Journal of Contemporary Economic and Business Issues <p><strong>IMPORTANT NOTE</strong></p> <p><strong><em>Journal of Contemporary Economic and Business Issues</em> (JCEBI) does not accept manuscripts anymore. JCEBI from June 2020 continues under a new name "Economy, Business and Development: An International Journal". The web site of the new journal is <a href=""></a></strong></p> <p><strong>The content of JCEBI web site contains information up to and including March 2020 and is not further updated.</strong></p> <p><strong>-----</strong></p> <p><em>Journal of Contemporary Economic and Business Issues</em>&nbsp;is a new <strong>peer-reviewed open access journal</strong> in subjects of economics and business which covers economics, economic policy, finance, quantitative economics, business and other relevant fields.&nbsp;It is a <strong>semi-annual academic journal published by the Ss. Cyril and Methodius University, Faculty of Economics – Skopje in both print and online version.</strong></p> <p><br><em>Journal of Contemporary Economic and Business Issues</em>&nbsp;will publish original scientific papers, preliminary communications, conference papers, review articles, but also high quality professional papers. We particularly welcome contributions that explore economic and business issues of emerging economies.</p> <p>The <strong>Editorial Board</strong> consists of eminent economists from different countries.</p> <p>All articles should be <strong>written in English and are subject to a double blind peer-review process</strong>. Only original unpublished works, not under consideration for publication elsewhere, should be submitted. Submitted papers need to be prepared according to the Instruction for authors<em>.</em></p> <p>&nbsp;</p> en-US <p>Authors retain copyright of the published papers and grant to the publisher the non-exclusive right to publish the article, to be cited as its original publisher in case of reuse, and to distribute it in all forms and media.</p> <p>Authors are permitted to deposit publisher's version (PDF) of their work in any repository, personal and institutional websites, but full bibliographic information (authors, titles, volume, issue etc.) about the original publication must be provided.</p> (Vesna Bucevska) (Borce Trenovski) Fri, 27 Mar 2020 14:14:20 +0100 OJS 60 THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, OIL PRODUCTION, ENERGY CONSUMPTION AND CARBON DIOXIDE EMISSIONS: EVIDENCE FROM SELECTED OPEC COUNTRIES <p><span class="fontstyle0">The article aims to investigate the relationship between economic growth, oil production, energy consumption and CO</span><span class="fontstyle0">2 </span><span class="fontstyle0">emissions in five OPEC countries for the last four decades (1978–2017). We found that per capita energy consumption has a negative relationship with per capita GDP while per capita CO</span><span class="fontstyle0">2 </span><span class="fontstyle0">emissions positively affect per capita GDP. Per capita GDP negatively affects oil production, but per capita energy consumption has a positive relationship with oil production. Further, per capita CO</span><span class="fontstyle0">2 </span><span class="fontstyle0">emissions have a positive relationship with oil production. Per capita energy consumption negatively influences per capita CO</span><span class="fontstyle0">2 </span><span class="fontstyle0">emissions. We also found that there is a directional relationship running from per capita GDP to oil production, per capita energy consumption and per capita CO</span><span class="fontstyle0">2 </span><span class="fontstyle0">emissions and from per capita CO</span><span class="fontstyle0">2 </span><span class="fontstyle0">emissions to per capita energy consumption. The Johansen co-integration test shows that there is a long run relationship among variables. Our finding supports the conservation hypothesis that means the growth of GDP in these countries is found as a result of increasing energy consumption.</span> </p> Anh Tru Nguyen Copyright (c) Mon, 02 Mar 2020 00:00:00 +0100 THE IMPACT OF DIVIDEND POLICY ON PRICE-TOEARNINGS RATIO – THE CASE OF WESTERN EUROPE <p><span class="fontstyle0">In a world full ofstudiesdealing withthe relationshipof price-to-earnings ratio and the dividend payout ratio, rarely noticeable are those examining the possibility that this relationship may be nonlinear.Although rare, studies that aim to fill this gap focus solely on the US capital market. The lack of those kinds of studies alongside with the absence of studies for Europewas main incentive for this paper. Therefore this paper aims to examine the conditional and nonlinear relationship between price-toearnings ratio and dividend payout ratio where by the inclusion of various factors the non/linearrelationship is conditioned on the comparative levelsof return on equity and the required rate of return. In order to explore this relationship, a fixed effects panel regression model is used. Main findings are based on an examination of an annual data of 69 companies from 11 European countries in the period from 2014 to 2018. The results show positive relationship and convexity between the price-to-earnings ratio and the dividend payout ratio, leading to the conclusion that European investors prefer dividends and “award” the increase in the dividend payout with increased priceto-earnings ratio. The findings imply that financial managers of Western European companies should pay more attention to the reduction of the payout ratio.</span> </p> Simona Nikolovska Copyright (c) FINANCIAL CRISIS IMPLICATIONS ON THE FISCAL AND MONETARY POLICY OF EU COUNTRIES WITH ECONOMETRIC MODELING SUPPORT <p><span class="fontstyle0">The financial crisis that hit Europe in 2008 affected many spheres of the EU members’ economies. It had drastic effects on the countries’ economic activity, consumer spending, banking system liquidity, as well as negative impacts on interest rates and budget balances of the EU member states. This paper will examine the reaction of the EU member counties to the financial crisis, specifically, the use of fiscal and monetary policy to deal with such negative shock, with greater emphasis on the econometric support and background of these practices. Although extensive research and conclusions can be made by analyzing the response and results of the policies to the financial crisis, this paper aims to provide concrete econometric support to some of the practices derived from the crisis. Econometric modeling will be carried out in order to give stronger support to previous statements concluded in the paper and test relationships between certain variables. All econometric analyzes were made using the EViews software package.</span></p> Marijana Ilieva Copyright (c) DETERMINANTS OF NON-PERFORMING LOANS AND THE RELATIONSHIP WITH MACROECONOMIC FACTORS: EVIDENCE FROM SOUTHEASTERN EUROPE <p><span class="fontstyle0">Despite significant progress in this area, the problem of non-performing loans continues to receive central attention in the banking systems of the SEE countries after the 2008/2009 crisis, reducing the profitability and resource utilization of banks. The purpose of this paper is to investigate the determinants of non performing loans and their effect on the macroeconomic situation in Southeast Europe. First, in order to test the relationship between credit risk and certain balance sheet and macroeconomic indicators, we create a model that uses annual panel data for 5 Southeast European countries for the period 2008-2017. The results show that profitability has a negative impact on nonperforming loans, while credit growth and capitalization rate have a positive and statistically significant impact on the nonperforming loan portfolio. The second part of the econometric analysis consists of examining the cointegration, i.e. long-term and short-term relationships between non-performing loans and macroeconomic variables. The results imply that in conditions of higher unemployment, slower economic growth and falling prices, credit risk increases in the long run. Such conclusions are robust when using alternative valuation methods on the longterm relationship. However, in the short run, only GDP has an inverse statistically significant relationship with nonperforming loans, while unemployment and inflation have proved to be statistically insignificant, although the relationship between them and nonperforming loans has the same direction as in the long- run model. Such conclusions are generally consistent with both the theory and the numerous studies that have been done on this topic.</span> </p> Maja Ristevska Copyright (c) CLUSTER ANALYSIS OF SEPARATE INDICATORS OF THE BANKING SYSTEMS OF NORTH MACEDONIA, THE EU MEMBER STATES AND THE BALKAN COUNTRIES <p><span class="fontstyle0">In this paper, a multivariate analysis of the computer statistics, i.e. the Cluster analysis of the banking system concentration indicators and the financial intermediation and portfolio quality indicators by applying the complete linkage and the Ward’s linkage method are presented.<br>The main idea is to find out whether the level of banking system concentration and degree of financial intermediation in banking system of North Macedonia is similar or closer to any of the EU Member States or the Balkan countries. Furthermore, since the appropriately modified analyses were performed also with the structural indicators of the banking system and results obtained 10 years ago, the objective is to see whether there are any positive shifts in the similarity of the analysed characteristics of the banking system in North Macedonia to a particular country or group of countries.<br>In the conducted cluster analysis made by applying the method of complete linkage to the indicators of concentration of the banking sector, North Macedonia is grouped first with the Slovak Republic and then with Croatia which means that the similarity of the values of these indicators of these countries is the largest. Regarding the outcome of the second cluster analyses, of the indicators of financial intermediation and portfolio quality by using two comparative clustering methods, North Macedonia is grouped with Montenegro in the penultimate cluster and then this cluster is grouped with Serbia, which confirms that the level of financial intermediation in these Balkan countries is lower compared to the EU Member States, but on the other side the quality of the portfolio is good.</span> </p> Emilija Stojanova Ivanovska Copyright (c)