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Volume XV, Winter, Issue 4(70), 2020
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This research examines the effect of good tax policy on tax avoidance and how it affects the economic development of countries in the Asia-Pacific region. Based on 116 country-year sample data, the results of the panel least-square regression analysis show that good tax policy, particularly for fairness, transparency in tax system, and transparency in tax usage, affects tax avoidance practices. Transparency in tax usage is the most important determinant of tax avoidance thus followed by fairness and transparency in tax system, respectively. We also find evidence that tax avoidance practices have a negative effect on equitable economic development. An important implication of this finding is that the government should manage tax funds effectively and efficiently on the best interests of society in an effort to reduce poverty and realise greater social welfare. In addition, the government is also responsible for increasing fairness in the tax payment, encouraging participation in the tax lawmaking, and improving the proper use of tax funds to suppress tax avoidance practices that could harm a country's economic development.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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The aim of this study is to identify the regressive dependence of patents on research and development (R&D) expenditures or the number of R&D employees in models with interdependent equations in countries above and below the European Union (EU) innovation average belonging to the EU in 2016 and 2019. In addition, the marginal and average resource and labor intensity of patents in countries with different levels of innovation in the years under study are determined. The research results indicate that countries above the EU average for innovation have the lowest average patent resource and labor intensity. By contrast, countries below the EU average for innovation have the highest average patent resource and labor intensity.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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Blockchain is distributed ledger technology praised by many tech-savvy executives to disrupt and change many businesses in the future, including the accounting and assurance profession. This study critically assesses the disruptive potential of the technology for modern accounting information systems and accounting professionals. It summarises limitations and constraints of the technology through qualitative research of academic literature, professional documents and tech websites. The study discusses scalability, transaction costs, interoperability and confidentiality issues as most significant constraints for accelerated adoption and deployment of blockchain based accounting information systems. The economic case of blockchain based accounting information system, real cases of practical implementation and appropriate governance structures are suggested as important areas for future research efforts.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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The aim of the study was to analyze the relationships between economic factors and the number of enterprises operating according to the CSR rules. The enlargement of the European Union (EU) resulted in the expansion of markets and increased competition. The improvement of goods and services quality as well as respect for natural and human resources become a value. Long-term practices such as the Corporate Social Responsibility constituting an investment in the company's competitive position are the answer to the needs of consumers. The implementation of CSR programs and planned PR activities in the company also leads to an increase in the company's value and thus improves its competitiveness. We want to determine whether entrepreneurs in more developed countries are more likely to implement the CSR rules than those in countries with a lower level of economic development. The base of our analysis was rating of CSR companies from every country in compared to their economic growth. In order to detect any dependency, multivariate comparative analysis and Hellwig’s method were used. Results may prove useful in the process of shaping the EU policy towards enterprises.
© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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Formal currency union with a common policy is welfare superlative to formal currency union due to relatively greater transparency. The study evaluates whether adopting a common currency will lead to trade. Additionally, the study estimates whether countries are under trading or overtrading to investigate whether there exists trade potential. The results show there exists greater trade potential due to geographic and economic fundamentals therefore adopting a common currency will lead to trade. Also, the study showed that the financial markets served as a buffer for the volatility of the currencies notably the Rand. The study concludes that a currency union with a common policy could serve as a panacea when the appropriate institutional policy framework is adopted to reduce trade and non-trade barriers.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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Intra-industry trade (IIT) is prominent to have potential benefits to improve the economic prospects of countries and has gradually been pivotal in understanding developing countries’ trade, including those in Africa. This study evaluates the extent of IIT between China and 18 major African trading partners across 10 Standard International Trade Classification (SITC) industries, and examine the influencing factors of China-Africa IIT between the periods 2007 – 2018. Using a non-weighted Grubel–Lloyd index, the overall level of China-Africa IIT remains low but has certain level of potential between some partners. Among the 10 SITC classified industries, SITC 0 (Food and live animals), SITC 2 (Crude materials, inedible, except fuels), SITC 5 (Chemicals and related products, n.e.s.) and SITC 6 (Manufactured goods classified chiefly by material) had potential for IIT. In addition, the influencing factors of China-Africa IIT were examined using an improved gravity model estimated by Feasible Generalised Least Squares (FGLS) in a panel data framework. The main empirical regression model results reveals that, China’s IIT with major African trading partners are significantly influenced by gross domestic product (GDP), foreign direct investment (FDI), real exchange rate, trade intensity, distance, and landlocked countries. The study further reveals that, GDP and FDI boost China-Africa IIT whereas real exchange rate, trade intensity, distance, and landlocked depress IIT.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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In this paper is analysed the effect of Brexit on United Kingdom labor productivity and its components using a synthetic control methodology. My results show that the Brexit vote had a negative impact on labor productivity, causing GDP per hour worked to decrease by an average of 2.24% per year in comparison to the absence of Brexit. The two components of labor productivity are GDP and hours worked. I find that the decrease in the GDP is more than the increase in hours worked per person, causing the labor productivity to decline.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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The purpose of this study is to indicate new developments in households' subjective wellbeing perception. Typology of households is determined depending on their endowment with durables. The determinants of subjective wellbeing include material, financial and immaterial factors, which all are elements of quality of life. Crucial material wealth factors influencing the perceived wellbeing level are the type of households, possession of the house, principal place of residence and a car. New phenomena that aroused at the end of the second decade of the 21st century, circular and sharing economy elements are appreciated as an innovative, additional source of households' wellbeing perception. The analytical econometric tool used here is the multinomial logit model with unordered categories. The typology of households is constructed, depending on their material wealth. There exists a substantial share of households claiming they are not interested in possession of analysed goods. It is considered a proxy measure of a percentage of a new type of families whose decisions are based on circular- and sharing-economy attitude. The analysis for selected material goods indicated influence potency of crucial factors on households' situation. The strength of the impact of individual characteristics was measured. The findings may be important policy design factor.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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Agriculture or agrarian sectors together with non-resource manufacturing can be the key drivers of non-mineral development among natural resource-rich countries. However, agricultural development lags behind the extractive industry which puts a big share of the labor force into an uncertain position and creates food security risks. In Azerbaijan, which is an oil-rich post-soviet country, details focus on individual exports like vegetable exports that have not been carried out against specific economic indicators such as the Extractives Dependence Index (EDI), the Real Effective Exchange Rate (REER), etc. This paper is based on one-way variance analysis (ANOVA) and Tukey’s honest significance test (Tukey’s HSD test), as well as the Granger causality test. Our analysis shows that Azerbaijan’s dependency on natural resources (measured by the EDI) has a significant effect on the value of vegetable exports. Moreover, the Granger causality test revealed a one-side causal relationship from the REER and production costs to the vegetable exports, at a 10% significance level. Similarly, a unidirectional Granger causal relationship from crude oil prices to the REER, at a 1% significance level was found. Thus, our findings indicate that overall Dutch disease affects the Azerbaijan economy towards vegetable exports.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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The present study analyzes the journey of the Indian stock market during the period of 2019 to 2020. With the help of this study, we try to solve the puzzle that why the stock market is rising amid the slowdown in the Indian economy. Further, we also examine why only the Large-cap stocks were rising, whereas Small-cap and Mid-cap stocks declined. The study also examines the impact of Coronavirus pandemic on the Indian stock market with the help of event study from the period 22nd January 2020 to 8th June 2020. We have analyzed the impact of this Pandemic on the constituents of the BSE Sensex 30 index. We have also examined the performance of stock markets of top ten countries severely affected by COVID-19. We find the reasons behind this anomaly that why the Sensex and Nifty were rising is that investors are forward-looking and want to invest only in the large corporations amid the slowdown in the economy. The reason for this optimism is the number of measures the government has announced to revive the economy. As a result, these securities become very expensive and hence, Sensex and Nifty have gone up. Hence, the stock markets were rising purely on the sentiments of the investors and the expectation of a better future. The extent of the spread of COVID-19, combined with a high death rate, has resulted in an extraordinary situation of lockdowns being enforced across the world. Therefore, there is a lot of anxiety and fear among them that has resulted in sell-offs as everybody demands safer assets such as gold and the government 10 year treasury bills. The stock markets of ten countries which we analysed in this study, are also negatively affected by COVID-19, especially till the last week of March. With the help of event study, we concluded that the Indian stock market is negatively affected by COVID-19.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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This study focuses only on internal social and environmental aspects of corporate social responsibility as per general orders 2009 to define the CSR of a firm. Using the hand collected data of non-financial listed companies of Pakistan Stock Exchange from their annual reports from 2010 to 2015; this study finds that CSR is significantly positive impact on firm performance across all three proxies, while the relationship is stronger for Tobin Q as compared to return on assets and return on sales. It means that the firms those have higher levels of CSR disclosure tend to have higher market value because of overwhelm response from stakeholders, which not only improves the image of the company but also enhances client loyalty. Moreover, this study finds no significant difference in the findings of internal social and environmental disclosure, but the significant positive impact of internal social disclosure and environmental disclosure on firm performance suggests that Pakistani firms keep in mind agency as well as legitimacy theoretical prospects at the time of designing their CSR strategies.
© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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In this paper, the existence of no arbitrage assumption over time and triangular arbitrage in a foreign exchange market is tested. Also, forecasting the exchange rates are studied. An optimal property of exchange rates returns to guarantee the no arbitrage assumption as well as for forecasting exchange rates is the martingale property. Some theoretical results under the risk neutral measure and their equivalents form in physical probability measure are given. Also, based on a real data set, it is seen that this assumption works well for forecasting purposes. Using the Doob maximal inequality, the accuracy of forecasts is surveyed. Then, a theoretical relation between beta market risks of exchange rates is surveyed. Finally, a conclusion section is also proposed.
© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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This paper analyses the impact of COVID-19 on selected economic indicators of the European Union to bridge these impacts "marked as triggers" of changes to business models. The logic of the focus lies in the interconnection and integration of external changes in the connection of the reaction of managerial decisions for change, adaptability, and adjustment of the business model in newly formed economic systems. Economies are affected by the effects of the ongoing pandemic as part of restrictive and health-related measures, where there is a direct link to the performance of businesses that need to adapt to ongoing changes in response to the COVID-19 pandemic. Our survey is mainly based on reviews in articles COVID-19 on business activities which enable businesses to share knowledge, decisions, and prospects including analysis of selected indicators as an industry, construction, wholesale and retail trade, and services when the Eurostat statistical data (2020b) are used. We combine the approach of mapping of literature review associated with the impact of a pandemic on business and impact analysis within the European Union on the economic indicators. Subsequently, we examine what and how businesses can do to respond quickly to the stimuli, our main focus is on business models that allow to quickly operationalise the current business situation and then take measures to create a basis for sustainability. The output is a discussion and proposals for the necessary business model shifts so that companies are resilient, flexible, capture value in the long term. For businesses looking to establish update business models during COVID-19, we recognise that hiring entirely new models maybe not feasible.
We focus on viability updates business models over fully comprehensive functions after crises COVID-19. We develop managerial recommendations for the growing demand for innovation and flexibility for the resilience business model to adapt to the new changed “post COVID” business environment.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
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Starting from the statistics and the realities of the labor market in Romania and to obtain a wider perspective regarding the social, economic, and demographic implications of the work force mobility we used the results from a previous research, carried out through a questionnaire which was distributed online. The previous research (Cojocaru 2020) underlying this article, was performed on a sample of 157 persons giving valid answers, from a total of 183 filled questionnaires, representing 85,8% compliance degree. The subjects are aged between 18 and 60 years and belong to the various socio-professional categories. Therefore, starting from the answers of the interviewed people from this investigation carried out with the help of the online questionnaire, for a more detailed analysis of the expectations of the Romanian emigrant, we decided to use the binomial ordinal logistic regression model, with cumulated probabilities, based on the proportionality of chances (cumulated logit model). This research is structured and published in two parts, the first part including the introduction, the presentation of the research methodology. Results and discussions (the analysis of the variable change income and the analysis of the variable qualification), and the second part results and discussions (the analysis of the variable labor conditions, the analysis of the variable duration and the analysis of the variable satisfaction) and conclusions.
Copyright© 2020 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.
