Issue 1, 2016

The aim of this paper is two-fold: to analyze the relevance of fiscal multiplier as concept used in assessing the efficiency of the fiscal policy in general, and to apply empirical analysis on the fiscal policy multipliers in the case of the Republic of Macedonia. On the first aspect, we emphasize the very different results obtained by the extensive empirical literature on the size and sign of fiscal multipliers, both for changes in taxes and changes in government expenditures. On the second aspect, we apply the VAR methodology in the analysis of the efficiency of the fiscal policy of the Republic of Macedonia during the period 2000-2012, so that we could be able to study the effects of various fiscal measures during the relatively good times preceding the global financial crisis and Great Recession as well as the effects of the various countercyclical fiscal measures aimed at alleviating the consequences of the macroeconomic downfall associated with those landmark events. One of the most interesting results of the empirical analysis in the paper is the negative sign obtained for the fiscal multipliers in the case of the Republic of Macedonia.
JEL: C32; E21; E62

The article examines the difference between value and production factors. Was done theoretical research influencing different factors of the amortization on useful life of fixed assets. Formed an innovative approach to estimate reasons of depreciation, which change proportion of survival fixed assets. Proposed a method for adjusting the useful life of tools using depreciation for reason strong influencing scientific and technological progress and development of country on the fixed assets. Developed a methodology to estimate changes in the factors of repair tools, which affect on survival life passive and active assets, as an element of the production function of the fixed assets.
JEL: O47; E23; D24

This paper examines the relationship between trade liberalization and trade tax revenues applying an advanced dynamic panel threshold technique. The empirical analysis is based on a large panel-dataset including 103 developing countries for the period 1993-2012. The empirical finding results indicate that the relationship between trade liberalization and trade tax revenue is non-liner and also provide evidence of a Laffer effect. In particular, we find that additional trade liberalization has a negative impact on trade tax revenue, but this negative effect will disappear at the higher levels of trade liberalization. The results point to harness the benefits of trade liberalization without having worry a lot about its impact on trade tax revenues.
JEL: F40; H20; H87

National cultureis stillan important factor in managing a wide spectrum of areas and forms of international business. The understanding of the concept of culture, respectively the values and practices of foreign business partners, is instrumental in achieving effective intercultural communication and international business.  The notion of culture as a set of schemes and codes (culture-as-a-code) gives ground to the context dependent concept of culture (culture-in-context). Although the context dependent paradigm of culture is not a new phenomenon, the international business practice has not capitalized on its contributions yet. The paper does not aim at comprehensively revealing the nature of culture and its components. The focus is on those issues which have proved its significance for international business practice. The thesis states that culture is dynamically enfolded in international business practice and its specific context. That’s why contemporary international business players should be knowledgeable about both the traditional postulates about the culture factor and the dynamic aspects of cultural, including intercultural, matters. On the basis of a literature review and analytical reasoning, the paper strives to shed light on the topical debate on culture and its implications for international business.
JEL: F23; F59; F60; L29

An analysis of the pension legislation has been performed, particularly in the field of restrictions on asset allocation into various funds, and a model for real investment profile has been proposed that secures minimal risk at the given profitability and satisfies legal requirements, as well as immunizes the sub-portfolio of risk-free securities from changes in the market interest rate. The numerical experiment has been carried out with and without regard to transaction expenses. It has been estimated that frequent renegotiation of the portfolio leads to a decrease in profits from investing as a result of transaction expenses.  
JEL: C00, E00, G00, P00

The firm indebtedness is a extensively studied topic in the contemporary economic literature. Researchers in Bulgaria and Europe most often focus on the relations between the indebtedness and the general macroeconomic performance, the optimal choice of the firm debt structure, approaches for its restructuring, tendencies in emissions of corporate bonds and the economic effects of the deleveraging processes. The paper presents the data for some poorly studied and ignored endogenous elements of internal firm policies generating firm indebtedness, received from a study of indebtedness of non-financial enterprises in Bulgaria in 2013. These are mainly data for firm policies for delivery, firm savings, intentions for investment activity and compensation mechanisms for balancing the firm finances. The paper shows also the main firm preventive measures and practices against potential problems from accumulating indebtedness.
JEL: G30; G32

The management of inbound and internal material flows has an effect on the performance of manufacturing companies‘ logistics systems and consequently on customer satisfaction and competitiveness. The study reveals the characteristics and weaknesses of procurement and operations management in manufacturing companies in Bulgaria and outlines the prospects for their improvement. An analysis is carried out of different dimensions of these areas using indicators calculated on the basis of empirical data. The impact of company size on procurement and operations practices is examined and those practices that are positively related to competitiveness are brought out. The study finds out that manufacturing companies in Bulgaria generally follow the world trends in the management of inbound and internal material flows but there are some problem areas that need to be improved. More competitive are those companies that reflect the real demand in procurement and operations strategies and policies and realize the strategic role of suppliers. Small companies, and to a lesser extent middle ones, lag behind in the application of contemporary strategies, policies and methods in the areas of procurement and operations. It is necessary for them to make improvements, for which they need a high degree of knowledge about the existing and applied by leading companies methods and achievements in the area of logistics, and to increase the competence of employees in procurement and operations.
JEL: M11; M19