Nenad Tomić
Petar Veselinović
The economy of the Republic of Serbia is at an important turning point now. The first phase of the implementation of the transition process is completed, the reform processes are gaining a new momentum and entering the European Union is becoming more certain. In order to successfully finalize the transition processes,the reform of the public sector’s system of functioning is inevitable, among other reforms. The public sector in Serbia is low-productive and inefficient, irrationally set, with a multitude of problems that for many years have constantly been growing and becoming more complicated. The high rate of employment and average salaries in the public sector, on the one hand, and the poorly-formulated operational systems, on the other, are so designed that the public sector has a bad influence on economic development in general. The paper will analyze the situation in the public sector of the Republic of Serbia, with a special emphasis on creating a realistic basis for its reform, as a key determinant of the successful completion of the transition process, taking into account the specifics of the Republic of Serbia’s economy.
Nada Trivić and Viktorija Petrov
Each specific economic growth rate indicates relevant characteristics of current development, but also reflects the chances for achieving satisfactory future growth rate. Therefore, it is about a general interdependence and law of growth rate convergence. The main objective of this paper is to show that substandard growth could, sooner or later, result in the economic slowdown, and that the temporary growth acceleration can be achieved at the expense of the long-term growth rate. Scientific instruments applicable for achieving this research goal are the method of scientific analysis, historical method and the method of comparative analysis, as well as a number of techniques in the form of modern information resources. A key result of this paper is that all growth rates of endogenous production factors, without increasing the efficiency of resource use, are converging to the arithmetic mean of exogenous production factors growth rates. Therefore, the growth rate can be significantly increased at the expense of its quality and the substandard growth contains the „germs of its own limiting”.
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.