Challenges of Contemporary Economics

Issues

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Volume 13 (2019) Volume 12 (2018) Volume 11 (2017) Volume 10 (2016) Volume 9 (2015) Volume 8 (2014) Volume 7 (2013) Volume 6 (2012) Volume 5 (2011) Volume 4 (2010) Volume 3 (2009) Volume 2 (2008) Volume 1 (2007)

Volume 13 Issue 4 (2019)

Review of Scoping Studies on Service Quality, Customer Satisfaction and Customer Loyalty in the Airline Industry original article

pp. 375-387 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.320

Harith Yas Khudhair, Ahmad Jusoh, Abbas Mardani, Khalil Md Nor, Dalia Streimikiene

Abstract

The paper studies a method for evaluating current literature that receives little consideration in research and development. Various types of undervalued studies are recognized, and how they are related to a systematic review is shown. A diagram is presented that illustrates scoping studies reviews and their impacts on satisfaction. Finally, this paper examines the favorable circumstances and impediments surrounding this methodology and recommends a more extensive discussion to clarify the relationship between scoping studies and other study types found in reviews of literature. This study additionally aims to determine the effects of price sensitivity and quality seekers on products. It also aims to discern the level of customer loyalty to certain airline brands. The literature review uncovered that the airline industry is increasingly focusing on growing top notch services to compete in the market. In addition, competition in this sector is apparent in the evaluation and the type of services offered. The study embraces these two perspectives (price sensitivity and quality seekers) as directing viewpoints in the system of relationship

Keywords: Service quality, Customer satisfaction, Customer loyalty, Airline industry

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The Prospects for Reforming the State Fiscal Policy original article

pp. 388-406 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.321

Valentyna Antonenko, Leonid Katranzhy, Kostiantyn Moiseienko, Svitlana Yudina, Olha Brezhnyeva-Yermolenko, Svitlana Hanziuk, Aiste Galnaityte, Virginia Namiotko

Abstract

Currently, developing the tax system and improving financial relations between the state and taxpayers are rather important aspects of reforming the economic situation and are relevant to this study. The purpose of this article is to substantiate the scientific approaches to the reform of modern tax systems and to identify effective directions for their practical implementation. This study focuses on an analysis of the history and the current state of the tax system in Ukraine, the identification of existing deficiencies in the Ukrainian tax system, a comparative analysis of the foreign tax systems, and an evaluation of the tax experience of developed countries in the context of its implementation in Ukrainian economic reality. This study is based on the following current scientific conceptions and methods: fiscal methods to defend the state’s interests; theory, methodology and practice of budget-forming tax use, in particular, various types of tax rates (proportional, progressive, and regressive); constructive-critical analysis of tax policy development and the ways to reform it; and theoretical approaches to the definition of tax administration and directions for reforming and improving its efficiency. The following research results have been substantiated and proposed for implementation: the use of preventive taxation aimed to avoid tax evasion and to provide effective protection of the fiscal interests of the state; the reform of the corporate income tax by transition from a proportional rate to a regressive rate; the abandonment of the proportional rate and the use of a less harsh progressive rate of the personal income tax; the shift in priority in tax control from planned continuous tax audits to tax investigations; and the introduction of direct methods for determining tax liabilities into tax administration practice.

Keywords: State taxation policy, Tax evasion, Progressive taxation, Fairness in taxation, Tax administration

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Is Ringgit really influenced by crude oil price? Evidence from commodity and bank lending markets original article

pp. 407-416 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.322

Abdul Razak Abdul Hadi, Mohd Hanafia Huridi, Syeliya Md Zaini, Zalina Zainudin

Abstract

This study aims to investigate the effects of crude oil price (COP) and base rate (BR) on the strength of the Ringgit (RM) against the US Dollar (USD). Within the framework of the international Fisher effect theory, the study employs yearly data from the Bloomberg Database over an observed period from 1984 through 2017. Using bivariate Engle-Granger cointegration test as an estimation tool, the study reveals the presence of a long-term relationship between the RM and COP. However, the results of the Granger Causality test show an absence of a dynamic relationship between them. From the second analysis between the RM and BR, the study finds the presence of both long-term and short-term relationships between them. Interestingly, the relationship is somewhat bidirectional. Overall, the study has suggested the relevance of the international Fisher effect in explaining how variations in the RM exchange rate are elucidated by the bank lending market. In addition, it is worth noting that both BR and COP exert a significant influence on the strength of the RM against USD over time.

Keywords: Bivariate cointegration test, Crude oil price, Malaysia base rate, Malaysia exchange rate, Granger causality test, error-correction term, International Fisher theory

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Who is Unbanked? Evidence from Poland original article

pp. 417-426 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.323

Tomasz Szopiński

Abstract

The objective of this article is to identify factors that exert an influence on the problem of unbanking in Poland. The empirical material used for the purposes of the presented study was obtained within the framework of the “Social Diagnosis” research project carried out in 2015 by the Board of Social Monitoring operating at the University of Finance and Management in Warsaw. Factors such as disposable personal income, age, one’s level of education, trust placed in commercial banks, place of residence, population, and their social-occupational status had an influence on the propensity to use banking services. Answering the question put forward in the title of the paper, we found that the factors influencing people to remain unbanked were: young age, a low level of education, low income, living in small towns/cities, and lack of trust in commercial banks. The paper contributes to the advancement of research on financial exclusion by providing knowledge on the factors that seem to have an impact on its acceptance on the market in Poland.

Keywords: Unbanked, Banking services, Financial exclusion

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Common Baltic-Nordic business cycles: Correlation- versus Markov-switching approaches original article

pp. 427-445 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.324

Scott W. Hegerty

Abstract

With strong historical ties, and economic linkages that have continued to grow after the fall of the Soviet Union, the Baltic and Nordic regions form a unique economic space. How interconnected are these regions, both to each other and to the rest of the world? Greater connections can help forecast future economic linkages—and also help assess the strength of the Euro as a common currency. This study applies two methods of business-cycle analysis (cross-correlations and Markov switching approaches) to seven countries in these regions. Both methods find evidence of a single Baltic common cycle for both output and consumption, while a Nordic cycle exists only for output, and there is no single common Baltic-Nordic cycle. Tests of correlation and concordance show there to be relatively strong connections with Germany, the U.S., and Russia—with Nordic-Baltic linkages also quire strong—but that the specific results vary by the method used

Keywords: Baltic region, Nordic region, Business cycles, Cross-correlations, Markov-switching

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A Monetary Analysis of the Liquidity Trap with an Application to the USA original article

pp. 446-470 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.325

João Braz Pinto, João Sousa Andrade

Abstract

Keynes emphasized a specific situation in which the liquidity preference becomes absolute, leading to monetary policy ineffectiveness when nominal interest approaches the zero-bound rate. This situation was termed a liquidity trap (LT) by Robertson and was popularized by the Hicks- Hansen framework (IS-LM). Early macroeconomic textbooks characterized the LT as the Keynesian case against the classical one. The “lowflation” environment experienced in the USA and Europe again brought the LT to the forefront. The quantitative easing monetary policy was introduced in Japan and better applied in the USA and EMU as a solution to overcome the LT. The macroeconomic mainstream contends that the LT is essentially a money demand problem, whereas we propose another interpretation; the current situation should be interpreted as a “banking problem” that impedes the transformation of the monetary base into money supply. To prove our thesis, we study the behavior of the USA money multiplier and the income velocity of money by comparing an earlier period with the 2007-2008 crisis period. Using a VAR and a VECM model, we compare the normal situation of monetary policy efficiency with the situation of LT monetary policy inefficiency. We prove that the LT focus should not be placed on the demand for money but rather on the behavior of the money supply – more specifically, on banks’ behavior leading to the transformation of the monetary base into the money supply.

Keywords: Liquidity trap, Money supply, Monetary base multiplier, ARIMA, VAR and VECM models

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Mankiw’s “Puzzle” – Is Durable Consumption Declining? original article

pp. 471-479 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.326

Petr Makovský

Abstract

Mankiw’s puzzle of long-term (durable) consumption is a significant topic that needs to be solved. We statistically analyze a time series sample from Germany and from the Czech Republic (2004Q1 to 2016Q4). Furthermore, we discussed the analyses that have been performed to date for the USA and France. These analyses have verified the Mankiw’s puzzle theory about the problematic evolution of durable consumption expenditures. The verification itself has led to arguments for the initiation of scrapping old cars in France and many other European countries in the 1990s (mainly the Juppe and then the Balladur administrations in France). Currently, when we experience economic booms, it is important to ask what happens in a recession. (The Czech Republic pulled through one mainly due to the automotive industry.) Furthermore, this recession is strengthened if the depreciation rate is much lower than the growth rate of durable consumption. These factors together could cause durable consumption to stagnate. We disproved Mankiw’s puzzle theory using a data sample from the Czech Republic and Germany. This conclusion means that long-term consumption does not disappear. The results of the analysis argue against the initiation of scrapping old cars based on current data. The main explanation of the different conclusions of our analysis and the original analysis is that, currently, the new cars that are sold each year have massive innovations. We have to take into account that the new cars that are sold every year satisfy deeper and wider individual needs. The previous conclusion is extended, owing to the initialization of e-mobility and the shorter lifespans of electronic devices.

Keywords: Durable consumption, ARMA stochastic process, Scrapping subsidy, Mankiw’s puzzle

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The Moderating Effect of Organizational Changes on the Influence of Ethical Decision Making on Public Sector Internal Auditor Performance original article

pp. 480-493 | First published in 27 December 2019 | DOI:10.5709/ce.1897-9254.327

Indrawati Yuhertiana, Corry Natasha Patrioty, Nafsiah Mohamed

Abstract

This study investigates the role of organizational change in moderating the effect of ethical decision making on internal auditor performance. The study population comprises internal auditors who work in the public sector (a government-owned company in Indonesia). Smart Partial Least Square statistic software is used to test the hypotheses. This study has led to three findings. First, this study finds that ethical decision making provides support for auditor performance. Second, this study finds that organizational change does not provide support for auditor performance. Third, the analysis shows that the role of organizational change does not succeed in helping to strengthen or weaken ethical decision making in auditor performance.

Keywords: Organizational changes, Ethical decision making, Internal auditor performance, Public sector

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