Issue 4, 2018

The aim of this paper is to show that usually the literature under or overestimate the effect of public policies on the labor market by using systematically a symmetric Nash bargaining solution to share the surplus between worker and firm. Indeed, using a matching model framework, we compare and analyze Nash, Egalitarian, Kalai-Smorodinsky and Equal-Sacrifice solutions. We show that the effects of public policies, as minimum wage or unemployment benefits, would be more or less significative depending on the bargaining solution. It appears that Nash and egalitarian solutions are less inclined to study the impacts of the introduction of the minimum wage.
JEL: C78; J64; J68

This paper is aimed at justifying the application of the methodology for evaluation and improvement of the operating efficiency of the quality management system (QMS) for state executive bodies. The term "operating efficiency of QMS" is considered by the authors as a ratio between the effectiveness of the group of QMS processes "Management responsibility" and the resources used for their development, implementation and improvement. The term "management responsibility" means "the responsibility of officials implementing powers of the authority". The relevance of the article is dictated by the fact that on the one hand, the normative legal acts issued by the Government of the Russian Federation declare the primacy of the problems of life quality improving, health preservation and increasing of citizens’ life expectancy, on the other hand, they initiate an increase of the retirement age and practically a "lifelong" need of citizens labor activity. This problem stirred the Russian public and pointed once again to the low quality of the country social management and the need to assess the responsibility of officials implementing powers of the authority.
JEL: O11; O21; O43; P11

In a global environment, it is impossible to apply national principles of business and the requirements of the laws of an individual state, business systems develop and interact with each other, which requires constant monitoring and forecasting of possible directions of development, therefore, the purpose of the research is to create a mechanism for the identification and evaluation of the competitive advantages of international business entities. Particular importance is the ability of business systems to gain combined competitive advantages in international and local markets, which uses methods of comparative, factor and system-structural analysis, expert evaluations. As a result of the research, the process of ensuring the implementation of competitive advantages of international business entities was formed, which will allow the firm to hold a competitive advantage longer, since the sources of competitive advantage are determined. Advantages of a low level, such as cheap labor or raw materials, can easily be obtained by competitors. Advantages of a higher order are proprietary technology, differentiation based on unique goods or services, reputation of a firm based on enhanced marketing activities, or close customer relationships require more elaboration and resources. Determination of competitive advantages becomes the basis for the formation of information for planning the activities of subjects of international business in conditions of disintegration of the economy. The formed mechanism for identifying competitive advantages has been adapted to the peculiarities of the activities of international business entities, which has made it possible to consistently identify, analyze and exploit competitive advantages in the relevant markets. In the process of implementing the mechanism, it is proposed to use an integral indicator of the assessment of the competitive advantages of subsystems of international business entities, which is adapted at the enterprises of machine building of Ukraine.
JEL: D41; F23; M16

This study examines the linkages between eight South East European emerging stock markets and three reference ones during the period 2005-2015 In this study we prove that there is a weak or moderate positive correlation between the reference capital markets of Turkey, Greece and Croatia and the other examined markets. All things considered, it seems reasonable to assume that there is a strong relationship between SEE capital markets. What is more, the degree of the development of the SEE capital markets determines the linkages between them, while the reference capital markets are with weaker correlation in the group than the developing markets. The developing capital markets of the explored group are strongly determined by country-specific factors, but five of them are strongly influenced by the Greek innovations. However, the market integration is anticipated to strengthen, as a result of EU expansion, as the implementation of Strategy 2020. These countries will take profit if their capital markets are more accessible to foreign investors, reorganizing them in conditions to international law in order to defend foreign investors.
JEL: C32; E27; G15

The paper presents the results of a study of the state and dynamics of the foreign trade of Bulgaria with some of the commodities of the country's trade list – the ones from class “Ores and concentrates”. It covers the period 2000-2016. Foreign trade situation is defined on the basis of processing and analyzing data published by national and international organizations. State and trends of Bulgaria's foreign trade with these strategic products of the mining industry are assessed in the context of the rapidly changing national, European and global market situation. The geographic concentration and sustainability of exports and imports are determined by developing specific coefficients. On this methodological basis, summaries have been made about the current foreign trade situation.
JEL: F14; F16; F50; L70

The work is aimed at defining the directions of credit activity intensification of the economic entities through critical analysis of banks as a powerful leverage of raising additional resources and ensuring sufficient conditions for the development of entrepreneurship. The system of management of quality credit portfolio has considered as the basis for increasing the capacity of the banking system and development the credit relations in a country. It is proved that the issue of complex automation of processing indicators in the face of rising systemic risk, forecasting the results based on the analysis of their dynamics is an increasingly urgent task for the modern banking system. Authors have proposed modern analytical tools to provide the necessary quality of credit activity of the structural units of banks by grounded assessment of the creditworthiness of potential borrowers. The paper presents the model of assessing the creditworthiness of potential borrowers of the bank based on fuzzy logic regarding selected qualitative and quantitative indicators that are fully characterizing the client.
JEL: G21; C61; C45

The aim of the paper is to carry out a bibliometric review of corporate governance theories and methods. The bibliometric review covers 2322 titles and 11598 keywords for the period 1999-2016. The data were extracted from the SSRN’s electronic library.
The paper identifies Top 10 corporate governance theories and methods. The results of bibliometric review define the Agency theory and evidence as a most common theory and method respectively. The Top 10 theories in corporate governance are taken from close scientific fields and the methods used are universal for all sciences.
JEL: C89; G34

In regard to the content, each business venture carries an element of risk, which includes both threats and favorable opportunities.
Risk assessment makes it possible to manage the business more effectively, which is a prerequisite for avoiding unwanted or unexpected events. Moreover, it enables the enterprise to operate more closely to the unforeseen costs limits. It also makes possible the release of resources for developing the activity and assessing the opportunities for profitable investments.
The aim of this study is to present a model for economic risk assessment using some methods developed by the author. In order to achieve this aim, the author has applied the model for risk assessment to a real innovation project related to the production of drones, which is the subject of research in the present paper.
The results of the study will show the practical suitability of the model presented. Applying an adaptive model for risk assessment to innovation projects is an important condition for the increase in risk financing in Bulgaria in the context of the need for increasing competitiveness of the Bulgarian economy.
JEL: G24; O31; O35

In times of persistent violent military conflicts and in post-conflict contexts, water resources and infrastructure are often destroyed or become inaccessible. This has been confirmed both in the literature and in practice. This research has shown effective water management is vital for mitigating new tensions over water resources. Otherwise it will be a major obstacle in the development of economy in post-conflict society. Early intervention in the water sector can help societies set the foundation for more equitable and sustainable water use and in turn support better economic recovery in post conflict areas.
A qualitative research approach with a fieldwork was applied in Northern Sri Lanka where an economic recovery deemed necessary at the end of the three-decade long civil war, opening up communities to reconstruction and economic rehabilitation. Semi-structured interviews and observations were applied to derive findings on current challenges in the water sector in post clearance areas. Main findings from this research lead to the conclusion that the lack of water supply and water sources are primary challenges for land users. They are not aware of sustainable land management (SLM) strategies to improve water use efficiency and productivity. The study proposes a framework to integrate SLM for post-conflict economic development.
JEL: O1; Q1

Collective organization of agricultural production is assumed to be a sufficient choice taking into a consideration a several reasons why mergers of existing farms promote efficiency, such as: increase in optimal scale from reduced duplication; reduced transaction costs; synergies from complementary activities; and improved management and coordination.
Data envelopment approach (DEA) is applied to the input and output variables to reveal the efficiency levels of cooperatives in Trentino-Alto Adige in Italy. The analysis is also developed to estimate input utilization and changes that might occur in terms of their optimizations and higher level output.
JEL: D61; P32; Q13; P13; C14