Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.19583
R. Kumar, P. Stauvermann, Arvind Patel, Selvin Prasad, N. Kumar
We examine the determinants of profitability of insurance companies in Fiji as a reference country. In Fiji, insurance companies and the services have grown over the years. The study uses a financial evaluation approach. Profitability is measured by the return on assets and the return on equity. Using the two measures and the data published in the key disclosure statements as a mandatory requirement by the Reserve Bank of Fiji, we develop regression models. The fixed-effects regression model and a balanced panel are considered for the analysis. The sample comprises eight insurance companies’ financial data over the period 2010-2015. First, a base model is estimated, followed by additional models which include interaction effects as part of the sensitivity analysis and further insights. The general outcome of the estimation is that premium income, underwriting expenses, administrative expenses, and volume of capital are positively associated with profitability, whereas leverage measured by total liability over equity, and contingent liability are negatively associated with profitability. Inclusion of interaction effects provides results consistent with the base model. The study is a first attempt to analyse Fiji’s insurance sectors and provides useful information in terms of financial management of the sector. The findings can assist the insurance sector and the policy makers to formulate strategies for revenue and cost management.
{"title":"Profitability Determinants of the Insurance Sector in Small Pacific Island States: A Study of Fiji’s Insurance Companies","authors":"R. Kumar, P. Stauvermann, Arvind Patel, Selvin Prasad, N. Kumar","doi":"10.5755/j01.ee.33.3.19583","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.19583","url":null,"abstract":"We examine the determinants of profitability of insurance companies in Fiji as a reference country. In Fiji, insurance companies and the services have grown over the years. The study uses a financial evaluation approach. Profitability is measured by the return on assets and the return on equity. Using the two measures and the data published in the key disclosure statements as a mandatory requirement by the Reserve Bank of Fiji, we develop regression models. The fixed-effects regression model and a balanced panel are considered for the analysis. The sample comprises eight insurance companies’ financial data over the period 2010-2015. First, a base model is estimated, followed by additional models which include interaction effects as part of the sensitivity analysis and further insights. The general outcome of the estimation is that premium income, underwriting expenses, administrative expenses, and volume of capital are positively associated with profitability, whereas leverage measured by total liability over equity, and contingent liability are negatively associated with profitability. Inclusion of interaction effects provides results consistent with the base model. The study is a first attempt to analyse Fiji’s insurance sectors and provides useful information in terms of financial management of the sector. The findings can assist the insurance sector and the policy makers to formulate strategies for revenue and cost management.\u0000 ","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83710976","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.28982
Li Lanrui, Zia Ur Rahman, Shoukat Iqbal Khattak, Md. Maruf Hassan
The nexus between military expenditure and economic growth has been analyzed using different methods and techniques in the economic growth literature, but most previous findings are indecisive, i.e., non-significant, positive, or negative. The primary purpose of this article was to explain the military expenditure-economic growth nexus in Pakistan by capturing the asymmetrical effects of military expenditures on economic growth using the non-linear autoregressive distribution lag-NARDL technique. Data were analyzed from 1972-2018. The results indicated that a decrease in military spending (adverse shocks) enhanced economic growth in the long term. An increase in military spending (positive shocks) had an insignificant effect on economic growth in Pakistan, suggesting that a focus on cost reduction in military expenditure may benefit economic growth. More so, the Wald test validated the asymmetries both in the long- and short term. Capital formation and labor force, as a control variable, positively affected economic growth in the long run. Based on these findings, the paper offers some critical suggestions for policymakers.
{"title":"Asymmetric Effect of Military Expenditures on Economic Growth in Pakistan: A Nonlinear-ARDL Approach","authors":"Li Lanrui, Zia Ur Rahman, Shoukat Iqbal Khattak, Md. Maruf Hassan","doi":"10.5755/j01.ee.33.3.28982","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.28982","url":null,"abstract":"The nexus between military expenditure and economic growth has been analyzed using different methods and techniques in the economic growth literature, but most previous findings are indecisive, i.e., non-significant, positive, or negative. The primary purpose of this article was to explain the military expenditure-economic growth nexus in Pakistan by capturing the asymmetrical effects of military expenditures on economic growth using the non-linear autoregressive distribution lag-NARDL technique. Data were analyzed from 1972-2018. The results indicated that a decrease in military spending (adverse shocks) enhanced economic growth in the long term. An increase in military spending (positive shocks) had an insignificant effect on economic growth in Pakistan, suggesting that a focus on cost reduction in military expenditure may benefit economic growth. More so, the Wald test validated the asymmetries both in the long- and short term. Capital formation and labor force, as a control variable, positively affected economic growth in the long run. Based on these findings, the paper offers some critical suggestions for policymakers.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74700439","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.29316
Nemanja Berber, M. Aleksić, Agneš Slavić, Maja Strugar Jelača
Corporate social responsibility (CSR) is a concept that is based on the idea of a balance between economic, social, and environmental goals of companies. In contemporary business, companies need to be responsible not just to their shareholders, but to broader stakeholders, where employees, customers, investors, suppliers, local community, and natural environment are mostly affected. Also, CSR is seen as a concept that can enhance different financial and market performances, where corporate reputation is gaining more and more attention. Corporate reputation is seen as one of the most important companies’ assets, and it has a great influence on business success. Based on the stakeholder theory and resource-based theory, the authors of this paper investigated both concepts to increase the body of knowledge and provide some practical implications for companies. The paper aims to investigate the relationship between CSR and corporate reputation. The problem of the research is defining of a relationship between CSR and corporate reputation in companies in Serbia, and between specific dimensions of CSR and corporate reputation. The methodology used in the research obtained the analysis of available literature and the empirical analysis of the data on CSR and reputation. The sample was created from 73 large private processing companies in the Republic of Serbia. The authors used PLS-SEM method to investigate the proposed relations, i.e., that CSR has a positive relation with corporate reputation. This methodology was for the first time conducted in the business environment in Serbia, which will enhance the possibility of comparison with the results from other countries. The results pointed that CSR, as a higher-order construct, has a positive relation with corporate reputation, like all dimensions of CSR (responsibility to employees, customers, local community, environment, suppliers). At the end, the authors proposed theoretical and practical implications and limitations of the research.
{"title":"The Relationship Between Corporate Social Responsibility and Corporate Reputation in Serbia","authors":"Nemanja Berber, M. Aleksić, Agneš Slavić, Maja Strugar Jelača","doi":"10.5755/j01.ee.33.3.29316","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.29316","url":null,"abstract":"Corporate social responsibility (CSR) is a concept that is based on the idea of a balance between economic, social, and environmental goals of companies. In contemporary business, companies need to be responsible not just to their shareholders, but to broader stakeholders, where employees, customers, investors, suppliers, local community, and natural environment are mostly affected. Also, CSR is seen as a concept that can enhance different financial and market performances, where corporate reputation is gaining more and more attention. Corporate reputation is seen as one of the most important companies’ assets, and it has a great influence on business success. Based on the stakeholder theory and resource-based theory, the authors of this paper investigated both concepts to increase the body of knowledge and provide some practical implications for companies. The paper aims to investigate the relationship between CSR and corporate reputation. The problem of the research is defining of a relationship between CSR and corporate reputation in companies in Serbia, and between specific dimensions of CSR and corporate reputation. The methodology used in the research obtained the analysis of available literature and the empirical analysis of the data on CSR and reputation. The sample was created from 73 large private processing companies in the Republic of Serbia. The authors used PLS-SEM method to investigate the proposed relations, i.e., that CSR has a positive relation with corporate reputation. This methodology was for the first time conducted in the business environment in Serbia, which will enhance the possibility of comparison with the results from other countries. The results pointed that CSR, as a higher-order construct, has a positive relation with corporate reputation, like all dimensions of CSR (responsibility to employees, customers, local community, environment, suppliers). At the end, the authors proposed theoretical and practical implications and limitations of the research.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80513189","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.28417
Aleksandra Fedajev, Milica Veličković, Radmilo Nikolić, M. Cogoljević, Rita Remeikienė
The shadow economy (SE) is a global phenomenon that affects every country. However, its forms and mechanisms may differ depending on a country's socio-economic characteristics. The major characteristic is a country’s economic system. Hence, market and transition economies can be affected differently. Given that the size of the SE directly affects the level of tax revenue, it is particularly important to investigate the factors of the SE during the post-crisis period, when policymakers need sufficient budgetary funds to implement anti-crisis measures. In that sense, this paper aims to identify the differences in the factors that boosted the SE in 17 market and 19 transition economies in Europe between 2009-2014. The research is based on the PLS-SEM method. A country’s wealth and development, market openness, tax system and political environment are employed as the major SE factors. These factors are the most common in previous literature when investigating the issues of the shadow economy and are most appropriate for this research. The results suggest that particular factors of the SE differently affect market and transition economies. In transition economies, a favourable political environment, greater wealth and development, as well as a lower tax burden contribute to a smaller size of the SE, whereas greater market openness and a higher tax burden lead to a larger size of the SE. The links between market openness, tax system and the SE are not, however, statistically significant. Like transition economies, market economies are characterized by the positive impact of political environment and wealth and development when combating the SE. Unlike in transition economies, the size of the SE in market economies is reduced by a high tax burden and greater market openness. In the latter case, there is only one statistically insignificant path coefficient – it represents the relationship between the SE and market openness. The Multi-Group Analysis (MGA) method was employed to compare the path coefficients estimated for the country groups under consideration. The results indicate that the only difference in the path coefficients representing the relationship between market openness and the SE is not statistically significant. Based on the research results, some recommendations for policymakers in transition and market economies are provided in the conclusion.
{"title":"Factors of the Shadow Economy in Market and Transition Economies during the Post-Crisis Period: is there a Difference?","authors":"Aleksandra Fedajev, Milica Veličković, Radmilo Nikolić, M. Cogoljević, Rita Remeikienė","doi":"10.5755/j01.ee.33.3.28417","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.28417","url":null,"abstract":"The shadow economy (SE) is a global phenomenon that affects every country. However, its forms and mechanisms may differ depending on a country's socio-economic characteristics. The major characteristic is a country’s economic system. Hence, market and transition economies can be affected differently. Given that the size of the SE directly affects the level of tax revenue, it is particularly important to investigate the factors of the SE during the post-crisis period, when policymakers need sufficient budgetary funds to implement anti-crisis measures. In that sense, this paper aims to identify the differences in the factors that boosted the SE in 17 market and 19 transition economies in Europe between 2009-2014. The research is based on the PLS-SEM method. A country’s wealth and development, market openness, tax system and political environment are employed as the major SE factors. These factors are the most common in previous literature when investigating the issues of the shadow economy and are most appropriate for this research. The results suggest that particular factors of the SE differently affect market and transition economies. In transition economies, a favourable political environment, greater wealth and development, as well as a lower tax burden contribute to a smaller size of the SE, whereas greater market openness and a higher tax burden lead to a larger size of the SE. The links between market openness, tax system and the SE are not, however, statistically significant. Like transition economies, market economies are characterized by the positive impact of political environment and wealth and development when combating the SE. Unlike in transition economies, the size of the SE in market economies is reduced by a high tax burden and greater market openness. In the latter case, there is only one statistically insignificant path coefficient – it represents the relationship between the SE and market openness. The Multi-Group Analysis (MGA) method was employed to compare the path coefficients estimated for the country groups under consideration. The results indicate that the only difference in the path coefficients representing the relationship between market openness and the SE is not statistically significant. Based on the research results, some recommendations for policymakers in transition and market economies are provided in the conclusion.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81503171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.26786
J. Končar, Stipe Lovreta, S. Vučenović, Radenko Marić
The development of electronic retailing as a new retail marketing channel based on the Internet appears in contemporary theory and practice. In such market conditions, there is a research problem in which the level of development of the retail market and increasing concentration and competition in the market impact the development of electronic retailing. The aim to prove in this paper is to determine whether the level of concentration of the traditional retail market influences the share of electronic retailing in total retail revenue. The Danube region countries are chosen because of differences in the level of development of the retail market and electronic retailing. The sale revenues of the largest retailers based on which the level of concentration of the retail market in a particular country is determined are analyzed. The study concluded that a high share of the ten biggest retailers in the total retail revenue, as an indicator of the development of the retail market, follows the high share of e-retailing in total retail revenue to some extent. The results also confirmed a significant relation between the origin and types of retailers and the degree of concentration of electronic retail. Recommendations for future research are given in the paper.
{"title":"The Effect of Retail Market Concentration on Development of Electronic Retailing in the Danube Region","authors":"J. Končar, Stipe Lovreta, S. Vučenović, Radenko Marić","doi":"10.5755/j01.ee.33.3.26786","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.26786","url":null,"abstract":"The development of electronic retailing as a new retail marketing channel based on the Internet appears in contemporary theory and practice. In such market conditions, there is a research problem in which the level of development of the retail market and increasing concentration and competition in the market impact the development of electronic retailing. The aim to prove in this paper is to determine whether the level of concentration of the traditional retail market influences the share of electronic retailing in total retail revenue. The Danube region countries are chosen because of differences in the level of development of the retail market and electronic retailing. The sale revenues of the largest retailers based on which the level of concentration of the retail market in a particular country is determined are analyzed. The study concluded that a high share of the ten biggest retailers in the total retail revenue, as an indicator of the development of the retail market, follows the high share of e-retailing in total retail revenue to some extent. The results also confirmed a significant relation between the origin and types of retailers and the degree of concentration of electronic retail. Recommendations for future research are given in the paper.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77183464","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.28269
N. Jankelová
Promoting and increasing organizational innovation is the key factor of company's competitiveness in the current turbulent conditions. The aim of the paper is to verify the hypothesis, whether the entrepreneurial orientation of business management is effectively related to the organizational innovation of companies and at the same time, whether this relationship is mediated by team connection, work autonomy and building trust between employees and business management. The research sample was 244 managers of medium and large companies in Slovakia. The tool for data collection was a questionnaire survey and the tool for examining the mechanism of functioning of the presumed relationships is mediation with the use of regression analyses and the Sobel test to determine the significance of the indirect effect of median variables. The established hypothesis was confirmed by the study . Full mediation was identified, where up to 88% of the total effect is realized by intermediary variables with a significant influence of building trust and job autonomy. Team connectivity has a negative effect in the indirect effect, which further increases the importance of the other two mediation variables in the mediated transmission. From the controlled variables, management practice was a significant variable. The dependence is positive, i.e., the higher practice of the manager is related to the higher values of the dependent variable organizational innovation.
{"title":"Entrepreneurial Orientation, Trust, Job Autonomy and Team Connectivity: Implications for Organizational Innovativeness","authors":"N. Jankelová","doi":"10.5755/j01.ee.33.3.28269","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.28269","url":null,"abstract":"Promoting and increasing organizational innovation is the key factor of company's competitiveness in the current turbulent conditions. The aim of the paper is to verify the hypothesis, whether the entrepreneurial orientation of business management is effectively related to the organizational innovation of companies and at the same time, whether this relationship is mediated by team connection, work autonomy and building trust between employees and business management. The research sample was 244 managers of medium and large companies in Slovakia. The tool for data collection was a questionnaire survey and the tool for examining the mechanism of functioning of the presumed relationships is mediation with the use of regression analyses and the Sobel test to determine the significance of the indirect effect of median variables. The established hypothesis was confirmed by the study . Full mediation was identified, where up to 88% of the total effect is realized by intermediary variables with a significant influence of building trust and job autonomy. Team connectivity has a negative effect in the indirect effect, which further increases the importance of the other two mediation variables in the mediated transmission. From the controlled variables, management practice was a significant variable. The dependence is positive, i.e., the higher practice of the manager is related to the higher values of the dependent variable organizational innovation.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88721751","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.29652
Laura Južnik Rotar
The Covid-19 pandemic has exposed vulnerability of young people in the labour market. Young people are faced with risks and an uncertain future, as well as changing the nature of labour markets. Active labour market policies are addressed as the main instrument to improve employment possibilities of young people in the light of the Covid-19 pandemic situation and its aftermath. This paper analyses the effectiveness of active labour market policies in reducing youth unemployment for the EU-26 Member States using aggregate data. Based on dynamic generalised methods of moments-GMM panel data approach, we find that active labour market policies do not support reduction of youth unemployment. Moreover, unfavourable prospects in the formal sector push young people into the informal sector. Considering the multiple shocks with which young people are being faced with, and the long-term pandemic impact, it suggests the scarring effect for young people. The analysis of the effectiveness of active labour market policy in reducing youth unemployment is of particular policy relevance, as the negative effects of the pandemic COVID-19 crisis are imminent, and the labour market situation is expected to worsen due to the fall in economic activity. Different measures of success would bring societal benefits not only from the public health perspective, but also from the perspective of well-being of young people. Moreover, OECD & European Commission (2022), in their joint policy brief, argue that investing in the growth sectors such as the circular economy, digital economy and the green economy would have the potential to employ young job seekers.
{"title":"Effectiveness of Active Labour Market Policies in the EU Countries for the Young Unemployed People and Implications for the Post-pandemic Period","authors":"Laura Južnik Rotar","doi":"10.5755/j01.ee.33.3.29652","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.29652","url":null,"abstract":"The Covid-19 pandemic has exposed vulnerability of young people in the labour market. Young people are faced with risks and an uncertain future, as well as changing the nature of labour markets. Active labour market policies are addressed as the main instrument to improve employment possibilities of young people in the light of the Covid-19 pandemic situation and its aftermath. This paper analyses the effectiveness of active labour market policies in reducing youth unemployment for the EU-26 Member States using aggregate data. Based on dynamic generalised methods of moments-GMM panel data approach, we find that active labour market policies do not support reduction of youth unemployment. Moreover, unfavourable prospects in the formal sector push young people into the informal sector. Considering the multiple shocks with which young people are being faced with, and the long-term pandemic impact, it suggests the scarring effect for young people. The analysis of the effectiveness of active labour market policy in reducing youth unemployment is of particular policy relevance, as the negative effects of the pandemic COVID-19 crisis are imminent, and the labour market situation is expected to worsen due to the fall in economic activity. Different measures of success would bring societal benefits not only from the public health perspective, but also from the perspective of well-being of young people. Moreover, OECD & European Commission (2022), in their joint policy brief, argue that investing in the growth sectors such as the circular economy, digital economy and the green economy would have the potential to employ young job seekers.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83469758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-30DOI: 10.5755/j01.ee.33.3.25610
Lyubov Klapkiv, Arleta Kędra
The article is a part of a global discussion about the influence of technologies on the insurance industry. For a long time, the insurance industry was known as a restrictive market with high barriers to innovations. The rapid development of Industry 4.0 puts insurers under pressure to implement new information and communication technologies into business processes to be competitive and to satisfy customers’ expectations. Due to this, one of the main reasons for the demand for technologies is the reduction in the cost of the insurance production process. This study intends to answer the question about how production costs determine the demand for technologies among insurers. To answer this question, the research presents a case analysis of three major European insurance groups in the period 2008-2018. The analysis of the main production cost indicators (acquisition, claims handling and wages) and expenditures on information technologies in the insurance companies make the paper original. The research shows that there are no clear relations between the raising of direct insurance production costs and the demand for information technologies among insurers. This research contributes to the study of the development of information technologies in the insurance industry. Technologies still do not play a key role in the efficiency growth of insurance companies. It is mostly a sporadic factor.
{"title":"Is Demand for Technologies Determined by Production Costs? The Case of Insurance Companies","authors":"Lyubov Klapkiv, Arleta Kędra","doi":"10.5755/j01.ee.33.3.25610","DOIUrl":"https://doi.org/10.5755/j01.ee.33.3.25610","url":null,"abstract":"The article is a part of a global discussion about the influence of technologies on the insurance industry. For a long time, the insurance industry was known as a restrictive market with high barriers to innovations. The rapid development of Industry 4.0 puts insurers under pressure to implement new information and communication technologies into business processes to be competitive and to satisfy customers’ expectations. Due to this, one of the main reasons for the demand for technologies is the reduction in the cost of the insurance production process. This study intends to answer the question about how production costs determine the demand for technologies among insurers. To answer this question, the research presents a case analysis of three major European insurance groups in the period 2008-2018. The analysis of the main production cost indicators (acquisition, claims handling and wages) and expenditures on information technologies in the insurance companies make the paper original. The research shows that there are no clear relations between the raising of direct insurance production costs and the demand for information technologies among insurers. This research contributes to the study of the development of information technologies in the insurance industry. Technologies still do not play a key role in the efficiency growth of insurance companies. It is mostly a sporadic factor.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77929400","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-02-28DOI: 10.5755/j01.ee.33.1.24944
A. Buszko
This study relies on a calculable and essential analysis of a statistically oriented regression model. Ninety-five variables taken into consideration in this research were grouped into four categories. The first category covers the general macroeconomic situation, the second is devoted to crime, the third is formed by characteristics of income and living conditions, and the fourth one applies to the taxation system. The Multiple Indicators Multiple Causes (MIMIC) model was employed to measure the level of shadow economy in Poland and in Lithuania during 2000-2019. The MIMIC model depends on Structural Equation Models. The MIMIC approach allows one to assess shadow economy as a latent variable. The observed factors are government employment/labor force, tax burden, subsides/GDP, social benefits paid by government/GDP, self-employment/GDP, and unemployment rate. The Pearson correlation index was used to size up the correlation between independent variables, and Kolmogorov–Smirnov (KS) test for normality of residuals was applied. In both countries, factors affecting the shadow economy performance show great similarity. The shadow economy development in Poland and in Lithuania is fostered by many different factors, related to, but not limited to, the general macroeconomic situation. In fact, the economic situation is associated with the standard of living, income as well as the crime rate. Important factors are associated with the taxation system. The results demonstrate that the regression model can be used to predict the shadow economy development and performance in Poland and in Lithuania. Such information facilitates taking adequate steps in order to minimize the shadow economy level in both countries. Such implications are very useful for decision makers in shaping the legal and economic progress in both countries.
{"title":"Factors Fostering Shadow Economy Performance in Poland and Lithuania during 2000-2019","authors":"A. Buszko","doi":"10.5755/j01.ee.33.1.24944","DOIUrl":"https://doi.org/10.5755/j01.ee.33.1.24944","url":null,"abstract":"This study relies on a calculable and essential analysis of a statistically oriented regression model. Ninety-five variables taken into consideration in this research were grouped into four categories. The first category covers the general macroeconomic situation, the second is devoted to crime, the third is formed by characteristics of income and living conditions, and the fourth one applies to the taxation system. The Multiple Indicators Multiple Causes (MIMIC) model was employed to measure the level of shadow economy in Poland and in Lithuania during 2000-2019. The MIMIC model depends on Structural Equation Models. The MIMIC approach allows one to assess shadow economy as a latent variable. The observed factors are government employment/labor force, tax burden, subsides/GDP, social benefits paid by government/GDP, self-employment/GDP, and unemployment rate. The Pearson correlation index was used to size up the correlation between independent variables, and Kolmogorov–Smirnov (KS) test for normality of residuals was applied. In both countries, factors affecting the shadow economy performance show great similarity. The shadow economy development in Poland and in Lithuania is fostered by many different factors, related to, but not limited to, the general macroeconomic situation. In fact, the economic situation is associated with the standard of living, income as well as the crime rate. Important factors are associated with the taxation system. The results demonstrate that the regression model can be used to predict the shadow economy development and performance in Poland and in Lithuania. Such information facilitates taking adequate steps in order to minimize the shadow economy level in both countries. Such implications are very useful for decision makers in shaping the legal and economic progress in both countries.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88622288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-02-28DOI: 10.5755/j01.ee.33.1.27998
K. Rajamani, N. Akbar Jan, A. Subramani, A. Nirmal Raj
Access to finance plays a major role in the entrepreneurship development and economic growth of any country. It encourages new entrepreneurial initiatives. Timely access to finance sustains the survival and growth of micro, small, and medium enterprises (MSMEs). The purpose of this paper is to explore the challenges of access to finance faced by the MSMEs and to analyze their impact on their business performance. The survey was conducted in 400 MSMEs from various industrial clusters across India. The samples were selected using the quota sampling technique. The conceptual framework was developed and tested using the structural equation model (SEM). Results show that firm attributes, sources of finance, and the life cycle of an MSME have a significant positive impact on its access to finance, whereas financial obstacles have a negative impact that prevents the growth of MSME and affects the economic growth of the nation.
{"title":"Access to Finance: Challenges Faced by Micro, Small, and Medium Enterprises in India","authors":"K. Rajamani, N. Akbar Jan, A. Subramani, A. Nirmal Raj","doi":"10.5755/j01.ee.33.1.27998","DOIUrl":"https://doi.org/10.5755/j01.ee.33.1.27998","url":null,"abstract":"Access to finance plays a major role in the entrepreneurship development and economic growth of any country. It encourages new entrepreneurial initiatives. Timely access to finance sustains the survival and growth of micro, small, and medium enterprises (MSMEs). The purpose of this paper is to explore the challenges of access to finance faced by the MSMEs and to analyze their impact on their business performance. The survey was conducted in 400 MSMEs from various industrial clusters across India. The samples were selected using the quota sampling technique. The conceptual framework was developed and tested using the structural equation model (SEM). Results show that firm attributes, sources of finance, and the life cycle of an MSME have a significant positive impact on its access to finance, whereas financial obstacles have a negative impact that prevents the growth of MSME and affects the economic growth of the nation.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2022-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87774879","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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