International Economic Integration Research Articles

ARTIFICIAL INTELLIGENCE IN ANALYZING THE CAPITAL STRUCTURE EFFECT ON FINANCIAL STABILITY

Financial stability is an important measure used by stakeholders to assess the financial situation of an entity concerned. Economic worries caused by internal business issues, global processes, and international economic (regional) integration may increase the entity’s exposure to external factors. Financial stability considers the entity’s dependence on creditors and investors, i.e. the debt-to-equity ratio. Significant liabilities that are not fully covered by the entity’s own liquid funds create preconditions for bankruptcy should any large creditor demand settlement of any debts owed to it. However, borrowed funds can significantly increase the return on equity. Therefore, in analyzing financial stability, it is very important to use a system of indicators that indicate the entity’s future risks and profita-bility. Financial stability is the principal objective of financial analysis. The nature and scope of such economic analysis are aimed to determine the entity’s internal capacities, means, and methods for improving the entity’s financial stability. Thus, financial stability is understood as the entity’s guaranteed solvency and creditworthiness resulting from the effective formation, distribution, and application of financial resources in the entity’s business operations. Financial stability is assessed based on the working capital to inventory ratio and debt to equity ratio. Business entities are independent in establishing business relationships with their contract partners; therefore, they are fully responsible for the decisions they make. The increasing importance of financial analysis for the entity’s own financial situation and for its business partners is explained by the increasing demand for additional sources of business financing and the requirement to increase the productiveness of capital resources. Entity’s financial stability analysis should not focus on the current financial activities only. It should also determine what measures should be taken on a continuous basis to maintain and improve the entity’s financial situation. Both current and future stability, i.e. the entity’s sustainability, must be ensured to provide conditions for state-of-the-art competitive production. An entity is a complex system consisting of many subsystems; therefore, a complex method must be applied to analyze its stability, i.e. using a system of financial stability indicators. Present-day diversity of financial stability indicators, including both absolute and relative indicators, makes the analysis difficult and overcomplicated, creating difficulties in combining the findings of the analysis to make conclusions about the entity’s financial stability. Absolute indicators, namely equity, borrowed capital, assets, cash, accounts receivable and accounts payable, profit, play an important role in the analysis of an entity’s financial stability. Equally important are absolute indicators calculated in the analysis of financial statements: net assets, working capital, working capital to inventory ratio, stable liabilities. These indicators are criterial as they are used to establish the criteria used in the financial analysis. An entity should have a flexible structure of financial resources and, if necessary, be able to borrow funds. Therefore, another manifestation of an entity’s potential financial stability is its creditworthiness, i.e., the ability to settle its payment obligations when due. Thus, an entity is considered creditworthy if it meets a certain requirement for granting a loan and is able to repay the loan when due subject to any interest accrued. This concept is closely related to the concept of financial stability and shows whether the company is able to raise funds from different sources to repay its debts. Credit analysis may predict solvency and is closely related to the analysis of solvency, financial stability and return on equity. Entity’s stable operation, high profitability and working capital turnover also guarantee loan repayment to a certain degree.

WTO Agreement on agriculture and peculiarities of its implementation under the conditions of the Republic of Belarus

The article presents the stages of formation and development of the WTO Agreement on Agriculture, its structure and content of the main sections. It has been established that agriculture is one of the strategic and vulnerable sectors of the economy of any state, the development of which determines the level of national economic and food security. It is determined that the adopted document establishes a system of rules and obligations of countries in relation to agricultural policy measures related to the regulation of market access, domestic support, and export competition. The current trends in the development of the agri-food sector of Belarus in terms of agricultural production, food security, foreign trade are justified. The features of the implementation of the WTO Agreement on Agriculture in the conditions of the republic, taking into account external and internal factors of industry competitiveness, are highlighted. At the country level, directions for the development of agricultural trade policy, improvement of support measures that do not fall under obligations to limit in accordance with international requirements of the World Trade Organization, and ensure competitive advantages in foreign agricultural markets are proposed. It was noted that promising areas and criteria for the effective functioning of the agri-food sector should take into account national priorities, provide measures and mechanisms for the development of competitive and environmentally friendly production of agricultural products, expand market infrastructure, create favorable organizational and economic conditions for the functioning of the industry, and form its scientific and innovative potential. The issues disclosed in the article are of interest in developing a set of measures to increase the efficiency of foreign trade in the context of expanding the country’s participation in international and regional trade and economic integration, justifying mechanisms for improving agricultural regulation, and developing a system for promoting agri-food products on the domestic and foreign markets.

Improve the Competitiveness of Vietnamese Businesses in the Current Period

Currently Vietnam is a member of many internationalorganizations. Participation in international economic integration helpsbusinesses of Vietnam expand industries, export products, expand exportmarkets, etc. but at the same time bring many challenges for Vietnamesebusinesses, such as quality of the product, products that meet the rules oforigin of goods, etc. The Government is providing maximum support forbusinesses, but seizing the opportunity or not depends entirely on theenterprises themselves. Enterprises need to have specific developmentstrategies, in which improving their competitiveness to adapt to the newbusiness environment is the decisive factor for their “survival”. In thecontent of this article, the author focuses on analyzing the difficulties ofVietnamese enterprises in the process of competing with foreignenterprises, and proposing some solutions to improve the competitivenessof the Vietnamese businesses in the current period.

Factors Affecting Firms’ Performance: The Case of Vietnam construction firms

In the context of Vietnam's international economic integration, improving the performance of enterprises is increasingly important because it not only affects businesses but also affects the development prospects of the economy. The purpose of the paper is to consider the impact of factors on the performance of listed construction companies in the period of 2012-2018. By means of an empirical analysis, this study uses Eviews econometric software and table data techniques. This study found the factors that positively impact on performance are asset structure, capital structure and firm size that negatively impact the performance of Vietnam listed construction firms. These findings support business administrators in selecting appropriate business and production plans to increase the operating performance of businesses in the construction industry. Keywords: Profitability, construction firms DOI : 10.7176/RJFA/11-2-15 Publication date: January 31 st 2020

ASEAN STRATEGY IN THE WORLD ENERGY MARKET IN THE CONDITIONS OF ITS TRANSFORMATION

The subject of the study is the strategy of the regional integration group ASEAN in the global energy market in terms of its transformation. Goal. The aim of the article is to study the strategy of the regional integration group ASEAN in the world energy market in terms of its transformation and to identify its features. Methodology (method). The study is based on theories of international trade and international economic integration. The main methods were induction and deduction, generalization, statistical, comparative and system-structural analysis, grouping. Results. A study of the energy profiles of ASEAN countries on their involvement in the global energy market in terms of its transformation at the present stage of globalization. The growth of integration into the world energy market due to the growth of demand for energy resources from national economies (reduction of exports of certain types of fuel resources, growth of imports of others, attraction of foreign investments in the development of RES); increasing the share of RES in the energy balances of countries; change in the structure of energy balances due to the requirements of sustainable development, including environmental and social (access to energy resources). Conclusions. Significant differentiation of ASEAN member countries in terms of economic development, formation of market institutions, provision of energy resources and needs, which leads to different degrees of their integration into the world energy market and differences in the goals of national energy strategies. The analysis of energy profiles of ASEAN member countries and their involvement in the processes on the world energy market allowed to reveal: dependence of foreign trade in fossil energy resources; strong intra-regional orientation of foreign trade in fuel and energy resources; insufficient investment for the introduction of modern technologies; inconsistency of the structure of energy balances of most ASEAN countries with structural changes in the world energy market. Cooperation with energy TNCs contributes to the acquisition of new technologies for exploration, production and processing of fossil energy resources, as well as the development of RES and modernization of energy systems. The implementation of the ASEAN Energy Cooperation Action Plan (APAEC) is seen as a mechanism for aligning the ASEAN energy profile with the areas of transformation of the global energy market. Strengthening supranational coordination and cooperation in the energy sector creates the preconditions for countries to achieve national interests, energy security and sustainable development.

Problems of Ukraine’s integration into the European Union

European integration and the identification of obstacles to full membership in the European Union. Design/methodology/approach: The methodological and theoretical basis of the article is the fundamental provisions of economic theory, the works of scientists and economists in the field of international economic relations and integration. Findings: The article explores the problems of Ukraine’s integration into the EU. The study analyzed the attitude of Ukrainians towards European integration, identified the main arguments for and against accession to the EU countries, as well as the main internal and external threats of the integration process. It has been determined that in recent years the proportion of the population that has supported Ukraine’s accession to the EU has significantly increased. From the integration into the EU, Ukrainians primarily expect to expand the space of their own capabilities and the country's internal development in accordance with modern world trends. It is concluded that the population considers a high level of corruption in the country, problems in the Donbass and the inefficiency of public administration as the main obstacles to this process. Most residents of Ukraine consider it necessary to implement European reforms, but the consequence of their implementation has identified significant problems in terms of their real social effect. It is determined that Ukraine in some macroeconomic indicators lags significantly behind the EU countries, continues to lose its position in the global ranking of countries in terms of economic competitiveness, and remains one of the poorest countries in Europe. A significant problem for the development of Ukraine is the labor migration of the population and, in particular, the increase in the number of illegal migrants - Ukrainians in Europe. The main achievements in the implementation of the Association Agreement between Ukraine and the EU are analyzed and the main threats to the further European integration are identified. It is concluded that Ukraine needs to develop its own “action plan” for the possibility of realizing national interests, taking into account the interests of the parties involved in the integration process. Originality/value: The mood of Ukrainian society, the current position of the state, the main obstacles and priorities that Ukraine faces on the way to the EU have been analysed in detail.

Методика оценки и минимизации интеграционных рисков на различных этапах реализации международной экономической интеграции

Методика оценки и минимизации интеграционных рисков на различных этапах реализации международной экономической интеграции

Іноземне інвестування як одне із джерел наповнення бюджету Пенсійного фонду України та шляхи запобігання правопорушенням у цій сфері

У статті з’ясовано зміст і сутність інвестиційної діяльності в Україні як одного із джерел формування Державного бюджету та інших сфер соціального забезпечення населення з урахуванням корупційних ризиків і вірогідності вчинення кримінальних правопорушень у сучасних умовах життєдіяльності нашої держави, а також розроблені науково обґрунтовані заходи, спрямовані на вирішення існуючих проблем з означених питань.

The Influence of Globalization Processes on Transformation of Financial Mediation

The theoretical analysis and conceptual approaches to the clarification of the definition of "globalization" have been formulated, and the meaningful interpretation of the concepts of "globalization", "internationalization" and "international economic integration" has been presented. The main directions of globalization processes and their influence on the development of financial mediation have been investigated

Developing Craft Village Tourism in the Context of International Economic: A Case Study of Vine Phuc Province, Vietnam

In the trend of openness and international economic integration, traditional craft villages are gradually regaining their positions in the economic, cultural and social life of each country and nation. These villages are like colorful images contributing to recreate the unique, lively, separate and irreplaceable features of the country and people in each area and region. Currently, developing craft village tourism is the subject of various studies, and is the target of many provinces in Vietnam. This paper focuses on analyzing the current status of craft village tourism in Vinh Phuc - a province located in the North of Vietnam, showing the results, limitations as well as proposing a range of recommendations to develop craft village tourism in Vinh Phuc in the context of world economic integration.

Participation of Russia in the International Cooperation for Reducing Greenhouse Gas Emissions by Energy Companies

The article analyzes the participation of the Russian Federation in international cooperation on the climate change prevention. Global climate change in terms of its impact on world economy is presented as a catalyst for multidirectional shifts in many sectors of economy. The adoption of international documents such as the United Nations Framework Convention on Climate Change (1992), the Kyoto Protocol (1997), the Paris Agreement (2015), and the 2030 Agenda for Sustainable Development (2015) are viewed as vital steps for regulating international cooperation in this sphere. Analyzing the provisions of the 2020 Climate Doctrine of the Russian Federation (2009), the authors emphasize the aspiration for international political and economic integration and deep economic interest in modernization as main factors, affecting Russian climate policy strategy. One of the mechanisms of implementing state policy in the field of environmental safety is the adoption of state regulation of greenhouse gas emissions and the consideration of these measures in the development of longterm strategies for socio-economic development. The authors urge for creating regional strategies for climate change prevention with necessary adjustment and adaptation to a specific region or constituent entity of the Russian Federation. In presenting the research results, the concept of “global warming potential” and the role of managing this potential in achieving sustainable development goals are disclosed. The authors argue that a significant contribution to the increase in greenhouse gas emissions is made by the production activities of the energy sector. Based on the data of the largest international companies (Chevron, ExxonMobil, ConocoPhillips, BP, PetroChina, Shell, Gazprom, LUKOIL, Rosneft), directions for reducing their negative environmental impact were determined, including the classification of tools for reducing greenhouse gas emissions. International practice analysis forms the necessary ground to elaborate the most promising modern tools for reducing greenhouse gas emissions by Russian oil and gas companies.

Changes in Worship Rituals of the Ede People in Buon Ma Thuot – Viet Nam Highland Today

Considered as local residents in Buon Ma Thuot, the Ede people have a long history and culture in this land. In the process of community development, Ede people also have had a cultural exchange intertwined with the Kinh people and other ethnic groups (Tay, Nung, Gia Rai people...), creating a unique cultural interference between the Ede people and other ethnic groups in the region that makes Ede people’s culture increasingly diverse and rich. This process of contact and cultural exchange has made the socio-economic development of the Ede people in Buon Ma Thuot happen more and more quickly; besides, there is a significant impact on the Ede people’s cultural identity. This article focuses on the changes of the Ede people’s worship rituals in Buon Ma Thuot in the context of international economic integration today. Keywords: Ritual; Ede; Tradition; Changes. DOI : 10.7176/RHSS/9-24-07 Publication date: December 31 st 2019

Process Approach as a Methodological Basis for Economic Integration of Zabaikalsky Krai and Cross-Border Territories of China

This article proves the necessity of international economic integration between Zabaikalsky Krai and cross-border territories of China. The possibility of increasing regional integration between Zabaikalsky Krai and China is based on complementarity and interdependence of the economic potentials of both sides. At the same time, the existing national differences at the level of development of the adjacent socio-economic systems need a common system of goals, balance of priorities in their achievement, which, in its turn, implies a coherent integration policy between two regions — Zabaikalsky Krai and Inner Mongolia Autonomous Region. However, the lack of unified theoretical and methodological basis for international regional integration restrains the formation of the existing policy. In the context of multiple and ambiguous scientific approaches to international system, it is proposed to consider the “theory of relationships”, by Professor Qin Yatsin, as the scientific basis for international regional integration, which proves the need and possibility of harmonising relationships between participants of international exchanges. From the author’s point of view, the practical implementation of the “theory of relations” is possible within the framework of the process approach, which implies the interaction of international integration participants in achieving overall results. The use of the process approach as a methodological basis for regional integration allows to balance the interests of the sides of integration and identify their priorities. The proposed paradigm of international relations is supplemented by the author’s classification of the processes, the assessment of their impact on the results of integration. It is shown that the interaction of the processes is sufficiently stable, predictable, manageable, hence the use of the process approach in the development of international regional integration seems very promising. The process approach allows to form various scenarios of international integration, based on different composition, results and nature of the interacting processes

How Responsive is Trade Adjustment Assistance?

How responsive is the US’ Trade Adjustment Assistance (TAA) to the labor dislocation that results from trade integration? Recent findings suggest that the world’s most ambitious trade adjustment program barely responds to import shocks, and that the shortfall is made up by disability insurance and early retirement. This holds considerable implications: TAA offers analytical insight into the central question of how fully developed democracies can redistribute the gains from international economic integration. We take a closer look at these results. Using petition-level data over a twenty-year period, we find that TAA is between 1.7 and 3.3 times more responsive than current estimates suggest. Yet the news is not all good. As we show, the responsiveness of TAA has decreased considerably since the 1990s, just as developing democracies started facing increasing pushback against liberalization. This shortfall, in turn, has political consequences: areas where TAA has been least responsive were also more likely to shift towards voting for Trump in the 2016 Presidential election. Our findings speak to the considerable challenge governments face in aiding the domestic groups “left behind” by liberalization.

Power asymmetries in global governance for health: a conceptual framework for analyzing the political-economic determinants of health inequities

BackgroundRecent scholarship has increasingly identified global power asymmetries as the root cause of health inequities. This article examines how such asymmetries manifest in global governance for health, and how this impacts health outcomes.ResultsWe focus on the political-economic determinants of global health inequities, and how these determinants operate at different levels of social action (micro, meso, and macro) through distinct but interacting mechanisms. To clarify how these mechanisms operate, we develop an integrative framework for examining the links between global neoliberalism—the currently dominant policy paradigm premised on advancing the reach of markets and promoting ever-growing international economic integration—and global health inequities, and show how these mechanisms have macro–macro, macro–meso–macro, and macro–micro–macro manifestations.ConclusionsOur approach enables the design of theoretically-nuanced empirical strategies to document the multiple ways in which the political economy entrenches or, alternatively, might ameliorate global health inequities.

Shifting paradigm in science, technology and innovation policy of Vietnam in the international integration process

Vietnam has experienced crucial transformations in every turning point of the world history. In this process, along with changes in the economic model, social institutions, are changes in the Government’s management method in specific areas, especially in the shift from a centrally-planned to a socialist market-oriented economy. Vietnam's science, technology and innovation system has also gone through innumerable reforms to evolve, adapt and positively energize self-innovation. Science, technology and innovation indicators are embedded into the strategic goals of national policies and entered into every area, every sector (public and private) and individuals/organizations in Vietnam. In the context of international economic integration and the fourth industrial revolution, science, technology and innovation have become the targets and means for socio-economic development more than ever before. This paper aims to explore the philosophical moves in Science, technology and innovation management in Vietnam. It will clarify successes and challenges in the context of international integration. The first part of the paper discussed the concepts and approaches in policy and innovation research, since these aspects have not been fully established and agreed in previous studies in Vietnam. Secondly, the author reviewed and assessed the changes in Vietnam's science, technology and innovation policy framework to observe the four philosophy shifts of the relationship between the State and the science, technology and innovation system through the periods. Thirdly, changes in policies resulted in changes in resources, organizational structure, operational content and correlation as well as the position of elements in the science and technology and innovation system. The last part addresses macro and micro policy solutions for the development of the science, technology and innovation system for Vietnam in a new, potential, but risky context. Accordingly, science, technology and innovation policies need to be more open and autonomous to ensure the self-fulfillment, adaption and innovation of the science, technology and innovation system.

The Differences between Chinese Accounting Standards for Business Enterprises and International Financial Reporting Standards as well as the Convergence Strategy Method

The continuous development and progress of international economic integration has resulted in the increasing of economic and trade exchanges between various countries. In order to implement a more systematic corporate financial supervision mechanism effectively and adapt to the needs of economic development, it is necessary to clarify corporate accounting standards and international financial reporting standards. The relationship between them are crucial to improve the transparency of financial statements and optimize management levels. This paper analyzes the differences between Chinese business accounting standards and international financial reporting standards as well as discusses the convergence process and convergence strategy methods for reference.

The role of intermediate goods in international monetary cooperation

This paper investigates the implications of intermediate goods for optimal monetary policy in open economies, and particularly focuses on the welfare gains that result from monetary cooperation. In a relatively standard two-country dynamic stochastic general equilibrium model with input-output relations, this paper demonstrates that introducing intermediate goods can amplify the welfare gains caused by cost-push shocks by an order of magnitude larger. A detailed analysis of equilibrium dynamics highlights a new channel that is absent in the previous literature: non-cooperative central banks respond differently to shocks in the intermediate goods market versus shocks in the final goods market, even if these shocks generate the same distortions when the two central banks cooperate. Furthermore, it is demonstrated that increasing the degree of openness in the intermediate goods market can reduce the welfare gains from monetary cooperation. This casts doubt on whether the recent trend in international economic integration justifies the potential need for international monetary cooperation.

Trade connections’ effect on European regions’ interest in Brexit

The European Union’s deepening of international economic integration might be expected to correspondingly increase interest in policy (and news) related to trade partners. The United Kingdom’s withdrawal from the organization through invocation of Article 50 offers a particularly clear case for such potential effects, since it directly implicates the relevant economic ties. Yet, evidence from Google searches shows no such effect: European regions that particularly rely on trade with the United Kingdom devote no greater share of their search requests to Brexit-related topics, whether because the public is unaware of local trade linkages or uninterested in the other parties involved.

Development prospects of the Krasnoyarsk region agroindustrial complex in the export conditions

It is not currently possible to address matters of economic life in isolation from the issues of globalization and international economic integration. These processes do not just direct, they determine the vector and intensity of the national economy development, act as its accelerator. In this context, effective foreign economic activity is becoming one of the most priority factors in the growth of the Russian economy, and the country’s involvement in the integration processes and economic relations is determined at a deeper level - the level of direct participation of the country’s regions in foreign economic activity.