Analysis of Purchasing power parity with data for Macedonia

This paper examines PPP parity theory with data for Macedonia. We test the empirical consensus in this literature that real exchange rates tend towards PPP in the very long run, also we use co-integration Engle-Granger method and error correction mechanism. The hypothesis we test that PPP theory holds in long run in the case of Macedonia, and this hypothesis is proven to be true.PPP, Exchange rate, Co-integration, unit root, stationarity

The causal relationship between patent growth and growth of GDP with quarterly data in the G7 countries: cointegration, ARDL and error correction models

This empirical study investigates the dynamic link between patent growth and GDP growth in G7 economies. ARDL model showed that there exist positive relationship in long run between quarterly growth of patents and quarterly GDP growth. The error correction term suggests that 20,6 percent of the adjustment back to long run equilibrium of industrial production in G7 countries is corrected by 20,6% a year, following a shock like the one in 1974 , which in our study is controlled by a dummy variable D74. In the short run however at one or two lags there exist negative relationship between quarterly patents growth and quarterly growth of GDP. Johansen’s procedure for cointegration showed that long run multipliers are positive between the patent growth and GDP growth in G7 economies. Granger causality test showed that patent growth Granger cause GDP growth in G7 countries. Unrestricted VAR showed that there exists positive relationship between patent growth and GDP growth at two or three lags.Cointegration, ARDL, Error correction models, Johasens’s procedure, Patent growth, GDP growth

Прирачник: Економика во сообраќајот

Прирачникот Економика на сообраќајот како резултат од потребите е наменет пред се за студентите од Факултетот за Туризам и Бизнис логистика и за сите останати лица кои сакаат да се занимаваат во текот на нивниот живот со професијата туризам т.е за полагање на стручен испит како идни РТА - раководители на туристички агенции и ТП - туристички придружник. Отаму и содржината на овој прирачник е прилагодена на потребите за овие кадри за успешна подготовка, полагање и добивање на потребен сертификат. Основната функција на прирачникот, согласно со наставната програма на предметот преставува скромен мал дел од содржините кои се опфатени за изучување: I. Карактеристики на сообраќајот како активност; II. Форми и видови на сообраќај и нивни економски карактеристики и III. Формирање на цени во сообраќајот

Monopolistic competition: Critical evaluation the theory of monopolistic competition with specific reference to the seminal 1977 paper by Dixit and Stiglitz

This paper revisits the D-S (Dixit-Stiglitz) model. It’s a simple general monopolistic model with n monopolistic goods, and a numeraire good Labour ( w=1); aggregation for all goods in the economy. We have considered in our paper constant elasticity of substitution case(CES).On the supply side, the assumption is that the labour is perfectly mobile factor of production across the sectors, so as a result in our model there is single wage rate which we denote as in the other sectors than monopolistic there is constant returns to scale and we can specify the production function: The Dixit-Stiglitz model of monopolistic competition works only when n is large; from the functions of the productions best when one applies linear production function. Under increasing returns to scale monopolistic competition will lead to a greater degree of product differentiation than it is socially optimal.Monopolistic competition, CES, Dixit-Stiglitz model, product differentiation

Cobb-Douglas production function revisited, VAR and VECM analysis and a note on Fischer/Cobb-Douglass paradox

Cobb-Douglas production function is a basic function in growth models. The modeling in this paper showed that VAR is stable; KPSS test showed that output, capital and labor are not trend stationary. Johansen’s co-integration test showed that a requirement for Fischer/Cobb-Douglass paradox to work is met at 3 lags, there factor shares are I(0). The Fisher/Cobb-Douglas Paradox is based on constant factor shares. (In terms of time-series analysis, such constancy is equivalent to factor shares being I(0). The Fisher/Cobb-Douglas Paradox is thus why the estimated σ equals unity independent of the underlying production technologies generating the simulated data.At 4 lags however these variables are I(1) variables i.e. Cobb-Douglass is not CES function anymore. ADF test for factors of production showed that natural logarithm of capital is stationary variable, while log of labor is not-stationary except at 10% level of significance. Adjustment parameters showed that labour responds more / faster than loutput (log of GDP) and lcapital on if there is change / shock in the system.VECM model failed the stability eingevalues test.Fisher/Cobb-Douglas Paradox,cointegration, VAR,VECM,ADF test , unit root,

The macroeconomic implication of exchange rate regimes

This study investigates the relation between macroeconomic variables such as real GDP growth, inflation, unemployment rate, trade deficit and the exchange regimes. The idea is to explore whether the macroeconomic indicators give better result when are under the influence of fixed or fluctuating exchange rates. In order to obtain relevant results, we took 5 countries with fixed and 5 countries with floating exchange rates. The paper also concerns the Macedonian exchange rate regimes. Here the focus is put on two periods. The first one is from 1993- 1995 when the country had fluctuating exchange rate. The second period is from 1995 till now -2011, when Macedonia has been implementing a regime of fixed "pegged" exchange rate.exchange rate, macroeconomic variables

Empirical testing of Balassa-Samuelson hypothesis with German and UK data

There are a lot of studies that test Ballasa –Samuelson hypothesis also known as Harrod-BalassaSamuelson effect directly via the effect of productivity, one possible explanation is that PER Capita GDP is not good explanation for productivity (.i.e. Labor productivity) differences; an increase (decrease) in relative efficiency of the distribution sector with respect to foreign countries induces depreciation (appreciation) of the exchange rate. After we obtained the number of co-integrated vectors we continue further to see whether the CV tells us something about the long run relationship into the model, likelihood ratio test of exactly identified restrictions test confirms that constant is insignificant variable therefore we can confirm that there is long-run relationship in which the changes in Exchange rate are positively correlated with the changes of ratio of German Consumer Price Index (CPI) to the UK Retail Price Index (RPI). In order to test for relative PPP to support the theoretical relationship between the variables, restrictions are put on the PPP knowing that PPP and that downward movement in the series indicates increase of UK price level relative to German price level. In each EC model there is an EC mechanism and coefficient on the co integrating vector measures the rate per period at which one of the endogenous variables adjusts. In the first equation the error correction mechanism is highly significant and negative. If the system is out of equilibrium, alteration in the change of the exchange rates will be downward (everything else ceteris paribus) compensating around 68% of the disequilibrium per year. In the second equation error correction mechanism is also highly significant but positive meaning that if the system is in disequilibrium changes of change in the ratio of German CPI relative to UK Retail Price index will rise offsetting 15% of the disequilibrium per year until the equilibrium rate of exchange rate will be achieved. Model implies German Labor productivity to UK Labor productivity ratio doesn’t have significant influence on explaining on relative change on prices not even on theexchange rate contrary to Pugh, Beachil studyPurchasing power parity, Exchange rate, co integration, error correction model, productivity, Consumer Price Index, Retail Price Index

Analysis of the optimal size of the government consumption

The aim of this paper is to investigate the size of the government in 12 OECD countries. Data are gathered from Penn Tables. Clustered robust OLS estimation techniques have been used. Also Panel estimation techniques have been applied, FE and RE estimation. The functional form is quadratic is been used, to determine the point where the size of the government is optimal. Government consumption has been used as a proxy variable for government size.Government size, Clustered robust OLS, quadratic equation, Armey curve,Panel data, Fixed effect estimation, Random effects estimation, GLS , Pooled OLS

УСЛОВИ И ПЕРСПЕКТИВИ ЗА РАЗВОЈ НА ТУРИЗМОТ И СОЦИОЕКОНОМСКИТЕ КАРАКТЕРИСТИКИ НА ОПШТИНА КРИВОГАШТАНИ

Општина Кривогаштани се наоѓа во средината на југозападниот дел на Република Македонија, во централниот дел на Пелагонискиот слив. На исток и југоисток се граничи со општина Прилеп, на север со општина Долнени, на запад со општина Крушево и на југозапад со општина Могила. Општина Кривогаштани зафаќа површина од 93,57 км2 и може да се подели на две релјефни целини. Поголемиот дел, кој зафаќа 90% од површината, е рамен дел со главно обработливо земјиште, а вториот дел, кој зафаќа 10% од вкупната површина, е ридско-планински дел, кој е покриен со пасишта. Имајќи ги предвид овие податоци, како и подготвените поглавја од овој труд, можеме да заклучиме дека општината е главен двигател на социо-економските фактори во овој регион, што истовремено укажува дека има големи изгледи за развој и унапредување на туризмот. Во овој труд подетално ќе ги разгледаме информациите за оваа општина, ќе го анализираме социјалниот, но и економскиот развој, се со цел да се утврдат перспективите за развој на туризмот во оваа општина, и колку тој туризам може да има големо значење за подобрување и унапредување на оваа општин

CULTURAL HERITAGE AND SPACE FOR TOURISM DEVELOPMENT IN THE CHURCH "ST. ANNUNCIATION" IN PRILEP

In this paper, we will deal with the cultural heritage and the possibilities for the development of tourism of a Prilep Orthodox church municipality and its temple, which is an expression of the overall living, creation, suffering and constant spiritual and intellectual struggle for the biological, cultural, spiritual and pastoral survival of Macedonians. This church largely represents an exhaustive historical, psychological, cultural, social and ecclesiastical-spiritual identity, not only in the municipality of Prilep, but also sheds light on the overall events and developments of the Macedonian Orthodox people and their Holy Church.  Historically, we will take a look at all the more important developments in this church, with a special reference to how clinging to great blackmail, they managed to build their first temple in Prilep, during the Ottoman Empire, when temples were converted into mosques, and the people became Islamized. with great propaganda. We will also highlight the role of pilgrim Hristo Damjanov - Logotet, who represents a unique example of a man who had enormous spiritual and intellectual abilities, i.e. a person who manages to cope in every situation and even turns enemies into friends of the church. Considering that such a perceptive person is born rarely, that is why his work is mentioned. All this information together with the sacred objects in the interior: the icons, the frescoes and the iconostasis made in a cave, we will try to reflect the value of those works, as the main driver of tourism, and also a cultural heritage with a huge history that will be inherited through the generations. and it is of great importance both for Prilepčani and for all Macedonians