Development Of Market Economy Research Articles

The economics of extortion: Theory and the case of the Sicilian Mafia

This paper studies extortion of firms operating in legal sectors by a profit-maximizing criminal organization. We develop a simple taxation model under asymmetric information to find the Mafia optimal extortion as a function of firms’ observable characteristics, namely size and sector. We test the predictions of the model on a unique dataset on extortion in Sicily, the Italian region where the Sicilian Mafia, one of the most ancient criminal organizations, operates. In line with our theoretical model, our empirical findings show that extortion is strongly concave with respect to firm size and highly regressive. The percentage of profits appropriated by the Mafia ranges from 40% for small firms to 2% for large enterprises. We derive some implications of these findings for market structure and economic development.

Analysis on Classified Storage and Traceability of Construction Project Archives

With the development and progress of economic construction and market economy, urban construction is also developing rapidly. In the field of construction engineering, a large number of construction engineering files are constantly being produced and accumulated. Therefore, the role of file management is becoming more and more important. The archives are the true records of the whole process of project construction, including the information on the whole process from project design to completion, and are also the main basis for operation management after project delivery. However, there are many aspects to construction project archives, and there are many problems. Nowadays, the classification and preservation of archives are receiving more and more attention. In this article, the origin and development history of construction project archives is first expounded, and its attributes and importance are analyzed. Secondly, the differences between ancient and modern archives management are compared, and at the same time suggestions on improving the archives’ traceability system, strengthening the use of archives, and establishing and improving archives management are given. In this paper, we summarize the problems in archives sorting and put forward specific solutions to improve the standardization and systematic management of archives work and enhance the authenticity and integrity of construction project archives.

THE ROLE OF TRADE AND ECONOMIC RELATIONS IN FORMING OF THE REGION DEVELOPMENT POTENTIAL: THEORETICAL AND APPLIED ASPECT

The article investigates the impact of trade and economic relations on the development potential of the region formation in the context of regional theoretical concepts’ evolution. At the same time, with the use of systemic and synergistic approaches, methods of analysis and synthesis, induction and deduction, historical and comparative analysis, it was established that there are two approaches to economic growth and development in relation to the study of the development potential of the region: economic growth associated with an increase in gross product per capita, and its volumes. On the other hand, economic development is a broader concept and means an increase in the standard of living of a person, some of which have an immeasurable (qualitative) nature. At the same time, the list of regional development concepts given in the work gives an objective opportunity to assert that these are processes caused by differentiated factors. The influence of which accumulates during the period of determining the potential of the economic state of the region. However, it should be remembered that the factors considered in the theories of economic development are based mainly on the description of its regular processes that take place in the conditions of established, developed market economies. At the same time, the application of such factors from the point of view of modern changes taking place in the world economy, to clarify the trends of regional development in the countries of Eastern Europe, the economic processes of which are subject to the transformation of the economy in accordance with the requirements of European integration, definitely requires their expansion and adaptation.

Analysis of Corporate Strategic Management of China Southern Airlines

With the unstoppable trend of economic globalization and the development of China's socialist market economy into a period of high-quality development, market competition is more intense. In order to gain a firm foothold in the market competition or even gain an advantage, it is necessary to carry out strategic management within the enterprise according to its own actual situation, so as to promote the healthy development of the enterprise. Through the implementation of strategic management within the enterprise, it can also provide a decision-making role for its sustainable and healthy development, help managers formulate scientific business plans more systematically and efficiently, build a new management model, and ensure that enterprises have a place in the market competition. As one of the main bodies of China's economic lifeline, the air transport industry plays an irreplaceable role in promoting the development of the world economy, and investors pay more attention to the development prospects of related enterprises whose main business is the air transport industry. Taking China Southern Airlines, a leading enterprise in China's air transport industry, as an example, this paper evaluates and analyzes the competition situation of the industry in which Porter uses Porter's "Five Forces Model", points out the problems in the strategic management of the enterprise, and proposes corresponding measures.

Theory and practice of overcoming an economic crisis (on the Nobel Prize in economics in 2022)

The article analyzes the Nobel Prize winners in economics of the 2022’s research results. The author explains the meaning of the terms which are necessary for the analysis: money multiplier, liquidity, mortgage, mortgage bonds. In addition, the psychological factor in the formation of critical situations in the banking sector is considered the way it was interpreted by the winners. The article analyzes the reasons which led to the lower position of the USSR’s and modern Russia’s money multiplier compared to the position of the multiplier of the countries with developed market economies including, first of all, the USA. The paper also discusses the role which the “real bills doctrine” played in the activity of the US Federal Reserve System and Ben Bernank personally. Ben Bernank’s cautious line of behavior during the overcoming the 2008 crisis is described. The model of liquidity dynamics which belongs to the laureates and that is vividly discussed in the scientific community is considered in detail.

Analysis on the Causes and Effects of News Entertainment Phenomenon

Due to the development of a fast-paced society, high pressure originating from work and study has shown great influence on people’s daily life. In order to alleviate the high pressure, people start to find more entertainment. This trend led to changes in news content and its form. Under the development of a socialist market economy, media has to compete with each other, satisfying the entertainment requirement of the public, at the same time spreading news. Finally, they can win their market share under hyper-commercialism. From the lens of spread, the phenomenon of pan-entertainment news will be researched. In this paper, Weibo, one of the largest social media platforms, serves as the main research object. An analysis of trending topics on Weibo will be carried out to see how pan-entertainment news spreads and its influence. In addition to that, the reason why pan-entertainment appeared will be discussed. After the analysis of Weibo trending topics, it can be noticed that the public prefer to trust celebrities’ words rather than authority words. From introspection of media and target audience, a correct guide can be achieved, which can make a contribution to the positive development of entertainment news.

Environmentally responsible behavior: Attitudes of Russian SMEs

The study of barriers and drivers of Russian SMEs’ environmentally responsible behavior is essential, since this business cluster is characterized by low information openness and transparency. The goal of the study was to research attitudes of owners and managers of Russian SMEs of different sizes towards diverse factors of internal and external business environment acting as barriers and drivers of SMEs’ environmentally responsible behavior. In this context, the following research tasks were set: to identify the significance of factors in SMEs’ external and internal environment (drivers and barriers) shaping their commitment to environmentally responsible practices after analyzing a broad range of publications in the corresponding scientific domain; to compare analytical results from reviewing academic publications to findings from the empirical study of Russian SMEs’ views and opinions. The research methods were questionnaire and interviews among representatives of 151 and 20 Russian SMEs respectively. The study revealed that the majority of respondents marked factors of external business environment, first of all, actions of federal and local authorities, as most significant barriers and drivers of environmentally responsible behavior of Russian SMEs of all sizes. They also mentioned “the culture of responsible production and consumption” in this regard. Market conditions (competition, opportunities of concluding contracts within the network of responsible suppliers, etc.) can be ranked second by their significance according to respondents’ answers. Factors of internal business environment (financial, human resources, time resources, etc.) are significantly less often perceived by SMEs’ representatives as drivers and barriers for their organizations’ green business practices. In contrast to other developing market economies, where SMEs include large corporations, business associations and technological, demographic and religion factors, along with governmental activities, into the list of important drivers for environmentally responsible behavior, the priority of authorities’ actions is absolute in the ranks of Russian SMEs in this regard. Employees of micro businesses were different in their estimations of restraints to environmentally responsible behavior, as well as of benefits that their firms may get from environmentally responsible initiatives, than their colleagues from medium-sized companies. The latter group increasingly relies on international organizations’ and UN recommendations, as well as competitors’ adherence to green practices. Research outcomes allow to conclude that if large corporations within Russia consider expansion of cooperation opportunities for responsible suppliers from the SMEs segment, while professional associations and communities boost efforts for increasing their awareness and knowledge of environmentally responsible practices, the degree of Russian SMEs interest to green projects and practices may become considerably higher.

Pestle Analysis on Zero Waste Implementation in Crude Palm Oil Industries for Sustainable Development Concept

Nowadays, to match the dynamics of the marketplace and provide the expected product qualification, industrial manufacturing systems are always developing. One of the most issues which have a large influence on the product that would be accepted by the market is environmental issues. Implementing an environmentally friendly concept through the process could be one of the best solutions to counter the issue and it expectedly meets the requirement of the company's operational permit. In regards of the palm oil industry, is an essential source of national income and has an important role in creating opportunities for employment and developing rural areas in Indonesia, yet it also potentially can cause natural environmental degradation. This means the production process of CPO should be in line with ecological guidelines and legislation that could be used to attain more beneficial impacts on global market competitiveness, social and economic development, and better impacts in maintaining the environment as well. This research tried to critically evaluate the implementation of the zero waste technology scheme for Roundtable Sustainable Palm Oil (RSPO) mandatory in Crude Palm Oil (CPO) industries and its impact on the company's future position. Using PESTLE analysis then, it can recommend the best possible ways to treat the waste as an excess of the production process

Construction of an enterprise financial risk management system based on F-score model

Abstract With the development of socialist market economy, enterprises are faced with an increasingly complex development environment. In the context of socialist market economy, enterprises can only obtain better development if they continuously promote the improvement of internal control and management system, and effectively carry out financial risk control and management. This paper discusses the procedures and construction measures of the internal control and management system of the enterprise from the requirements and contents of the enterprise financial risk management, using the F-score model. We hope to strengthen the exploration of enterprise financial risk management measures by further improving the enterprise’s internal control system, so as to further enhance the quality of enterprise financial risk management, effectively predict, prevent, control and respond to the relevant financial risks of the enterprise, and build a stable development path for the enterprise.

Reform of Kosovo Competition Law: Closer to EU Competition Law

After the 1999 war, Kosovo’s economic model transformed from being a state-controlled economy, as it was under former Yugoslavia, towards a market economy.1 As the market economy emerged, a competition law and a responsible institution to enforce competition law were needed. In this context, in 2004, the first Law on Competition was adopted and entered into force on 11 July 2007.2 As stated in Article 1, the purpose was to ensure development of economy by prohibiting all undertakings, engaged in economic activity within or having economic impact within the territory of Kosovo, that restrict or distort competition. Albeit the Law on Competition aimed to ensure the development of a sound market economy, it faced several setbacks to its implementation due to (i) lack of administrative capacity,3 (ii) a delay in establishing the competition authority,4 (iii) politicization regarding the method of appointing the members of the competition authority,5 and (iv) a failure in the implementation of its provisions.6

The Effects of Selected Determinants on The Performance of Banks: Evidence from Developed Market Economies from 1984 to 2018

The research aims to examine factors influencing the performance of banks in EMEs by placing focus on the USA’s banking sector performance. The study also seeks to establish ways and policies which can be used to enhance developed markets economies’ banking sector performance together with their financial and economic growth and development. Expectations are that this will enhance knowledge and understanding regarding significant variables influencing the financial development of developed market economies. The data was analyzed using an Auto Regressive Distributed Lag Models that was estimated using aggregate data of 1 372 banks insured by the FDIC from 1984 to 2018 using EViews 9.5. The results showed that bank capital and bank size have positive effects on bank performance. It was revealed that inflation and a financial crisis have adverse effects on bank performance. The research’s practical implications caution banks in the USA to continue working towards improving their asset management strategies to enhance their performance levels.

EXİSTİNG PROBLEMS İN THE SPHERE OF DEVELOPMENT OF İNTERNATİONAL TRADE İN THE REPUBLİC OF AZERBAİJAN

EXİSTİNG PROBLEMS İN THE SPHERE OF DEVELOPMENT OF İNTERNATİONAL TRADE İN THE REPUBLİC OF AZERBAİJAN

External Risk Management of Brand Construction of Time-honored Enterprises

At present, with the development of China's market economy and the deepening of internationalization, the time-honored enterprises need to strengthen their own brand construction in order to maintain their competitiveness in the fierce market competition. Scientific brand building can inject new vitality into the time-honored enterprises. However, if the brand building of the enterprise lacks systematic risk management, it will be difficult for the enterprise to achieve the expected business goals and business effects, and even lead to the enterprise bankruptcy crisis. This paper takes the time-honored T traditional Chinese medicine enterprise as an example, and analyzes how to effectively manage the external risks of the time-honored enterprises in the process of brand construction.

Evidence from an emerging market economy on the dynamic connection between financial development and economic growth

The main goal of this research article is to analyze the dynamic finance-growth connection using Jordan's developing market economy as a case study. For this, indicators of financial development for the relatively long-term period 1980–2020 have been compiled. This relationship is investigated using bounds testing within the autoregressive distributed lag (ARDL) approach. The estimations of both the long-term ARDL model and the short-term ECM model indicate that financial development is crucial to increasing Jordan's economic growth. In addition, the ECT suggests that the convergence of the economic growth process will achieve the long-term equilibrium path through the channels of financial development at a rather rapid rate of adjustment. In contrast, both long-term and short-term empirical results support an inverse link between the real interest rate and economic growth. This study's findings are consistent with the theoretical and empirical arguments of the supply-leading hypothesis, which states that financial development is the driving force behind economic growth. The findings have policy implications, implying that the financial systems of emerging markets are susceptible to interest rate policies. Consequently, the findings have significant ramifications for policymakers who wish to preserve financial development and improve the economic growth of emerging economies.

Regional agrarian strategy - the basis of inclusive development of the region

The article examines the current conditions for the transformation of the economy and notes that the role of territorial factors in the development of the national economy, because of the imbalance of the regional development of the country, is increasing. The basis for developing a scientific concept of regional development is to achieve an unambiguous definition of the categories „region“ and „regional economy“. While maintaining the regulatory role of the state in the agricultural sector, even in a market economy, it is possible to maintain and increase the level of competition, and effectively ensure property rights and freedom of choice. In the conditions of a developed market economy, the state, with the help of various economic and financial instruments, provides constant and stable support to agriculture by redistributing income from more efficient to less efficient sectors of the economy. The revival and dynamic development of the country's economy are possible when it is based on highly productive agriculture. Only in this case, the agricultural sector can play the role of a multiplier of socio-economic development both at the level of the whole country and its regions.

Development of public-private partnership in the penal system

The subject. The production sector of the Russian penitentiary system requires development and modernization in order to increase the level of convicts’ employment, to ensure the growth of their labor productivity, which is ultimately aimed at increasing the level of correctional impact of socially useful labour. In modern conditions of market economy development, low efficiency of state production organizations economic activity on competitive markets, as well as the lack of budget funds for the modernization of production assets, the most promising form of organization of penitentiary institutions production activities is public-private partnership. The aim of the article is to develop scientifically based provisions that define the most promising areas for the development of Russian legislation, which will significantly improve the practice of implementing public-private partnership projects in the production sector of the penitentiary system. The methodology. In the course of the study, a complex of general scientific and special methods of scientific search was used, including scientific abstraction, a systematic approach, a dialectical method of cognition, as well as comparative legal and structural-system methods of research. The information base of the study is represented by scientific works of Russian and foreign scientists-penitentiaries, statistical data, regulations, as well as data on legal practice in the field under study. The main results, scope of application. The prerequisites for promising changes in the legislation that determine the need for a significant modernization of the production sector of the penitentiary system are identified. The expansion of the practice of implementing production projects with the involvement of private business initiatives in penitentiary institutions makes it possible to strengthen the corrective impact of socially useful labour, to improve convicts’ food and clothing provision, as well as the communal living conditions of their detention. Conclusion. The article substantiates the need to develop a concept of interaction between the penitentiary system and the business community in order to improve the efficiency of convicts’ employment and their correction, within the framework of which the most relevant directions and stages of the development of public-private partnership should be determined in the future.

Research on the Performance Management Problems of Gushi Rural Commercial Bank

The continued development of China's market economy has resulted in the Rural Commercial Banks expanding their business scale, however, traditional individual performance measurement models have had difficulty adjusting to the bank's deepening development needs. It is important that Rural Commercial Banks concentrate on accurate positioning and development goals and continuously optimize the current performance management system to mobilize the enthusiasm of personnel and improve work efficiency. This paper mainly explores the performance management problems of Gushi Rural Commercial Bank and suggests ways to formulate performance management plans tailored to its characteristics with a focus on improving performance assessment feedback and communication systems, clarifying assessment performance, implementing assessment results more effectively, and strengthening the application of assessment results.

Strategic Analysis of Expanding Consumption Demand from the Perspective of Double Circulation

In the process of economic development, China is trying to smooth the domestic circulation and promote the domestic and international double circulation so as to form a strong domestic market and build a new development pattern. China's socialist market economy is a market-oriented economy, which is essentially a consumer-demand-oriented economy. In its economic development, China has put more emphasis on taking consumption as the driving force of economic development, enhancing the contribution of consumption to economic development, and taking expanding domestic demand as the strategic basis for development. In order to expand domestic demand in the context of double circulation, we should pay attention to coordinating the relationship between accumulation and consumption, expanding domestic demand and opening up, supply structure and demand structure, urban and rural residents' income and social consumption power, give full play to the guiding role of consumption demand, form a positive interaction between consumption demand and economic growth, and promote the healthy development of the socialist market economy.

Current characteristics of project management of state budget expenditures

This scientific work is aimed at analyzing the actual characteristics of the project management of state budget expenditures. The author studied the features of the application of the program-target approach as an alternative to the project approach, the situations of using this approach in states with a centralized economy, in countries with a mixed and transitional type of economy, and in countries with a developed market economy were considered. Next, the similarities between the program-target and project approaches were identified, which consist in the identity of some elements. The paper defines the project management of state budget expenditures, describes the purpose of this phenomenon, and also characterizes the project as the main tool in the project management of state and municipal finances. The author considered the key stages of the project implementation, which form a strict algorithm: the idea of the project, the preparatory stage, development, implementation, operation and closing of the project. In addition, the paper studied the features of project management of budget expenditures, namely: focus on results, the use of project management methodologies, accounting for time and budget, quality control. The author studied the links between the elements of project management of budget expenditures, which consist of planning, control, evaluation of results and adjustments. In the final part of the work, the principles of project management of budget expenditures (complexity, validity, flexibility, efficiency, limitation, focus on change, personalization, coordination) were considered, as well as conclusions were drawn regarding the application of project management of state budget expenditures in modern conditions and its connection with programmatic -targeted approach.

Research on the Influence of Green Financial Investment Decision Factors Under the Background of Environment, Society, And Governance

At this stage, with the continuous development of China's socialist market economy, green financial investment has come into being. Investment and financing operation behavior has become an important economic behavior of enterprises in addition to production and operation activities and is also a key factor in enhancing market competitiveness. The investment decision is the core content of enterprise financial management, and scientific and reasonable green financial investment decisions can provide financing opportunities for more enterprises. This paper analyzes the factors affecting green financial investment decisions in the context of environment, society, and governance. Companies wanting to maximize profits from green financial investments need to choose a promising portfolio approach. This paper makes several recommendations to address the green financial investment decision, aiming to promote the sustainable and healthy development of the investment industry.