Ekonomika http://www.journals.vu.lt/ekonomika <p>Founded in 1960.&nbsp;Dedicated to publishing articles analysing the current economy, sectoral situation and development of business strategies for local and foreign markets, which contributes directly to Central and Eastern European economic development.</p> Vilniaus universiteto leidykla / Vilnius University Press en-US Ekonomika 1392-1258 <p>Please read the Copyright Notice in&nbsp;<a href="http://www.zurnalai.vu.lt/ekonomika/journalpolicy">Journal Policy</a>.&nbsp;</p> First Pages and Editorial Board http://www.journals.vu.lt/ekonomika/article/view/11952 <p>[text in English]</p> Ekonomika 97 (2) ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 1 Table of Contents http://www.journals.vu.lt/ekonomika/article/view/11953 <p>[text in English]</p> Ekonomika 97 (2) ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 5 5 On the Choice of Fiscal Adjustment to Financial Crises: Expansionary vs. Contractionary Policies http://www.journals.vu.lt/ekonomika/article/view/11954 <p>[full article and abstract in English]</p> <p>An everlasting debate over the economic policies to be implemented in the face of economic recessions&nbsp;tends to intensify every time such a crisis strikes. Two notably opposite schools have emerged: one that&nbsp;represent those who advocate for quantitative easing and increased government spending, and another that&nbsp;calls for austerity measures and disciplined public finance. The available empirical evidence cannot supply a&nbsp;definite solution to the spending vs. austerity debate if just one answer is to be provided, as there are numerous&nbsp;historical experiences when either strategy had worked or failed. The aim of this paper is to examine and assess&nbsp;the arguments of both schools of economic policies, to highlight the essential drawbacks and limitations of&nbsp;both and to identify the specific conditions under which each of the policy type can bring the desired impact.&nbsp;It is argued that both of the policy approaches rely on particular implicit assumptions and, if implemented&nbsp;recklessly, are liable to fail or create negative side-effects. A discussion of the relative merits and shortcomings&nbsp;of both types of recipes for curing economic recessions is illustrated by the references to the empirical historical&nbsp;cases. The main conclusion that stems out of the analysis is that a somewhat “medical approach” should be&nbsp;followed while attempting “to cure” ailing economies: regardless that the symptoms of a slump might be quite&nbsp;similar, one should start with an attempt to diagnose the underlying causes of the economic malady at hand,&nbsp;followed by the assessment of a “patient’s” health status, and only then proceed to the selection of an appropriate&nbsp;“cure” and treatment procedure.</p> Linas Čekanavičius ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 7 17 10.15388/Ekon.2018.1.11783 (Un)productive Use of Public Debt in Kosovo http://www.journals.vu.lt/ekonomika/article/view/11955 <p>[full article and abstract in English]</p> <p>The aim of this paper is to analyze how public debt is used in Kosovo and to find out if there is a direct link between public debt and public investment that has positive impact on economic growth. Since acquiring independence, Kosovo engaged in public investment on a large scale, mainly in developing road infrastructure. With the cash balance depleted, a growing budget deficit and facing liquidity difficulties due to ongoing large public investments and increasing wage &amp; salary bill and social transfers, the Government of Kosovo had to start borrowing both abroad and domestically. However, public debt had continued to increase even though public investment had experienced a sharp decrease. Since the budget financial statements do not show any deficit composition, we have recalculated a special-purpose deficit, the so-called “regular” budget deficit, considering only regular receipts and outlays. By disaggregating the total public debt based on lenders and by tying the loans to specific capital projects, we came to the conclusion that only a small part of the public debt is directly tied with public investment, while the bulk of it is used to finance the budget deficit that was caused by a high increase in wage &amp; salary bill and social transfers. The analysis confirms that the public debt is being used for unproductive purposes and therefore does not contribute to economic growth. All this was supported by a lack of legal infrastructure or fiscal rules for several years. There is extensive literature on both public debt and public investments as well as their impact on economic growth. The literature review method was adopted for this study, and our research was refined by including the selected papers that contained empirical and theoretical studies on these issues. This is a case study for Kosovo, and the research has been carried out using secondary research data drawn from Kosovo budget annual financial reports and annual bulletins on public debt. The implications of this paper may be of high importance for policymakers as well as for academics, as this happens to be one of the pioneering articles in this field in terms of studies conducted about Kosovo. Herein is presented a unique approach to the issues of public debt and public investment.</p> Lutfi Zharku ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 18 37 10.15388/Ekon.2018.1.11784 An Analysis and Comparison of the Commercial Bank Competition Regimes in Lithuania and Denmark http://www.journals.vu.lt/ekonomika/article/view/11956 <p>[full article and abstract in English]</p> <p>The article itself is focused on the empirical researches that had challenged two different operational areas of the same entity, with a special emphasis on the challenges and opportunities for the banking segments of Lithuania and Denmark. The influencing factors of the banking sector within these two countries have been analyzed and compared. We have delved into the issue that the successful standing of a parent company within its home area of operations is not by default a guarantee of success for its foreign branch or subsidiary. The decisive factors for a successful competitive approach within the banking segment are compared on the national levels of Denmark and Lithuania.</p> Rimantas Stanikunas Ivanas Sergijenkovas ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 38 54 10.15388/Ekon.2018.1.11785 Co-Movements of Lithuanian and Central European Stock Markets Across Different Time Horizons: a Wavelet Approach http://www.journals.vu.lt/ekonomika/article/view/11957 <p>[full article and abstract in English]</p> <p>This paper investigates equity market risk and co-movements between the Lithuanian stock market and the Central European stock markets. We cover the equity market returns both in time and frequency domains. We focus our studies on the changes of the market risk and co-movements of the Lithuanian and the Central European markets returns during the period of 2000–2018. The wavelet analysis was applied to segregate the returns across different time horizons (frequencies). Our findings corroborate the findings from other authors, namely that crisis periods have a great impact on the interrelations of the Central European and Lithuanian markets. We discover that volatility is concentrated in the medium and long periods (medium and low frequencies) from 1 to 3,5 years for all the markets under consideration. The absolute maximum of volatility is achieved at the period of the frequencies corresponding to the period of 3 years. We found that the co-movements with Poland, the Czech Republic and Hungary are slightly lower after the announcement of the introduction of the euro in Lithuania by the European Commission. From the investment diversification point of view, the investment horizon plays a crucial role for the level of co-movements. Our conclusion is that for Lithuanian investors, diversification with Central European markets is not useful for long horizons, because of the high co-movements. The benefit of the diversification can be achieved for the investors with time horizons less than 1 year.</p> Arvydas Kregždė Karolina Kišonaitė ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 55 69 10.15388/Ekon.2018.1.11786 The Efficiency of Public Procurement in the Republic of Kosovo: an Econometric Approach http://www.journals.vu.lt/ekonomika/article/view/11958 <p>[full article and abstract in English]</p> <p>This study aims at investigating and assessing the efficiency of the public procurement system and its main factors in the Republic of Kosovo. For this purpose, we collect data for a random sample of 243 economic operators (companies) eligible to benefit from public funds. We analyzed the data using descriptive analysis as well as econometric modeling, and we have used classical and ordinal logistic (o-logit) econometric models. In the absence of a direct indicator, the efficiency of procurement is measured by two proxy variables, discrimination- tendering criteria and a favor made to specific companies to win tenders, by their average as a third optional variable. Discrimination and favor are found to be present to a large extent, meaning that efficiency is very low. Among the major factors of the low efficiency of public procurement were political intervention, the non-transparency of the procurement process, a lack of capacity to implement procurement legislation and manage contracts, corruption and insufficient knowledge about procurement. Based on these results, important implications would lie in introducing measures for enhancing transparency, improving legislation, recruiting especially qualified staff or providing continuous training for the current procurement staff as well as improving the motivation of the staff to properly implement legislation and manage the procurement contracts.</p> Drita Kacandolli - Gjonbala Justina Shiroka - Pula Afërdita Berisha - Shaqiri Myslym Osmani ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 70 90 10.15388/Ekon.2018.1.11787 Factors Impacting Airport Performance: the Case of Prishtina and Tirana http://www.journals.vu.lt/ekonomika/article/view/11959 <p>[full article and abstract in English]</p> <p>The market liberalization, airport privatization and increased number of low-cost carriers have significantly affected airport performance lately. The aim of this study is to determine and analyze passengers’ demographics and their interaction with the external macro environment by providing empirical evidence of their impact on airport performance. The combined two-group proportion test and loglinear analysis were applied as the main analytical methods, whereas a PESTEL analysis was used as an auxiliary tool to help explain quantitative findings. The results show that due to a large diaspora and difficult socioeconomic situation, there is a gap for more direct point-to-point flights offered by the low-cost carriers in general and, more specifically, if more direct flights are being offered from Prishtina Airport, their likelihood ratio is to increase twice in its absolute value, whereas in Tirana Airport, their likelihood ratio is to increase twice if they offer more connection flights. This confirms the conclusion that there is a gap for additional services to be provided, which could significantly affect the airport performance in return. In the end, this study also raises a new hypothesis: whether the younger generation of the diaspora, members of which were born and educated abroad, will negatively affect airport performance due to their decreasing tendency and interest to visit the homeland of their parents.</p> Lorik Abdullahu Nail Reshidi ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 91 105 10.15388/Ekon.2018.1.11788 The Influence of Intellectual Capital and Knowledge Management on Organizational Performance in Lithuanian Software Companies http://www.journals.vu.lt/ekonomika/article/view/11960 <p>[full article and abstract in English]</p> <p>In the contemporary information and knowledge society, it is important to evaluate the intangible organizational resources that generate long-term value for organizations. Among others, these include intellectual capital and management of knowledge. The research fields of intellectual capital and knowledge management address such issues as (but not limited to) the abilities of employees to create and accumulate knowledge, share and apply it in everyday activities, develop new, sustainable and long-term relationships with various stakeholders. During the last decade, there has been a shift in research toward linking these two previously separate fields of activity in order to demonstrate their interrelations and influence on organizational performance. However, this is problematic due to the difficulties of expressing the value of intellectual capital and knowledge management in a tangible form. The aim of this article is to analyze and define the influence of intellectual capital and knowledge management on organizational performance. For this task, we built a conceptual model for assessing the influence of intellectual capital and knowledge management on organizational performance, which was applied in a study conducted in IT companies operating in Lithuania.</p> Zenona Atkočiūnienė Greta Praspaliauskytė ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 106 120 10.15388/Ekon.2018.1.11789 Guidelines For Authors http://www.journals.vu.lt/ekonomika/article/view/11961 <p>[text in English]</p> Ekonomika 97 (2) ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-10-22 2018-10-22 97 2 121 121