A preference for corporate borrowing in alternative markets over borrowing from banks under the impact of monetary policies: a Lithuanian case

An analysis of the scientific literature has revealed that companies in advanced countries have mixed capital structures, whereas companies in less advanced countries mostly depend on bank credits and loans. The reason for dependence on bank funding lies in the fact that corporate bonds are profitable only to large companies with a high credit rating, while small and medium companies—as well as large companies with lower credit ratings—find bank loans to be a more attractive method of external financing. This article focuses on the impact of particular financial and economic determinants on corporate borrowing in Lithuania. With a view to providing not only theoretical, but also practical insight in the problems of corporate financing, we have included such financial determinants as interest rates and bond yield

The determinants of the competitiveness of Lithuanian export: macroeconomic approach

The development of an appropriate export promotion strategy in any country calls for consideration of such country-level determinants as macroeconomic indicators and cultural elements. Small economies, like Lithuania, must have a clear understanding of which macroeconomic factors most significantly contribute to the competitiveness of their exports. This article is aimed at assessment of the competitiveness of Lithuanian export in the macroeconomic context. The main purpose of the research is to assess the determinants of the competitiveness of Lithuanian export in the macroeconomic context. For accomplishment of the defined purpose, the following objectives were raised: 1) to review the general determinants of export competitiveness; 2) to develop the methodology for assessment of the country’s export competitiveness in the macroeconomic context; 3) to empirically assess the impact of macroeconomic determinants on the competitiveness of Lithuanian export over the period 2007–2015. The research methods include comparative and systematic literature analysis, correlation and regression analysis. It has been found that GDP (gross domestic product) per capita and general state’s revenue from taxes and social contributions explain the trends of Lithuanian export by 99.1 percent. A very strong correlation has been estimated between Lithuanian export and terms of financing for exporting enterprises, a negative medium-strong correlation has been estimated between the country’s export and its general tax level, while a positive medium-strong correlation has been captured between the country’s export and its minimum wages. Novelty. The results lead to the conclusion that the competitiveness of Lithuanian export is mainly affected by the state’s tax policy, terms of financing for exporting enterprises and social wage strategies. By improving the above-mentioned areas, the country could occupy stronger competitive positions in international markets

Assessment of the Impact of Monetary Policy on Asset Markets

Scientific literature analysis proposes that there is a lack of the research on the impact of the EU, Chinese and US monetary policies on gold price fluctuations. Therefore, with a view to filling this research gap, it is purposeful to examine the impact of monetary policies pursued by central banks in different regions on the price of gold as one of the main asset types in the modern financial market Scientific literature is still lacking the model for assessing the impact of monetary policies on the gold markets that would consider the effects of the factors specific to the EU, Chinese and US markets in terms of the gold price forecasting. The general purpose of this scientific research is to review the main EU, China and US monetary policy instruments and assess the impact of these instruments on the price of gold based on the comprehensive model developed for assessing the impact of monetary policy instruments on the price of gold in different regions. The empirical research has revealed that non-traditional monetary policy instruments did not have any significant impact on gold price fluctuations in the long run. When making investment in gold, it is advisable to monitor these parameters of the traditional instruments: changes in the money supply in the EU and US markets, interest rates in the People’s Republic of China and the US, US unemployment data and consumer prices index of People’s Republic of China.Atlikta mokslinių tyrimų analizė leidžia teigti, kad stokojama mokslinių tyrimų apie ES, Kinijos ir JAV pinigų politikos priemonių poveikį aukso kainų svyravimams. Todėl užpildant šią tyrimų spragą dera ištirti, kokią įtaką aukso (kaip vienos iš svarbiausių turto klasių šiuolaikinėje finansų rinkoje) kainai turi įvairių regionų centrinių bankų vykdoma pinigų politika. Mokslinėje literatūroje trūksta pinigų politikos poveikio aukso rinkoms vertinimo modelio, kuris apimtų ES, JAV, Kinijos rinkoms būdingų veiksnių įtaką aukso kainos prognozėms. Mokslinis tikslas – nustatyti svarbiausias ES, Kinijos ir JAV pinigų politikos priemones, įvertinti jų poveikį aukso kainai, remiantis kompleksiniu ir parengtais pinigų politikos priemonių įtakos aukso kainai vertinimo modeliais atskiruose regionuose. Empiriniu tyrimu nustatyta, kad netradicinės pinigų politikos priemonės neturėjo reikšmingos įtakos aukso kainos pokyčiams ilguoju laikotarpiu. Dalyvaujant investavimo į auksą procesuose, patartina stebėti tradicinės priemonės parametrus: pinigų masės pokyčius JAV ir ES rinkose, palūkanų normos dydžius Kinijos Liaudies Respublikoje ir JAV, JAV nedarbo lygį bei vartotojų kainų indeksą Kinijos Liaudies Respublikoje

Evaluation of the factors that have the most significant influence on Lithuanian export

Research background: Export is an important part of economics not only in a country’s, but also in international level. Over the last two decades, development of export has been one of the fastest and most acceptable strategies of economic progress. Export is also one of the ways to improve a country’s balance of payments, reduce trade deficits, and raise the general life standards. Scientific literature does not contain any unambiguous models developed for evaluation of the impact of the influential factors on the volumes of exports in the countries with similar economic conditions. Hence, the scientific problem for this research is formulated as follows: which factors have the most significant impact on export and how does this impact manifest? Purpose of the article: is to conduct evaluation of the influential factors affecting Lithuanian export leaning on the theoretical aspects of export determinants. Methodology/methods: The methods of the research include comparative and systematic analysis of the scientific literature, correlation and regression analysis. Findings: Mathematical estimations have revealed that GDP per capita and general state’s revenue from taxes and social contributions can explain the trends of Lithuanian export by 99.1 percent over the period 2007 – 2015. Crediting of private sector also showed a very strong correlation with Lithuanian export; the negative medium-strong correlation was estimated between the export and general tax level, while the positive medium-strong correlation was captured between the export and minimum wages.Research aim: to conduct evaluation of the influential factors affecting Lithuanian export after having analysed the theoretical aspects of export factors evaluation. Research objectives: to analyse the theoretical aspects of export factors evaluation; to develop a methodology of evaluating factors that affect export; to empirically evaluate the impact of influential factors on Lithuanian exports over the period 2007 - 2015

Level and sectors of digital shadow economy: the case of Lithuania

The fast pace of global computerization as well as the spread of online activities prompt the changes in the concept of shadow economy. Through cyberspaces, such as social networking platforms, alternative future currency systems, e - commerce, e - business systems or cyber computer games, real money (or an electronic equivalent of its value) circulates, but in most cases transactions are not accounted and do not generate taxes to the budget of a state. This article is aimed at supplementation of the traditional shadow economye stimation methodology with the indicator of digital shadow economy, and performance of the statistical analysis of the data which would allow to identify the areas with the highest scope of digital shadow economy. At present, the scope of shadow economy in Lithuania is estimated by employing one of the two methodologies – developed by the State Tax Inspectorate and by Lithuanian Free Market Institute. It should be noted that neither of these methodologies includes the elements of digital shadow economy. In theoretical level, no methodologies to cover any indicator of digital shadow economy with its relevant features have been developed so far. By employing the method of expert evaluation (with participation of 184 experts who work in the Department of Control, Lithuanian State Tax Inspectorate), the authors of this article initially estimated the scope of digital shadow economy and identified the areas with the highest scope of digital shadow economy in Lithuania over 2015. The research has revealed that more than a half of the experts have not inspected or identified any subjects illegally operating in e - space. The fact that the scopes of digital shadow economy have not still been estimated indeed burdens the development of any efficient mechanism, which would allow to identify and detect illegal economic activities in e - space

Level and sectors of digital shadow economy: the case of Lithuania

The fast pace of global computerization as well as the spread of online activities prompt the changes in the concept of shadow economy. Through cyberspaces, such as social networking platforms, alternative future currency systems, e-commerce, e-business systems or cyber computer games, real money (or an electronic equivalent of its value) circulates, but in most cases transactions are not accounted and do not generate taxes to the budget of a state. This article is aimed at supplementation of the traditional shadow economy estimation methodology with the indicator of digital shadow economy, and performance of the statistical analysis of the data which would allow to identify the areas with the highest scope of digital shadow economy. At present, the scope of shadow economy in Lithuania is estimated by employing one of the two methodologies – developed by the State Tax Inspectorate and by Lithuanian Free Market Institute. It should be noted that neither of these methodologies includes the elements of digital shadow economy. In theoretical level, no methodologies to cover any indicator of digital shadow economy with its relevant features have been developed so far. By employing the method of expert evaluation (with participation of 184 experts who work in the Department of Control, Lithuanian State Tax Inspectorate), the authors of this article initially estimated the scope of digital shadow economy and identified the areas with the highest scope of digital shadow economy in Lithuania over 2015. The research has revealed that more than a half of the experts have not inspected or identified any subjects illegally operating in e-space. The fact that the scopes of digital shadow economy have not still been estimated indeed burdens the development of any efficient mechanism, which would allow to identify and detect illegal economic activities in e-space