Reform of State-Owned Enterprises for the Purpose of Economic Growth in the Republic of Serbia
Edvard Jakopin,
Aleksandar Gracanac,
Jugoslav Anicic
Issue:
Volume 10, Issue 1, February 2022
Pages:
1-11
Received:
2 July 2021
Accepted:
24 November 2021
Published:
25 January 2022
Abstract: This study on the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While healthy enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency but also for the purpose of harmonization with the ethical and deontological requirements.
Abstract: This study on the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strat...
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Effect of Foreign Aid on Economic Growth and Investment in Ethiopia
Issue:
Volume 10, Issue 1, February 2022
Pages:
12-27
Received:
20 December 2021
Accepted:
21 January 2022
Published:
28 January 2022
Abstract: This study examined the effect of foreign aid on both economy and investment of Ethiopia from time 1974 to 2014. The empirical analysis has been done using multivariate co integration analysis of both vector autoregressive model (VAR) and (Vector error Correction model (VECM). Both models which enables to capture short run dynamics. VECM model is constructed by restricting long run behavior of endogenous variables for allowing for short run adjustment dynamics. The co integrating vector which is deviation from the long run equilibrium corrected through series of partial short run dynamics, which is known as error correction term The main findings of the study shown foreign aid has a significant positive effect on economic progress in both lengthy run and squat run. On other hands, aid has irrelevant and optimistic effect on gross domestic investment in both extensive time and short run. Further, the findings discovered that there is unidirectional causality among foreign aid to economic growth and foreign aid to gross domestic investment. Based on the findings the study recommends aid should be used to support the shortage of resource gap; also, aid should be focused on growth enhancing sectors as well as poverty reduction policies, then it will rise savings of societies’.
Abstract: This study examined the effect of foreign aid on both economy and investment of Ethiopia from time 1974 to 2014. The empirical analysis has been done using multivariate co integration analysis of both vector autoregressive model (VAR) and (Vector error Correction model (VECM). Both models which enables to capture short run dynamics. VECM model is c...
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Risk-Taking Behaviour of Islamic Banks: A Panel Study
Issue:
Volume 10, Issue 1, February 2022
Pages:
28-36
Received:
21 November 2021
Accepted:
13 January 2022
Published:
28 January 2022
Abstract: The aim of this paper is to investigate the factors that impact the risk-taking behavior of Islamic banks before the 2008 financial crisis. The study covers a sample of 110 Islamic banks (represent almost all the Islamic banks in the world) across twenty-five countries which are members of the Organization of Islamic Cooperation (OIC; the organization has 57 members), during the period 1989-2008. The author uses a two-step system generalized method of moments dynamic model to analyze the data. Moreover, Fixed Effect (FE) and Random Effect (RE) models are used to check the robustness of the study results. The results show that profitability, liquidity, management efficiency, size and money supply growth reduce Islamic banks risk. On the other hand, capital adequacy, off-balance sheet activities, concentration, deposit insurance, GDP growth and inflation increase Islamic banks risk. The implications of this study can be beneficial to policymakers, regulators, and banks managers in countries with dual financial system or Islamized financial system as it will help them formulate better policies to ensure the stability of the financial system. To be noted that, according to the best of the author knowledge, this is the first paper that study the factors affecting the risk-taking behavior of Islamic banks using a large sample of Islamic banks with a prolonged period (20 years).
Abstract: The aim of this paper is to investigate the factors that impact the risk-taking behavior of Islamic banks before the 2008 financial crisis. The study covers a sample of 110 Islamic banks (represent almost all the Islamic banks in the world) across twenty-five countries which are members of the Organization of Islamic Cooperation (OIC; the organizat...
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