Exploring the trend of Czech FDIs and their effect to institutional environment

This paper is the result of Metropolitan University Prague research project no. 68-02“Territorial Studies, Economics, International Relations” (2019) based on a grant from the Institutional Fund for the Long-term Strategic Development of Research Organisations. The authors would like to thank for useful comments and suggestions professors and participants of the 7th edition of the Conference IFRS Global Rules and Local Use - Beyond the Numbers in Prague 2019 and participants at conference ICABE 2019 in Thessaloniki Greece.Purpose: The goal of this paper is to explore the trend of FDIs in the Czech Republic and its changes in recent years using the gravity model. Apart from traditional variables used in FDI models we also introduce IFRS in national accounting rules. Design/Methodology/Approach: We use open-source data from the World Bank and FDI data from the Czech national bank, to analyse a panel data of bilateral FDI for 19 EU countries over the period 2008–2017 by PPML specification. Findings: We have observed significant effect of positive impact on broader introduction of IFRS in 2010 in terms of country imports and exports. We observed lower significance of IFRS dummy in the gravity model, where dependent variable is the sum of FDI inflow and FDI outflow it is not significant in the models which dependent variables are FDI inward and FDI outward for FDIs. Practical Implications: In general, FDIs increased productivity in the Czech Republic, especially in 1990s. We assess the effect and possible contribution of traditional variables like size, GDP, border and distance to Czech FDIs. Originality/Value: We find that the positive effect of IFRS exists at 10 percent significance for FDIs. Nevertheless we claim that this effect is mixed with other institutional issues, namely institutional isomorphism. Further tests will be needed after the forthcoming change of the Czech accounting act, which is approaching after 2020.peer-reviewe

Estimating gravity model in the Czech Republic : empirical study of impact of IFRS on Czech international trade

Purpose: In this paper, we test the influence on foreign trade and FDI by using the gravity model within the EU. The influence of IFRS is also tested, although we might expect that its influence will be smaller than that of other factors. Design/Methodology/Approach: According to the gravity model, countries are trading according to their proximity and also according to the size of their GDP. Negative influence is played by trade barriers and positive by common traditions and a common political background. Big countries trade a lot between each other, e.g., the USA and Canada on the same continent or the USA and Germany in different continents. Smaller countries, like the Czech Republic, do not have such an impact on the scale of world trade. The size of exports /imports is influenced by the fact of whether or not they are part of some trading bloc, e.g., the EU in Europe or NAFTA in America. Accounting rules, namely IFRS, are expected to be perceived as a positive influence on the world trade of a particular country and a country´s FDI (Foreign Direct Investment). Findings: Contrary to our expectations, we have found that the influence of IFRS is not insignificant and is more pronounced after the year 2010 which coincides with the change of local regulations. Practical Implications: The findings establish an interesting signal relating to perceiving the increasing quality of the Czech economic environment including accounting regulations. Originality/Value: Based on our methodology accounting rules, namely IFRS, are expected to be perceived as a positive influence on the world trade of a particular country and a country´s FDI (Foreign Direct Investment).peer-reviewe

Income inequality and inflation in the EU

The main aim of this research is to analyze the relationship between income inequality and inflation in 13 European countries for the period 2000 to 2009 using panel data methodology. The GINI coefficient has been used to measure the income inequality while the inflation rate, the growth rate, the employment level and the openness of the economies have been used as independent variables. The results support the hypothesis that inflation has a positive significant effect on income inequality.peer-reviewe

Modeling volatility in the stock markets using GARCH models : European emerging economies and Turkey

This paper examines the use of GARCH-type models for modeling volatility of stock markets returns for four European emerging countries and Turkey. We use daily data from Bulgaria (SOFIX), Czech Republic (PX), Poland (WIG), Hungary (BUX) and Turkey (XU100) which are considered as emerging markets in finance. We find that GARCH, GJR-GARCH and EGARCH effects are apparent for returns of PX and BUX, WIG and XU whereas for SOFIX there is no significant GARCH effect. For both markets, we conclude that volatility shocks are quite persistent and the impact of old news on volatility is significant. Future research should examine the performance of multivariate time series models while using daily returns of international emerging markets.peer-reviewe

REAL EXCHANGE RATE AND ECONOMIC GROWTH: TURKEY

This paper assesses the relationship with real exchange rate and growth using quarterly data of 1989:Q1-2005:Q2. Two groups of models are used in the study that is held. The first model, which was considered as the core model RER, PPI, and GDP, are involved whereas import and export are added on former variables in the expanded model. Integration level of the variables are investigated using with DF, PP, KPSS, Ng-Perron Tests and according to the test results, it is decided that all series are first order integrated. The empirical analysis is started with the application of bivariate data analysis held for RER and GDP variables to study the relationship between them. RER and GDP series are used together with different transformations of these series and seasonally adjusted version of these series are used so that cross correlation values of these variables are calculated as full sample and for a sub-sample. The attained results showed that 1989:Q1-2001:Q3 subsample and full sample had differentiations in values and in terms of statistically significance. Using Johansen Cointegration Test this paper finds evidence that one cointegration vector based on two groups of variables. Vector Error Correction Models were estimated that incorporates the long run behavior variables and short run adjustment dynamics for both two models. For both of these models ImpulseResponse Functions and Variance Decomposition Analysis studied. Formed impulse-response functions, a positive RER shock increases GDP in the core model for the first three periods but then decreases. In the other model on the other hand, it increases during the first four periods and after the observed decrease it continues its movement in the seasonal fashion. Before Variance Decomposition is started, series are aligned by using Block Exogeneity Test the alignment of the series in the model effects the results of this analysis. Impulse-response functions shows that the positive RER shock increases GDP in the core model for the first three periods but then decreases successor periods. In Variance Decomposition Analysis, it is evident that the sources of variance in output are the own shocks and also observed that RER’s explanatory ratio on GDP does not disappear in the long ru

Sosyal Hesaplar Matrisi (SHM) Üzerine Bir Araştırma

Bu araştırma, Sosyal Hesaplar Matrisinin kuramsal yapısının anlatılması ve ülkemizde bu konuda yapılmış çalışmalara değinilmesi amacıyla hazırlanmıştır.Bu uygulama yapılırken kısmi denge ve zaman serisi yaklaşımlarıyla çalışan modellerin, genel denge modelleriyle dengelenmesi gerekmektedir. Anlaşılacağı üzerine SHM’ler genel denge ile bağa sahiptir ve bundan dolayı çalışmada Hesaplanabilir Genel Denge Modellerine de değinilecektir. Son nesil genel denge modellerinin genişletilmiş bir örneği olan IMMPA (Integrated Macroeconomic Model for Poverty Analysis), 1996 SHM’si üzerine çalışmaktadır.Bu kapsamda araştırma dört bölümden oluşmaktadır. İkinci bölüm araştırılan yöntemlerin teorik ve teknik yapısının tanıtılmasına ayrılmıştır. Öncelikle HGD modelleri hakkında bilgi verilmiş ve Türkiye verileri kullanılarak bu teknikle yapılan çalışmalardan örnekler verilmiştir. Ardından SHM tanıtılmış ve basit bir SHM kurularak anlatım pekiştirilmiştir. Ardından HGD’de olduğu gibi çok az sayıdaki SHM çalışmasından yakın tarihimizde yapılmış ulaşın çalışmalar hakkında bilgi verilmiştir

Navigating the Digital Marketplace: A Holistic Model Integrating Social Media Engagement and Consumer Behavior Factors to Enhance Online Shopping Adoption

Objective: This study aims to explore the intricacies of online consumer behavior in Yemen and build a model to drive online shopping adoption by investigating the relationships among various factors - including social media engagement, awareness, social cognition, online business perception, perceived price value, usability, and adoption intention - within the Yemeni context. Design/Methods/Approach: Employing a quantitative research framework, this study utilized established scales adapted to Arabic. A structural equation model was developed using Amos 25 to test hypothesized causal relationships among the variables. Data collection was done through an online survey distributed to social media users in Yemen between May and October 2022. Statistical power calculations confirm a robust sample size of 395 participants for the study SEM model. Findings: Correlation analysis revealed strong relationships between various factors, highlighting online business perception's substantial correlation with adoption intention. Structural equation modeling unveiled significant associations, indicating the positive impact of social cognition on social media engagement, the interconnectedness of awareness, social cognition, usability, and adoption intention, and the influential role of perceived price value in adoption intentions. The research also identified indirect effects and moderating influences, particularly related to prior online shopping experiences. Originality/Value: This research significantly contributes by being among the pioneering studies to delve into consumer behavior and online business in Yemen. It offers unique insights into the role of social media engagement in driving online shopping adoption, filling a critical gap in understanding consumer behavior within the Yemeni context. These findings contribute to the broader literature on e-commerce, particularly in regions where online shopping practices are emerging. Practical/Policy implication: The study's findings emphasize the interconnected nature of various online shopping behavior factors, necessitating a holistic approach in business strategies. Businesses can leverage robust social media engagement to drive targeted marketing strategies, acknowledging its pivotal role in shaping consumer behavior towards online shopping. Focusing on enhancing visibility and promoting awareness of products/services is crucial. Moreover, investing in user-friendly interfaces, delivering positive online business experiences, offering competitive prices, and effectively communicating value propositions are key strategies to bolster adoption intentions

Ham Petrol İthalatı ve Ekonomik Büyüme: Türkiye

The relationship between crude oil import economic growth of Turkey is the main concern of this paper. Economic growth performance of Turkey depends on imported capital goods as well as oil. Oil price increases bring a heavy burden for Turkish economy since Turkey is an oil-importing developing economy. We aim to examine the effects of imported oil fluctuations on Turkey’s economic growth using vector autoregression (VAR) model in this paper. Annual data set for the period of 1971-2007 is used in this study. In order to capture the net effects of imported oil price on Turkey’s economic growth

Comparison of Forecasting Volatility in the Czech Republic Stock Market

The aim of this paper is to examine different GARCH models with three different distributions in order to compare their forecasting power in terms of volatility existing in the returns of the Czech Stock Market and more specific in the PX index, for the period 08.01.2001-20.07.2012. We have employed GARCH, GJR-GARCH and EGARCH models against normal, student-t and generalized error distributions. Then, we have forecasted stock market volatility for the Czech Republic by its returns using the same models, GARCH, GJR-GARCH and EGARCH comparing their forecasting performance. The results show that return volatility can be characterized by significant persistence and asymmetric effects. We have estimated the corresponding variances for all models for the full sample period using static forecasts. After comparing the forecasting performance of all nine models it was found that the EGARCH model has the best forecasting performance compared to others

ESTIMATING DEMAND OF TURKISH ENERGY MARKET: A MULTIVARIATE REGRESSION MODEL

Energy is a fundamental factor for economic development. Although in recent years there is a development in studies on an energy economics they are focused on specific energy sources. In this study natural gas, electricity and oil consumption which are the energy sources that the greatest market share of world and Turkey are investigating. In this investigation multivariate linear regression model is used. MVR model is a system of linear regression equations having the same set of independent variables. In this model within-equation, linear restrictions are testable on an equation-by-equation basis using a standard F test. The aim of the study is estimating demand of these three energy sources which are mentioned above. For this purpose, the regression model estimated which has a natural gas, electricity and oil consumption as dependent variables and price of these sources, income and population as independent variables by using 2001:01-2010:06 monthly data. Except for oil prices, coefficients of the model are statistically significant in all models. Coefficients are interpreted economically and determined that supply and demand move peculiar to Turkish energy markets despite the general expectations