The investment activity and development capacity of local self-government units are influenced by a diverse set of financial determinants. Due to their frequent interdependence, assessing their joint effect is essential to accurately determine their impact on the realization of local capital projects. The paper empirically examines the impact of carefully selected financial determinants, including revenues per capita, public debt, the level of self-financing and fiscal autonomy, on the percentage share of capital expenditures in total expenditures of the 10 most indebted local self-government units in the Republic of Serbia, covering the period from 2011 to 2023. The empirical findings indicate that revenues per capita have a dominant impact on investment activity, suggesting that the actual fiscal strength of local self-government units is the most crucial factor in the realization of capital projects.
Mountain areas of Italy experienced substantial socio-ecological changes over the last four decades. Partly due to outmigration, traditional agro-forestry activities and cultural landscapes were progressively abandoned and forest expanded substantially. Biodiversity trends observed during the last 30 years of rewilding are unlikely to continue under climate change. Understanding the decadal impacts of rewilding remains challenging. Biodiversity monitoring data are scant, scarcely integrated and scattered. Some vegetation plot time-series do exist, but they are essentially point observations in space. Achieving a complete picture of biodiversity change requires integrating different data, expertise, and mostly, viewpoints. Integrating biodiversity surveys with data that is available with complete spatial coverage, such as remote sensing, is a necessary first step. But interpreting biodiversity changes also requires considering people’s perceptions and knowledge. Only a qualitative-quantitative approach allows us to understand not only the patterns and trends of biodiversity change, but also the reasons why it changed. This study proposes an interdisciplinary, data-driven approach to understand historical and future trends of plant biodiversity in Italian rewilded mountain areas. We produced spatially explicit assessments of vegetation change between 1990 and 2020 in three mountain protected areas spanning the Italian Peninsula: 1) Eastern Alps (Lagorai mountain range); 2) Northern Apennines (Foreste Casentinesi Monte Falterona e Campigna NP), and 3) Central Apennines (Velino Massif). To do so, we used generalized dissimilarity modelling (GDMs) to model the dissimilarity of plant assemblages as a function of their geographical distances, ecological dissimilarities, and differences in land cover derived by remote sensing. After calibrating the GDMs with historical and newly collected vegetation plot data, the maps of predicted species composition at different times were created, whose comparison allowed highlighting areas where change in land cover induced the largest changes in species composition, and quantified the consequences for regional plant diversity.
This paper examines the patterns of corruption and their role in the consolidation of democracy in Serbia after 2000. We begin by assessing the mechanisms by which corruption undermines the fragile balance between institutions, norms and rules that provide trust and legitimacy of the system, thus affecting democratic backsliding. Employing Wolfgang Merkel’s model of embedded democracy as an analytical framework, and drawing on quantitative data from Transparency International’s Corruption Perceptions Index (CPI) and the V-Dem dataset covering the period 2000–2024, the paper explores the mechanisms through which corruption exacerbates democratic backsliding. We then shift our focus towards an examination of the patterns of corruption and democratic backsliding in Serbia. By using data from Transparency International and V-dem database, the paper identifies key forms of corruption and their consequences for democratic processes in Serbia. The findings indicate that corruption is deeply entrenched in state institutions and the political system. Since lack of political will and weak implementation of reforms slow down democratic consolidation, greater transparency, strengthening of independent institutions and active involvement of citizens are necessary for the consolidation of democracy in Serbia.
Rapid advances in technology, especially AI applications, have contributed to economic transformation at both the microeconomic and macroeconomic levels. Given its substantial potential, AI adoption can become an important source of a country’s comparative advantage. This study examines whether European countries achieved a comparative advantage derived from AI applications during the period 2014–2019. Comparative advantage is assessed using the RSCA index, where positive values indicate its presence. The index is calculated based on the AI patent applications per one million people. The findings reveal that only a limited number of European countries possess a comparative advantage in AI, and that these countries are at varying levels of economic development. This suggests that a nation’s level of economic development is not a decisive factor for the emergence of innovative ideas driven by AI adoption.
The LEADER approach is recognized as a pioneering methodology enabling rural communities to design and implement local development strategies. Originally a bottom-up initiative under the European Agricultural Fund for Rural Development, LEADER has evolved in Romania to address social inclusion, economic disparity and environmental protection. This article analyzes the LEADER approach within Romanian sustainable local development, evaluating the methodology's effectiveness by focusing on Local Action Groups (GAL) implementation and outcomes in the North-West Development Region through a case study of GAL Zona Sătmarului. By synthesizing multiple research sources, the study explores strategic planning, resource allocation, and performance outcomes of LEADER-initiated development strategies. The investigation examines how LEADER principles translate into practical solutions, assessing achievements and limitations in the Romanian context. This research contributes to broader sustainable rural development discourse, offering insights into challenges and opportunities facing Romanian communities pursuing locally driven development initiatives.
The main aim of this study is to examine the asymmetric impact of trade openness on carbon emissions in South Africa. The study employs the Nonlinear Autoregressive Distributed Lag (NARDL) model using time series data from 1990 to 2020. The findings confirm the existence of an asymmetric relationship between trade openness and carbon emissions. In the long run, both positive and negative shocks to trade openness were found to have no significant impact on carbon emissions. However, in the short run, positive changes in trade openness are negatively associated with carbon emissions, while negative changes have no significant effect. Other results indicate that economic growth and foreign direct investment contribute to an increase in carbon emissions in both the short and long run. Energy consumption is found to increase carbon emissions in the short run, while financial development contributes to a reduction in carbon emissions in the long run. Based on these findings, the study recommends that South Africa should expand its trade openness – particularly in the short run – in order to further reduce its carbon footprint, as increases in trade openness have been found to be associated with lower carbon emissions. It is further recommended that policymakers focus on promoting trade activities that are environmentally safe and sustainable. This can be achieved by promoting the production and importation of environmentally sustainable goods.
In the contemporary online environment, building consumer loyalty has become one of the key objectives of every company. An effective approach to achieving this goal is the development of an online brand community, which through the involvement of consumers enables their active communication and formation of brand-related attitudes. In this context, marketing managers recognise the importance of encouraging consumers to actively participate in the community, thereby further strengthening their relationship with the brand and increasing the likelihood of long-term loyalty. This study aims to examine the impact of consumer engagement in online brand communities on key marketing performance: community satisfaction and brand loyalty. Direct relationships were established between consumer engagement in the online brand community, community satisfaction and brand loyalty. The model is based on structural equation modeling (SEM), while the software program AMOS was used to measure SEM. The research results showed that consumer engagement in the online brand community has a statistically significant and positive impact on community satisfaction and brand loyalty. Additionally, it was found that community satisfaction is a predictor of brand loyalty.
This study investigates the effects of systemic stress on the euro area banking sector from 2005 to 2021. The rolling beta analysis, employed to gauge the sensitivity of changes in country-level systemic stress to changes in euro area-level stress, shows that systemic stress transmission is heterogeneous and multidimensional. Core economies, such as Germany and France, are more exposed to global shocks, while peripheral countries react strongly to region-specific crises. Panel regressions assess the impact of changes in systemic stress and market shocks on banking stability, measured by the NPL ratio and Z-score. Separate models are estimated to compare the explanatory power of the Composite Indicator of Systemic Stress at the euro area level (CISS) and at the country level (NEW CISS). Results indicate that country-level NEW CISS better explain credit quality deterioration, particularly through lagged effects, whereas aggregate CISS more consistently captures overall stability, with stress increases producing immediate negative effects on the Z-score. These findings highlight the value of composite stress indicators as early-warning tools for regulators and the importance of complementing euro area-wide measures with country-specific indicators to identify vulnerabilities and transmission channels more precisely.
The aim of this paper is to examine, through a descriptive analysis of selected empirical studies, whether the disclosure of Key Audit Matters (KAMs) has been a contributing factor to the enhanced communicative and informational value of the auditor’s report. Despite the expectation that highlighting issues which, in the auditor’s professional judgment, were of the greatest significance for the audit process would have a positive effect on investors’ reactions, existing studies point to inconsistent findings. A number of studies show that KAMs may increase users’ confidence in financial statements, reduce information risk and improve the efficiency of capital markets. Conversely, other studies do not confirm significant investors’ reactions, thereby questioning the assumption that the new auditor’s report model in practice brings a higher level of transparency and informational value compared to the previous period. The observed differences in findings can be associated both with varying methodological approaches and with the specific characteristics of national economies, including the level of economic development, institutional frameworks and the quality of financial reporting and auditing. The obtained findings are relevant for regulators, investors as well as the academic and professional community, and indicate the need for further research into KAMs management mechanisms for a more comprehensive assessment of the effects of regulatory changes in the field of auditor reporting.
Observing the European landscape where disparities between European Union Member States are present in terms of economic development and, in particular, the insurance sector, this research aims to analyze the impact of key socio-economic indicators on the degree of insurance penetration for the period 2007-2023. The research methodology consists of two sets of econometric models, namely, panel data analysis based on multifactorial regression models (Robust Regression, Cross-sectional time-series with Feasible Generalized Least Squares, Generalized Method of Moments with Arellano–Bond dynamic panel-data estimation, Between Regression (regression on group means), Random-effects with the Maximum Likelihood estimation, and Instrumental variables on two stage least squares), and Bayesian Network Analysis. The analysis shows a diverse relationship, suggesting that Member States with developed economies have a more advanced insurance sector. Moreover, it shows a complex relationship, both positive and negative, depending on the model analyzed. The results of the models applied in the article show various influences of human development, poverty, employment rate and inflation on insurance penetration. This article provides a comprehensive approach and understanding of how economic and social factors influence the insurance sector in the European Union and provides essential information to support the future development of the insurance sector.
In an era marked by increasing regulatory scrutiny and market volatility, insurers’ decisions regarding capital acquisition and reinsurance utilization are paramount to their ability to thrive, adapt, safeguard policyholders’ interests and maintain a margin of profit. This study examines the relationship between reinsurance utilization and equity financing in the Nigerian insurance industry as part of the Nigerian financial system. It hypothesizes that there is no significant relationship between reinsurance ceded and equity in non-life insurance companies in Nigeria. The study hinges on the bankruptcy cost theory and the renting capital hypothesis. The ex-post facto research design is adopted for the study and the population comprises all the registered insurance companies in Nigeria undertaking non-life insurance from which a sample of thirty-six (36) companies are selected using the purposive sampling technique. Data is drawn from the annual reports of the selected companies and Nigeria Insurers’ Digest over a period of 23 years and analyzed using the pooled ordinary least squares regression, fixed effect, random effect regression and generalized method of moments. The results reveal a significant relationship between equity and reinsurance ceded. It is concluded that reinsurance utilization impinges on equity financing in non-life insurance companies. It is recommended that low-capitalized insurers should cede more risks as a buffer to their capital, guard against bankruptcy, and enhance profitability and solvency.
Defining a business strategy to ensure compliance with economic and environmental principles should contribute to long-term economic and environmental goals, while the introduction of environmental accounting into a company will bring a better connection between the company’s strategy and the environment. This paper deals with the potential contribution of environmental accounting to modern beekeeping as a part of the agricultural sector and considers the comprehensive approach of environmental accounting to company operations and the enormous impact of beekeeping on agricultural production. We also highlight the temporal indefiniteness of environmental costs, which are viewed as future (potential) costs. We see that the impact of the agricultural sector on the quality of natural capital can be both positive and negative. We also focus on a more detailed examination of the impact of the agricultural sector on habitats and natural species.
Awareness of the environmental dimension of sustainable development has increased globally since the late twentieth century, with an emphasis on the integration of three pillars: economic prosperity, environmental quality, and social justice. In this context, environmental sustainability has gained considerable prominence, particularly in response to the growing demand for transparency regarding environmental sustainability-related information. This paper aims to analyse sustainability reporting practices concerning macro-level environmental indicators within European Union (EU) Member States, with the objective of assessing environmental sustainability at the macroeconomic level. The study utilises nine selected indicators from the Eurostat database, covering the period from 2021 to 2023. A cluster analysis was initially conducted to categorise EU Member States into two groups based on their environmental sustainability performance in 2021: the 'green' cluster (environmentally responsible countries) and the 'red' cluster (less environmentally responsible countries). This classification facilitated further analysis across the 2021–2023 period, including: the application of a T-test to examine differences in macro-level environmental indicators between countries in the 'green' and 'red' clusters; and b) the construction of a dependent variable for the purposes of logistic regression analysis. The logistic regression model was employed to evaluate the likelihood that specific macro-level environmental indicators influence the classification of a country into either the 'green' or 'red' cluster during the observed period. The findings suggest that increases in gas emissions, electricity production by fuel and operator, and inadequate waste treatment decrease the probability of an EU Member State being classified within the 'green' cluster, while simultaneously increasing the likelihood of classification within the 'red' cluster.
Through this research, we aimed to investigate the extent to which governance mechanisms are applied in Algerian family businesses. We focused on two aspects of governance: the first related to business governance and the second related to family governance structures. This was done using a quantitative methodology on a sample of Algerian family businesses located in the western part of the country, comprising 22 firms, with 100 questionnaires collected from respondents who represented top and middle management leaders in these businesses. The findings revealed that governance structures in both aspects (business governance and family governance) are applied in these businesses. Additionally, it was concluded that there are no differences in the application of governance structures in these companies attributable to job title or educational attainment. However, differences in application were found to be linked to professional experience.
This study investigates possible going concern issues in listed companies in the foreseeable future by analyzing the opinions presented in auditors’ reports covering the period 2021-2023. We use descriptive analysis to conclude that auditor reporting on going concern in the Republic of Serbia is below the level typical for developed economies. The dominant share of other audit firms, those outside the Big 4 group, and consequently the fear of legal costs and loss of reputation may be the reasons why auditors in most cases do not modify their going concern opinions. We analyze all paragraphs of the auditor’s report in which auditors point to the circumstances that caused the crisis in companies, and find that the most frequently mentioned indicators are net loss, accumulated loss and over-indebtedness. Furthermore, we include modified audit opinions based on other key issues in financial statements in the analysis, and conclude that the share of modifications is significantly above the average in developed economies. In this way, we further shed light on financial reporting in the Republic of Serbia and confirm that efforts to improve it are yet to come.
Supply chain resilience (SCR) is an adaptive capability that responds to unexpected disruptions. This meta-analysis presents manufacturing companies' supply chain resilience practice in developing countries, considering a sample of 25 studies published from 2014 to 2023. Data were analyzed using a random effects model with the help of Jamovi version 2.4 and SPSS version 23 software’s. The result infers that, especially during the last four years (2020-2023), the SCR practice of manufacturing companies in developing countries has been significantly enhanced (20%). This study also found that Indonesia is a better engaged (24%) developing country in supply chain resilience practice, followed by Kenya (16%). Moreover, this study revealed that the most widely used data analysis model in SCR practice studies was the structural equation model (40%), followed by multiple linear regression (24%). The weighted average effect size of the studies was 57%, which portrays that the SCR practice in developing nations encourages manufacturing companies to implement diverse resilience strategies to overcome supply chain disruptions. Further study of supply chain resilience practice in developed countries is suggested to compare the difference in effect size between developed and developing nations.
This study examines the role of migration in the growth of the Australian economy, using annual data from 1990 to 2021. The study aims to determine whether migration has a positive or negative impact on economic growth in Australia, as the country continues to open its economy to immigrants. The impact of immigration on host economies has been associated with conflicting results when subjected to empirical testing. Australia is among the developed countries that have opened its economy to immigrants in pre-determined sectors and quotas tailored to meet the country’s skills needs. The study would play a key role in guiding policy makers in Australia on migration policies that complement economic growth agenda in the country. The study employs the ARDL to investigate the nature of this relationship. The findings of the study confirm that migration positively influences economic growth only in the short run. The findings of the study suggest that the Australian government's support of immigration indeed positively influences growth in the short run; however, other policies are required to support growth in the long run.
This study examines the effects of government public debt and inflation on per capita income in Nigeria, covering the period 1981 to 2023. The study utilizes the variables of government public debt, inflation, per capita, money supply and interest rate. The study deploys the generalized linear model based on the heteroscedasticity problem that is associated with the study data set. The study is designed to seek practical implications for economic policies. In addition to examining the impacts of government public debt and inflation on per capita income, the study specifically examines the moderating effect of government public debt and inflation on per capita income as well as investigates the impact of money supply and interest rate on inflation and per capita income. The findings reveal that government public debt has a negative and significant effect on per capita income. In addition, the impact of inflation on per capita income is mild, positive and not significant. Also, the moderating effect of government public debt and inflation is negative and not significant on per capita income. In contrast, the impact of government public debt on inflation is positive and significant. The study recommends a reduction in government fiscal deficit and government borrowing to reduce inflation. The study also recommends fiscal consolidation and the efficient application and management of borrowed funds.
The reputation of a hotel is of paramount importance; however, its establishment can be a complex and demanding endeavor. Accordingly, this study was conducted to investigate the impact of various dimensions of customer relationship management (CRM) on the reputation within the hotel sector. Data were gathered from 136 participants through a 23-item questionnaire utilizing a convenience sampling approach. Multiple linear regression analyses were employed to evaluate the hypotheses. The results reveal that critical dimensions such as key customer focus, knowledge management, and technology-based CRM exert a positive and significant influence on hotel reputation. Conversely, CRM organization did not demonstrate a significant effect on hotel reputation, confirming that the effectiveness of CRM lies in its practical implementation and not just its organizational framework. This study serves to enhance hotel managers' understanding of the vital role that CRM strategies play in enhancing their establishments' reputations.
The main purpose of this paper is to analyze public expenditures and their impact on economic growth in Albania. It is widely recognized that an increase in public expenditures translates into an increase in GDP level. The analysis of the impact of public expenditures is associated with elements that affect economic growth both positively and negatively. Therefore, this is a topic that requires continuous study, not only for governance but also to understand the impact they have on each individual and the economy as a whole. Albania is a small country with an open economy, so the study of the impact of public expenditures on the economy is very important to understand their use as an instrument of fiscal policy and to predict trends in the future. In the conditions of change and reformation of fiscal policies, the structure of government expenditures will likely also change. To study the level of expenditures helps to understand in which functions the government has mostly directed the revenue it has received from different sources. We also highlight which government functions are well covered by spending and which are at low levels and require more attention. This paper takes into study health public expenditures, defense public expenditures, education public expenditures and total public expenditures. These variables are analyzed based on the econometric model. These variables have the highest impact on the level of GDP.
