ROLE OF INFORMATION IN ADOPTION OF INVESTMENT DECISIONS ON CAPITAL MARKET

Keeping information is a hard thing to do nowadays, mostly because of the development of communication and informational technology. An individual can hardly administer the huge amount of information he’s being bombarded with and that exceed his capacityinvestor’s attitude, investing strategy, informational asymmetry, capital market.

ROLE OF INFORMATION IN ADOPTION OF INVESTMENT DECISIONS ON CAPITAL MARKET

Keeping information is a hard thing to do nowadays, mostly because of the development of communication and informational technology. An individual can hardly administer the huge amount of information he’s being bombarded with and that exceed his capacit

TAX COMPOSITION AND ECONOMIC GROWTH. A PANEL-MODEL APPROACH FOR EASTERN EUROPE

In this paper, we investigate the impact of tax composition on economic growth, based on a panel-model approach. The dataset includes six East-European countries and covers the period 1995-2012. Specifically, the study explores the relative impact of different components of tax revenue (direct and indirect tax revenue, as percentage of total tax revenue) on economic growth. The paper adds marginally to the empirical literature, showing how the two types of tax revenue influence economic growth in Eastern Europe, under an extended set of economic and sociopolitical control variables. The most important empirical output, for the 6 investigated East-European countries during 1995-2012, suggests that direct taxes are significant and negatively correlated with economic growth, while indirect taxes exert a positive influence on the dependent variable, though insignificant. As for the control variables, it seems that only freedom from corruption and political stability have a significant impact on economic growth. The study suggests that the design of tax systems in Eastern European countries is in accordance with the Commission’s priorities regarding its growth-friendliness. As for policy implications, governments should continue shifting the tax burden away from labour on to tax bases linked to consumption, property, and combating pollution, with potential positive effects both for growth and for fighting against tax evasion

How growth-friendly are productive public expenditures? An empirical analysis for Eastern Europe

This paper investigated the effects of productive public expenditures over economic growth, using a panel-model approach, in 6 East-European countries during 1990-2013. The paper contributes to the specific literature, showing how different types of productive public expenditures influence economic growth, under an extended set of economic and socio-political control variables. The findings revealed that education, R&D and infrastructure expenditure are positively correlated with economic growth, while health expenditure seems to have a negative impact

PUBLIC FINANCE SUSTAINABILITY IN ROMANIA. RECENT DEVELOPMENTS

The main objective of this paper is to evaluate the sustainability of public finance in Romania and to explore the fiscal threats Romania might face in the future. A sound fiscal policy implies avoiding excessive liabilities of the government, but at the same time delivering the proper public goods and services, including the necessary safety net in times of crisis. An unsustainable fiscal position negatively impacts on macroeconomic stability; moreover, if public finances are perceived to be unsustainable in the long run, the reaction of the international financial markets could generate a fiscal crisis, which might surprise the fiscal planners. The main findings of the paper are the following: i) according to the multidimensional approach of the European Commission, in the short run, it seems that Romania is free from fiscal stress, there is a low risk in the medium term, and in the long run the risk becomes medium; ii) a potential medium-term fiscal sustainability risk derives from the accumulation of losses and arrears in the business and companies sectors in which the state is a majority shareholder; iii) Romania records one of the lowest budget revenues to GDP ratios in EU, while the Romanian tax system is characterized by a poor tax collection, inefficient administration and excessive bureaucracy; iv) the structure of public spending in Romania is characterized by the predominance of wage spending and social assistance, while the poor state of the public pension system is an important vulnerability of the public finance position; v) overall, the degree of tax compliance in Romania was only 55.8% in 2013, and according to the calculations made by the Fiscal Council, tax evasion represented 16.2% of GDP in 2013. All these aspects make up a grim picture of sustainability of public finances, which has to be considered by the public decision makers regarding future fiscal policy actions

Capital Market Development And Economic Growth: The Case Of Romania

Capital markets play an important role in the economic development of emerging capital markets. Well functioning markets insure that both corporations and investors get or receive fair prices for their securities. In the literature on endogenous growth, the link between capital markets development and economic growth has received much attention. This paper examines the correlation between capital market development and economic growth in Romania using a regression function. The results show that the capital market development is positively correlated with economic growth, with feed-back effect, but the strongest link is from economic growth to capital market, suggesting that financial development follows economic growth, economic growth determining financial institutions to change and develop.capital market, economic growth, BET Index, quarterly PIB, time series, correlation

Digitalisation and Economic Growth in the European Union

The aim of the present paper is to analyse the effects of digitalisation on economic growth in the European Union. An econometric model with balanced panel data is used, with the analysis spanning over a 22-year time frame from 2000 to 2021. The main conclusion is that digitalisation generates a positive and significant impact on economic growth, even when several control variables are taken into consideration. The results prove their robustness, which is backed by the employment of the DESI as an independent variable. This paper contributes to the existing empirical analyses by extending the research on digitalisation to the entire EU, and separately for the old EU-15 member states and EU-13 new member states since, to our best knowledge, the existing literature has not approached the subject in this manner. As a policy recommendation, we suggest that public decision-makers take measures that support more harmonised digitalisation policies, favouring the new business model based on digitalisation

The Looming Central and Eastern European Real Convergence Club. Do Implicit Tax Rates Play a Part?

The paper investigates whether there is a convergence club stance for the Visegrad countries plus Romania and Bulgaria and the part played, in this process, by the implicit tax rates on labour and consumption, respectively. For the purpose of the research, the GDP per capita, productivity and unemployment are used as convergence indicators and dependent variables. The dataset covers the 1995–2016 timeframe and the analysis is based on a panel-model approach. The main results show that the implicit tax on labour has no significant effect on the convergence indicators while the implicit rates on consumption are statistically significant with negative influence. The interpretation of results is made considering a set of control and robustness variables where policy lessons derive from. The conclusion reflects on the policy lessons that can serve to accomplish the convergence club within selected CEE countries: Bulgaria, the Czech Republic, Hungary, Poland, Slovakia and Romania

Probleme contemporane ale puterii și administrației publice

In this paper we intend to highlight the main challenges that the contemporary power and public administration are facing. Thus, after a brief overview of the concepts of public power, power centers, public administration, we focused on the phenomenon with negative impact over the development of a society: the activity of pressure and interest groups (also known as lobbying), the “rent seeking” behavior and their peculiarities in the Romanian society. The problem of corruption in post-communist Romania was one of the factors that have hampered economic development and political progress, sabotaging from the inside Romania’s path and aspirations towards an entry in normality after 1989. Other obstacles to business development in Romania were the inefficient and corrupt bureaucracy and a slow judiciary system. They were strongly correlated with the captive state, meaning corruption and interest groups surrounding the initiation and adoption of laws, governmental regulations and ordinances. Romania is faced with serious degradation of the climate of public integrity, marked by lack of strategic coordination of legislative and institutional anti-corruption measures. Romanian government can “praise” with higher corruption average than the average of new member countries, and also than the old member states’ average.</p

World Market of Investment Funds - Developments and Trends

Institutional investors - including mutual funds, pension funds, hedge funds, and insurance companies - are a growing force in developed capital markets. We are in an environment in which investors, regulators and legislators have a dramatically reduced tolerance for risk. Rules and regulations can provide additional investor protections, but can also reduce market efficiency at a great cost to borrowers and investors alike. Finding the right balance is the challenge, and is one that necessitates a wide-ranging discussion of proposals on the table. Our role as economists and researchers is to engage in this discussion on behalf of funds and their investors.mutual funds, emerging markets, crisis impact, asset volume, development factors