Journal of Contemporary Economic and Business Issues <p>&nbsp;</p> <p><em>Journal of Contemporary Economic and Business Issues</em>&nbsp;is a new peer-reviewed open access journal in subjects of economics and business which covers economics, economic policy, finance, quantitative economics, business and other relevant fields.</p> <p>It is a semi-annual academic journal published by the Ss. Cyril and Methodius University, Faculty of Economics – Skopje in both print and online version.<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&nbsp;<a href="">Editorial Board</a>&nbsp;consists of eminent economists from different countries.</p> <p>All articles should be written in English and are subject to a double blind peer-review process. Only original unpublished works, not under consideration for publication elsewhere, should be submitted. Submitted papers need to be prepared according to the&nbsp;<a href="" target="_blank" rel="noopener">Instructions for authors</a><em>.</em></p> <p>&nbsp;</p> en-US (Vesna Bucevska) (Borce Trenovski) Thu, 28 Mar 2019 11:48:01 +0100 OJS 60 THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, FOREIGN DIRECT INVESTMENT AND UNEMPLOYMENT IN CENTRAL ASIA: A VECTOR AUTOREGRESSIVE MODEL APPROACH <p><em>The article investigates the relationship between economic growth, foreign direct investment and unemployment in five Central Asian countries between 1997 and 2016.&nbsp;</em><em>We found that GDP has a positive relationship with FDI and this implies that the&nbsp;</em><em>growth of GDP in Central Asian countries has attracted more FDI inflows. However,&nbsp;</em><em>GDP negatively affects FDI in lag 4 and this reflects the fact that the growth of GDP&nbsp;</em><em>in this region depends on other variables rather than FDI. Moreover, this result also&nbsp;</em><em>suggests that the use of FDI to boost economic growth of Central Asian countries is&nbsp;</em><em>ineffective. Results also indicate that FDI has a negative influence on unemployment&nbsp;</em><em>and this implies that an increase of FDI can contribute to reducing the unemployment&nbsp;</em><em>rate in Central Asia. We also found that GDP and unemployment do not cause other&nbsp;</em><em>variables, while FDI causes other variables. Lastly, results indicate that there is a&nbsp;</em><em>co-integration among variables.</em></p> Anh Tru Nguyen ##submission.copyrightStatement## Wed, 27 Mar 2019 00:00:00 +0100 THE IMPACT OF HUMAN CAPITAL ON THE ECONOMIC GROWTH IN MACEDONIA <p><em>The role of human capital in a country’s growth process is of great importance. As&nbsp;</em><em>a separate factor of production, it contributes to solving key economic problems in&nbsp;</em><em>the process of globalization, especially in economies based on knowledge. The aim&nbsp;</em><em>of this paper is to illustrate the impact of human capital on the economic growth of&nbsp;</em><em>Macedonia in the period from 2000 to 2016 through the usage of an econometric&nbsp;</em><em>analysis of time series of human capital indicators which are widely accepted in&nbsp;</em><em>theory and empirical research. It is about education and health, i.e. the educational&nbsp;</em><em>qualifications of employees and their life expectancy. For that purpose, a regression&nbsp;</em><em>analysis followed by an examination of stationarity of time series is used, as well&nbsp;</em><em>as the necessary conditions for selecting the best model from all of the available&nbsp;</em><em>alternatives. The results show that there is a positive link between human capital and&nbsp;</em><em>economic growth in Macedonia. Also, educational qualifications and life expectancy&nbsp;</em><em>have a positive effect on GDP per capita in Macedonia for the analyzed period. All of&nbsp;</em><em>the variables show statistical significance, but higher education qualifications have&nbsp;</em><em>proved to be an indicator of human capital with the greatest impact on the economic&nbsp;</em><em>growth in Macedonia. Therefore, the economic policy-makers should accept and&nbsp;</em><em>promote education and health as healthy economic investments which raise not only&nbsp;</em><em>the quality of life, but also increase the productivity of the market and thus the output&nbsp;</em><em>in the country.</em></p> Marijana Cvetanoska, Predrag Trpeski ##submission.copyrightStatement## Wed, 27 Mar 2019 00:00:00 +0100 KEY FACTORS INFLUENCING STUDENTS’ CHOICE OF UNIVERSITY FOR POSTGRADUATE STUDIES ABROAD: A MULTICRITERIA DECISION MODEL <p><em>The aim of the paper is to develop a multicriteria decision model for choosing a&nbsp;</em><em>University for postgraduate studies abroad. The research has been conducted through&nbsp;</em><em>a questionnaire distributed to the students from the fourth year of undergraduate&nbsp;</em><em>studies at the Ss. Cyril and Methodius University in Skopje, Faculty of Economics –&nbsp;</em><em>Skopje, in order to gain information on what is valuable for them, i.e. which factors are&nbsp;</em><em>important for choosing a University for postgraduate studies abroad. Those factors&nbsp;</em><em>that appear the most serve as inputs to the multicriteria decision model. Then, a&nbsp;</em><em>group of 9 respondents made individual judgments for the importance of the criteria&nbsp;</em><em>regarding the goal (choosing a University for postgraduate studies abroad), and by&nbsp;</em><em>computing the geometric mean of the individual judgments, the group judgments are&nbsp;</em><em>further acquired. The obtained results of the model are presented and discussed.&nbsp;</em><em>This model will serve both students (for the purpose of choosing the most appropriate&nbsp;</em><em>University for postgraduate studies abroad) and higher educational institutions (for the&nbsp;</em><em>purpose of taking adequate next steps, i.e. making better decisions that will create&nbsp;</em><em>value for students).</em></p> Violeta Cvetkoska ##submission.copyrightStatement## Wed, 27 Mar 2019 00:00:00 +0100 THE LABOR THEORY OF VALUE STRIKES BACK: ULC + THE METHOD FOR MEASURING THE LEVEL OF NATIONAL COMPETITIVENESS <p><em>National competitiveness, macro-competitiveness, and competitiveness of states;&nbsp;</em><em>those seemingly simple and common terms, are actually highly controversial. The&nbsp;</em><em>interpretation of historical backgrounds and basic postulates which have been the&nbsp;</em><em>foundations of methods for the measurement of macro-competitiveness since the&nbsp;</em><em>1970s to the present, is a matter of interest in the first part of this paper. Just after&nbsp;</em><em>this, we will provide critical observations on methods used so far - which is necessary&nbsp;</em><em>if we want to make a contribution to the further development of theory (and practice).&nbsp;</em><em>The second part of this work, which is smaller in quantity but larger in quality, is&nbsp;</em><em>committed to the development of the theoretical foundation for the development of the&nbsp;</em><em>new fourth generation of methods for measurement of macro-competitiveness. We&nbsp;</em><em>entitled this method ULC + the method for measurement of national competitiveness&nbsp;</em><em>and it is based on the synthesis of Michael Porter’s idea that productivity is a synonym&nbsp;</em><em>for competitiveness and the direct (outputs) methods for measurement of national&nbsp;</em><em>competitiveness. We have done this by using working hours as a common measuring&nbsp;</em><em>unit which would enable us to sum “apples and oranges”, meaning the cost of labor&nbsp;</em><em>and the cost of capital.</em></p> Marko Djogo ##submission.copyrightStatement## Wed, 27 Mar 2019 00:00:00 +0100 FACTORS DRIVING THE PUBLIC DEBT DYNAMICS: THE CASE OF REPUBLIC OF MACEDONIA <p>The global financial and economic crisis has placed a significant strain on public&nbsp;<em>finances in many economies. Since sound public finances are crucial for price and financial stability and for economic growth, concerns about rising debt commitments have led to a renewed interest in the analysis of debt sustainability in the last decade. This paper discusses the concept of fiscal sustainability and investigates the factors driving the public debt dynamics in the Republic of Macedonia over the period 2004-2021. Although the level of indebtedness is still moderate (below 50% of GDP), the public debt dynamics from 2008 is worrying (public debt has doubled in only 7 years). The starting point for assessing debt sustainability is the government budget constraint equation. This equation explains the evolution and accumulation of government debt by three main factors: the primary balance, the “snowball” effect, and the deficit-debt adjustment. The conventional debt sustainability analysis showed that the general government debt ratio over the period 2004-2017 increased moderately as a result of a significant increase in the primary deficit (by 16 p.p.), that was almost completely offset by the positive “snowball” effect. In addition, we found that in the pre-crisis period (2004-2008), the general government debt ratio declined significantly, mainly as a result of a positive “snowball” effect but also because of the primary surplus. Contrary to pre-crisis developments, the general government debt ratio increased significantly (by 19 p.p.) in the post-crisis period (2009-2017), due to the significant primary deficit increase, while the positive “snowball” effect was moderate.</em></p> Gjorgji Gockov, Suzana Makreshanska Mladenovska ##submission.copyrightStatement## Wed, 27 Mar 2019 00:00:00 +0100 SOCIAL MEDIA SCREENING: IMPACT OF GDPR AND MACEDONIAN LEGAL FRAMEWORK <p>E-recruitment has been the focus both of research and commercial use in the past decade, with the addition of social media recruitment in the recent years. Public profiles and information on potential candidate have exploded with the emergence of profiles on social network web-sites, which is highly utilized by companies and recruiters in the employment process. Despite different ethical and practical issues, there are also legal ramifications for using personal data of candidates in the recruitment process. The paper focuses on the legal aspects of screening candidates, as part of the recruitment process, more specifically on the screening via social media.</p> <p>Our research examines the introduction of the new GDPR Law which is in effect in EU countries since May 2018, and comparisons are made with the existing laws for data protection of candidates in the Republic of Macedonia, as a candidate member state for the EU. The research shows that screening through social media for reasons other than job performance is considered as a breach in principles through GDPR, as well as considered as discriminatory and illegal in the Macedonian Labor Law. The comparison between GDPR and Macedonian Labor Law shows strong points such as clear lines for direct and indirect discrimination, as well as weak points such as not enough guidelines for transparency, protection and control over candidate data in the Macedonian law. Companies are subject to GDPR regardless of whether they reside in an EU country, making the law of tremendous importance to Macedonian companies which employ or recruit candidates who are permanent residents of the EU. Recommendations are made to engage technology changes in a timely manner, as well as to introduce regular checks on companies for their process of screening candidates through social media.</p> Saso Josimovski, Martin Kiselicki, Lidija Pulevska-Ivanovska ##submission.copyrightStatement## Wed, 27 Mar 2019 00:00:00 +0100 FACTORS CONTRIBUTING TO THE DEBT GROWTH IN THE HOUSEHOLDS SECTOR IN MACEDONIA AND ASSESSMENT OF ITS POSSIBLE IMPACT ON THE FINANCIAL SYSTEM <p>This paper reviews some recent developments in the finances of the household s’ sector in the Republic of Macedonia, where it was established that households are increasingly gaining importance as a debtor in the banking system. The aim of this paper is to determine the factors that contribute to the increase in the debt of the “households” sector in Macedonia and to assess its possible impact on the financial system. The main contributory factors for the debt increase are the favorable movements in the supply and demand of loans, the change in households’ attitude to borrowing, the favorable macroeconomic environment, the innovation in financial products and the favorable government policies. The assessment of the impact on the financial system is based on the financial indicators that are most commonly used in economy, such as debt in relation to GDP, debt in relation to disposable income and the debt service ratio. The results show that the possibilities for increasing the household debt are not yet exhausted.</p> Milica Milosheska Gavrovska, Trajko Slaveski ##submission.copyrightStatement## Thu, 28 Mar 2019 00:00:00 +0100