Intellectual Economics
https://ojs.mruni.eu/ojs/intellectual-economics
<p><strong>Intellectual Economics (IE) welcomes manuscripts but is not limited to in the following research areas:</strong></p> <ul> <li>Innovative Investment Evaluations and Management</li> <li>Costs and Effects of Smart/Financial Technologies (Blockchain, Crypto Economies)</li> <li>Sustainable Development of New Economy and Social Technologies, its Ecological Costs</li> <li>Intellectual Capital Evaluation (Impact Assessment and Human Resources Management)</li> <li>Effective Strategic Administration and Social Responsibility</li> <li>Intellectual Property Rights: Economic Efficiency, Infringements</li> <li>Talent Development in Emerging and Transitional Economies</li> <li>Economic Security</li> </ul>Mykolas Romeris UniversityenIntellectual Economics1822-8038Authors contributing to <em id="tinymce" class="mceContentBody " dir="ltr">Intellectual Economics</em> agree to publish their articles under a <a href="https://creativecommons.org/licenses/by-nd/4.0/legalcode">Creative Commons Attribution-NoDerivatives 4.0 International Public </a><a href="https://creativecommons.org/licenses/by-nd/4.0/legalcode">(CC BY-NC-ND)</a><a href="https://creativecommons.org/licenses/by-nd/4.0/legalcode"> License</a>, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, and that in the event of reuse or distribution, the terms of this licence are made clear.<br /><br /><br />What kind of pluralism do we need in economics?
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7539
<p><strong>Purpose. </strong>This article highlights the notion that methodological normativism of the neoclassical school has consolidated its monopoly position within economics, and significantly reduces our social reality by understanding the economic system as a closed system. The author aims to show that such a misleading picture of the world leads to one single best epistemology, theory, methodology and educational system within economics.</p> <p><strong>Design/Methodology/Approach. </strong>The author explains complaints against such an approach in terms of five different kinds of interrelated and interdependent pluralisms. The comparative and documentary methods ensure maximum openness with regard to the collection of theoretical and empirical papers. The qualitative analysis of “pro et contra” debate is based on a questionnaire completed by students.</p> <p><strong>Findings. </strong>The author believes that understanding different types of pluralism and their interconnectedness is the most appropriate approach to inquiry and teaching in economics. Epistemological pluralism logically follows from ontological by allowing a relatively separate system of paradigms to co-exist as a necessary counterpart to the plurality of the social world. In debates, the author strives for a limited range of complementary theoretical approaches with meaningful methodological standards in order for students to obtain a more anthropocentric and less dogmatic view of the world.</p> <p><strong>Originality. </strong>There have been few attempts to show deeper interdependence among various types of pluralism. The current study addresses this gap in the literature. The testimonials of students show the usefulness of “pro et contra” debate in introducing and promoting more pluralism into the educational process.</p>
Articlesmethodological normativismepistemological pluralismtheoretical pluralismmethodological pluralism, pluralism in educationžpro et contra debateAleksandar Kešeljević
Copyright (c) 2023 Intellectual Economics
2023-12-282023-12-2824025910.13165/IE-23-17-2-01The impact of globalization on income inequality: the mediating effect of intellectual potential
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7616
<h2 style="text-align: left;" align="left"><span lang="EN-US"><strong>Purpose.</strong> </span><span lang="EN-US">This research aims to revisit the relationship between globalization and income inequality while improving on previous research. It also considers how technological advancements and human capital can alter this relationship in countries with different income levels worldwide.</span></h2> <h2 style="text-align: left;" align="left"><strong><span lang="EN-US">Methodology. </span></strong><span lang="EN-US">This research is based on panel data regression models with multiplicative terms where, after controlling for other important inequality factors, different types of globalization are regressed using two alternative measures of income inequality. Multiplicative terms allowed us to analyze the heterogeneity of the globalization-inequality nexus, i.e., how it changed over the distribution of the moderating factors: technological advancements and human capital.</span></h2> <h2 style="text-align: left;" align="left"><strong><span lang="EN-US">Findings. </span></strong><span lang="EN-US">The results show that different types of globalization impact income inequality differently: trade globalization reduces income inequality in some cases, while financial globalization can increase it. Education proved to moderate the effect of globalization on reducing income inequality; technological advancement, on the other hand, stimulates the impact of globalization in terms of increasing income inequality.</span></h2> <h2 style="text-align: left;" align="left"><strong><span lang="EN-US">Originality. </span></strong><span lang="EN-US">This paper differs from previous research by focusing on multiple aspects of globalization, using additional TOP20/BOT20 estimates to measure income inequality and to explore the differences between the income inequality/globalization relationship based on the effects of education and technological advancement on countries with different income levels.</span></h2>
Articlesglobalizationincome inequalityhuman capitaltechnological innovationsMantas RimidisMindaugas Butkus
Copyright (c) 2023 Intellectual Economics
2023-12-282023-12-2826029110.13165/IE-23-17-2-02Threshold effects of public debt on the tax burden: evidence from EU member states
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7823
<p><strong>Purpose</strong>: The aim of our research is to assess the impact of public debt on tax burden within the member countries of the European Union (EU) during the period from 1995 to 2021.<br /><strong>Methodology: </strong>The assessment of the impact of the public debt on the tax burden was implemented in two stages. Each of them uses two modifications of the model. Our methodology is based on multiple regression models.<br /><strong>Findings</strong>: Our research findings suggest a dual impact of public debt on the tax burden: a reduction in the current period followed by an increase in future periods. Additionally, our study has unveiled that the influence of public debt on the tax burden is contingent upon the specific level of public debt being considered. Our findings confirmed that when public debt reaches a critical threshold of 55.88 percent of the GDP, any further government borrowing is associated with a consequent augmentation of the tax burden.<br /><strong>Originality/value: </strong>Our analysis includes lagged variables to empirically examine whether public debt can possibly result in a higher tax burden in the future. In our study, we explore whether there exists a particular level of public debt at which the influence of public debt on the tax burden fundamentally changes direction.</p>
Articlespublic debttax burdenthresholdEuropean UnionKristina MatuzeviciuteIndrė MironikovaitėLina GaršvienėDovilė Ruplienė
Copyright (c) 2023 Intellectual Economics
2023-12-282023-12-2829230710.13165/IE-23-17-2-03The Improvement of Decision-Making in the Latvian Tax System: Cases of Irreducible Incompatibility Taking Into Account Reliability, Equity and Efficiency Criteria
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7566
<p>The rational functioning of the tax system is a significant problem for any state. Evaluation of the tax system performance is usually carried out considering interest only of one part – either government or business or related to the specific narrow parts of the tax system, like an analysis of a particular tax, thus not allowing to perform a full-fledged assessment. One of the problems that are crucial for the tax system’s vitality – is its reliability.<br /><strong>The purpose</strong> of the article is to develop an approach of estimating and assessing the tax system reliability. Another two major criteria of the tax system functioning are equity and efficiency, which form the basis of the tax system optimization for finding their rational combination. The process of such multi-criteria optimization is usually associated with irreducible incomparability of the criteria.<br /><strong>Methodology </strong>– as a tool proposed Weibull distribution, S-shaped curve, as well as a three-tiered scale for determining the level of the tax system reliability. Using Kendall’s Concordance Coefficient, the resulted data was processed and taxes and criteria on which concessions could be made were determined.<br /><strong>Findings</strong> – the analysis has shown that the difference between the opinion of experts regarding the ranking of taxation criteria was related to their affiliation – state or business. To find a solution in this case method of successive concessions has to be applied, which requires a ranking of relative single indexes of taxation criteria, as well as taxes that are associated with them. <br /><strong>Originality</strong> – for formalization of the process of dealing with incomparability of criteria, proposed concepts of business-oriented aspect of tax optimization, which is aimed at both business entities, as well as on individuals and state-oriented aspect of tax optimization.</p>
Articlestax systemreliability of the tax systemtax system optimizationequityefficiencyexpert rankingAlexey LeontyevKarlis Ketners
Copyright (c) 2023 Intellectual Economics
2023-12-282023-12-2830832910.13165/IE-23-17-2-04Do financial auditors impact sustainability reporting? The effects of big four financial audits on the quality of CSR reports in China
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7594
<p><strong>Purpose.</strong> This paper investigates the effect of cross-reporting quality transfer: the association between the merits of the financial auditor and the quality of corporate social responsibility (CSR) reporting. Specifically, we examine whether the effect of Big Four financial audits on the CSR reporting quality of Chinese listed firms differs from that of non-Big Four firms.<br /><strong>Design/methodology/approach.</strong> This paper uses archival data and regression analysis from a sample (5257 firm-year observations) of A-share listed firms on the Shanghai and Shenzhen Stock Exchanges from 2009 to 2018.<br /><strong>Findings.</strong> The analysis shows that when a company’s financial auditor is a Big Four firm, the quality of CSR reports is higher than when it is audited by non-Big Four auditor, which in turn can be explained by differences in cross-reporting quality transfer between Big Four and non-Big Four firms. Moreover, this effect is more pronounced in non-state-owned enterprises (NSOEs) than in state-owned enterprises (SOEs), and among firms residing in high-pressure legal environments as opposed to low-pressure regions.<br /><strong>Originality.</strong> This study extends the literature on the quality of CSR reporting based on the type of financial reporting audit provider, thus bridging the gap between financial audit and sustainability reporting practice and elucidating the cross-reporting quality transfer effect.<br /><strong>Practical implications.</strong> The paper’s findings shed light on the impact that Big Four firms have on the quality of CSR reports through financial audits, thus confirming the cross-reporting quality transfer effect in China. These findings might appeal to political decision-makers, authorities and companies given the notable contribution of CSR disclosure to the decision‐making processes of stakeholders.</p>
ArticlesFinancial auditBig 4assurancequality of sustainability reportcorporate social responsibilitya financial auditor in CSRsustainable developmentOleh PaskoLi ZhangAlvina Oriekhova Vardan Aleksanyan Mykola Hordiyenko Yarmila Tkal
Copyright (c) 2023 Intellectual Economics
2023-12-282023-12-2833036110.13165/IE-23-17-2-05Corporate governance, credit risk and financial soundness of banks
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7761
<p><strong>Purpose.</strong> This study aims to explore the role of corporate governance (CG) in the financial soundness of banks in Pakistan.<br /><strong>Design/methodology/approach.</strong> We analyzed the panel data of 21 commercial banks in Pakistan from 2006 to 2017. The CG score was measured in a composite manner based on: the audit committee, board size and independence, CEO duality, and managerial ownership. Financial soundness was measured using Z-scores based on the ROE & ROA of banks.<br /><strong>Findings.</strong> The results show a positive role of CG in the financial soundness of banks in Pakistan. Further findings show that an increase in credit risk plays a negative role in banks’ financial soundness. Moreover, the interaction of CG and credit risk positively impact banks’ financial soundness. Specifically, the risk management side of CG ensures the banks’ financial soundness in Pakistan.<br /><strong>Originality.</strong> The findings provide important policy implications for the policymakers of Pakistan who are responsible for financial soundness in the country, suggesting that the focus on risk-taking channels be maintained.</p>
ArticlesCorporate GovernanceFinancial SoundnessRisk-Taking ChannelBanksSaif UllahMuhammad Nadim HanifHaitham Nobanee
Copyright (c) 2023 Intellectual Economics
2023-12-292023-12-2936238310.13165/IE-23-17-2-06The digital transformation of enterprises as a lever to enhance extroversion of foreign trade: the case of Greece
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7570
<p><strong>Purpose</strong>: The present paper aims to capture the evolution of digital transformation in the sectors of the Greek economy, on the one hand. On the other hand, it investigates the existence of causal relationships between the extroversion of sectors of the economy towards foreign trade.<br /><strong>Methodology:</strong> Methodologically, by applying secondary research in international databases, indicators of digital transformation are extracted and certain indicators of the extroversion of the Greek economy are determined. By applying the method of multiple regression, linear correlation relationships between the examined variables are investigated.<br /><strong>Findings: </strong>The findings of the survey include: the improvement of the digital ranking of the Greek economy; and the improvement of extroversion in all sectors of the Greek economy, with stronger improvement in the sector of industrial products. Regarding the correlation between extroversion and digital maturity, indications emerge suggesting that digital transformation in the public sector can contribute to the development of foreign trade.<br /><strong>Originality: </strong>The contribution of this paper in terms of its originality lies in the fact that it fills the literature gap in the investigation of causal relationships between digitization and the extroversion of commercial sectors.<br /><strong>Research limitations: </strong>The limitations to this survey are the lack of data on digital transformation by economic sector for each EU Member State, which occurs from the structural features of the index, and the time horizon of the sample, as the calculation of the indicator by the EU was introduced very recently.</p> <p><em> </em></p>
ArticlesDigital TransformationResearch & DevelopmentCrisesForeign TradeAnastasios MoskofidisPagona Filenta
Copyright (c) 2023 Intellectual Economics
2023-12-292023-12-2938441510.13165/IE-23-17-2-07Elevating Job Search Effectiveness: The Significance of Self-Directed Learning and Self-Control
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7756
<p><strong>Purpose.</strong> Securing employment in the current dynamic job market necessitates the proactive prioritization of one’s employability. The purpose of this study was to determine how self-directed learning (SDL) and self-control practices (SCPs) influence job-seeking behavior (JSB).<br /><strong>Design/methodology/approach. </strong>A comprehensive survey was conducted to collect data from 323 students graduating from esteemed educational institutions in Nepal. The survey included various components, such as SDL, SCPs, JSB, and participant details. The assessment was conducted with JSB, which was divided into behavioral factors, personal factors, and skills and competencies. SDL, comprising goal setting and planning, cognitive control and focus, and skills and competence, and SCPs, comprising impulse management and self-discipline, cognitive control and focus, and emotional regulation and resilience, were evaluated. These factors were assessed using a Likert-type scale comprised of 5-point ratings. The credibility of the data was validated through confirmatory factor analysis and structural equation modeling (SEM).<br /><strong>Findings</strong>. The research hypothesized, on the basis of self-efficacy theory, that both SDL and SCPs have significant effects on JSB. A positive correlation between SCPs and JSB (β = 0.628; p < 0.01) and SDL and JSB (β = 0.356; p < 0.01) was confirmed through path analysis. The research emphasized that SCPs and SDL attitudes constituted 89.0% of the variance in JSB in Nepal, demonstrating their significant influence. The fitness indices of the model were deemed satisfactory, providing policymakers and educators with vital insights.<br /><strong>Research implications. </strong>The findings emphasize the significance of cultivating emotional regulation skills, self-efficacy consciousness, and guided counseling to enable graduates to embark on their professional trajectories with resilience and a sense of purpose in their education. Academic institutions and instructors significantly influence students toward successful career progression through their emphasis on the interplay between self-regulation and self-directed learning.</p> <p> </p>
ArticlesEmployment ReadinessCareer Aspirations EnhancementIndividual CharacteristicsEmpowermentJob Search SuccessRewan Kumar DahalBinod GhimireDipendra KarkiSurendra Prasad Joshi
Copyright (c) 2023 Intellectual Economics
2023-12-292023-12-2941843410.13165/IE-23-17-2-08Behavioral economic model of environmental conservation in human resource management
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7736
<p><strong>Purpose</strong>. The study analyses a sustainable behavioural model in natural resource management that could have a positive impact on the environment and create conditions for rationalizing economic behavior through strategic resource management.<br /><strong>Design. </strong>It examines the current influence of conservation on individual behavior, reflecting how behavior depends on social norms, habits, and individual choices, as well as the potential for correcting behavior using predictable scenarios. To enhance eco-friendly relationships, it is suggested to develop and implement a step-by-step scenario, starting with individuals and gradually increasing interaction by incorporating state-of-the-art digital technologies and considering conservation. When engaging individuals in environmentally friendly economic behavior, it is proposed to create conditions that allow them to choose their roles and utilize their potential to the fullest, fostering a sense of fulfillment and increasing interest in further environmental development.<br /><strong>Findings</strong>. The study determined that biopotential decreases over time, and the curve of biopotential and human potential index has a steeper negative angle, leading to a point of no return when the population experiences stress. Highlighting this negative reality to people is crucial for correcting their behavior. Negative examples are effective in changing consumer behavior.<br /><strong>Originality</strong>. For each group behaviour, a specific schedule of further actions can be created to adjust consumer behavior towards the consumption of ecological and economic products that increase the biocapacity of the territory. It has been established that with a 12% change in consumer orientations towards environmental friendliness, it is possible to stabilize biocapacity by implementing scenarios for environmental behavior and leveraging the psychology of natural resource conservation.</p>
Articlesbehavioral model; environmental conservation; HRMViktor V. KovalDmytro HavrychenkoLiliya FilipishynaIryna UdovychenkoLiudmyla PrystupaInesa Mikhno
Copyright (c) 2023 Intellectual Economics
2023-12-292023-12-2943545610.13165/IE-23-17-2-09Impact of corporate social responsibility activities related to the costs of employee training and qualification development on changes in unemployment rate in eu countries
https://ojs.mruni.eu/ojs/intellectual-economics/article/view/7896
<p><strong>The purpose</strong> is to assess the impact of corporate social responsibility activities related to employee training and qualification development costs on changes in unemployment rates in EU countries.<br /><strong>Methodology</strong><strong>: </strong>Research methods used in an article are analysis of scientific literature, methods of comparison and generalisation. The assessment of the impact on the unemployment rate is carried out using econometric methods - descriptive statistics, analysis of subgroup (panel) data and least squares linear regression analysis.<br /><strong>Findings</strong><strong>:</strong> In the area of social performance, Denmark, Sweden and Poland stand out as the countries with the highest focus on improving employee qualification. The results show that the higher unemployment rates at the EU level in the EU countries studied are due to higher inflation in previous years; higher value-added and higher weighted growth in export partners have contributed to the decline in unemployment rates; business costs of training and qualification development of employees does not have a significant impact on the change in the unemployment rate. However, it should be noted that the results of the empirical study are relevant when applying the model developed.<br /><strong>Originality</strong><strong>:</strong> after highlighting the theoretical approaches of socially responsible corporate activity, focused on employees and emphasizing its impact on employment and unemployment, the assessment model that allows determining the dependence of changes in the unemployment rate on control variables and indicators of socially responsible corporate activity associated with the costs of training and qualification of employees in the case of EU countries, was formed and adapted.</p>
ArticlesCorporate social responsibilityUnemploymentEmployee training costsEglė KazlauskienėEglė Jakunskienė
Copyright (c) 2023 Intellectual Economics
2023-12-292023-12-2945747410.13165/IE-23-17-2-10