Impact of corporate taxation on unemployment

We study the effect of corporate taxation on unemployment utilizing a dynamic panel covering 41 countries over 11 years. The purpose of this article is to investigate how changes in the corporate income tax affect unemployment. We employ system general method of moments (GMM) due to peculiarities of the data set and the endogeneity issues present in the research problem. We find that a rise in the effective average corporate tax rate significantly increases unemployment levels, which directly contradicts past findings of some seminal authors. In addition, the present research supports findings of past studies on capital tax elasticity that obtained similar insights using differing methodologies. This research lays the groundwork for future studies, which may take the same methodology and apply it to even larger international panels. This research implies that international tax competition is affecting unemployment, presumably through its effects on international capital investment. These results provide support for policy makers who may be wary of raising corporate tax rates in countries where capital is especially mobile because of the negative effects which may accumulate to the voting public in the form of unemployment

The Impact of Market-related Factors on the Choice of Foreign Market Entry Mode by Service Firms

The topic of internationalization has received an increased amount of attention due to globalization and growing amounts of international trade. One of the most important factors for the success of foreign market operations is the choice of the entry mode. This paper investigates the key determinants for the choice of foreign market entry mode. Specifically, the research examines the effects of market-related factors of the selected entry mode on service companies. This study contributes to the existing knowledge of internationalization of service companies by analyzing market-related factors of entry modes. Moreover, it provides managerial implications that might be applied by companies and governmental agencies to promote investment and internationalization of local companies

The Resource-based View and SME Internationalisation: An Emerging Economy Perspective

The aim of  the paper is to advance the development of theory inthe field of international business by seeking to understand to what extent the resource-based view  (RBV),  built  on  the  experience  and  evidence  from advanced  economies,  helps understand the internationalisation process of emerging economy SMEs. The  paper  is  built  on  a systematic  literature  review of peer-reviewed  journal  articles  on  SME  internationalisation  motives  and  enablers  in emerging economies. The  RBV  arguments  explain  the  internationalisation  process  of emerging economy  SMEs  only  to  some  extent.  In  contrast  to advanced economy  firms,  the internationalisation of SMEs from emerging economies is more likely to be driven by the  exploitation  of  cost advantage,  and  motivation  to  gain  new  knowledge  that  is unavailable domestically and enhance their domestic  market reputation. Besides it is more handicapped by a lack of internationalisation experience or international ties. To  understand the process of emerging economy SME  internationalisation,  it  is  necessary  to  study  to  what extent  other  logics contribute to its explication. Further research should also seek to synthesise findings of the above major theoretical frameworks in the contextof emerging economy SME internationalisation process. The  originality  of  this  work  lies  in  studying the internationalisation motives and enablers of indigenousSMEs in emerging economies and challenging the applicability of the RBV arguments in this specific context

Probleminiai elektroninio verslo įgyvendinimo aspektai smulkiose ir vidutinėse įmonėse

The rapid growth of electronic business has been evident since the very beginning of the last decade. Nevertheless, so far companies experience many problems related to the implementation of e-business. This article is focused on the analysis of the main problems as well as opportunities of small and medium-sized companies (SMEs) engaged in e-business. However, in the rush to offer e-business applications to beat competition or to respond to client and internal needs. many businesses have developed unfriendly, expensive. limited services of questionable value. This article will present an analysis and some methodological guidelines as to how to solve the problems arising in the implementation of e-business as well as how to best use the offered opportunities.The main goal of the article is to analyse the problematical issues of implementing e-business in small and medium-sized enterprises.The following objectives are set in the article:1. To define the main problems and barriers in engaging in e-business faced by small and medium- sized enterprises.2. Based on the analysis of survey results. to identify the main reasons and opportunities for involvement in e-business.3. To outline the characteristics that small and medium-sized enterprises should possess in order to be effective in e-business.The following research methods are applied: theoretical and comparative analysis. an empirical study of SMEs on the issue of e-business.Pagrindinis straipsnio tikslas - išnagrinėti elektroninio verslo įgyvendinimo problemas smulkiose ir vidutinėse įmonėse. Darbo uždaviniai: išryškinti pagrindines problemas ir kliūtis, su kuriomis susiduria smulkios ir vidutinės įmonės, plėtojančios elektroninį verslą; remiantis analizuojamų tyrimų rezultatais, identifikuoti esmines priežastis, motyvus ir galimybes dalyvauti elektroniniame versle; nustatyti pagrindinius požymius, kurie turėtų būti būdingi smulkiai ar vidutinei įmonei, siekiančiai elektroninio verslo efektyvumo.Straipsnyje naudoti teoriniai ir lyginamosios analizės metodai, taip pat analizuoti tyrimai ir apklausos elektroninio verslo tematika. Atlikus analizė nustatyta, kad pagrindinė kliūtis smulkioms ir vidutinėms įmonėms yra šių įmonių vadovų nepakankamas supratimas, kokiais būdais jų produktai ar paslaugos gali būti pateikiamos internete arba kaip jų verslo procesai gali būti susieti su internetu ar informacinėmis technologijomis. Dažniausiai smulkioms įmonėms trūksta techninių žinių arba per dideli su elektroninio verslo įdiegimu susiję kaštai. Taip pat viena iš esminių problemų, kurią nurodo smulkios įmonės, yra verslo operacijų internete saugumo aspektai. Šio tipo įmonėms trūksta knowhow, taip pat jos nežino metodų, kaip sukurti efektyvius elektroninio verslo modelius ir juos pritaikyti savo verslui. Kita vertus, remiantis atliktais tyrimais, galima teigti, kad pagrindiniai motyvai smulkioms ir vidutinėms įmonėms pradėti elektroninį verslą yra tokie: klientų aptarnavimas gali tapti efektyvesnis, mažesni veiklos kaštai, operatyvesnės, greitesnės tiekimo procedūros, mažesnės produktų sandėliavimo apimtys ir tam reikalingas plotas, lankstesnės pozicijos konkurentų atžvilgiu, didesnis rinkos plėtros potencialas.Smulkios ir vidutinės įmonės, siekiančios sėkmingos elektroninio verslo plėtros, pirmiausia turėtų išanalizuoti savo verslo procesus ir nustatyti, kurie tų procesų elementai gali būti geriausiai pritaikyti operacijoms internete. Tokių verslo proceso elementų pavyzdžiais gali būti didelis užsakymų arba transakcijų kiekis, vykdomas telefonu arba paštu, dideli kiekiai mažos apimties sandorių, kurie informacinių technologijų ir kompiuterių pagalba gali būti apdorojami efektyviau, negu tai darytų darbuotojai ir pan. Smulkios ir vidutinės įmonės, pradėdamos elektroninį verslą, pirmiausia turėtų atkreipti dėmesį į tas operacijas ar veiksmus, kurie nulemia paslaugos kokybę. Elektroninio verslo modelis turėtų būti suprojektuotas taip, kad klientas pastebėtų aiškią naudą ir kad tai ir motyvuotų naudotis įmonės teikiamomis paslaugomis internetu

Comparative analysis of the terms "electronic commerce" and "electronic business"

Establishing the terms that clearly and consistently describe growing and dynamic networked economy is a critical first step toward further analysis and evaluation of electronic commerce and electronic business processes. Electronic commerce is making an impact on the ways that purchasing activities are being conducted. Much of the early literature on this subject was very speculative. However, the growth of e-commerce has enabled more observations to be made of the use of electronic business by organisations. The literature that is based on observation of the impact on organisations that have adopted electronic commerce solutions is on the whole very enthusiastic about the benefits and excited about the prospects. Thus defining clearly electronic commerce and electronic business is vital for the constructive research of the subject The research presented in the article is concluded by offering definitions of electronic business and electronic commerce, which are as follows: 1. Electronic commerce is defined as using of internet for exchanging information of value and for transferring rights of product ownership from seller to buyer in trade operations of tangible and intangible products.Transactions of electronic commerce take place in processes of electronic business and are concluded by drawing a contract between a seller and a buyer. The purpose of electronic commerce is using a network for increasing a value, created by a company to its main stakeholders. Electronic commerce processes result in a contract between a buyer and a seller, drawn in electronic marketplace - internet. 2. Electronic business is defined as and effective utilisation of possibilities and opportunities, offered by internet and information technologies infrastructure, for all kinds of business operations, including production, management, marketing, logistics and commerce. The purpose of electronic business is to maximize the profits of the company and to assure the possibilities for effective interaction among members of the network, participating in a business process. In ideal electronic business model, costs of execution of single transaction are equal to costs of infinite number of transactions between buyers and sellers, i.e. marginal transaction costs are equal to zer

Comparative analysis of the terms "electronic commerce" and "electronic business"

Establishing the terms that clearly and consistently describe growing and dynamic networked economy is a critical first step toward further analysis and evaluation of electronic commerce and electronic business processes. Electronic commerce is making an impact on the ways that purchasing activities are being conducted. Much of the early literature on this subject was very speculative. However, the growth of e-commerce has enabled more observations to be made of the use of electronic business by organisations. The literature that is based on observation of the impact on organisations that have adopted electronic commerce solutions is on the whole very enthusiastic about the benefits and excited about the prospects. Thus defining clearly electronic commerce and electronic business is vital for the constructive research of the subject The research presented in the article is concluded by offering definitions of electronic business and electronic commerce, which are as follows: 1. Electronic commerce is defined as using of internet for exchanging information of value and for transferring rights of product ownership from seller to buyer in trade operations of tangible and intangible products.Transactions of electronic commerce take place in processes of electronic business and are concluded by drawing a contract between a seller and a buyer. The purpose of electronic commerce is using a network for increasing a value, created by a company to its main stakeholders. Electronic commerce processes result in a contract between a buyer and a seller, drawn in electronic marketplace - internet. 2. Electronic business is defined as and effective utilisation of possibilities and opportunities, offered by internet and information technologies infrastructure, for all kinds of business operations, including production, management, marketing, logistics and commerce. The purpose of electronic business is to maximize the profits of the company and to assure the possibilities for effective interaction among members of the network, participating in a business process. In ideal electronic business model, costs of execution of single transaction are equal to costs of infinite number of transactions between buyers and sellers, i.e. marginal transaction costs are equal to zer

Специфика проявления кредитного риска и проблемы его оценки в секторе лизинга

Straipsnyje nagrinėjama kredito rizika lizingo sektoriuje. Lizingas traktuojamas kaip viena mažiausiai rizikingų finansavimo formų, todėl svarbu tobulinti kredito rizikos vertinimo lizingo sektoriuje sprendimus, analizuojant kredito rizikos vertinimo lizingo sektoriuje problemas.Credit risk in leasing sector is analyzed in this article. Leasing in this case is treated as one of the lowest credit risk forms and this conditions the need to improve the decisions of credit risk evaluation in leasing sector, by analyzing the problems of credit risk assessment in leasing sector.В данной статье рассматривается кредитный риск, трактуемый в финансовом секторе как одна из важнейших форм риска, проявляющихся во всех финансовых сделках. Лизинг считается одной из наименее рискованных форм финансирования, поэтому важно совершенствовать решения по оценке кредитного риска в секторе лизинга, анализируя специфические проблемы оценки кредитного риска в секторе лизинга, от эффективности решения которых зависят возможности оценки кредитного риска в секторе лизинга

The Impact of bank tax on lending margin

In February 2016, Poland implemented a bank tax paid by monetary financial institutions based on the assets of their balance sheets. Two years later, the same tax was proposed in Lithuania. Critics of the tax claimed that the tax burden in Poland shifted to customers by increasing the lending margin, and were this tax to be implemented in Lithuania, negative economic consequences would be likely. The aim of this paper is to estimate the potential impact of the bank tax on the lending margin in Lithuania by evaluating the case of Poland. Currently, research studies do not provide a definitive answer about the effects of bank taxation, mainly because various types of bank tax exist. Further research of the bank tax implemented in Poland could provide more information about the consequences of the bank tax applied to the assets of financial institutions. Also, a previous investigation of Poland’s bank tax was limited by a short time series. Currently, a more accurate analysis could be done by using data over a longer period of time. Following previous research, difference-in-differences estimation is used to evaluate the impact of the policy change and uses data from the period 2012 to 2020. The results of the analysis are significant and show that the bank tax had a positive impact on lending margins in Poland by an average value of 0.39%. The descriptive analysis of the Herfindahl index shows that the banking sector of Lithuania is highly concentrated, implying that the tax burden would be shifted to bank customers by increased lending margins. In this way, the banking sector in Poland managed to avoid paying the levy by shifting the burden onto consumers. The same outcome is to be expected in Lithuania. The findings of the paper suggest that Lithuania should consider alternative ways of taxation since increased lending rates could have a negative effect on the overall economy of the country