ANALYZING FISCAL BALANCE EVOLUTION FOR DEVELOPED AND EMERGENT COUNTRIES

The purpose of our paper is to identify the main factors which influence fiscal balance’s evolution and thereby propose solutions for configuring a sustainable fiscal policy. We have selected as independent variables some of the main macroeconomic measures, respectively public debt, unemployment rate, economy openness degree, population, consumer goods’ price index, current account balance, direct foreign investments and economic growth rate. Our research method uses two econometric models applied on a sample of 22 countries, respectively 14 developed and 8 emergent. The first model is a multiple regression and studies the connection between the fiscal balance and selected independent variables, whereas the second one uses first order differences and introduces economic freedom as a dummy variable to catch the dynamic influences of selected measures upon fiscal result. The time interval considered was 1999-2013. The results generated using the two models revealed that public debt, current account balance and economic growth significantly influence the fiscal balance. As a consequence, the governments need to plan and implement a fiscal policy which resonates with economy priorities and the phase of the economic cycle, as well as ensure a proper management of the public debt, stimulate sustainable economic growth and employment.JEL Codes - H6

Does the COVID-19 pandemic affect the tourism industry in China? Evidence from extreme quantiles approach

The tourism industry carries great significance in the economic development of any country. It has been observed that the COVID-19 crisis has affected global travel and tourism more than any other sector globally as well as in China. The travel restrictions, home isolation, and quarantine orders have given massive damage to China’s once thriving tourism industry. Despite this phenomenal impact, the existing literature has a dearth of empirical studies related to the impact of the COVID-19 pandemic on the tourism industry. This study attempts to reflect a thorough picture of the current scenario and the crisis effects under different intensities reflected through quantiles of Covid-19 related deaths. The study has utilized the QARDL model and the Wald test on the daily time series data of COVID-19 intensity, the real effective exchange rate, oil prices, and the tourism development index from January 1, 2020, to March 15, 2021. The outcomes indicate that COVID-19 related deaths have a negative, but significant impact on China’s tourism in the long run and short run. The oil prices also show a negative influence on tourism in the long run, but there is no significant impact of the oil prices on tourism in the short run. At the same time, the increase in the real effective exchange rates tends to support tourism in the long run, but does not influence tourism development in the short run

Integrating The Abc Method Of Costs Calculation And Cash Value Added

In our paper we intend to explore the possibility of integrating the ABC method of cost calcula-tion with cash based value measure, i.e. the Cash Value Added. Our purpose is to develop an instrument for the management of productive companies that will allow them to administrate the proc-ess of value creation at the level of individual products or services. The activity based costing (ABC) method of cost calculation can be extended to the way of allo-cating the capital costs to individual products and services. In the same time, the value based measures can register the shareholders’ value creation process only at the company level and not for the individual products or services as they lack the information regarding the assignment of capital costs to those products. By integrating the calculus of Cash Value Added in the ABC method we consider that the man-agers will get an important managerial tool for the efficient allocation of the investment capital for the various products or services, given their real profitability, which can be determined by including capi-tal costs in the overall cost of the products or services."The company value, value based measures, ABC method, operating costs, capital costs, economic profit, cash value added

Fiscal decentralization in Romania – present state and perspectives

The decentralization should transfer some attributions and services to the local level. In return, that implies that the local community should be awarded directly either a quota out of all the taxes that are collected from its fiscal territory or the entire amount of some taxes. One solution could be that the direct income taxes should be withhold at the local level whereas the indirect taxes should go to the general public Romanian budget for the overall needs of the country.decentralization, fiscal decentralization, territorial administrative reform, local budget, direct taxes, indirect taxes

Analyzing Fiscal Balance Evolution for Developed and Emerging Countries

The purpose of our paper is to analyze the main factors which influence fiscal balance’s evolution and thereby identify solutions for configuring a sustainable fiscal policy. We have selected as independent variables some of the main macroeconomic measures, respectively public debt, unemployment rate, economy openness degree, population, consumer goods’ price index, current account balance, direct foreign investments and economic growth rate. Our research method uses two econometric models applied on a sample of 22 countries, respectively 14 developed and 8 emergent. The first model is a multiple regression and studies the connection between the fiscal balance and selected independent variables, whereas the second one uses first order differences and introduces economic freedom as a dummy variable to catch the dynamic influences of selected measures upon fiscal result. The time interval considered was 1999-2013. The results generated using the two models revealed that public debt, current account balance and economic growth significantly influence the fiscal balance. As a consequence, the governments need to plan and implement a fiscal policy which resonates with economy priorities and the phase of the economic cycle, as well as ensure a proper management of the public debt, stimulate sustainable economic growth and employment

Analyzing Fiscal Balance Evolution for Developed and Emerging Countries

The purpose of our paper is to analyze the main factors which influence fiscal balance’s evolution and thereby identify solutions for configuring a sustainable fiscal policy. We have selected as independent variables some of the main macroeconomic measures, respectively public debt, unemployment rate, economy openness degree, population, consumer goods’ price index, current account balance, direct foreign investments and economic growth rate. Our research method uses two econometric models applied on a sample of 22 countries, respectively 14 developed and 8 emergent. The first model is a multiple regression and studies the connection between the fiscal balance and selected independent variables, whereas the second one uses first order differences and introduces economic freedom as a dummy variable to catch the dynamic influences of selected measures upon fiscal result. The time interval considered was 1999-2013. The results generated using the two models revealed that public debt, current account balance and economic growth significantly influence the fiscal balance. As a consequence, the governments need to plan and implement a fiscal policy which resonates with economy priorities and the phase of the economic cycle, as well as ensure a proper management of the public debt, stimulate sustainable economic growth and employment

Environmental Information Transparency—Evidence from Romanian Companies

The purpose of this paper is to analyse disclosure of environmental information (DEI) for a set of 100 companies listed at the Bucharest Stock Exchange (BSE) and identify possible correlations between this and the evolution of some relevant economic and financial measures of companies’ activities. For these purposes we have calculated an index of environmental information disclosure and we employed a system dynamic panel data estimation model and panel corrected standard errors for sampled companies for the 2013–2017 period. The results we have obtained show that sampled companies have a low degree of environmental information disclosure, as the highest registered score was of 15 out of a maximum of 29 points, with an average of merely 6.37 points. Regarding the possible correlations, the tests performed have shown that entity size, expressed by the number of employees, is the factor which positively influences environmental information’s disclosure. Results also evidence that performance determines the quantity of information the firm provides to external users, as opposed to maturity/age. Our study is the first approaching companies from Bucharest Stock Exchange with data for 5 years using a mixed approach (DEI–index and regressions) and we think the results obtained are useful for managers, general public and investors, considering that size and performance greatly influence companies’ environmental awareness

Determining the impact of Covid-19 on the business norms and performance of SMEs in China

This study's key purpose was to examine the impact of COVID-19 on SMEs' business norms and performance in China. The primary quantitative data have been collected through a survey questionnaire based on 330 participants. For analyzing the collected data, the use of the SEM technique has been made in this study. The researcher has adopted the data from the managers and employees belonging to the SMEs in China who are the research respondents. The data has been gathered from a sample size of 330. The number of distributed questionnaires was 340, whereas the responses gained were nearly 335, out of which 330 responses were selected. In the SEM technique, a CFA test was conducted to confirm the model's reliability and validity, whereas the results of path assessment were presented to examine the association between the variables. The findings of this study have confirmed the significant impact of COVID-19 on innovative operational procedures, profitability, remote work, and stakeholder satisfaction and safety

Dynamics of the Social Security Index in the Context of the Economic Crisis in Romania

In conditions of uncertainty, social protection issues are of paramount importance, and supporting measures are needed for the vulnerable population with an impact on social costs. Those costs have to be included in the state budget, and they generate budgetary imbalances that need to be counterbalanced by relevant budgetary policy measures. This paper proposes to develop, on the basis of state budgets and of demographic indicators, a social security index, whose dynamics will reflect the impact of the necessary measures in a period of economic and financial uncertainties. The key indicators used for calculating the social security index are composite financial risk, which is quantified using the budget’s dynamic expenditures, composite labour risk using employment stock, and unemployment and composite social risk using equilibrium between labour and retired labour. The paper studies the evolution of this index to identify inflection points that impact social security policy. We have dynamically identified the evolution clusters that differentiate the variability of the social security index over time, translated into the social security matrix proposed by the study for each composite index. The used methods in the study are empirical and analytical in nature, consisting of an econometric definition of the index structure and a dynamic analysis of the results obtained over the period 2010–2020. The results of the study will identify the financial risk diagram, which, based on the forecasted clusters of financial, social, and labour market risks, will create a useful picture for social policy makers that will highlight the current vulnerabilities of the three clusters from a social perspective. Last but not least, the presentation of the social security index is a valuable result for practitioners in their efforts to optimise social policies and increase socio-economic welfare. The results of this research will allow decision-makers to adjust their social policies on an informed basis in relation to the elements of vulnerability during periods of uncertainty, in comparison with the elements of stability identified during periods of economic growth