INSURANCE-ECONOMIC GROWTH NEXUS – EVIDENCE FROM SELECTED WESTERN BALKAN’S COUNTRIES

Gentiana SHARKU

Prof. Assoc. Dr. Pedagogue in Finance Department, Faculty of Economy, University of Tirana

gentianasharku@feut.edu.al

Etleva BAJRAMI

Prof. Assoc. Dr. Pedagogue in Finance Department, Faculty of Economy, University of Tirana

etlevabajrami@feut.edu.al

Abstract

The insurance-growth nexus has attracted the attention of many academics and researchers, due to the huge potential the insurance industry constitutes for the economic development of developed and developing countries as well. The purpose of this paper is to investigate the impact the insurance industry has on economic growth of emerging countries, such as the Western Balkan’s countries. The impact is studied through two indicators of insurance industry: density and penetration, and for the total, life and non-life insurance market. The authors have applied a multiple regression analysis using annual data on insurance industry and GDP per capita from 2004 to 2019. This paper has contributed in the existing literature by exploring (i) whether insurance market has a positive or negative effect on economic growth of developing countries; (ii) which of the insurance indicators explains better the impact – insurance penetration or density indicator; and (iii) which of insurance activities has the largest effect on economic development: total, life or non-life insurance. The conclusions of this paper will serve to the public and private operators to evaluate the significance that each segment of insurance industry has on the economic development and to undertake the proper policies.

Keywords: Insurance penetration, insurance density, GDP per capita

JEL classification: G22, C23, O52

 pp. 53-68

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TOOLS AND TESTING OF THE ASSESSMENT OF BUDGET CAPACITY OF THE MUNICIPAL LEVEL (CASE STUDY OF THE RUSSIAN FEDERATION)

Mariya PECHENSKAYA-POLISHCHUK

PhD in Economics, Head of the Laboratory for Public Finance Development Issues Research, Leading Researcher, Vologda Research Center of the Russian Academy of Sciences, 49, Gogolya Street, Vologda, 160014, Russia

marileen@bk.ru

Abstract

Purpose. To detail the system of indicators and, on their basis, develop an integral index for assessing municipalities’ budget capacity level, which makes it possible to substantiate the choice of a model of financial support for the functioning of local budgets.

Design , methodology , approach. The information base includes works of leading Russian and foreign scientists on the issues under study, reports issued by the Federal Treasury of Russia and the Federal Tax Service of Russia, statistical data from the Federal State Statistics Service and the International Monetary Fund. The research is of complex nature, as it involves a set of fundamental general scientific and special methods, in particular, dialectical and logical methods, horizontal and vertical analysis of financial ratios, statistical and cluster analysis, etc.

Findings. The article presents a system of groups, indicators and author’s method for a comprehensive multidimensional assessment of the municipalities’ budget capacity level. On its basis it is possible to choose an optimal financial support model to support local budget functioning, worked out for municipal districts. The results of integral assessment of the data on the Vologda Oblast taken as a model region, indicate that budget capacity of most municipalities in 2006-2018 was at the average and below average level. Thus, the region misses certain opportunities for development of its budget capacity. At the same time, the conducted calculations show the prevalence of the fourth-type model of financial support for the settlement network, i.e. a differentiated approach depending on the indicator of budgetary provision of settlements.

Research , practical implications. The results obtained contribute to the development of theoretical science and form the foundation for applied use by state authorities and local governments in the implementation of methodological approaches, assessment methods, methodological tools for substantiating budget policy decisions, and can also be used in the scientific activity and educational process.

Originality , value. The scientific value of the research lies in the development of methodological tools for assessing the level of municipalities’ budget capacity when determining the model for financing settlements.

Keywords: Russian Federation, region, budget capacity, municipalities, local government, local budget, assessment

JEL classification: H77, G18, H61

 pp. 43-52

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MACROECONOMIC EFFECTS OF TELEWORKING IN EU27: STOCHASTIC FRONTIER APPROACH

Lena MALEŠEVIĆ PEROVIĆ

Full professor, University of Split, Faculty of Economics, Business and Tourism, Split, Croatia and CERGE-EI Teaching Fellow

lena@efst.hr

Abstract

The main aim of this paper is to investigate macroeconomic effects of teleworking during the COVID-19 pandemic, using an atypical approach. We apply stochastic frontier analysis to a Cobb-Douglas production function broadened with teleworkability variable, and analyse the level of (in)efficiency of EU27 countries in producing their GDPs. We find that increasing the percentage of jobs that can be done at home by 1 percentage point reduces the level of technical inefficiency by 3.5%. Additionally, we use a unique e-survey conducted in April and May of 2020, which provides the data on the share of people who started working from home as a results of a COVID-19 situation, and combine it with the teleworkability variable. Overall, our findings suggest that more developed EU countries have a higher share of teleworkable jobs, which in turn reduces their inefficiencies, and furthermore results in more people beginning to work from home in the pandemic. 

Keywords: teleworking, production function, stochastic frontier analysis, EU, COVID-19

JEL classification: C21, O4, O33, O52

 pp. 33-42

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