Biljana Tashevska

Ss. Cyril and Methodius University in Skopje · Faculty of Economics - Skopje

The paper examines the potential effect of government debt on the social protection expenditure level in Central and Eastern European countries. More specifically, we examined whether governments reduce social protection spending when the fiscal stance worsens and when debt rises, in order to avoid fiscal unsustainability. This is a topical issue,...

In recent decades, the countries from Central and SouthEastern Europe (CESEE) have experienced sizeable emigration , accompanied by growing remittance inflows. In some countries, especially developing countries, remittances present a significant source of foreign exchange inflow and of income for poorer families. However, empirical research on the...

Increasing the statutory minimum wage in most SEE economies, in the same time represents an increase in the main source of income, and providing a higher level of welfare for workers. However, in some SEE countries, despite the unsuitable economic indicators, and the slow recovery from the economic crisis, a sharp increase in the minimum wage is ob...

This article presents one of the first attempts to explore the relationship between government revenues and government expenditures in six Southeast European countries for the period 1999–2015, employing a bootstrap panel Granger-causality approach, which provides insight into the nature and direction of their relationship in each country. The empi...

European welfare states, with their comprehensive and generous welfare model, create the largest part of general government expenditures in the European Union member countries. Given the rising trend of social expenditure and the long-run challenges coming from population ageing, this paper addresses the issue of social dominance, a situation in wh...

There has been a global trend of public sector decentralization over the last few decades, justified by the fact that transferring public revenues and expenditures from central to local government level is expected to deliver greater public sector efficiency, higher economic growth rates and better overall macroeconomic performance. In this paper,...

The link between labor productivity and labor compensation has been of great interest in economic research. The traditional economic theory argues that there is a positive link between productivity and workers’ compensation. According to this theory, increasing labor productivity will cause an increase in the wage level and will boost the average h...

The rise in social spending during the last century brought about a significant increase in the total government expenditures and according to many studies, also contributed to the rising public debt. The intent of social spending is reducing and alleviating inequality and poverty and enhancing social cohesion. Empirical evidence shows that countri...

The rise in social spending during the last century brought about a significant increase in the total government expenditures and according to many studies, also contributed to the rising public debt. The intent of social spending is reducing and alleviating inequality and poverty and enhancing social cohesion. Empirical evidence shows that countri...

The rise in social spending during the last century brought about a significant increase in the total government expenditures and according to many studies, also contributed to the rising public debt. The intent of social spending is reducing and alleviating inequality and poverty and enhancing social cohesion. Empirical evidence shows that countri...

In this article, we use a recursive VAR model to study the macroeconomic effects of fiscal and monetary policies in Macedonia as well as their interactions during 2000–2014. The main findings from our empirical investigation are as follows: first, an increase in public expenditure results in lower economic activity, higher public debt and a loss of...

This research provides a critical analysis of the available relevant theoretical and empirical literature regarding the key lessons about fiscal and monetary policy during the latest global crisis. The main contribution of this paper lies in offering a new redesigned framework for the key macroeconomic policies which can serve as a general guide to...

This article reviews the empirical literature on the “tax-spend debate” or “revenue-expenditure nexus” that emerged in mid 1980s due to concerns over budget deficits. This strand of literature examines the intertemporal relationship between government revenues and government expenditures in the generation of budget deficits. Several observations ca...

Demographic transition is defined as shift from high birth and death rates and increasing population to very low birth and death rates and decreasing population, as a country progresses from a pre-industrial to an industrialized economic system and significant increase in the urbanization. It is consisted of five stages. The analysis provides revis...

The global economic crisis caused a deterioration in the public finances of the South East European countries. Hence, the fiscal sustainability issue became important not only for developed EU countries (considering the European debt crisis), but also for the SEE region. The paper analyses how primary government balances in South East Europe adjust...

The recent global financial and economic crisis caused great concerns in many developed countries (especially in the European Union) due to rising debt levels and deterioration of their fiscal space. The adverse effects of high indebtedness highlighted the importance of maintaining sustainable public finances. This problem was not limited to rich a...

The global economic crisis caused a drastic worsening of the fiscal stance in a number of developed countries and placed fiscal sustainability in the focus of economists. This paper provides a review of methodological approaches to fiscal sustainability assessment. Beside the traditional assessment methods, due to the uncertainty of future trends o...

Finally, based on our research study we would like to offer some suggestions to the policy makers: First, our analysis of the effciency of public spending and the overall fiscal policy of the republic of Macedonia for the period 2002:Q1 – 2014:Q3 by using the concept of fiscal multipliers confirms the following conclusions: • the effects of inceras...

The paper starts by stressing the central role of entrepreneurship as a driving force for the dynamism and growth of modern economies. Then, the common factors contributing to low level of innovation activity in the Western Balkans are analysed. We then focus on how those factors limit the level and quality of innovation activity in the case of the...

The paper starts by stressing the central role of entrepreneurship as a driving force for the dynamism and growth of modern economies. Then, the common factors contributing to low level of innovation activity in the Western Balkans are analysed. We then focus on how those factors limit the level and quality of innovation activity in the case of the...

The 2008 global economic crisis exposed the importance of state fiscal intervention, and more than two decades of neoclassic paradigm and a non-fiscal domination paradigm, it brought back fiscal activism and the Keynesian ideas and measures at the top of government agendas. However, drastic worsening of many developed nations’ fiscal state, as a r...

The global economic crisis opened a new chapter in economic policy and awakened economic science. Its severity, the various negative financial and economic shocks and the impotence of the economic policy response revealed new questions about the background and the causes of the economic crisis – what led to the emergence of the global economic cris...

Abstract Тaking into account the specific features of the Macedonian economy, as a small, open economy with a fixed exchange rate, the goal of this research is to contribute to the discussion of whether countries with such characteristics are under monetary or fiscal dominant regime and whether the dominance has changed over time and why. We use a...

This paper first describes the design and functioning of fiscal policy during the Great Depression – mainly on the example of the USA. Then it summarizes the debates and different assessments of the efficiency, i.e. inefficiency of the fiscal stimuli during the Great Depression. These estimates, for reasons of objectivity, are placed within the his...

The global economic crisis had a a significant impact on many economies in the world, especially on the small and open economies where the transmission channels of the crisis had their own specifics. Therefore in this paper we try to analyze the transmission mechanism of the global crisis in a small and open economy -the Republic of Macedonia, whic...

The global economic crisis imposed one of the most significant challenges for the conduct of monetary policy, which forced monetary authorities throughout the world to reach the limits of their conventional instruments and implement new sets of measures for exit of the crisis. The situation created by the global crisis presented an especially inter...

This article provides an overview of the roots of the European debt crisis, which cannot be attributed only to the large fiscal stimulus undertaken by the governments as a response to the global financial crisis of 2007. It results also from the specific design of the Eurozone and the disparities among countires, as well as to fiscal and financial...

The tax wedge is a significant part of total labour costs, which creates a difference between the gross wage and the net take-home pay. The tax wedge receives much attention in research, since it is perceived that high labour tax wedge has detrimental effects on labour market outcomes and causes higher levels of unemployment. The paper addresses t...

The theory has concluded, and the practice has confirmed numerous times, that the dynamic trends in construc-tion influence the general economic activity of a country with a multiplier effect. More specifically, growth in the construction sector activity stimulates a revival of the total economic activity. Hence, the growth in this sector stimulate...

The objective of this paper is to reveal the main determinants of the economic growth in South-East European countries. We perform a panel data analysis for 7 countries with similar economic surroundings: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania and Serbia. The observation period is 1995 - 2007. Empirical results indic...

The ability to attract international capital can offer large potential benefits for developing countries. The objective of this paper is to reveal the main determinants of foreign direct investments in southeast European countries (SEEC). We perform an econometric model based on a panel data analysis for 8 countries with similar economic, political...

The relationship between wage and labor productivity is very frequent and receives a special treatment in economic theory and practice. The purpose of this paper is to explore the relationship and interdependence between net-wage and labor productivity in the Republic of Macedonia during the period 1995-2007. The objects of analysis are the relatio...