Volume 6 (2018): Issue 1 (June 2018)

The necessity of economic life and economic development of every economy is the free movement of capital. The international movement of capital has its balance of payment when capital export represents economic surplus in relation to consumption of the national economy and the import of capital represents an increase of consumption in regard to the output of a national economy. Analysis of the influence of foreign direct investment (FDI) on economic growth of the host country, among other things, is emphasized in the function of the achieved phase of its economic development. Taking all this into consideration, the aim of this paper refers to an attempt to indicate the significance and the role of FDI as well as the importance of attracting foreign direct investment in B&H and the determination of the effects of FDI on the economy of B&H. In this regard, we will try to determine the level of FDI’s impact on some macroeconomic indicators in B&H (GDP, import, export, unemployment) by using contemporary SPSS statistical analysis program (model) and applying the methods (calculating coefficients) of correlation and regression analysis. In other words, we will determine the analytical expression used to describe a statistical relationship of these macroeconomic categories.

The economic contributions from forestry sector remain relatively important in all developing economies. Over the past few decades, value added in the forestry sector of these economies has gradually increased. Consequently, the need for a detailed and accurate assessment of the economic contribution of the sector has grown in order to gain the attention of the policy makers and to highlight its importance in poverty alleviation and sustainable development. Contrarily, In Peru, forestry sector continues to be left behind due to faster growth in other sectors of economy. Despite having considerable forest resources, the full extent of economic contributions of the forestry sector to local as well as the national economy is still poorly understood. Sparsity of up-to-date data on value added in the forestry sector and a general disregard to any forests other than Amazonian rainforests have compounded the already existing situation. In this context, this paper aimed at making an empirical analysis of the direct contributions of the forestry sector to the local economy of Peru in the short run using an annual time series data from 2007 to 2016. The Pinus radiata plantation forests of the Department of Ayacucho located in the Southern Peruvian Andes served as a case for this study. The results revealed nominal but significant contributions of the Pinus radiata forests to the economic growth of the Department of Ayacucho. As our study was limited only to direct cash benefits, future studies should also take into account informal and non-cash benefits in order to fully apprehend the economic contributions of the forestry sector to local and national economy.

This paper aims to the analysis of the most common methods of controlled transactions, and the interpretation of the arm’s length principle under the view of the tax income comparison between countries with high and low tax rates. Moreover, the factors of comparability scrutinized with a mathematical approach which shows how the tax factors interact within the countries’ economies in the frame of a global view.

It is widely obvious that the modern business depends on many new previously unknown factors: innovations, technology expanding, information dispersion and collection, culture, imaginations, and other intangible productive factors. This paper deals with some of the unexpected changes that we could recognise as the most influential ones in the new economy era. Purpose and findings of the substantial theoretic and empirical analysis are oriented to the modernisation and sophistication of today business, especially in developing, emerging and small countries. All of them are exposed to severe market reforms, in order to be more efficient and effective in global and regional level. This paper contains the analysis of content of global development documents and literary materials, as well as cross-referencing of statistical and other available data. The findings of this study could result in better orientation of industrial policies and clearer path for the future broader researches to be conducted in this field.

From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of economic entities in the micro segment. Investments present an essential element of any economic policy, as their presence provides a platform, not only for economic development, but also create a basic condition for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and the most common presenting the most important tool in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large and therefore the states are directing significant activities in order to create a more favorable environment to attract investors. The paper pays special attention to direct investmens in financing the economy on a global scale, their importance for the development of the global economy and particulary screens the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The emphasis is placed on activities that have to be carried out in order to realize more investments. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is fundamental prerequisite for generating and accelarating of economic development in general. The inflow of foreign capital has an exstraodinary positive impact on the economic development and increase of business activities in visably undeveloped and slow economic in Bosnia and Herzegovina.

More recently, significant fluctuations in the Indonesian economy justify the need to pay more attention to this issue. In this case, the main purpose of this research is to know the relationship between two issues related to Indonesian macro economy called consumption and GDP for data period during 1967 until 2014. This study investigates the relationship between GDP variables and Indonesian consumption consumption variables using the test ARDL, cointegration and Granger causality. The result of the research can be concluded that, there is long-run equilibrium relationship between GDP and consumption with long-term ARDL model, 10% change of consumption will produce long-term change of 44% in GDP. It is not surprising that there is no short-run equilibrium relationship between GDP and consumption. 10% of consumption will result in a short-term ARDL model change of 95% in GDP. The variables and consumption of GDP are cointegrated in the long run significantly at lag interval 10, whereas the use of lag interval 1 and 5 is not credited in the long run. Using a cointegration test with lag interval 1, 5 and 10 indicates significant for all usage slowness. So it can be summarized in the context of GDP and coordinated short-term economic consumption for all the prevailing interval lags. concluded that long-term causality test results between GDP variables and significant consumption with time intervals 5 and 10. intervals 1, 15 and 20 have no long-term causality relationship between GDP variables and consumption variables. a short-term causal model. With lagging intervals of 1, 5, 10 and 15, there is a short-term causal relationship between the variable GDP and consumption. As for the use of delay interval 20 there is no causal relationship in the short term between the variable GDP and consumption in Indonesia.

This study aims to examine whether profitability, firm size, institutional ownership, growth affect the capital structure and whether profitability, firm size, institutional ownership, growth affect the value of the company through the capital structure. The sample used in this research is the tourism industry sector companies listed in Indonesia Stock Exchange 2007-2014 period, which has complete financial report and published in Indonesian Capital Market Directory (ICMD) as many as 19 companies. The data collected were analyzed using Path Analysis. Path analysis obtained that Return on Equity (ROE), Institutional Ownership (KIS), Growth Assets (GA) and Debt Asset Ratio (DAR) is the direction or positive with Value of the Firm (PRICE) where every increase ROE, KIS and GA followed by a rise in PRICE. On the other hand Firm Size (SIZE) has a negative relation to PRICE where every increase of SIZE is followed by decrease of PRICE.

There is no universal model of local economic development. Development strategies vary from country to country, city to city, and depend on the level of development, political system, development potential, social values, available resources, etc. Republic of Srpska faces with significant differences in the level of development of its territory. Local communities in the Republic of Srpska are increasingly facing with several obligations - providing support to business, creating a favorable business environment for attracting investment and providing an adequate infrastructure. The biggest problems that most of municipalities in the Republic of Srpska encounter are reflected in the emptying of cities, the departure of young people, low average wages and high unemployment rates. They are trying to solve these problems by attracting investments. However, it is very important to say that an effective investment policy must be based on the creation of new enterprises with capitalintensive production. The average wage level in local communities of the Republic of Srpska is low, due to the fact that most of the investments have a labor-intensive character. The subject and aim of this paper is to determine the competitiveness and level of development of local communities in the Republic of Srpska. Municipal competitiveness will be higher if it has a positive trade balance, higher average wages, high natural increase, low unemployment rate and positive migration. Higher natural increase, favorable trade balance and low unemployment rate are in direct correlation with the degree of local development. The results of the research have shown that the key problems of underdeveloped municipalities in the Republic of Srpska are demographic aging, population migration, underdeveloped infrastructure, high unemployment rates, low average wages, low level of investment, low export activity, weak institutional capacities, etc.

This article analyses the current environmental aspects and the mechanisms of environmental regulation in Kazakhstan with specific emphasis of Pavlodar Region for the development of tourism. The study showed that the environmental situation in Pavlodar Region requires the adoption of a number of activities and legal regulation for improvement and development of tourism. The improvement of tourism is very important for the regional budget and for the overall economic development of the area. It is argued that for the effective management and the development of the tourism industry, the existing taxation system that is the Tax Code of the Republic of Kazakhstan requires some amendments, sustainable development measures should put into the practice with the introduction of technological systems that based upon the use solar and wind energy, and “Green Economy” strategy should be implemented into the practical life and monitored effectively.

Local Bank (BPR) as one of the financial institutions in Indonesia in carrying out its activities collecting funds from the public in the form of savings and deposits and channeling back the funds collected through the provision of credit. This study aims to determine, describe and explain the Effect of Allowance for Bad Debt to the Level of Profitability in Subang BPR of Pabuaran Branch. The method used is descriptive method, and testing of the data - the data studied. The data used is data from the financial statements of PD BPR Subang of Pabuaran Branch in 2012 to 2015 with a monthly ratio reports. Any increase in the value of allowance for bad debt (X) of 1% would cause a rise in the value of profitability level in terms of the comparison of operating cost with operating income (Y) of 0.333% and vice versa. The conclusion is the level of allowance for bad debt does not significantly affect the level of profitability as measured by the comparison of operating expenses to operating income.