Issue 2, 2017

The study investigates the possibilities for improvement of the mechanisms for assessment of the minimum wage and the minimum security thresholds. For this reason are analyzed their development and interaction with selected macroeconomic indicators as GDP, productivity, employment, etc. An appreciation of the possible mechanisms for minimum wage determination has been done and on this basis is offered a mechanism that count for the impact and effects of the fundamental factors. The problems of the actual mechanism for minimum security thresholds setting are identified and are proposed different variants for its improvement.
JEL: E24; E64; H26; J31

The aim of this paper is to analyse the unemployment on the basis of administrative data sources and application of the stock-flow model. The intention is to recognize the changes and features of the unemployment regarding stocks and flows of the main segments on the labour market: employed, unemployed and inactive population in the Republic of Macedonia.
Main reasons for the implementation of stock – flow model for determining the level of unemployment in Macedonia are following: a) Labour Force Survey (LFS) used by State Statistical Office (SSO) is based on the Census from 2002, therefore the sample used for calculating the level of unemployment is inadequate; and b) contrary to any economic logic, during the great global economic crisis and in the period after the crisis, the unemployment in Macedonia permanently decreased in conditions when the economy registered negative rates of economic growth and decline in industrial production over a longer period of time.
The application of the stock – flow model, for the period 2008-2014 shows that the unemployment has not been reduced, i.e. the unemployment rate have stagnated or even increased. This is contrary to the trend of unemployment changes according to LFS of SSO. Thus, in 2014 the unemployment rate is higher than in the previous years by both alternatives in the calculations. According to our findings, the application of stock-flow model gives more realistic explanation of the changes and current situation on the Macedonian labour market, than the statistical data from the LFS of SSO in Macedonia.
Our analysis shows that in a country with high and long-term unemployment, where the phenomenon of discouraged workers is expressed, and there has not been made a Census of the population for a longer period of time, accompanied by major demographic changes such as: an aging population and massive emigration from the country, the implementation of stock – flow model has significant analytical value in determining the unemployment and its analysis.
JEL: J21; J64

The article deals with problem of optimization of government behavior in trade policy decision-making in small open developing economy.
Based on conceptual model of government behavior we define main elements of effective trade policy. We found both their conformity to certain economic framework and conditions of their changes with each other. The analysis of advantages and disadvantages of government patterns of trade behavior showed that in order to regulate the small open developing economy its government should provide policy, based on applying of tax instruments, notably, tariffs; non-tariff measures in such conditions are as auxiliary tools. Systemic non-tariff restrictions could be regarded as an effective tool for developed innovative economies.
The originality of the paper consists in developing of model of efficient government behavior in trade policy decision-making depending on the framework of national economy; also both conditions of untimely changes of government behavior patterns and ineffective frameworks appeared as consequence of these changes, were defined. We provide an econometric analysis in order to determine whether commodity exports are sensitive to reduction or elimination of tariffs (as in the case of Ukrainian exports and EU import duties). This analysis showed that now in Ukrainian economy there are commodities which are both sensitive and resistant to tariff changes.
JEL: C50 ; F13; H20; H30

The transport infrastructure is of crucial importance for efficient transport and economic development and this brings to the fore the issue of ensuring the financial resources needed for its development. Furthermore, in order to achieve the EU transport policy’s goals related to rebalancing European transport system and reviving railways, it is necessary to call up not only EU and budget funding but the private ones, as well. An important opportunity is to use public-private partnerships for solving the problems with inadequate level of investments in railway infrastructure, as well as for distribution of different project risks.
The article suggests an analysis of different forms of PPP in railway transport and it defines different areas of application of PPPs and their benefits. Finally, the authors have presented an evaluation model for risks for public and private sectors in cases of application of PPP for building the railways corridors through the territory of Bulgaria. They conclude the real advantages of using this evaluation model in decision making process for the selection of the most appropriate form of public-private partnership if it is applicable.
JEL: R42

The study confirms that the lack of affordable and developed financial markets, providing the necessary financial resources for agricultural production and realization of national and international markets has a negative impact on the financial stability of Bulgarian farms. Performed is a retrospective analysis of Bulgarian financial agricultural markets. It has a focus in the study of Bulgarian financial markets working capital, account the important significance of sustainability, viability and liquidity of farms. Suggestions are made for improvement of financial agricultural markets. Synthesized are findings and conclusions.
JEL: O16; Q14

In modern business there are multiple examples of companies being positioned in niches. Aiming to serve more customer groups these companies more often apply brand extension strategies. However, the latter can hamper the effective adaptation of marketing functions to key markets. Among the major reasons many niche players undertake brand extensions are to: mitigate the operational and financial risk; enhance brand awareness; take advantage of increased demand; strive to more precisely capture market segments and others. Entry into new market segments through brand extensions can pose challenges related to the control over the brand image of niche players. This paper attempts to present original framework for investigation of the impact of downward extensions over the brand image of class F vehicles in Bulgaria. The research investigates various factors intending to lay the foundations for comparison of key customer values associated with the evolving brand image of this class of vehicles.
JEL: M3; M31

For many decades the notion of representative sample has established itself in Bulgarian specialized literature, being used mainly to refer to the random sample, and in recent years in research there is increasingly used the term "justification" of the "representative" sample.
The study is carried out in two areas. The first is connected with the argumentation of the proposition that the concepts of representative sample and random sample are not interchangeable, since they are based on different logic and are not identical in terms of content, whereas the second is connected with the argumentation against an assertion that has gained popularity, according to which each "representative" sample must have its size calculated using a certain formula in order for it to be regarded as "justified".
JEL: C12; C13