Journal of Economics

Islamic Banking-A challenge for the Turkish financial system

Filip Taskovski — 2024-11-28

The Islamic banking model based on the zero interest rate or in practice, the enormously low reference interest rates and the fair distribution of profit and loss is seen as a challenge for economies that have long had the conventional economic model as their basis. The Republic of Turkey, which is one of the world's largest economies, for ideological reasons made an attempt to introduce the Islamic banking
model, which required a significant reduction in the reference interest rate by the National Bank of Turkey, and as a result of this, the country faced a rapid growth in inflation, which in a given period reached over 80%, the Turkish lira recorded a historic devaluation, and the Istanbul Stock Exchange noted significant oscillations in the direction of the accelerated growth in the value of the BIST 100 (XU100) index.
The focus of this research paper is to examine the effect of the introduction of the Islamic banking model on the financial system with special reference to the financial market of the Republic of Turkey, that is, the Istanbul Stock Exchange and the representative index BIST 100 (XU100). According to the results of the research, it can be concluded that the Islamic banking model, which contradicts the principles of the conventional economy which was based on the Turkish financial system, has caused significant destabilization of the Turkish financial system, that is, the financial market. Namely, the growth of inflation
contributes to the growth of the BIST100 (XU100) index and changes in the functioning of financial flows.

Research of the dynamics of the economic performance of the Serbian economy based on LMAW-DNMA methods

Radojko Lukic — 2024-11-28

The issue of analyzing the factors of the dynamics of the economic performance of every economy, which means Serbia as well, is continuously very current, challenging, significant, and complex. Adequate control of key factors can significantly influence the achievement of the target economic performance of the economy. The application
of multi-criteria decision-making methods enables adequate control of the key factors of economic performance of the economy. Bearing that in mind, this paper analyzes the dynamics of the economic performance of the Serbian economy in the period 2013 - 2022 based on the LMAW-DNMA method. The top five years according to the economic performance of the Serbian economy according to the LMAW-DNMA method are in order: 2021, 2019, 2018, 2013, and 2022. The worst economic performance of the Serbian economy was achieved in 2014. Recently, the economic performance of the Serbian economy has improved significantly. Adequate management of the analyzed statistical variables (gross domestic product, inflation, agriculture, industry, export, import, capital, income, and taxes) influenced this. Likewise, the geopolitical and economic climate, foreign direct investments, the COVID-19 pandemic, the energy crisis, the digitalization of the entire company's operations, and other factors. Their adequate control can greatly influence the achievement of the target performance of the Serbian economy.

Creating a strategic competitive advantage through branding

Viktor Atanasovski — 2024-11-28

The focus of this research paper is the analysis of the creation of a competitive
advantage through branding, as a prerequisite for the strategic long-term survival of
the organization in conditions of intense competitive structure on the market. The main
goal is to define and sublimate the need to understand competition, as well as
consumers through researching competition, understanding the basics of competitive
marketing strategy, based on creating values for consumers, as well as recognizing the
need to balance consumer orientations and competitors in building a true market
oriented organization. The results of the research lead to a conclusion emphasizing
that companies today are facing the toughest competition ever. Understanding the
customers is an important first step in developing customer relationships, but it is not
enough. To gain a competitive advantage, companies have to use this understanding
to design market offers that deliver greater value than those of competitors vying for
the same customers. Competitive intelligence provides great advantages in the area of
product development. Knowing the progress of competitors' products, processes and
technology is very useful in a competitive market. An information that creates value for
the company, often creates great curiosity among competitors. Companies sometimes
go to great lengths to reveal these secrets. They develop techniques to obtain
information, sometimes at the boundaries of ethics and law.
The brand is the most powerful weapon a company can have, providing a competitive
advantage over other companies. Today, consumers are not satisfied only with a
product that would satisfy their basic needs. Building a recognizable brand is a
challenge for any company. The fact that only 10 companies control the majority of the
market in the world speaks volumes about the power that the brand has. What is
important is that every company applies a strategic approach in its operations when it
comes to this issue.
Precisely, to perceive these tendencies, this research paper integrates several
hypotheses. The focus is on the basic hypothesis related to "Corporate brand: sources
of value for business". While separate Hypothesis 1 tests the market share of strong
brands and Hypothesis 2 tests the entry barriers of competitors created by strong
brands.
In order to obtain a more complete and realistic picture of the investigated problem,
and taking into account the advantages and weaknesses of the research methods,
qualitative and quantitative research methods were used. The results are combined and
processed, based on which, conclusions are drawn. Some of the methods used are:
analysis, survey, interview, observation, comparison and statistical data processing.

Shaping the Next Generation of Online Entrepreneurs: A Policy Framework

Zlatko Bezhovski — 2024-11-28

This paper presents a comprehensive policy framework aimed at fostering the next
generation of online entrepreneurs. Recognizing the rapid rise of digital
entrepreneurship, particularly among youth, the framework outlines strategic
interventions across various stages of education and entrepreneurial development.
The framework begins with early exposure to entrepreneurial mindset development
through creativity, problem-solving, and leadership activities in primary and high
school. It then progresses to advanced digital and financial literacy training, business
model development, and practical skills-building during university education and in
incubators outside the formal education. Mentorship, networking opportunities, and
access to capital are emphasized as key enablers of entrepreneurial success.
Developing digital skills such as coding, web development, content creation and digital
marketing is also recognized as an important, if not curtail aspect for successful digital
entrepreneurship. The integration of self-efficacy development throughout these
stages ensures that young entrepreneurs are equipped with the confidence and
resilience necessary to navigate the complexities of the digital economy. Additionally,
the framework highlights the importance of incubator and accelerator programs,
regulatory simplification, and access to digital infrastructure as critical components of
a supportive entrepreneurial ecosystem. By adopting these policy recommendations,
governments, educational institutions, and incubators can create a conducive
environment for digital entrepreneurship, ultimately driving innovation and economic
growth. The proposed framework aims to provide actionable insights for policymakers,
educators, and ecosystem developers in their efforts to nurture and support the next
generation of online entrepreneurs, ensuring they are equipped with the skills, mindset,
and resources required for success in the digital age.

Does the ECB's quantitative easing stimulate the Eurozone stock prices?

Spase Dameski — 2024-11-28

This study delves into the nuanced relationship between quantitative easing (QE) programs implemented by the European Central Bank (ECB) and asset prices in the Eurozone, focusing particularly on the short-term effects. Through the utilization of alinear regression model, supplemented by the introduction of a binary variable
designed to isolate the immediate impact of ECB announcements, the analysis aims to disentangle the multifaceted influences of monetary policy communication and broader QE measures on stock price dynamics.
The findings of this investigation reveal notable insights into the effects of ECB QE initiatives on asset prices. While certain components of the ECB's QE programs, such as the asset-backed securities purchase program and the third covered bond purchase program, exhibit statistically significant effects on asset prices, others, including the
corporate sector purchase program and the public sector purchase program, do not. Additionally, the statistical analysis does not provide sufficient evidence to conclusively support the hypothesis that ECB QE programs lead to increased asset prices in the Eurozone, particularly in the short term. Despite the empirical evidence presented, it is crucial to acknowledge the methodological limitations inherent in the study. Endogeneity, anticipation of market behavior, and qualitative market dynamics pose notable challenges to the interpretation of results. Nevertheless, this study contributes to a deeper understanding of the mechanisms through which monetary
policy influences financial markets in the Eurozone. The implications of these findings extend beyond academic discourse, carrying significance for policymakers, investors, and market participants. By offering insights
into the effectiveness of QE measures as tools for promoting economic stability and growth, this study informs decision-making processes and shapes expectations regarding the impact of ECB policies on asset prices in the Eurozone. In conclusion, while the analysis presented in this study represents a step forward in unraveling the complexities of the relationship between ECB QE programs and asset prices, further research is warranted to address the methodological limitations and refine our understanding of this crucial aspect of monetary policy transmission mechanisms.

Qualitative Assessment of Tax Procedures for SMEs in the Republic of North Macedonia: Insights from the COVID-19 Pandemic and Energy Crisis, Based on a Questionnaire Survey of SMEs in the Municipality of Strumica

Katerina Koleva — 2024-11-28

This research examines the qualitative aspects of tax procedures in North Macedonia, focusing on small and medium-sized enterprises (SMEs) during the COVID 19 pandemic and the energy crisis. Through a questionnaire survey of SMEs in
Strumica, the study explores how these crises have affected perceptions of tax fairness, administrative efficiency, and compliance challenges. Key areas of investigation include the effectiveness of government support measures, the
adaptability of tax procedures, and the administrative burdens on SMEs. The findings reveal that SMEs faced significant disruptions and increased challenges in navigating tax procedures, with many respondents reporting difficulties
in compliance and a greater need for support from tax authorities. The study highlights both successful government initiatives and areas for improvement, offering recommendations for enhancing the resilience of tax procedures to better support SMEs during future crises. These insights are crucial for policymakers and tax administrators in creating a more responsive tax environment for SMEs in North Macedonia.