Economics, Finance and Management Review

RELATIONSHIP BETWEEN LOGISTICS SECTOR AND ECONOMIC GROWTH IN ASEAN COUNTRIES

2024-10-03T14:48:46+03:00

In the modern economics, any manufacturing companies have increasingly relied on professional logistics firms, leading to rapid growth in the logistics sector as a service industry and its significant contribution to economic development. With increasing globalization and competition, countries have focused on enhancing their logistics systems to ensure stable economic growth and strengthen global trade competitiveness. In the ASEAN region, logistics plays a critical role, facilitating cross-border trade and regional connectivity. This study aims to investigate the relationship between the logistics sector, specifically air freight transportation, and economic growth in ASEAN countries, given the sector's central role in supporting supply chain management and trade activities. The primary objective of this study is to determine whether there is a causal relationship between air freight transportation (AFT), a key logistics activity, and gross domestic product (GDP) growth in six ASEAN countries. The study seeks to provide insights into how investment in logistics infrastructure, particularly in air freight, may influence economic growth in the region. The study uses panel data for six ASEAN countries from 1996 to 2021. Data on GDP growth and air freight transportation were sourced from the World Bank’s World Development Indicators database. A series of statistical tests, including the Cross-Sectional Augmented Dickey Fuller (CADF) test, Pesaran’s slope homogeneity test, and the Bootstrap Granger causality test, were performed to examine cross-sectional dependence and the causal relationship between GDP growth and air freight transportation. Descriptive statistics revealed significant disparities in air freight transportation capacity among the countries studied, with Indonesia and Thailand showing substantial air freight volumes compared to the Philippines. However, the results of the panel causality tests, including the Dumitrescu and Hurlin panel causality test, indicate that no causal relationship exists between air freight transportation and GDP growth in the six ASEAN countries.

STRATEGIC MANAGEMENT: FROM THE DIGITALIZATION OF THE CONSTRUCTION INDUSTRY TO THE DEVELOPMENT OF THE HOUSING MARKET UNDER THE TERMS OF FINANCIAL LEASING

2024-10-05T02:11:31+03:00

In the article, a study was conducted on the consideration of the advantages and possibilities of implementing the process of digitalization of the construction sector in the context of strategic management, taking into account the possibilities and need for effective interaction and interconnection of the state and business structures, taking this into account when developing effective mechanisms for its implementation in order to provide the population with housing on terms of financial leasing. The purpose of the article is the development of theoretical approaches and the development of practical recommendations for increasing the effectiveness of strategic management of the construction sector in the context of its digitalization, outlining the relationship with the real estate market, taking into account the prospects of providing the population with housing under the terms of financial leasing. The methodological basis of the article is a number of methods that ensure the reliability of the obtained results and conclusions, in particular, such as: monographic, logical, descriptive-analytical, analysis, synthesis, system approach, theoretical generalization, observation, quantitative and qualitative comparison. The article examines the digitalization of the construction sector of Ukraine in the context of strategic management as a vital necessity to ensure recovery in the post-war and post-war periods, as an important stage in the development of infrastructure and the economy in general. Attention is focused on the importance of developing a program of actions taking into account the implementation of digitization mechanisms, taking into account the interrelationship and dependence of the effective functioning of the economy on the level of development of innovative technologies, regulatory and legal support, the field of education, in particular higher education, and the development of public-private partnerships. The advantages and disadvantages of digitalization of the construction sphere of Ukraine are considered, taking into account the challenges that this sphere faces in modern business conditions. The role of digitization in the housing market under the terms of financial leasing and the main aspects in which digital technologies change this market are determined.

ECONOMIC ASPECTS OF FINANCIAL INTELLIGENCE IN THE SYSTEM OF ANTI-CORRUPTION MEASURES

2024-10-05T04:01:48+03:00

Corruption is a significant barrier to state development, particularly in Ukraine, where it impacts economic reforms, undermines governance, and fuels the shadow economy. The relationship between corruption and the laundering of illicit proceeds is a critical issue, with financial intelligence units (FIUs) playing a crucial role in combating these activities. Ukraine’s State Financial Monitoring Service (SFMS) acts as the country’s FIU, contributing to anti-corruption efforts by identifying and freezing proceeds from corrupt practices. This study explores the economic aspects of financial intelligence in the broader anti-corruption framework. The primary aim of this research is to examine the theoretical and practical roles of financial intelligence, particularly the SFMS, in Ukraine’s anti-corruption strategy. The study focuses on the mechanisms through which financial intelligence units support the detection, investigation, and prevention of money laundering connected to corruption. The research utilizes both general and specialized methods, including system analysis, economic and statistical methods, and scientific generalization. Data was gathered from the SFMS, law enforcement agencies, and analytical reports. The research was conducted by analyzing the role of financial monitoring, identifying corruption-related laundering schemes, and assessing the effectiveness of SFMS interventions. Tabular and graphical methods were employed to present findings. The study found that while there has been progress in Ukraine’s anti-corruption efforts, corruption remains a deeply rooted issue, and the country’s score on the Corruption Perception Index (CPI) is still low. The SFMS has played a key role in investigating money laundering related to corruption, working closely with bodies like the National Anti-Corruption Bureau of Ukraine (NABU). Between 2016 and 2020, the number of reports submitted by the SFMS to law enforcement agencies increased significantly, highlighting its role in preventing and detecting corruption-related financial crimes. Continued collaboration between financial intelligence units and anti-corruption bodies is essential for further success in combating corruption. Strengthening the SFMS’s capabilities and improving coordination with law enforcement agencies could significantly enhance Ukraine’s ability to track and recover illicit funds. Future research should focus on optimizing financial intelligence processes and broadening the scope of preventive measures to curb both corruption and money laundering.

IDENTITY OF AN ENTERPRISE AS A DISTINCT VALUE IN A CULTURE OF HIGH TOLERANCE FOR UNCERTAINTY

2024-10-05T04:36:51+03:00

The identity of an enterprise, once overlooked by theorists, has gained significant attention across multiple disciplines, including management, sociology, and economics. In today’s dynamic business landscape, especially within cultures of high tolerance for uncertainty, corporate identity has emerged as a crucial element for success. Such cultures, characterized by flexibility, openness to change, and risk acceptance, require companies to establish a strong identity to navigate uncertainty and maintain coherence. Corporate identity integrates values, goals, culture, and operational methods, ensuring the company remains distinct and trustworthy amid constant change. This research aims to explore the theoretical and practical aspects of corporate identity as a distinct value in a culture with high tolerance for uncertainty, emphasizing its role in strategic decision-making and adaptability. The study is based on an interdisciplinary theoretical framework, utilizing general and specialized scientific research methods. These methods, including system analysis, theoretical generalization, and qualitative approaches, were employed to highlight challenges related to corporate identity and offer solutions. The research also incorporates perspectives from psychology, sociology, and management to analyze how identity functions in uncertain environments. The study highlights several factors contributing to the importance of corporate identity: cultural diversity, mission and values, image and reputation, organizational culture, management style, innovation capacity, and communication processes. It was found that companies with a well-defined identity are better equipped to manage risks, adapt to market changes, and build long-term relationships with stakeholders. A strong corporate identity enhances employee motivation, stakeholder trust, and the ability to innovate, thereby fostering a competitive edge in uncertain environments. The findings underscore the significance of corporate identity as a strategic asset in managing uncertainty. In today’s globalized, rapidly changing market, businesses must prioritize the development and maintenance of a clear, cohesive identity to ensure resilience and sustainability. Future research should focus on further exploring the role of corporate identity in different cultural contexts and its impact on long-term competitiveness and innovation.

CREDIT MANAGEMENT STRATEGY TO ENSURE THE FINANCIAL STABILITY OF PACKAGING INDUSTRY ENTERPRISES

2024-09-23T03:54:26+03:00

The article examines the possibilities of increasing the efficiency of credit resource management to ensure the financial stability of enterprises in the packaging industry. It was found that in modern conditions, the study of the assessment of the financial stability of the enterprise was not of a comprehensive nature, but was based, mainly, on the use of the coefficient method, which took place on a static basis and did not take into account the specifics of the industry, did not make it possible to assess the ability of the enterprise to generate cash flows for the implementation of activities. It has been proven that the problem of ensuring financial stability and financial balance of packaging industry enterprises is now an important one, especially in the conditions of uncertainty and instability of the economic environment caused by the war. On the basis of the conducted research, the key factors on which an effective credit management strategy should be based have been determined. In this context, the special importance of a timely and objective assessment of the financial stability of enterprises in the packaging industry, regardless of the forms of their ownership, is emphasized, which should be aimed at finding ways and opportunities to increase profits by means of a timely analysis of the financial state of enterprises. Eleven factors are proposed that should be taken into account when choosing a financial credit institution. A systematic analysis of the financial condition of the enterprise, its solvency, liquidity and financial stability is also necessary because the profitability of any enterprise largely depends on its solvency. Based on the balance sheet plan of the necessary resources, we forecast the sources of their formation, taking into account the level of financial leverage and the funds saved as a result of this at the time of taxation. Choosing the most profitable parameters, the enterprise can immediately determine the directions of saving its own monetary and financial resources, as well as optimize the use of already received ones. It has been established that in modern conditions, the relevance of effective financial management as a system of timely methods and techniques capable of preventing a financial crisis and avoiding risks of loss of financial stability of the enterprise in the future is objectively increasing. The lack of a clear definition of financial stability as an economic category and a system of indicators for its assessment, which requires further theoretical development of the problem.

FINANCIAL MANAGEMENT PRACTICES ON GROWTH OF BUSINESS ENTERPRISES IN MBINGA DISTRICT, TANZANIA

2024-08-14T13:32:36+03:00

A robust financial management system forms the foundation for business growth and long-term survival. However, there is limited information on the financial management practices that contribute to business growth in the Mbinga district. This study examined financial management and working capital management practices. A semi quasi-experimental research design was employed, utilizing questionnaires distributed to a sample of 62 business owners. Descriptive statistics were analyzed using the SPSS package. The results indicated that 41.9% of business enterprises employed working capital management practices, while 24% used capital structure management practices. Financial management practices were found to enhance management efficiency with a mean score of 3.74, increase the availability of capital with a mean score of 3.61, and improve operational margins with a mean score of 3.56. The study concluded that financial management practices are crucial for business growth and recommended their implementation. The study also found that capital structure management practices were applied to a lesser extent, although businesses showed an understanding of balancing debt and equity for financial sustainability. These findings suggest that the effective implementation of financial management practices is crucial for the growth and performance of businesses in the district. The study concludes that the integration of sound financial management practices contributes to better financial decision-making, risk mitigation, and resource optimization, leading to business expansion and sustainability. From a policy perspective, the study recommends that regulators and stakeholders encourage firms to leverage debt financing due to its associated tax benefits and advantages for financial sustainability. Theoretically, the findings underscore the relevance of agency theory in understanding the dynamics between managers and shareholders, and the principle of optimal capital structure in maximizing firm value. These insights provide a foundation for future research and practical interventions aimed at improving financial management practices in similar contexts.

ECONOMIC ASSESSMENT OF THE ACTIVITY OF RETAIL INVESTORS ON THE STOCK MARKET

2024-08-14T13:31:15+03:00

The article examines the activity of a retail investor on the stock market. Issues of economic assessment of their activity and problems of increasing its effectiveness are studied. The dynamics of the share of retail investors in the total volume of trading in the stock market is analyzed. The key factors of growth of retail investors' activity in the stock market are studied. It was determined that the share of retail investors in the volume of trades on the stock market has almost doubled. The factors that caused such a powerful dynamic were analyzed. Two factors such as available investment opportunities and empowerment through information are discussed in detail. An economic assessment of the effectiveness of the activities of retail investors was carried out. The reasons for the negative results of their work on the stock market have been revealed. The importance of developing specific investment goals before starting investment activities on the stock market and adapting investment strategies to them is determined. It is suggested to use paper trading simulators that reproduce the real trading environment. It has been found to allow investors to make virtual trades and track their performance in real time. It is recommended to engage more comprehensive analytical and research platforms that provide tools for charting and price research. This has been proven to allow investors to more effectively analyze market trends, identify potential economic opportunities, and develop effective trading strategies. Possibilities of minimizing transaction costs through the use of ETFs-shares of investment funds, which are often traded on the stock exchange, are considered. As a result of the conducted research, the possibilities of further scientific research on this topic in the direction of using the latest financial programs based on artificial intelligence and comprehensive assessment of the interaction of various sectors of the stock market with their help were considered.

FINANCIAL INVESTMENTS AS AN OBJECT OF ACCOUNTING AND TAXATION

2024-10-05T00:57:47+03:00

In the article, the authors justify the expediency of further research on transactions with financial investments, taking into account their importance in the activities of enterprises of various forms of ownership in the conditions of martial law and the specifics of the post-war recovery of Ukraine. The main tasks of the organization of accounting of financial investments are determined. Proposals have been made to improve the efficiency of the accounting process at enterprises. The theoretical and methodological basis of the research is the achievements of foreign and domestic scientists in the field of accounting and taxation of economic transactions. In the research process, general scientific methods and methods of cognition were used: theoretical generalization, analysis, synthesis, classifications. Grouping and comparison methods were used to determine the essence of financial investments as an accounting object. Techniques of concretization and abstraction were used to highlight features inherent in investments. The dialectical method, induction and abstraction became the basis of proposals for improving the efficiency of the accounting process at the enterprise. Thus, the study of financial investments as an object of accounting allowed: carry out a critical review of the concept of "investment" in economic literary sources and determine the essence of this economic category; specify the main tasks of accounting for financial investments; determine proposals for improving the efficiency of accounting for financial investments in large companies, taking into account the use of the automated SAP ERP program.

HUMAN CAPITAL AND ECONOMIC GROWTH IN FUJIAN PROVINCE-CHINA

2024-10-03T14:48:09+03:00

Human capital is a key factor in driving economic growth at both the national and provincial levels. This study aimed to evaluate how human capital influences economic growth in Fujian by examining data from 2008 to 2020. Numerous theoretical and empirical studies have confirmed approaches to measuring human capital through formal education, cost-based approaches, and income-based approaches. Based on these approaches, the research objective, and data availability, two variables were selected: trained labor and state budget expenditure on education. To examine the impact of human capital on economic growth, the study employs a multivariate OLS regression method with the following tests: Normal Distribution of Residuals, Heteroscedasticity, Autocorrelation, Multicollinearity. The analysis used trained labor and educational budget expenditure as indicators of human capital. The findings indicated that both trained labor and educational spending had a significant positive impact on Fujian's GRDP. While trained workers contributed to increasing the province's economic output, the current level of spending on education and training was not substantial enough to generate a strong effect on the economy. Therefore, Fujian should focus on developing a strategy to cultivate high-quality human capital and enhance the effectiveness of its investment in education and training in the coming years. As the province continues to modernize and integrate into the global economy, its ability to develop and retain a skilled workforce will be a key determinant of its success. The province's policy makers must adopt solutions that encourage workers to invest in improving their skills and productivity, while also fostering a learning culture. In the context of climate change and limited local resources, Fujian’s reliance on human capital will be critical in achieving its goal of becoming a leading province in the China and, eventually, a highly developed region in China by 2030.

POLICY FRAMEWORK TO COVER ECO-INDUSTRIAL PARKS PILLARS

2024-09-23T03:53:54+03:00

The concept of eco-industrial parks has gained significant global attention, particularly in the context of sustainable development goals, which emphasize the necessity of balancing economic growth with environmental stewardship. Industrial zones and industrial parks have traditionally contributed to economic output; however, their environmental footprints present challenges, necessitating a shift toward more sustainable industrial practices. In Ukraine, the need for eco-industrial transformation is further exacerbated by its unique socio-political and economic conditions, where resource efficiency and environmental sustainability are critical for long-term industrial competitiveness. This study aims to propose a comprehensive policy framework for the establishment and governance of eco-industrial parks in Ukraine, focusing on creating a balance between industrial growth and sustainable practices. By utilising mixed-method approach, combining both qualitative and quantitative research methods, this research integrates global experiences—particularly those from China, Italy, and Vietnam—into a model that can be adapted to Ukraine’s specific needs. Key pillars such as regulatory support, management commitment, environmental performance, and industrial symbiosis were identified as central to the successful implementation of eco-industrial parks. The findings demonstrate that structured policy interventions, supported by governmental commitment and cross-sector collaboration, can significantly enhance resource efficiency, reduce emissions, and promote sustainable development. Additionally, the study emphasizes the importance of aligning industrial and urban planning to foster a holistic approach to sustainable development. The practical implications of this research suggest that by adopting a robust policy framework, Ukraine can improve its environmental performance in industrial zones, enhance industrial competitiveness, and contribute to broader national sustainability goals. This framework can serve as a guide for policymakers and stakeholders, offering a clear roadmap for the transition toward eco-industrial parks that are aligned with both national objectives and international sustainability commitments.