FRONTIER ANALYSIS
Authors: Dzemydaitė Giedrė , Galinienė Birutė
Published: January 2019

Abstract. The nonparametric methods, such as data envelopment analysis, free disposal hull and order-α frontier analysis, have been applied in this study to evaluate the efficient frontier which extends the application of the production function of regions. These mathematical programming methods allow evaluating the effectiveness of the regional spatial aspects. In recent studies, efficient frontier methods are applied to evaluate regional policy issues of the European Union.The purpose of this article is to present a more detailed evaluation of regional disparities by analysing regional infrastructure, human capital efficiency, and linkages among the regions. The application of frontier methods reveals their feasibility for studying regional inputs and outputs to asses a more detailed and more reasonable allocation of funds among Lithuanian regions. A more detailed territorial breakdown is selected in this paper to identify a wider scale of efficiency differences among the regions. From the practical point of view and according to the results, more balanced planning tools are suggested for fund allocation decisions in Lithuanian regions while planning infrastructure and human capital development. As efficient regions areidentified, it is recommended to invest in more indirect factors to enhance regional growth. while in inefficient regions more emphasis should be made on more direct interventions to foster economic activity because current investments give insufficient returns. The present type of research is a case study.Key words: regional disparities, regional efficiency, economic development, spatial data envelopment analysis, nonparametric analysis
INSURANCE INTERMEDIARIES’ WORK-RELATED STRESS: CONNECTIONS WITH LABOUR PRODUCTIVITY
Authors: Kulvinskienė Violeta Raimonda , Apčelauskaitė Gintarė
Published: January 2019

Abstract. The article deals with work-related stress, the reasons for its occurrence, consequences, and ways how to manage stress in the Lithuanian “X” life insurance company. The intermediaries’ work stress connection with labour productivity and type A personality behaviour are analyzed. The study aims to find out how the insurance company takes certain measures to minimize work-related stress and to increase labour productivity.Key words: work-related stress, labour productivity, Type A character behaviour, work-related stress management
PUBLIC–PRIVATE PARTNERSHIPS IN HOUSING CONSTRUCTION IN UKRAINE
Authors: Balabenko Elena
Published: January 2019

Abstract. The paper presents an analysis of construction operations, retarding tendencies, necessity to attract private capital to civil engineering, with an emphasis on the development of national cooperation and con-struction business in the realization of concrete social and economic and investment projects in Ukraine in the form of public–private partnership. The problems of the development of housing construction institutions are also presented within the framework of the public–private partnership and the preconditions for the topical character of the private capital attraction to this sphere. The necessity of developing the public–private partnership in housing construction has been justified. The development of the trend will help to unify the interests of power, business, financial institutions and private investors. Also, a special pattern of the public–private partnership taking into consideration the peculiarities of the contemporary house-building industry is proposed.Key words: housing construction, public–private partnership, investment, pattern
MONETARY POLICY IN ADVANCED ECONOMIES DURING THE GLOBAL FINANCIAL CRISIS: LESSONS FOR LITHUANIA
Authors: Visokavičienė Birutė
Published: January 2019

Abstract. The main goal of the research is to develop monetary policy tools and measures enabling to achieve macroeconomic goals of integration into the euro area in the immediate future. It is noted that until the introduction of the euro Lithuania does not have a monetary policy and applies the currency board regime pegging the litas invariably to the euro (hard peg regime). Therefore, it is not only difficult but also risky to try to achieve financial and economic stability in accordance with the relevant Maastricht criteria through fiscal policy measures alone. Monetary policy instruments are necessary to achieve price stability and the overall financial stability. Currently, Lithuania should address the problem of balancing the currency board regime and the Maastricht criteria as a macroeconomic objective through monetary policy tools and measures.The analysis of monetary policies of advanced economies and, first of all, of the euro area reveals the main features of transmission of the monetary policy to a real economy, which can contribute to the successful integration into the euro area. A systemic analysis of the monetary policy is based on monetary and economic theories, laws and patterns, scientific literature and empirical studies. The method used is the logical analysis and systemising of academic literature and modelling of the monetary policy. Such a methodological position enables the justification of the influence of the euro and monetary policy on the future development of the national economy.Key words: monetary policy, euro, exchange rate, inflation, indicators
THE RELATIONSHIPS OF CASH FLOWS: EVIDENCE FROM LATVIAN COMPANIES
Authors: Subatnieks Kārlis
Published: January 2019

The paper deals with the subject of relationships among the different cash flows, as well as earnings, of a company. The aim of the paper is to establish the direction and strength of mutual relationships between different cash flow measures, as well as with earnings, and to provide recommendations for the prediction of future cash flows and earnings. The methods of the research include content analysis, the calculation of relative indicators, average and median measures, as well as regression and correlation analysis. There is an empirical study of the data of 52 Latvian companies, which has resulted in testing the hypotheses put forward and substantiated in the paper. A typical Latvian enterprise relies on the operating cash flow to create the investing cash flow and does not need to rely on the external sources of financing. The author concludes that investment does pay, and, based on the assessment of results of the developed model, the investing cash flow should be used in cash flow prediction, while it should not be used in earnings prediction. The increase in financing cash flow causes a company investments to increase.
ANALYSIS OF THE ATTRACTIVENESS AND COMPETITIVENESS OF THE SECURITIES MARKET IN LITHUANIA
Authors: Urbšienė Laimutė , Monkevičiūtė Rūta , Navikaitė Urtė
Published: January 2019

The importance of attractiveness and competitiveness of the Lithuanian stock market has significantly increased in the recent years due to its influence on the capital market as well as on its participants and the economy of the whole country. This article aims to evaluate the attractiveness and competitiveness of Lithuania’s securities market by using a quantitative analysis. It has aimed to define the statistically significant relationship between market attractiveness and competitiveness and the number of listed companies, cross listing, liquidity and trade volumes. The quantitative analysis has provided arguments to conclude that securities market in Lithuania currently is not attractive either from the point of capital supply or from the point of capital demand. In addition, the securities market in Lithuania lacks competitiveness among other markets.
EVALUATION OF THE PERSONAL INCOME PROGRESSIVE TAXATION AND THE SIZE OF TAX-EXEMPT AMOUNT IN LITHUANIA
Authors: Bikas Egidijus , Subačienė Rasa , Astrauskaitė Ieva , Keliuotytė-Staniulėnienė Greta
Published: January 2019

The tax systems of the European Union countries differ in many features. However, for taxing personal income, many EU countries use the method of progressive taxation. Progressive taxation is aimed to shift the tax burden from those with a relatively low income to those whose income is sufficiently high. Such personal income taxation system creates the prerequisites for social justice. In addition to different income tax rates, in a progressive tax system, a crucial role is played by the size of tax-exempt amount. In this article, personal income progressive taxation and the tax-exempt amount are analyzed as one of the progressive taxation tools. The study was conducted using the method of descriptive analysis as well as forecasting and modeling techniques.
INTELLIGENT TECHNOLOGIES OF STRATEGIC AND OPERATIVE MANAGEMENT SUPPORT FOR ENTERPRISES
Authors: Chornous Galyna O.
Published: January 2019

Abstract. The article is devoted to the development of a mechanism for the proactive support of strategic and operational decision-making in an enterprise. The starting point for this mechanism should be a model (pattern) of the enterprise, which embodies the principles of balanced strategic measurement systems. Development of the enterprise pattern as an ‘object–project–process–environment’ configuration allows to stitch together the strategic and operational indicators, to provide a vertical continuity, the allocation of responsibilities for the purpose of full control. An effective use of the enterprise data as a strategic resource involves knowledge discovery for decision support through developing interrelated analytical models. Taking into account the limitations of classical methods for strategic and operational management support, Data Mining (DM) is proposed as an adequate modeling tool. A basic set of autonomous DM methods for developing appropriate models is proposed. Besides, it is demonstrated that an effective mechanism for decision support should be based on the application of hybrid intelligent models and methods, and should be brought up to the level of a hybrid decision support system DSS. Achievements of modern information technology (Big Data, analytics in memory, cloud technology, etc.) play in favor of the proposed approach.Key words: strategic management, operative management, intelligent technologies, mechanism for decision support, DSS
EFFECTS OF CORPORATE GOVERNANCE ON MANAGEMENT EFFICIENCY OF LITHUANIAN STATE-OWNED ENTERPRISES
Authors: Jurkonis Liudas , Petrusauskaitė Dovilė
Published: January 2019

Abstract. Management efficiency of state-owned enterprises (SOE) is being widely discussed not only in Lithuania, Central Eastern Europe, but also globally (mainly focusing on such countries as China, having state monopoly in most of the industries). Moreover, this topic is interesting to scholars both in the context of public governance reforms and a specific area of public administration. On the other hand, the topic of SOEs management is quite specific due to its duality: firstly, it is an area of public governance with an intensive intervention of the government, and secondly, SOEs are autonomous enterprises having dual – social (e.g., creation of work places, implementation of state-level projects, etc.) and economic (e.g., profitability, return on investment, etc.) – goals. Following the paradigms of (post) new public governance, principal agent theory, corporate governance guidelines established by such international organizations as the OECD, World Bank, International Monetary Fund and others, this paper is focusing on the management and performance of SOEs, trying to find an evidence of positive effects related to the implementation of corporate governance principles in Lithuanian SOEs. The paper seeks to identify those aspects of corporate governance which are the most relevant in terms of their potential effect on the management efficiency of Lithuanian SOEs.Key words: state-owned enterprises, corporate governance, principal agent theory, management efficiency
THE EFFICIENT MARKET HYPOTHESIS: A CRITICAL REVIEW OF LITERATURE AND METHODOLOGY
Authors: Degutis Augustas , Novickytė Lina
Published: January 2019

The development of the capital markets is changing the relevance and empirical validity of theefficient market hypothesis. The dynamism of capital markets determines the need for efficiency research. The authors analyse the development and the current status of the efficient market hypothesis with an emphasis on the Baltic stock market. Investors often fail to earn an excess profit, but yet stock market anomalies are observed and market prices often deviate from their intrinsic value. The article presents an analysis of the concept of efficient market. Also, the market efficiency evolution is reviewed and its current status is analysed. This paper presents also an examination of stock market efficiency in the Baltic countries. Finally, the research methods are reviewed and the methodology of testing the weak-form efficiency in a developing market is suggested.
DIFFERENCES BETWEEN AUDIT QUALITY PROVIDED BY INTERNATIONAL AND LOCAL AUDIT FIRMS: THE RESEARCH ON AUDIT CLIENTS’ PERCEPTIONS IN THE AUDIT MARKET OF LITHUANIA
Authors: Vaicekauskas Darius
Published: January 2019

The article investigates the quality of audit services that international and local (operating nationally) audit firms are offering. There has been a great amount of effort put in recent years to improve audit quality due to the increase of auditing scandals in various corporations across the world. To improve audit quality, it is crucial to assure that all the stakeholders of the auditing triangular relationship would be satisfied with the outcomes (what is provided) and the process (how the service is provided) of audit services. Considerable attention should be paid not only to the external users (third-parties), but also to the audit clients as their perceptions of what is a quality audit are very subjective.In the last couple of decades, there has been a lot of effort put into research whether the best international audit firms do actually provide audits of higher quality than the local audit firms that are based nationally. The main criterion that these firms are compared in a vast body of literature is the accuracy of the information that was provided to the third parties in auditors’ reports, i.e. in many studies the correct auditor’s report is used as a proxy for audit quality.The aim of this study was to investigate whether Lithuanian audit clients perceive audit services to be better in quality when employing local or international audit firms. This paper will theoretically discuss the audit quality differences between international and local audit firms, and it will present the results of the survey of Lithuanian audit clients.The survey used the questionnaire based on 12 audit quality criteria assessible for the client. The criteria represented audit service’s value added and the performance, i.e. how the audit was conducted. Results of the survey imply that both international and local audit firms provide their clients with the same level of added value and audit performance, except the following significant differences. It can be stated that Lithuanian audit clients perceive audit provided by local audit firms to be of a higher quality than those provided by international audit firms in terms of the insights on tax risks (value added criterion), partner’s involvement in their audit, and perceived competence of audit assistants (audit performance criteria).
On the Choice of Fiscal Adjustment to Financial Crises: Expansionary vs. Contractionary Policies
Authors: Čekanavičius Linas
Published: January 2019

[full article and abstract in English]

An everlasting debate over the economic policies to be implemented in the face of economic recessions tends to intensify every time such a crisis strikes. Two notably opposite schools have emerged: one that represent those who advocate for quantitative easing and increased government spending, and another that calls for austerity measures and disciplined public finance. The available empirical evidence cannot supply a definite solution to the spending vs. austerity debate if just one answer is to be provided, as there are numerous historical experiences when either strategy had worked or failed. The aim of this paper is to examine and assess the arguments of both schools of economic policies, to highlight the essential drawbacks and limitations of both and to identify the specific conditions under which each of the policy type can bring the desired impact. It is argued that both of the policy approaches rely on particular implicit assumptions and, if implemented recklessly, are liable to fail or create negative side-effects. A discussion of the relative merits and shortcomings of both types of recipes for curing economic recessions is illustrated by the references to the empirical historical cases. The main conclusion that stems out of the analysis is that a somewhat “medical approach” should be followed while attempting “to cure” ailing economies: regardless that the symptoms of a slump might be quite similar, one should start with an attempt to diagnose the underlying causes of the economic malady at hand, followed by the assessment of a “patient’s” health status, and only then proceed to the selection of an appropriate “cure” and treatment procedure.
An Analysis and Comparison of the Commercial Bank Competition Regimes in Lithuania and Denmark
Authors: Stanikunas Rimantas , Sergijenkovas Ivanas
Published: January 2019

[full article and abstract in English]

The article itself is focused on the empirical researches that had challenged two different operational areas of the same entity, with a special emphasis on the challenges and opportunities for the banking segments of Lithuania and Denmark. The influencing factors of the banking sector within these two countries have been analyzed and compared. We have delved into the issue that the successful standing of a parent company within its home area of operations is not by default a guarantee of success for its foreign branch or subsidiary. The decisive factors for a successful competitive approach within the banking segment are compared on the national levels of Denmark and Lithuania.
The Efficiency of Public Procurement in the Republic of Kosovo: an Econometric Approach
Authors: Kacandolli - Gjonbala Drita , Shiroka - Pula Justina , Berisha - Shaqiri Afërdita , Osmani Myslym
Published: January 2019

[full article and abstract in English]

This study aims at investigating and assessing the efficiency of the public procurement system and its main factors in the Republic of Kosovo. For this purpose, we collect data for a random sample of 243 economic operators (companies) eligible to benefit from public funds. We analyzed the data using descriptive analysis as well as econometric modeling, and we have used classical and ordinal logistic (o-logit) econometric models. In the absence of a direct indicator, the efficiency of procurement is measured by two proxy variables, discrimination- tendering criteria and a favor made to specific companies to win tenders, by their average as a third optional variable. Discrimination and favor are found to be present to a large extent, meaning that efficiency is very low. Among the major factors of the low efficiency of public procurement were political intervention, the non-transparency of the procurement process, a lack of capacity to implement procurement legislation and manage contracts, corruption and insufficient knowledge about procurement. Based on these results, important implications would lie in introducing measures for enhancing transparency, improving legislation, recruiting especially qualified staff or providing continuous training for the current procurement staff as well as improving the motivation of the staff to properly implement legislation and manage the procurement contracts.
ECONOMIC DEVELOPMENT OF ULTRA-SMALL PERIPHERAL WEST EUROPEAN REGIONS (CASE OF ÅLAND AND FAROE ISLANDS)
Authors: Efimova Elena G. , Kuznetsova Natalia P.
Published: January 2019

The aim of the study was identification of ultra-small territories, features of their economic development and modern business status in the context of the classification of small economies. The object of investigation is small economies of West European and Nordic countries as well as ultra-small autonomous territories of Åland and Faroes islands affiliated to Finland and Denmark, respectively. The hypothesis of the article is that ultra-small autonomous territories under consideration are developing as the “competitive sub-peripheries” due to their special industrial organization, stimulated by the national and, partially, by the EU economic policy supporting the economic growth of both autonomies. The methods of the study comprise analysis–synthesis, historical and logical methods, international comparisons. The main conclusion is that the Åland and Faroes islands are nowadays converting into the transport-logistics, informational, financial bridges among different European regions and countries.