Tran Quang Tuyen
This paper has reviewed recent empirical evidence on the link between nonfarm employment, land and rural livelihoods in the context of increasing a land loss to urbanization and industrialization in some developing countries and Vietnam. It was found that while land is of great importance to a number of countries, it seems to be less important to others. Land shortage can be a positive factor encouraging rural households’ participation in nonfarm activities and improving their welfare in countries in which non-farm job opportunities are available to a large part of the population. Nevertheless, this can negatively affect rural household livelihoods in countries lacking such nonfarm jobs. In Vietnam, nonfarm employment has gained increasing importance to rural livelihoods. In addition, in peri-urban areas where more and more farmland has been lost to rapid urbanization and industrialization, nonfarm employment was found to help households reduce their dependence on farmland and improve their welfare.
Jatinder P. Singh
This article provides an evaluation of translation accounting through a logical and deductive analysis of the concepts. The relationship between the inflation of constituent countries and the methods of translation is explored. It is established that only the Current Value (Purchasing Power Parity) (PPP) Method correctly reports the effects of the inflation of both countries. The Current Rate Method fails to correctly report the effect of the subsidiary country’s inflation and the temporal method does not correctly report the parent country’s inflation. The efficacy of FAS 52 (USA) and the functional currency concept is examined. Under FAS 52, the functional currency determines the method to be adopted for translation and hence the accounts of the subsidiary that are subject to an exchange rate risk. It is, however, argued that the exchange rate risk is related to violations of Purchasing Power Parity. The degree of such violations should, therefore, form the premise on which the functional currency and translation method should be selected.
Fan Yuxian, Yuan Xiaoling, He Songke
This paper represents a study on the dynamic influence of electricity investment on economic growth, which is based on the data from 1953 to 2012, by using the ADF test, the Granger test, the VAR model, the IRF (Impulse Response Function) model and the VEC model. In this research, other factors such as more fixed-asset investment and labor force are involved in the explanatory variables. The results are used to forecast the scenarios of economic growth on different electricity investment projects. The results indicated that electricity investment can strengthen economic growth in a short time when there is a steady equilibrium relationship in the long run. The positive impulse response of economic growth to electricity investment will last for four years. The contribution of electricity investment to economic development has been increasing year by year. The scenario analysis means that an S-shaped electricity investment is better than other investment projects in the promotion of economic growth.
Slavica P. Petrović
Issue 2 of Volume 16, Year 2014 of the Economic Horizons scientific journal contains three original scientific papers, two review papers, a book review, two viewpoints and the acknowledgements to the reviewers of the manuscripts submitted to the Editorial Board of the Journal, in 2013.
Gordana Radosavljevic
Olivera Janković
Žaklina Stojanović, Jelena Filipović, Dragan Stojković
Although food with nutritive and health claims in the Western Balkan countries hasbeen present in this region for more than a decade, it has remained rather understudied. Therefore, the aim of this study was to determine the importance of products with nutritive and health claims in the Western Balkans, using qualitative research techniques. In the study, the prices and margins of the subject product group, distribution channels, demand perception and incentives as well as barriers for the future development of the functional food market were analyzed. The study included five categories of products with nutritive and health claims, whilethe technique of the in-depth interviews was adopted. The total of 29 producers and 26 retailers form all the six countries of the region participated in the research. Even thoughthe studied categories recorded a sales growth in the previous period, a significant increase is expected in the mediumand long term, along with the growth of the living standard – given that products with nutritive and health claims are more expensive than regular ones. The results imply that it is necessary that the level of education regarding the role of food in health preservation should be raised; and that a change inbad eating habits should be influenced. The development of functional food markets also requires a government support and an appropriate legislation.
Biljana Jovković
The independent auditor expresses his or her opinion on financial reports, whose primary role is to reduce the asymmetry of information between insurance companies’ management and the existing and potential investors. Through reducing the information risk of the presented financial reports, audit provides the safer making of investment decisions of the users of these reports. In order for this basic function of audit to realize, it is necessary that auditors should collect sufficient pieces of evidence by applying adequate and relevant examination techniques. The goal of this paper is to point at the specific position of audit when an insurance company is a client, and in this regard, at a need for the differentiation of the priorities of individual audit objectives as well as the necessity of the customization of the implemented evidencecollection techniques implemented in an audit engagement with an insurance company simultaneously respectfully referring to the prescribed ordinary procedures imposed by the professional regulation. In the paper, an attempt has been made to comprehensively analyze the effectiveness of individual evidencecollection techniques for the purpose of proving the achievement of each individual objective of the audit as well as their different applicability in the examination of certain balance-sheet positions in financial reports of insurance companies.
Milan Kostić
The concept of the relevant market is very important for the competition policy. The assessment of the market power of the economic entities operating on a relevant market depends on the market size. The relevant market has two dimensions – the production and the geographic ones – hence, there are a relevant product market and a relevant geographic market. The purpose of the paper is to show the possible ways of determining the relevant market boundaries, in an explicit and systematic way, by applying appropriate tests, and on the example of the specific Serbian market. In the paper, two important tests to determine the boundaries of the market have been applied: the Price Correlation Test and the Goods Physical Movement Test (the Elzinga-Hogarty test). The tests are very useful in situations where researchers only possess secondary data and want to determine the boundaries of the market based on them. The disadvantages of the tests, which of course exist, do not diminish their importance; therefore, they are very useful and recommended for determining the scope of the market.