Ekonomika https://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> en-US <p>Please read the Copyright Notice in&nbsp;<a href="http://www.zurnalai.vu.lt/ekonomika/journalpolicy">Journal Policy</a>.&nbsp;</p> vincas.giedraitis@ef.vu.lt (Vincentas Giedraitis) vigintas.stancelis@kf.vu.lt (Vigintas Stancelis) Thu, 07 May 2020 00:00:00 +0000 OJS 3.1.2.1 http://blogs.law.harvard.edu/tech/rss 60 The Model of a Second-Hand Goods Resale Exchange under Transactional Pricing Strategy https://www.journals.vu.lt/ekonomika/article/view/16133 <p>A modern effective business model involves the use of an appropriate pricing strategy. However, not only a short-term profitability matters but also long-term clients’ loyalty. The main purpose of this paper is to present a specific transactional pricing strategy for a second-hand goods resale exchange platform, which allows to avoid possible negative outcomes of being associated with consumer discrimination. Using simulation modeling approach, it was shown how customer segmentation combined with transactional pricing can help to gain higher profitability. The model is based on the work of intelligent agents that recreate the full product lifecycle. Changing the input parameters of the model, it is possible to simulate different scenarios of a company’s activity and market conditions. The model supports the inclusion of any number of products, while its intelligent agents’ methods are still flexible to replace with other techniques. The simulation model has shown that the use of transactional pricing can increase the profitability of a business, while keeping its clients loyal.</p> Iuliia Iarmolenko | Galyna Chornous Copyright (c) 2020 Iuliia Iarmolenko | Galyna Chornous https://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/16133 Thu, 07 May 2020 10:48:00 +0000 Employment at 55+: Do We Want to work Longer in Lithuania? https://www.journals.vu.lt/ekonomika/article/view/16101 <p><strong>&nbsp;</strong>The Lithuanian population is aging, and it causes many difficulties for public finances by increasing expenditures on health care, long-term care, and pensions, and also for the labor market by creating labor shortages. One of the ways to cope with demographic aging is to rise the employment rate of older people. According to Eurostat, the employment rate of the elderly aged 55–64 years increased from 49.6 percent in 2005 to 68.5 percent in 2018 in Lithuania and it is higher than the average employment rate of older workers in European Union, which was 58.7 percent in 2018. This paper focuses on older people in Lithuania, aged 55 and over, trying to answer a question whether the elderly in Lithuania willingly work or try to find alternatives such as receiving long-term social insurance benefits. The research findings show that the activity of older people in the labor market grows, and even the share of people with disabilities staying in the labor market increases. However, this analysis also shows that older people are more under risk to lose their job during an economic crisis, and this suggests that trying to find work alternatives can be closely related to one’s economic situation. Moreover, health problems remain one of the main factors limiting the activity of older people in the labor market. It is also noticeable that some labor force reserves exist among people with disabilities and this supposes that creating better adapted working conditions for older and disabled workers in Lithuania could probably contribute to meeting the needs of an aging workforce.</p> Kristina Zitikytė Copyright (c) 2020 Kristina Zitikytė https://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/16101 Thu, 07 May 2020 09:57:28 +0000 Effects of Energy Consumption on GDP: New Evidence of 24 Countries on Their Natural Resources and Production of Electricity https://www.journals.vu.lt/ekonomika/article/view/15141 <p>Because of rapid economic expansion, China, the USA, and India have become the largest energy producers and sources of CO2 emissions in the world. They burned over 45% of global fuels in 2016. Meanwhile, the developing strategies of 24 polluted states to decrease fossil energy consumption without additional economic output. This paper explores the effect of world top polluted countries’ CO2 emission, their GDP and production of electricity by potential indicators and identifies the basic factors that contribute to changes in an environment&nbsp;where petroleum, natural gas, coal, nuclear, biomass, and other renewable energy and hydroelectric sources are examined with GDP per capita. We estimate our data for the period from 1968 to 2017 and use the GLM model. The results show that more production of electricity is causing abnormal CO2 emissions. The Granger causality test shows that there is a unidirectional relationship between energy consumption and economic advancement. Also, there is a short-run bidirectional causality that exists among the energy indicators. We find a unilateral causality between energy consumption and economic growth. Therefore, the consumption of energy might be conductive of 24 (polluted) countries and better economic development; the consumption of energy may be failsafe and guaranteed, while we should limit the resources of countries.</p> Rabnawaz Khan | YuSheng Kong Copyright (c) 2020 Rabnawaz Khan | YuSheng Kong https://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/15141 Thu, 07 May 2020 09:49:34 +0000 The Relationships between Economic growth, Energy Efficiency and CO2 Emissions: Results for the Euro Area https://www.journals.vu.lt/ekonomika/article/view/17215 <p>The article aims at ascertaining the relationship between indicators affecting the green economic growth of the Eurozone countries. Despite extensive research, scientists have not yet found a clear answer as to whether economic growth and climate change mitigation can be aligned. Another important aspect of the study was to investigate the possible effect of environmental policies on macroeconomic variables such as GDP, investment, employment, and trade. The authors of the article applied the PVAR econometric model to measure the impact of energy consumption, CO2 emissions, and some of the macroeconomic indicators on GDP growth in 19 countries of the Eurozone for years 2000–2016.<br>Based on the results, we cannot yet state explicitly that economic growth in the Eurozone countries has been decoupled from climate change mitigation; however, green transition is on the right track.</p> Violeta Klyviene | Angele Kedaitiene Copyright (c) 2020 Violeta Klyviene | Angele Kedaitiene https://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/17215 Thu, 07 May 2020 09:41:32 +0000 Universal Model of Lost Profits Calculation https://www.journals.vu.lt/ekonomika/article/view/15544 <p>Consequential (or indirect) losses in the form of lost profits are usually suffered and claimed in civil cases of breaches of supply or service contracts, unfair competition, bankruptcy cases, and other instances where a defendant’s wrongful actions cause lost profits to the plaintiff’s performance.<br>In litigation practice, we see a quite different approach, when the lost profits are calculated as gross margin less income tax, and in others – by multiplying the lost revenues by the company’s net profit ratio.<br>Methods of indirect loss calculation applied do not consider the cost structure of the plaintiff and the impact of the variation of variable and fixed costs to the lost profit calculation before and after the wrongful action of the defendant. In case lost revenues would have been received, fixed costs would remain the same, while variable (incremental) costs, which were avoided, would be generated to receive lost revenues.<br>Based on the international experience and practices, this article provides for a Universal Model of lost profits calculation as well as a mathematical formula of the method.</p> Rimas Butkevičius Copyright (c) 2020 Authors http://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/15544 Fri, 10 Jan 2020 12:58:45 +0000 The Impact of External and Internal Factors on Strategic Management of Innovation Processes at Company Level https://www.journals.vu.lt/ekonomika/article/view/14734 <p>The impact of external and internal factors on organization of operation at company level is studied. The necessity for implementing strategic management of innovation processes at company level is substantiated. The structural interactions of external and internal factors on the organization of company operation are determined; a classification of factors of external and internal environment in the context of strategic management of innovation processes at company level is constructed.&nbsp;&nbsp;</p> Oksana Shatilo Copyright (c) 2020 Authors http://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/14734 Fri, 10 Jan 2020 12:53:50 +0000 The Role of Marketing and Business Approach on SME Development https://www.journals.vu.lt/ekonomika/article/view/12708 <p>Almost two decades after the war, Kosovo is an import-based consumption economy. Its weak export does not get any closer to imports, and this makes the country dependent on foreign assistance and remittances. The structure of the economy, with trade as a dominating undertaking, a sustenance-based agricultur,e and very limited production facilities, is a very fragile ground for economic development. Incentives to attract FDI were not competitive with neighboring countries and the country development is still lagging behind. In this respect, the lack of a proper marketing and business approach is present too. Theory and practice from developed countries show that firms that want to increase sales produce what is needed or/and wanted from costumers. In most of the market economy countries, when one wants to engage in business, the first step to start is market research; this rarely happens in Kosovo, people go in business almost ad hoc. Evidence shows that firms do neglect marketing by being mainly sales-oriented; they do produce what they think is good for the costumers and then use lots of resources to convince them that this is what they need. In general, this paper analyses the dynamics of economic development in Kosovo in post-conflict time, the government efforts to change the economic structure, its constraints with emphasis on perception of marketing and the role of consumers for SMEs in the country. In particular, the paper tries to explain why companies need to change their way of doing business; hence, it recommends the change of their business approach. The research, done with 200 small and medium enterprises (SMEs) in Kosovo, shows there are rather few firms that understand marketing and through it fight competition and strive to establish long-term relationships with their customers.</p> Hykmete Bajrami | Vjosa Fejza Copyright (c) 2020 Authors http://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/12708 Fri, 10 Jan 2020 12:48:09 +0000 Some Problems of Food Safety in Georgia https://www.journals.vu.lt/ekonomika/article/view/13461 <p>The problem of production, export, import, and consumption of food was always topical for the long history of Georgia. At all stages of the society development, people need to take food and meet other of their elementary needs. Issues of food supply assurance of the Georgian population differ according to time periods. For example, in Shota Rustaveli’s poem <em>The Knight in the Panther’s Skin</em> it is described that the living standard in the 11<sup>th</sup>–13<sup>th</sup> centuries was quite high. At that period of time, Georgia was fed with its own grain. Along with wealth, Shota Rustaveli also characterizes poverty. Most of the state's income was spent on the poor people, so there was a large gap between the rich and poor population.</p> <p>In the 16<sup>th</sup> and 17<sup>th</sup> centuries, the problem of poverty and wealth of the population was highlighted by prominent public figures: Sulkhan – Saba Orbeliani and Vakhushti Bagrationi. Ilia Chavchavadze describes the problem of poverty in the country by the end of the 19<sup>th</sup> century. Poor living conditions of the population were noted during the initial phase of Georgia in Soviet Union and during World War II. Better conditions existed at the last stage of socialism.<br>Meeting the population’s demand for principal foodstuffs and providing near-rational norms of such foodstuffs has always been a major objective of the governments of all times.<br>The prolonged transformation process of the economy of Georgia with its social characteristics was particularly painful. A sharp decline in the standard of life started from the 1990s. Before the economic collapse, a monthly rated wage in Georgia with its foodstuff purchasing power parity almost equaled that of developed countries.</p> David Kbiladze | Shorena Metreveli | Medea Samsiani Copyright (c) 2020 Authors http://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/13461 Fri, 10 Jan 2020 00:00:00 +0000 To Work or not to Work: Factors Affecting Bridge Employment Beyond Retirement, Case of Lithuania https://www.journals.vu.lt/ekonomika/article/view/14333 <p>This paper investigates bridge employment beyond retirement, as nowadays it is one of solutions often mentioned to stabilize pension systems in the context of an aging population. The aim of this paper is to identify individual, financial, and other factors that influence retirees to work beyond retirement in Lithuania. This research was done using unique administrative Lithuanian data, allowing to analyze post-retirement employment in Lithuania for the first time. The sample consists of 26,000 new old-age pension recipients from 2015 to 2017. By applying binary models of the probability of being employed beyond retirement, it is found out that a greater acquired retirement record, a higher average wage before retirement, and living in a bigger city with a higher employment rate were positively associated with accepting bridge employment, while a higher sickness rate, higher old-age pension, and earlier receipt of an unemployment benefit were inversely related to accepting such employment. Moreover, being a professional or manager increases the likelihood of bridge employment in comparison to unskilled workers. This probability increases even more if a person works in the public sector. Finally, some social groups were excluded, finding that widows with disabilities or widowed women with worse health are not likely to work beyond retirement and are consequently under a bigger risk of poverty. To sum up, retirees who should stay in the labor market in their old age because of their bad financial situation are less likely to do it. This suggests that persons with bigger needs, lower-skilled workers, and women deserve particular attention in labor market reforms.</p> Kristina Zitikytė Copyright (c) 2020 Authors http://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/14333 Mon, 06 Jan 2020 11:09:44 +0000 The impact of the Ease Doing Business Indicators on Foreign Direct Investment in the European transition economies https://www.journals.vu.lt/ekonomika/article/view/14566 <p>The objective (aim) of this paper is to explore the impact of the Ease of Doing Business Indicators on FDI on transition economies in Europe. Authors have used the dynamic panel methodology, by using three methods: Pooled Ordinary Least Square (POLS), Fixed Effect (FE), and Two Step-System Generalised Method of Moments (GMM) estimation techniques. By referring to the GMM technique, it can be seen that variables such as: Starting a Business, Registering property, Getting electricity and Resolving insolvency have a positive and significant impact in attracting FDI in 16 European transition countries, while variables as: Dealing with construction permits, Getting credit, Paying taxes, Protecting minority investors, have shown negative impact, whereas Trading Across Border and Enforcing contracts have not shown any impact on attracting FDIs in European transition countries. This paper contributes to the enrichment of existing literature in this field by using these three methods.</p> Bersan Haliti | Safet Merovci | Sanjib SHERPA | Alban Hetemi Copyright (c) 2020 Authors http://creativecommons.org/licenses/by/4.0 https://www.journals.vu.lt/ekonomika/article/view/14566 Mon, 06 Jan 2020 11:03:47 +0000