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Ayberk Seker, Mahmut Kadir Isguven, Tugce Danaci Unal, Ramazan Nacar
DIGITAL DISTANCE AND TRADE DYNAMICS: THRESHOLD EFFECTS ON TURKIYE’S EXPORT PERFORMANCE
Abstract:
This study investigates whether digital distance—defined as disparities in digital and technological capabilities between countries—constitutes a critical determinant of Turkey’s export performance in the evolving architecture of international trade. Moving beyond traditional gravity-based explanations centered on geographical distance, the article develops a multidimensional digital distance index derived from the Frontier Technological Readiness Index (FTRI) and the Economic Complexity Index (ECI). Using annual panel data for 108 trading partners over the period 2008–2022, the analysis integrates GDP and exchange-rate controls within a panel threshold regression framework, complemented by panel causality tests. The findings reveal a statistically significant single-threshold structure, demonstrating that digital distance exerts nonlinear and asymmetric effects on Turkey’s exports. While convergence in ICT infrastructure and financial access tends to enhance export performance, narrowing gaps in certain dimensions—particularly skills and R&D—does not uniformly yield positive trade outcomes. In fact, larger disparities in selected technological capabilities may generate temporary competitive advantages, consistent with technology-gap theory. Robustness checks incorporating economic complexity distance confirm these threshold dynamics. Moreover, causality results indicate predominantly bidirectional relationships between exports and digital dimensions, underscoring mutual reinforcement between trade and digital transformation. Overall, the results challenge the presumption that digital convergence universally promotes trade. Instead, they highlight the strategic importance of selective digital specialization and innovation-driven competitiveness. By conceptualizing and empirically validating digital distance as a structural trade determinant, the study contributes to the emerging literature on digitalization and international trade and offers policy insights for adaptive, data-driven export strategies in an era of technological disruption.
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Marina Nikolova, Krasimira Slaveva, Pavlin Pavlov, Elitsa Lazarova
ECONOMIC, SOCIAL AND ENVIRONMENTAL ANALYSIS OF THE DEVELOPMENT POTENTIAL OF NORTHWEST AND NORTH CENTRAL REGION IN BULGARIA
Abstract:
The establishment of trends and intensity of ongoing processes is important for revealing the causes and differences in the development of regions, the disproportions that have arisen and the need to apply adequate measures for their reduction and limitation. In today's economy, undergoing increasing transformations towards sustainability in each of the developing sectors in Bulgaria and especially in the sensitive regions, sustainability in the context of sustainable development is becoming even more important. Two of the poorest regions in EU are located in Bulgaria – the Northwest and the North Central Region (NWR and NCR), and this is the main reason to analyse the indicators characterizing their economic, social, demographic and environmental condition in this article. The main objective of the study is to analyse important indicators for two of the statistical regions in Bulgaria (NWR and NCR) related to the current vision for their economic, socio-demographic and environmental condition. The study found that, unfortunately, the negative trend of the NWR and the NCR being the least populated regions in the Republic of Bulgaria is still growing, where the population in the NWR manages to stay within the upper limit, while the NCR is emerging as the region with the fastest depopulation. Enterprises with high risk potential have a larger relative share in the NCR, and those in the NWR have lower values. The higher relative share of enterprises with low risk potential in the NWR indicates the possibility of increasing sustainable territorial development and connectivity between different territories, between urban and rural areas. A sustainable trend is observed towards reducing the carbon dioxide values in the sectors of construction, energy, industry and waste. The same trend is noted for methane in the sectors of agriculture, construction, transport and waste, and for the nitrous oxide component in the agriculture, construction and energy sectors. Alarming is the trend in both studied regions for increasing values of CO2 in the agriculture and transport sectors, and of methane in the energy and industry sectors.
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Lyudmil Krystev, Marin Marinov, Valentin Milinov
FINANCIAL EFFICIENCY OF THE BULGARIAN GENERAL INSURANCE COMPANIES
IN THE CONTEXT OF FINANCIAL CONTROLLING
Abstract:
The purpose of the article is to examine the economic efficiency of the leading insurance companies (according to the "gross premium income" criterion) from the "General Insurance" branch. The research methodology is based on leading indicators for assessing the economic efficiency of the insurance company - "operating profit margin" and "return on equity". Economic efficiency indicators are also presented in the form of an index. The main results of the article are presented in figures, with an analysis of the economic efficiency of the leading insurance companies from the "General Insurance" branch. Analysis of the data shows that the leading insurance companies are performing oppositely to the General Insurance sector averages.
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Giorgi Katamadze, Mariana Petrova, Natela Tsiklashvili
FORMATION OF THE POST-PANDEMIC BUSINESS ENVIRONMENT IN GEORGIA: CHALLENGES
AND PREDICTIONS
Abstract:
The COVID 19 pandemic has transformed the entire world's strategy. The governmental oversight, fundamental and significant views were renewed and prioritized according to the unpredictable pandemic process and force-majeure demand. The world's governments and private sectors have faced new socio-political and economic problems and challenges that require quick, effective and powerful solutions. The nation's economic viability during the pandemic and post-pandemic periods depended on these decisions and their effectiveness. Monetary, fiscal, and financial policies suffered significant difficulties in maintaining the economic system. Covid 19 has created difficulties in predicting economic sequences alongside social problems and the complete lack of economic precision in all segments has caused macroeconomic uncertainty.
This paper deals with the microeconomic analysis of Georgia in the post-pandemic period, discussing both the main economic parameters of the country and its dynamics, as well as the analysis of its impact on the microeconomic situation.
The paper analyzes the impact of the pandemic on the main sectors, as well as the decisions made by the state for economic stimulation and its effect. The work is mainly based on the official information of state structures and international organizations, as well as the works of Georgian and foreign scientists, and based on them, a coherent, multi-component analysis is presented.
The theoretical framework of the article is based on fundamental, conceptual studies of Georgian and foreign authors in the field of our research. The paper presents conclusions and recommendations based on a complex study of macroeconomic factors, which are important for scientific circles, both the state and the private sector.
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Alex Atanasov
FROM BUSINESS ORGANIZATIONS TO JUDICIAL HIERARCHIES: ERROR CORRECTION LESSONS
Abstract:
In this paper I am trying to answer the question of how analysis of business organizations can be useful in evaluating judicial hierarchy when it comes to error correction. I apply business organizational knowledge to analyse judicial hierarchies by evaluating the economics of the correction of legal errors. The method I use is a multidisciplinary analysis drawing upon law, economics, game theory and business studies. The social, political and economic importance of judges dispensing justice correctly is fundamental; it enhances societal order, cohesion, efficiency, and behavioural predictability. I demonstrate that judicial hierarchies have mixed results in determining and correcting errors made by lower-level courts. During my examination, it becomes apparant that while the current degree of knowledge related to judicial hierarchies is limited, business studies can prove beneficial.
I examine the following factors: the organization of modern business hierarchies, the complexities of judicial errors, the tension between individual and societal interests, the judicial process as a quasi-market, market failures and hierarchical solutions, errors as social dilemmas and failures of individual rationality
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Dino Quinteros Navarro, Alfredo Quinteros, Victor Muñoz, Williams Ramirez
IMPACT OF BUSINESS INTELLIGENCE ON
THE ECONOMIC GROWTH OF SMALL
AND MEDIUM-SIZED ENTERPRISES (SMES): EVIDENCE FROM THE LIMA PLAZA CASE
Abstract:
In a context where digital transformation is a strategic challenge for the sustainability of small and medium-sized enterprises (SMEs), business intelligence (BI) emerges as a key factor in improving decision-making and fostering competitive advantages. This study analyzed the relationship between the implementation of BI solutions and business growth in 525 SMEs located in Lima, Peru. A quantitative, applied, and experimental methodology was used with descriptive and inferential analysis (Spearman Rho and Wilcoxon tests). The results reveal a strong positive correlation (Rho = 0.775, p < 0.01) between BI adoption and SME growth. Limitations include the geographic concentration of the sample, which may affect generalizations to other areas of the country. Nevertheless, the findings contribute to the literature by offering empirical evidence of the real-world effects of BI tools in emerging business environments and suggest that digital capabilities should be promoted in micro and small enterprises. Future research is encouraged to expand the scope to other economic sectors and regions.
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Tatjana Spaseska, Ilija Hristoski, Dragica Odzaklieska
PROFITABILITY PUZZLES: INSIGHTS
FROM NORTH MACEDONIAN BANKS
Abstract:
The profitability of banks, as an indicator of financial performance, reflects their ability to generate substantial revenues. Bank profits are essential for their survival, solvency, and growth in a highly competitive environment. Moreover, even if solvency is high, poor profitability undermines a bank’s capacity to absorb negative shocks, which can eventually impact its solvency. Consequently, profitability has a vital role in maintaining the stability of the banking and financial system as a whole. Hence, the primary goal of this research is to analyze several important bank-specific and macroeconomic determinants of bank profitability in the Republic of North Macedonia. More specifically, the paper investigates how the Return on Average Assets (ROAA) is influenced by the Capital Adequacy Ratio (CAR), Credit Risk (CR), Cost to Income Ratio (CIR), Loan to Deposit Ratio (LDR), Inflation Rate (IR), and Gross Domestic Product Rate (GDPR). Using secondary data from trustworthy sources, covering quarterly time series from 2005:Q1 to 2023:Q4, we employ correlation analysis, Granger causality tests, as well as the Auto-Regressive Distributed Lag (ARDL) approach to examine both short- and long-run dependencies among the variables. The results confirm the statistically significant impact of the regressors on the dependent variable and provide a solid foundation for the successful management and enhancement of banks’ profitability.
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Olena Stryzhak
THE ROLE OF HUMAN CAPITAL FOR ECONOMIC DEVELOPMENT IN A DIGITALIZED WORLD
Abstract:
The article is aimed at studying the features of the relationship between economic development, human capital and information and communication technologies. The panel sample includes data for 87 countries for 2019. The study uses the World Bank approach to classify countries to groups by income levels. The relationships between the analysed indicators are determined by groups based on the calculation of correlation coefficients. In addition, the paper presents a detailed spatial and graphical analysis of the indicators distribution by groups. The research shows that there are differences between the groups, both in the strength of the relationship and in the distribution of human capital development, digital technologies and GDP per capita. The article also analyses the relationship between GDP and the components of human capital and digital development. The study confirms the heterogeneity of economic development across countries and regions, highlighting differences across groups of countries depending on income levels.
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Krasimir Kulchev
THE INTERPRETATION OF FINANCIAL STATEMENTS IN TERMS OF CONTEMPORARY FINANCIAL ANALYSIS
Abstract:
The evolution of financial analysis is accompanied by an extensive use of indicators whose calculation is based on data provided both by entities in their financial statements and by financial markets. The analysis of data and indicators generated by the capital market is considered to be of primary importance when studying the financial position of enterprises. This view is supported by a substantial number of analysts and, although not applicable to all enterprises, it raises a number of questions, two of them being whether the new analytical indicators are replacing the classic indicators of financial statement analysis and whether financial statements have retained their fundamental role as a primary source of data in studying the financial position of enterprises. The objective of this paper is to answer these questions by approaching the interpretation of financial statements within the context of some unorthodox views about the evolution of financial analysis.
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Karmen Dimitrov Vranchev
IMPACT OF DIRECT GERMAN INVESTMENTS ON BULGARIAN ECONOMY
Abstract:
The impact of foreign direct investments on the economy of the host country is indisputable. They affect national production, its volume and structure, trade (imports and exports), the local market and competition, employment and income, innovation and technological development, etc. Their effects are evident at company (micro), state (macro) and regional levels. The article analyzes the significance of Germany and the direct investments of German origin for our economy, as well as the impact of Aurubis Bulgaria as the largest German investment through direct, indirect and multiplier effects on the metallurgical industry in Bulgaria and the company’s role in the economic growth of the country.
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Sviatoslav Bespalov, Khrystyna Mitiushkina, Hennadii Chernichenko
ECOLOGICAL AND ECONOMIC DEVELOPMENT DIMENSIONS
OF THE COUNTRIES WITH THE USE
OF CLUSTER ANALYSIS TOOLS
Abstract:
The article examines the features of the application of cluster analysis to assess the level of greening the economies of the countries of the world. A sample of indicators on which the economy of developed countries is based, in particular, the standard of living in the country, anthropogenic load, energy intensity of the economy, has been carried out. Taking into account these indicators, the countries of the world we¬re clustered into three main groups and the fourth is presented as general (background) data. The features of the greening of the economies of the countries of each group are characterized, the similarities and differences are determined. A hypothesis is put forward about the relationship between the level of economic development and anthropogenic load in states.
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Aglika Kaneva
THE EFFECT OF SOME BANK INDICATORS UPON THE GDP, THE UNEMPLOYMENT RATE AND FOREIGN DIRECT INVESTMENT IN BULGARIA
Abstract:
The article presents the findings of a research into the effect that loans to non-financial corporations, household deposits and interest rates on new business loans in Bulgarian currency to non-financial corporations have upon the GDP, the unemployment rate and foreign direct investment in Bulgaria. The research employs regression analysis and provides a review of related literature about the impact of bank loans, bank deposits, interest rates on bank loans and deposits, as well as other bank indicators upon economic growth, employment and investment.
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Tsvetelina Nenkova
CONCEPTUAL FOUNDATIONS OF EFFICIENCY IN PUBLIC PENSIONS
Abstract:
This article examines the efficiency of public pensions. The need for an efficiently functioning pension system is highlighted based on the theoretical foundations of pension social security concepts such as: ‘welfare for the elderly’, ‘retirement insurance’ a factor for increasing the ‘productivity of labour’, a form of ‘return on human capital investment’, a solution to the ‘prodigal father’ problem and ‘longevity insurance’.
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Alexander Anatolyevich Nosachenko
DETECTION OF LATENT RESERVES
OF WHOLESALE TRADE IN FOOD INDUSTRY IN CONDITIONS OF ECONOMIC CRISIS
Abstract:
The article considers approaches to identifying and assessing latent reserves in the global economic crisis in the food industry, as strategically important for the country. The aim is to consider the possibility of identifying latent reserves in wholesale trade of the food industry. The measurement model of latent variables is chosen as the research methodology, which allows to take into account internal and external variables and is based on the provisions of factor analysis. Theoretical research of the concept allowed to substantiate the reserve as an untapped opportunity for the development of economic entities, which are enterprises, and increase their competitiveness by identifying hidden values, and for further effective operation of entities used resources. Types of latent reserves of wholesale trade in food industry in crisis conditions are substantiated. Latent reserves with correlated features were selected by factor analysis. The variance of the variables for the five selected factors and the standard deviation of the normalized value are calculated. As a result of the calculations, the treatment for two identified factors was chosen. The coefficients of connections between external and internal latent variables are determined and the probable latent features are singled out. The calculations showed a significant pressure, depending on the severity of external influences, so on the scale of measurement, experts gave higher scores on the last parameters, which are reflected in the constructed matrix. The results of the study allowed us to trace the links between external and internal latent variables and to build a SWOT-analysis for food industry enterprises, which allowed to outline the prospects for the functioning of food industry enterprises.
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Silvia Gospodinova
FACTORS DETERMINING THE DOMINANT ROLE OF THE SERVICES SECTOR IN MODERN ECONOMIES
Abstract:
In the 19th and the beginning of the 20th century, the process of industrialisation was particularly large-scale and intensive and dominated the industrial sector. In the following years, however, complex processes of adaptation to a new model of development began to take place in the development of the Bulgarian economy. It is based on the global information revolution and the trend towards globalisation, as well as the transition to a market economy. One of the features of this change is the dynamic development of the services sector, which is increasingly beginning to dominate. This paper traces the factors that led to the transformation of most economies, including the Bulgarian and their transformation into post-industrial, as well as the similarities and differences of these changes until the beginning of the twentieth century in our country and in other economies.
