Issue 2, 2024

The main purpose of this study is to analyze how different macroeconomic factors have influenced the financial development of countries in transition as well as the effect of these factors on the volatility of the banking sector in these countries. Secondary data acquired and processed from yearly statistics reports of the World Bank, the International Monetary Fund, the OECD, the European Central Bank, Eurostat, and others were used to develop this research. In the analytical section of the literature review, numerous scientific papers by various authors that have examined the issue of financial development in the economies of various countries have been reviewed. This research covers data from 2005 to 2020, which will be examined using panel and time series econometric models.
Based on the study's econometric findings, we can conclude that non-performing loans, natural resources, market liberalization, GDP per capita, inflation, and interest rates have a statistically significant impact on the financial development of transition countries by determining the amount of broad money and the volume of bank loans and deposits in these countries' financial systems. The empirical findings of this study will serve as good scientific and empirical evidence for future studies in the field of financial development and economic growth, as well as practical evidence for governments around the world in the form of strategic macroeconomic policies that will positively affect the financial development of countries in transition. In relation to essential conclusions, this research offers true and consistent findings. The studied period (2005-2020) offers a compelling time frame for making sound findings and recommendations.
Keywords: financial development; economic growth; broad money; deposits; loans
JEL: G21; B22; E44; N2; O11

The article is dedicated to the challenges of the fiscal policy of Bulgaria in the context of the European Union’s (EU) priorities for a green, climate neutral economy’s transition. The article analyzes the fiscal aspects of the EU Green Deal and related initiatives NextGenerationEU, Fit for 55 package, RePower Plan, Just Transition Mechanism for the EU program period 2021-2027. It examines the objectives of the EU Green Deal’s implementation in the context of the EU Strategy for Financing the Transition to a Sustainable Economy. It studies the mechanisms, tools and alternative approaches in the application of EU funding and modern financial instruments to stimulate the green transformation of the EU economy.
The research assesses the opportunities for the green transition in Bulgaria through the application of national and European financial instruments. The study assesses the effects of the fiscal instruments for mitigating and adaptation to climate change on fiscal deficit of Bulgaria. The study shows that the fiscal policy with EU funding and national co-financing for green policies under the National Recovery and Resilience Plan and the Partnership Agreement for 2021-2027 could augment the green transition and have a net positive impact on the fiscal balance. The study also outlines the possible risks and negative impact on budgetary aggregates. 
Keywords: Environmental Sustainability; Government Policy; Economic Integration
JEL: Q56; Q58; F15

Public debt management plays a pivotal role in ensuring fiscal stability and fostering economic growth, particularly amidst unprecedented challenges like the COVID-19 pandemic and energy crises. The main aim of this study is to provide accurate projections for public debt, offering valuable insights to guide sustainable debt management practices. Utilizing historical data from the Republic of Moldova spanning the period 2003-2023, the study employs the Monte Carlo simulation method to construct a fan chart. This chart presents a probability distribution of the general government debt-to-GDP ratio for the Republic of Moldova during 2023-2027. By generating multiple alternative scenarios for real GDP growth, real interest rates, and primary balances, policymakers can gain a comprehensive understanding of future debt trajectories and potential impacts of various policy decisions. These projections are essential tools to facilitate informed decision-making and promote effective debt management strategies in the face of economic uncertainties and challenges.
Keywords: public debt; Monte Carlo method; Republic of Moldova
JEL: E17; H63; H68

The main purpose of this paper is to analyze the current export potential of Kazakhstan, highlight its shortcomings, and implement solutions that will help to avoid them, form the poles of economic development, as well as explore ways to develop and improve them. This paper is aimed at the study of the economy of the border territories of Kazakhstan, it used the method of logical analysis, the method of comparative analysis, the method of analysis of scientific literature, the method of synthesis, the method of deduction, as well as the economic and statistical method. The result of this work is the definition and development of the theoretical and practical foundations of the activities of border territories, their impact on the economy of this region, as well as the creation of an algorithm and methods for the development of the poles of economic development.
Keywords: Growth pole; border region; emigration; economic potential; economic space.
JEL: Е00

The main aim of this study is to analyze the impact of innovation and enterprises performance in the transition countries with special emphasis in the case of Kosovo. The innovations play crucial impact on firm development especially for small and medium sized enterprises in countries in transition. This study uses primary data with specific sample thus the enterprises that operate in Kosovo in order to analyze the relationship between innovations and firm performance. This study was conducted within a six-month period, specifically January 2022 – June 2022. The research sample consists of 400 Kosovar enterprises. These enterprises are from different economic sectors, such as production, services, and in terms of size, 80% of them are SMEs. The study used the CDM (Crépon, Duguet and Mairesse) model which include fourth phase. The first phase of this model is about the tendencies of enterprises to carry out innovative activities, the second phase is about the enterprises that invested in research and development, the third stage of the model, the conversion of inputs into outputs is analyzed. At the end, the impact of innovation outputs on the performance of the analyzed enterprises is investigated. The study concludes that enterprises that export to the EU and the Western Balkans region are significant, so this positively affects the tendencies of these enterprises for innovative activities, whereas enterprises that are oriented only to the local market, do not present significance and even have a negative relationship with the enterprises' tendencies for innovations. A large part of the enterprises think that innovations have high costs and are even unaffordable therefore this represents a big obstacle for the development of innovations. The lack of qualified personnel, lack of knowledge about markets and technology represents a big obstacle for the development of innovations, and it even negatively affects the decisions of these enterprises about innovations.
Keywords: Innovations; performance; transition countries; CDM model; enterprises
JEL: L25; L26; M20

Our study aims to investigate the effect of government expenditure on the poverty rate and detect the moderating role of the unemployment rate in the functional relationship between the two variables. Using a panel data set of 24 provinces in Indonesia during 2005-2018, we use the dynamic model of the Generalized Methods of Moment to estimate the functional relationships. Our findings discovered that government expenditure on goods, services, and capital significantly reduces poverty. Conversely, grant and social aid expenditures have a positive and significant effect. The unemployment rate substantially increases the poverty rate and moderates the impact of the three types of public spending on the poverty rate. The higher the unemployment rate, the smaller the poverty reduction effect of government expenditure. These findings imply that the government budgetary allocation for a particular spending component should consider the unemployment rate as the primary consideration. It is due to the effectiveness of each expenditure group in reducing poverty differing at the various level of the unemployment rate.
Keywords: Poverty rate; government expenditure; unemployment rate; moderating effect; GMM-Estimation
JEL: I32; E24; H72; C33

The goal of this longitudinal study is to analyse the changes in determinants of life satisfaction of older people in Europe and highlight risk predictors of frustration before and after the outbreak of Covid-19. Parallel analyses of Wave 7 and Wave 8 data of Survey of Health, Ageing and Retirement in Europe (SHARE) are performed to examine the relationship between different determinants and life satisfaction at basic model and post covid model. Logistic regression models are evaluated for both scenarios to explore the dependence between life satisfaction and various demographic, economic, health and behavioural factors. Transformation of the main model on Wave 8 data is applied to assess whether friends net, use of internet, vigorous sport activities and health care factors affect life satisfaction. The research provides an up-to-date picture of the changes in the behaviour of older people in Europe with a focus on specific challenges related to the global pandemic. Results suggest directions for interventions that will improve the life satisfaction of older people in ordinary scenarios and in severe times, as well as directions for better fit between academic research and the needs of policymakers and practitioners at the sphere of design and implementation of social policies focused on increase the life satisfaction and ultimately aiming to foster economic growth.
Keywords: SHARE; Europe; older people; life satisfaction; pandemic; social policies
JEL: I3

This study utilized a multi-faceted approach to explore marketing research strategies employed by Kazakhstani higher education institutions and their corresponding websites. The research highlighted gaps in current theory amid contemporary global crises and identified opportunities for enhancing the efficacy of marketing research. Utilizing official data from both Kazakhstani and foreign sources, the study conducted a comparative analysis of the 2016 and 2021 international Webometrics ratings of the top-10 university websites in Kazakhstan, observing a generally positive trend. The results generated actionable recommendations for improving marketing research, promoting educational services, and augmenting the effectiveness of university websites as primary marketing tools. These findings are expected to guide higher education institutions and policy makers in enhancing national educational competitiveness and efficiency amidst socio-economic instability.
Keywords: Marketing of educational services; digital technologies in education; tools for promoting educational services; higher educational institutions
JEL: R00

In the conditions of widespread application of information and communication technologies, intellectual resources as a result of human intelligence, knowledge and experience are the leading source of development and growth. Intellectual capital, encompassing all the intellectual resources from which businesses derive growth in various forms, is emerging as the leading form of capital today.
The aim of this publication is to assess the significance of joint impact and the extent to which elements of intellectual capital contribute to value creation and the establishment of conditions for manifestations of competitive advantages in retail trade.
The study was carried out using conjoint analysis. After a brief historical overview of the development of the conjoint analysis methodology, its relationship with the hierarchical process analysis developed by Thomas Saaty is shown and a full profile conjoint analysis is conducted. The necessary data were obtained by carrying out surveys with managers from consumer goods retail chains. Based on the obtained ratings - partial, average, and overall - of the 'utility' and 'importance' categories, conclusions have been drawn regarding the joint impact and the extent to which the elements of intellectual capital contribute to value creation in retail trade.
Keywords: intellectual resources; intellectual capital; conjoint analysis; retail trade, retail chains.
JEL: M21; O34

The current global economic landscape is characterized by turbulence and crises, such as the Covid-19 pandemic and military conflicts, which have disrupted the development of innovative startups. In this context, it becomes essential to explore how refugee startups influence the economies of host countries and facilitate their adaptation to specific conditions. This article aims to examine the most suitable and optimal business models for such startups, the industries they predominantly operate in, their overall impact on economic growth, and the potential for cross-border collaboration among refugee entrepreneurs. Additionally, the article intends to analyze the relevance of existing financing models for startup sustainability and explore innovative methods and instruments that can effectively address the challenges faced by refugee startups. By investigating the alignment between financing models and the current economic state, this study provides valuable insights for fostering economic recovery and development in regions hosting refugee populations. In summary, this analysis offers insights into the impacts of refugee startups on host economies, focusing on their suitability and impact on economic growth, the relevance of financing models in sustaining these startups, and the potential for cross-border collaboration among refugee entrepreneurs.
Keywords: start-ups; business models; financing; turbulent
JEL: D25; G11; M13