Around the Bloc: Russia On Course to Drain $87 Billion Fund in 2017
Amid recession and low oil prices the government has used its once-overflowing wealth funds to fill holes in the budget.
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Amid recession and low oil prices the government has used its once-overflowing wealth funds to fill holes in the budget.
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The aim of the study was to analyze the concept of special economic zones and their impact on overcoming the economic crisis. Sought to answer the question what are the main objectives and functions of the special economic zones and what economic benefits were brought in the past 15 years. Analyzing the pieces of legislation and data from Polish and world literature the author shows the influence of the synergies instruments of a new concept of SEZ to reduce the risks of crisis in the region. Special economic zones are created from units spatially concentrated in order to create favorable conditions for developing a wide spread innovation activities. Despite the benefits of the SEZ, that solution has also many antagonists, therefore the creation of special economic zones is a controversial but effective economic solution.
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Indirect taxes have a significant weight in the GDP. Statistical data reveals that the new states that joined the EU in its funding sources to the greatest extent through indirect taxes. They reveal, on the one hand, reducing the tax burden on the producer,and on the other hand, the difficulty faced by the country in direct tax collection, but also some problems of social nature. This article proposes an econometric analysis of the relationship between indirect taxes and household final consumption expenditure.
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The objective of the research was to analyze and determine the influential factors towards Duty on Acquisition of Rights to Land and Building (BPHTB) in North Sumatra, Indonesia, with economic growth as the Mediating Variable. The type of this research is causal design to analyze the relationship between one variable to another variable. The dependent variable is BPHTB, whilst the independent variables are Land and Building Tax (PBB), Total Area, Total Population and Inflation. Mediating variables is the economic growth proxies by Gross Regional Domestic Product (PDRB). The model of data analysis used is Structural Equation Modelling (SEM). The population in the present research is the Regencies/Cities located in North Sumatra Province. The total population used in this research is 33 Regencies/Cities with the selected samples amounted to 25 Regencies/Cities with the sampling technique use purposive sampling method. The testing concludes factors, such as PBB, Total Population and Inflation have influence on Duty on Acquisition of Rights to BPHTB. Total area has no significant influence on BPHTB. The Economic Growth serves as Mediating Variable upon the relationship between Land and Building Tax, Total Population and Inflation on BPHTB in North Sumatra, Indonesia.
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This study investigates the role of budget expenditure composition over Azerbaijan’s non-oil economic growth in the long-run by classifying public spending as capital, social and other expenditures. Authors’ employ ARDLBT approach toco-integration for the period of 2000 Q1-2014 Q4 to estimate long-run contribution of each spending category before-and-after the oil boom while controlling for oil related factors. Empirical results endorse the validity of long-run association among variables. Results concluded insignificant negative impact of capital expenditures, and significant negative impact of other expenditures. However,social spending has statistically and economically strong positive impact over then on-oil output growth. Therefore, research findings confirm that public expenditure composition significantly matters for long-run non-oil economic growth, and social expenditures have the greater positive impact in a resource-rich economy, Azerbaijan. Research results are highly useful for the government officials to consider while planning the expenditures in order to minimize negative response of non-oil sector to the fiscal contraction.
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Indirect taxes such as value added tax (VAT), excises and duties have big significance for every country. With their assistance, countries can collect enough funds for financing everyday social needs. The share of consumption tax revenues in total tax revenues is high, because consumption taxes are applied to many products and services and they are resistant to tax evasion. Although they have many positive characteristics they are also very regressive. Low-income households give higher amount of money for basic foodstuff than high-income households. Every new increase of prices can make financial condition worse for poor households. The aim of paper is to point out on regressive side of consumption taxes. Also, some measures for reducing negative effects of consumption taxes will be presented. These measures can additionally help in reducing poverty rate, which is one of the biggest problems for many countries.a
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One of the most important aspects in inland waterway transport is to deal with the issues of construction both transport and entire transportation systems. According to the Inland Navigation Offices in Poland, in the period 2001‒2014, there were 350 accidents on national inland waterways. The main reasons for them are: human factor, hydrological conditions, and technical faults. The main effects of the accidents include hull damage caused by collisions and ship grounding. In order to prevent shipping accidents, the European Union countries worked out procedures for tightening the technical requirements for vessels, especially for the vessels carrying dangerous goods, including compressed natural gas (CNG). In this paper, the authors analyzed the approach to ship design, and proposed the research methods that can be used in order to eliminate the risk of extreme situations in inland waterway shipping. At the stage of determining the initial technical assumptions, transport tasks should be specified which include the supply of CNG, analysis of similar vessels data, and preparation of the list of requirements regarding the selection of parameters and main dimensions of vessels. The selection of parameters and the main dimensions are usually made on the basis of the studies results of existing vessels. The results of the analysis concerning operating parameters of inland waterways are obtained by using statistical methods. Generally, researches are concerned with defining the main dimensions of inland vessels, block coefficient, main engine power, the masses of the ship, and their displacement. The probability of the damage to the ship’s hull during CNG tanks transport on the fairway can be estimated on the basis of the likelihood of an emergency. While analyzing the factors affecting the size of the Net Present Value (NPV), methods, investment growth, and the pricing principles traditionally provided in transport services should be taken into account. The amount of the estimated costs of compensation for the analyzed transport system primarily depend on the reliability of units used to transport CNG tanks and the area of providing services.
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Shadow banking systems were developing rapidly in the Western economies during the last two decades. Research from recent years show that within the last years equally important process of shadow banking development occurs in some emerging markets, and among others, in China. The system was not only a sophisticated part of China’s financial market, but played very important role in the development of the Chinese economy. The aim of this article is a description of the mechanisms of shadow banking development in China, characteristics of the main threats of this system and the regulatory approach in the country. Despite many threats, the shadow banking system plays an important role in the Chinese economy. There is a need for its regulation and support for further development.
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In this article we examine the sustainability of public debt stock in terms of solvency in CEE countries using Ata Ozkaya’s Stepwise Algorithm modified by Zivot-Andrews test to establish the level of integration variables. Such an approach allows us to examine the presence of structural breaks which occurred since the global financial crisis in the fourth quarter of 2008. We find that despite temporal fiscal turbulences during the crisis, all countries of Central and Eastern Europe have stabilised their fiscal policies
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Doctrines which substantiated introduction of market economy elements and priority of development of real sector, e.g. industry, on certain stage of the development of national economy have held an important place in the history of economic thought. Classics were the very first to develop such doctrines. (Silagadze, A., 1996, 2000, 2001, 2006-2016; Силагадзе, А.: 1991, 2009-2013, 2016; Kharitonashvili, J., 2008; Silagadze, A., Atanelishvili, T.: 2006-2007, 2010- 2011, 2013-2014; Силагадзе, А., Атанелишвили, Т. 2010). The issue was quite challenging on the first stage of building of capitalism in Georgia (19th century). Niko Nikoladze, a Georgian public figure (1843-1928), emphasized the high priority of the issue in those times. (Nikoladze, N.: 1960-2003, 2006; Gamezardashvili, D., 1983; Janelidze, O., 1998; Silagadze, A., (Editor), Atanelishvili, T., Goshadze, G. (Edit.), Demetrashvili, T., Zurabishvili,V. (Edit.) - 2005; Silagadze, A., Atanelishvili, T., 2004). His attitudes are still important in post-Soviet Georgia which heavily depends on import. The fact is that instead of using rich local resources, Georgia tends to import goods which the country has a real ability to produce itself. Poor development of real sector of economy has remained an Achilles’ heel for years. Tourism is a priority for the country, but during economic crises touristic flows stop and if there is no alternative, the country will face a deep crisis. (Tvalchrelidze, A., Silagadze, A., Keshelashvili,G., Gegia, D., 2011; Силагадзе, A.Н., Сидоров, В.А., Ядгаров, Я.С.: 2016). According to the conclusion made in this article, Niko Nikoladze’s doctrine which complies with “classic” attitudes, also complies with both “classic” and national economic doctrines of Germany. It also complies with Ilia Chavchavadze’s economic doctrine with the difference that Ilia believed that agriculture was of highest priority while Niko Nikoladze believed industry to be the most important. In general, his economic doctrine implies priority development of national industry, deepening of west-east sea and railway ties, construction of ports, supporting export, careful demilitarization, and improvement of market mechanisms of price formation, etc.
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Benin's economy relies mainly on tax revenues. This paper analyses the role of investment in the relation between tax revenue and economic growth in Benin. It employed the Fully Modified Ordinary Least Squares technique to estimate the long run relationship among the variables of the model. Results indicate positive effect of tax revenues on economic growth. This effect is improved by the private investment while deteriorated by public investments which level remains low. This result emphasizesthe problem of public resources allocation in Benin. Other determinants of economic growth include investment, annual population growth rate, and trade. The study recommends that fiscal policy must promote private investments. Tax revenues must be directed to more productive investments. The results also favour trade open policy.
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In the context of various changes in the players' composition on the insurance market, along with the changes that take place in the legislative area of the insurance system, we ask ourselves whether insurance is a guaranteed risk or a risk assumed by secure? At national level, due to the fact that within the insurance companies the internal control is not well implemented, there is no staff to pursue this goal and no mitigating measures are taken so that the risks triggered by the human decision-making factor be decreased. Because of this fact, the insurance can become a lottery for the insuree at one point because either the insuree cannot cover the damage s/he has secured, or s/he can lose as a result of some decisions taken by a representative of the insurance company. Therefore, a well-implemented and managed internal control can save both the activity of an insurance company as well as its image. That will generate a profitability, a good reputation for the insurance company, as well as policy-holders’ satisfaction. In this paper we aim to highlight the importance of internal control within insurance companies, as well as the consequences arising from a lack of internal control or its existence at a declarative level only
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The strategic tasks of Ukraine are an increase in the competitiveness of the national economy, integration with European economic space and the development of the social state. It is impossible to solve these problems without the transformation of labor institute, the growth of its innovative components. The purpose of the article is to research the transformational processes in the system of social and labor relations and their influence on the innovation economy. The comparative methods of analysis, synthesis, abstraction, theoretical generalization are used in the study. The methodological basis of the study is the dialectical method of investigation. Strategicznymi zadaniami Ukrainy są: podwyższenie konkurencyjności narodowej gospodarki, integracja z europejską ekonomiczną przestrzenią oraz rozwój społecznego państwa. Nie można rozwiązać tych problemów bez transformacji instytucji pracy, wzrostu jej innowacyjnych elementów. Celem artykułu jest zbadanie procesów transformacji w systemie relacji społeczno-zawodowych i ich wpływu na innowacyjną gospodarkę. W badaniach wykorzystano metody analizy porównawczej, syntezy, abstrakcji, indukcji i dedukcji oraz teoretycznej generalizacji. Metodologiczną podstawą jest metoda dialektyczna.
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In the conditions of limited financial resources, tough competition and social transformation of society, the development of an innovative economic system in the Russian Federation (RF) is subject to the destructive impact of non-economic factors. In view of this, the issue of identifying social inertia as a deterrent to innovative transformations in the economy is of increasing significance. The purpose of the article is to evaluate and analyze the force and factors of social inertia on the part of the population regarding regional economy modernization in Russia. As part of study, the essence of the sociological category of “social inertia” was clarified. By means of a sociological survey of residents of the Russian regions, the quantitative value of integral indices of the power of social inertia towards innovative transformations in the national economy is determined. The levels of the force of social inertia have been developed and substantiated. Time lags of social actors’ lability for each of the regions are calculated. Classification of Russia’s regions according to the level of inertia and temporal lag is performed. The regional features of the presence of social inertia towards the modernization of economic processes are grounded. Factors of the development of social inertia in the Russian economy are argued. A set of practical recommendations was developed on the reduction of the level of social inertia in regions in order to reach an adequate consensus between social actors and the management system within the framework of the development of the innovative economic system. This approach contributes to the establishment of a balance between the urge for profits and the social responsibility of business as the basis for boosting innovation and the formation of an appropriate social environment for its development in Russia.
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The new international economic context can determine a turning point for many business organizations. The „crisis” term can be perceived as a threat or an opportunity, but in our opinion it represents a test. The test which business organizations in Romania will have to pass in terms of corporate social responsibility is the meaning that will give it during the next period. The two main future directions in our view are diametrically opposed: either the role of corporate social responsibility will increase as proof of the truthfulness and authenticity of the past, present and future efforts, or the budgets of corporate social responsibility programs will be entered as reduced expenditures or even eliminated. We believe that policies are determined by the perception of corporate social responsibility for the managers of existing companies that have implemented and implement corporate social responsibility programs. It is therefore very important to know that perception and try to anticipate its future implications. By this work we try to capture some aspects of the perception of corporate social responsibility in Romania in the period before the onset current international economic crisis and to anticipate the direction that corporate social responsibility programs in Romania will follow.
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There is a growing consensus among both economists‑academics and policymakers that there was at least one missing element of the financial safety net during the Global Financial Crisis. This element, which will probably improve financial stability (or protect against financial instability), is the macroprudential orientation in regulatory and supervisory frameworks. The main scope of the paper is the institutional dimensions of macroprudential policy. The principal purpose of the paper is to identify and assess, on a comparative, cross‑EU‑country basis, existing practices and developments in structuring a new dimension of the financial stability policy, i.e., a macroprudential one. The paper builds on existing theoretical considerations and the author’s own empirical survey of country practices in applying a macroprudential framework. A comparative, cross‑country analysis and a comparison of different sub‑indices and overall index values are the basis for verifying hypotheses and empirically disentangling the institutional differences between macroprudential policy regimes in European Union countries. The paper sheds light on recent trends in macroprudential policy governance and qualitative aspects (democratic accountability and transparency), with special attention to the position of a central bank across the European Union countries. The conducted research is a basis for constructing ratings of macroprudential authority accountability and transparency across the EU countries, which gives an indication of the overall quality of the institutional arrangements.
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This paper studied whether the complementarity between financial development and foreign aid promotes economic growth in selected emerging markets using the panel Fully Modified Ordinary Least Squares (FMOLS) approach, with data ranging from 1994 to 2014. Although (1) aid‑growth and (2) finance‑growth studies have been conclusively dealt with, the role of financial development in the aid‑growth nexus has been hardly researched. Is financial development a channel through which foreign aid positively influences economic growth? The current study seeks to address these issues using selected emerging markets as a case study. The complementarity between foreign aid and financial development (domestic credit provided by the financial sector, domestic private credit provided by banks, outstanding domestic private debt securities and stock market turnover) resulted in a significant positive impact on economic growth. The study, therefore, urges selected emerging markets to implement policies which deepen the financial sector in order to allow foreign aid to positively contribute towards economic growth.
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The article presents a proposal for exchange rate modelling by means of minimum and maximum prices that enables a better description of dependencies in the foreign exchange market. Forecasts of return rate covariance based on the proposed multiple-equation GARCH model are more accurate than those produced solely on the basis of closing prices. Multiple-equation GARCH models are among the most popular models describing financial time series. The proposed model does not require additional data because daily minimum and maximum prices are generally available together with closing prices, which is important from the point of view of the application of the model in the Forex market.
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After a preliminary euro area GDP fall in the last quarter of 2011, negative growth rate could be recorded in the first quarter of 2012th. European leaders reached a compromise on a number of measures to save the euro area, which is encouraging. However, the implementation, in which the ECB, ESFS, IMF must take part, is still pending. Decline in import demand in Italy, Germany, as well as in neighboring countries, affecting Serbian exports, which slows down or stagnates. Capital in world markets has become scarcer, which will further reduce the inflow of foreign direct investment. NBS estimates that GDP growth in 2012. of 0,5% will be achieved thanks to the improvement in the second half of the year, when you should come to the recovery in western Europe. Serbia’s public debt will exceed 45% of GDP due to practical stagnation of GDP, the national currency depreciation, and net borrowing. For ongoing sustainability of public finances in the medium term it is necessary cuts in public spending by as much as 5% of GDP.
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