EXTERNAL DEBT IMPLICATIONS ON THE DEVELOPMENT OF NATIONAL ECONOMY

The external debt of the Republic of Moldova is increasing constantly. Excessive external debt has been a big problem for both developing and developed countries during the years. Developing countries face this problem more often as they need to borrow to finance their objectives and strengthen the economic growth. It is very important for our country to determine the optimal level of indebtedness that the economy can bear. That is why the external debt should be contracted in strict accordance with the needs of the economy, and borrowed loans should consider the country’s reimbursement capacities to avoid the liquidity or solvency crisis. The scope of this paper is to give a prompt and correct overview of the importance of external debt management and its impact on the economic growth of the country. In the research process, the deduction, based on general theoretical information on the structure, management, external debt and indebtedness assessment, the economic influence policies were used and then passed on to practical analysis using specific indicators

CONECTION OF THE REPUBLIC OF MOLDOVA TO THE CIRCULAR ECONOMY CONCEPT

Abstract: European legislation on the circular economy has registered an accelerated promotion in recent years. The European Commission has adopted a package of measures and legislative proposals to stimulate sustainable growth and help Europe make the transition to a more circular economy. The transition to a circular economy involves abandoning the linear economic model and focusing on reducing energy and raw material consumption. However, the pandemic generated by COVID-19 calls into question the importance of circular economy legislation at European level and in particular the need to achieve its objectives in reality. Thus, the new action plan for the circular economy adopted on 11 March 2020 by the European Commission is part of the main blocs of the European Green Pact, a new European agenda for sustainable growth and an EU growth strategy to achieve climate neutrality until 2050. It presents a forward-looking agenda for the circular economy, aimed at achieving the goal of a cleaner and more competitive Europe, in collaboration with economic actors, consumers, citizens and civil society organizations. In this article, the authors aim to report on the actions of the EU and the Republic of Moldova in the field of circular economy from a legislative perspective and analysis of international experience, but also the impact of existing programs and projects to produce lasting effects in society. At the same time, the main barriers to the circular economy transition in the Republic of Moldova are highlighted, as well as the first progress made. This study was developed within the State Program 20.80009.0807.22 Development of the mechanism for forming the circular economy in the Republic of Moldova. Keywords: circular economy, green economy, recycling, reuse, repair, sustainability, waste hierarchy.JEL: Q54, Q57, Q58

USE OF PRESUMPTIVE TAXATION IN FACILITATING SMALL BUSINESS TAX COMPLIANCE

The actuality of this article is determined by the necessity of implementing fiscal simplicity for increasing tax compliance through fiscal education of small business representatives. In many developing and transition countries, micro and small enterprises are the most rapidly growing business segment. Tax compliance attitude within this sector varies significantly because high conformation costs and difficult formalization procedures can determine many small enterprises to operate in the informal economy. Thus tax regulation of small enterprises is crucial in the process of small entrepreneurs fiscal education and tax simplification of SMEs in many countries becomes one of the most efficient instruments. The main research methods were systemic analysis and logic synthesis. The main results obtained in article, as a result of research, are identification, analysis and systematization of foreign countries’ practices in implementing presumptive tax design and elaboration of some recommendations on fiscal simplicity

ASSESSMENT OF ILLEGAL CAPITAL FLOWS IN THE REPUBLIC OF MOLDOVA

This paper analyses the existent methodologies used in international practice to estimate illegalcapital outflows. Also, authors carried out an assessment of the illegal capital outflows in the Republic ofMoldova on the basis of two models: the general method based on the balance of payments and the WorldBank’s "residual" model. The paper reflects the exceptional situation of the financial system of theRepublic of Moldova and trends in evolution of capital flows. The analysis of illegal flows should be partof the monitoring system of the country’s financial stability, which will allow identifying in time negativetrends that threaten Moldova's financial security. The main research methods were systemic analysis andlogic synthesis; data analysis and interpretation; statistical methods, etc. The main conclusionsobtained within the research of this topic are: for more reliable estimates for analytical purposes, it isnecessary to develop an adequate methodological base that would help to measure and analyze shadowcross-border flows; for the assessment of the financial security of the Republic of Moldova, as a transitioneconomy, it is important to monitor, analyze and forecast a broader list of financial indicators, as well astheir critical values

INTERNATIONAL RESERVES MANAGEMENT IN THE REPUBLIC OF MOLDOVA

The actuality of the given research is determined by the importance of establishing the adequatevolume of international reserves held by the Central Bank. The main purpose of the article is investigationof new methods of calculating the adequate level of international reserves for emerging economies,proposed by the IMF and those existing in international practice. The main research methods weresystemic analysis and logic synthesis. The main result obtained in this article, as a result of the research,is proposing a special approach in applying the IMF methodology in the Republic of Moldova,considering the dependence of the economy on the export of labor. The conducted calculations show asignificant decrease in the level of international reserves of NBM over the past two years and theirapproach to the critical value. To overcome internal imbalances, the international reserves managementshould suppose the accumulation of a higher volume than the average, which would partly compensate theshortcomings in implementing reforms of transforming the economy of the Republic of Moldova,improving their efficiency and quality of domestic policy

USE OF PRESUMPTIVE TAXATION IN FACILITATING SMALL BUSINESS TAX COMPLIANCE

Abstract: The actuality of this article is determined by the necessity of implementing fiscal simplicity for increasing tax compliance through fiscal education of small business representatives. In many developing and transition countries, micro and small enterprises are the most rapidly growing business segment. Tax compliance attitude within this sector varies significantly because high conformation costs and difficult formalization procedures can determine many small enterprises to operate in the informal economy. Thus tax regulation of small enterprises is crucial in the process of small entrepreneurs fiscal education and tax simplification of SMEs in many countries becomes one of the most efficient instruments. The main research methods were systemic analysis and logic synthesis. The main results obtained in article, as a result of research, are identification, analysis and systematization of foreign countries’ practices in implementing presumptive tax design and elaboration of some recommendations on fiscal simplicity

INTERNATIONAL RESERVES MANAGEMENT IN THE REPUBLIC OF MOLDOVA

Abstract: The actuality of the given research is determined by the importance of establishing the adequate volume of international reserves held by the Central Bank. The main purpose of the article is investigation of new methods of calculating the adequate level of international reserves for emerging economies, proposed by the IMF and those existing in international practice. The main research methods were systemic analysis and logic synthesis. The main result obtained in this article, as a result of the research, is proposing a special approach in applying the IMF methodology in the Republic of Moldova, considering the dependence of the economy on the export of labor. The conducted calculations show a significant decrease in the level of international reserves of NBM over the past two years and their approach to the critical value. To overcome internal imbalances, the international reserves management should suppose the accumulation of a higher volume than the average, which would partly compensate the shortcomings in implementing reforms of transforming the economy of the Republic of Moldova, improving their efficiency and quality of domestic polic

EXTERNAL DEBT IMPLICATIONS ON THE DEVELOPMENT OF NATIONAL ECONOMY

Abstract: The external debt of the Republic of Moldova is increasing constantly. Excessive external debt has been a big problem for both developing and developed countries during the years. Developing countries face this problem more often as they need to borrow to finance their objectives and strengthen the economic growth. It is very important for our country to determine the optimal level of indebtedness that the economy can bear. That is why the external debt should be contracted in strict accordance with the needs of the economy, and borrowed loans should consider the country’s reimbursement capacities to avoid the liquidity or solvency crisis. The scope of this paper is to give a prompt and correct overview of the importance of external debt management and its impact on the economic growth of the country. In the research process, the deduction, based on general theoretical information on the structure, management, external debt and indebtedness assessment, the economic influence policies were used and then passed on to practical analysis using specific indicator

THREATS TO MACROECONOMIC STABILITY UNDER THE IMPACT OF INTERNATIONAL CAPITAL MOVEMENT

Abstract: One of the most interesting issues that provoke controversial disputes is the impact of financial flows on the evolution of the states as a whole and economic growth of developing economies. The process of capital movement between countries cannot be stopped and it must be managed efficiently in order to obtain economic benefits and minimize the risks related to macroeconomic stability. The purpose of this study is to identify and analyze the effects of capital inflows on the macroeconomic stability of the Republic of Moldova. The research was based on the following methods: analysis and synthesis, induction and deduction, graphical and tabular methods, methods inherent in economic disciplines – observation, reasoning, comparison, classification, grouping; systemic methods and static analysis. As a result of the research, it is concluded that imprudently regulated capital inflows, in spite of their obvious advantages, could pose a serious threat to macroeconomic stability and external competitiveness, generating overheating of the economy, if their volume exceeds its ability to absorb them. However, the analysis depicts that remittances inflows have positively influenced so far, the economic development of the Republic of Moldov