Baltic International Academy

About: Baltic International Academy is a(n) education organization based out in Riga, Latvia. It is known for research contribution in the topic(s): Logic synthesis & Parametric statistics. The organization has 81 authors who have published 96 publication(s) receiving 231 citation(s). The organization is also known as: Baltic Russian Institute.

Assessment of competitiveness of regions of the Republic of Kazakhstan

Abstract: In modern science, there are a large number of techniques focused on the assessment of competitiveness through the analysis of certain resources in the region. However, accounting of human resources in such assessments is not used as a prior factor in identifying regional competitive advantages. Competitive advantages affect not only the efficiency of individual sectors of the economy but also the overall social and economic development of the country. Assessment of the competitiveness of the region should include one of the main parameters of the human resource development level. Therefore, the forecast for the competitiveness of the region should take into account the pace of human resources development. The methods used in Kazakhstan for assessing the competitiveness of a region considers only the assessment of human resources in its structure but do not take into account the level of their development over time, as well as the multi-factorial nature of their components.The work explains and analyzes rating model for assessing of the competitiveness of the regions of Kazakhstan (the National Chamber of Entrepreneurs of the Republic of Kazakhstan). The authors proposed a methodology for ranking the regions of Kazakhstan based on an assessment of the development of their human resources that affect the competitiveness of the region. It includes an analysis of demographic, labor and social and economic indicators reflecting the state of human resources.

Dataset for determining rational taxation value with incompatible criteria of economic efficiency and equity.

Abstract: This article is essentially a dataset necessary for analysing the taxation. The data analysis has allowed to determine the optimal taxation model, when the criteria of economic efficiency and equity are incompatible. The dataset has allowed the use of the method of successive concessions in tax optimization. The practical significance of the dataset lies in the ability to simultaneously improve the efficiency and equity in taxation. The dataset was obtained by using the method of expert estimates. A group of experts was asked to rank the taxes established by the Tax Code of the Russian Federation, in descending order of importance. Only strict rankings were allowed. The consistency of expert opinion was evaluated using the Kendall coefficient of concordance. The data set was supplemented with the expert ranking data of the basic principles of taxation, such as the principle of equity; the principle of certainty and accuracy of taxes; the principle of ease of tax collection for taxpayers; the principle of efficiency; the principle of commitment. The dataset can be used in the future to determine a rational amount of taxation depending on the established criteria.

Modern Model of Interconnection of Inflation and Unemployment in Latvia

Abstract: Globalisation contributes to stabilisation of monetary policy of countries, achievement of price stability and decrease rates of inflation. There is no clear generally accepted concept for “inflation”. A number of experts consider inflation to be a complicated multisided process, which depends not only on economical but also on social and political reasons. One of the main aims of state governments and central banks of the majority of world countries is the decrease of inflation due to its negative effect on the economy. Researches have shown that in developed countries inflation higher than 3% leads to substantial slowdown of economy growth rate. A. Phillips determined the presence of negative correlation between the rate of inflation and the rate of unemployment. On the basis of so called Phillips curve a wrong conclusion was done that by increasing inflation it is possible to decrease unemployment. It wasn't confirmed in practice. There is a hypothesis stating that unemployment has a certain “natural” Not Accelerating Inflation Rate of Unemployment (NAIRU). Nowadays Phillips curve (1958) is considered in a wider sense as a complicated event, developing in the absence of neutrality of money in economic processes. The object of the research is interconnection of inflation and unemployment in Latvia. The goal of the research – analysis of interconnection between inflation and unemployment in Latvia, estimation of the “natural” rate of unemployment. All these researches have not been done before. By using the statistical data of Latvia and analysis thereof show the possibility of using modern mathematical regression models for researches of macroeconomic indicators. Methods of the research are mathematical modelling, correlation and regression analysis. In Latvia systematic accounting of unemployment is done from 1996. For analysis of the interconnection between time series of inflation rate and unemployment a non-linear regression equation - a quadratic parabola was computed and estimated. The considered period is from the year 1996 until 2008. The negative correlation between inflation and unemployment occurs within the whole considered time length. Classical Phillips curve is missing. However, within the period from the year 1999 until 2008 negative correlation occurs, as it is with Phillips curve. Such change of correlation between inflation and unemployment from positive to negative value at the turn of 1998-99 is obviously explained by macroeconomic changes and development peculiarities in Latvia. To identify peculiarities of inflation in Latvia the period from 1999 to 2008 has been analysed separately. To check the quality of the regression models the correlation and regression analysis was done. The calculated index and coefficient of determination in both cases point at quite good quality of regression models: with the help thereof it is possible to explain 70 % and 60 % of inflation respectively. It is possible to say that both models of regression adequately fit empirical data and are appropriate for use. As long as analysis of dynamics time series is fulfilled, a check has been done for the presence of autocorrelation in residuals, which is subjected to autoregressive process of the first order. For the check of the main hypothesis Н о : ρ = 0 Durbin-Watson test statistics has been used. Analysis showed that in these models there is no autocorrelation, econometric models can be used for analyses. A multiple linear equation of inflation autoregression model was obtained and analysed also. To determine the “natural” rate of unemployment in Latvia (NAIRU) the last equation is changed. As a result it is obtained that the estimate of the “natural” rate of unemployment for Latvia's economy is quite large 16%. In developed market economies NAIRU is much less. This denotes existence of disproportions and drawbacks of macroeconomic development. This is confirmed by very adverse consequences of the financial and economic crisis for Latvia. A number of macroeconomic experts believe that Latvia needs an "industrial revolution": accent on development of the priority branches of industry, export. Changes in the structure of government, education, as well as creation of attractive environment for investments are necessary also. The analysis of interconnection between inflation and unemployment in Latvia, which was done according to mathematical regression models quite sufficiently corresponding to empirical data, points to the possibility of successful application of such models for analysis and researches of macroeconomic indicators. DOI: http://dx.doi.org/10.5755/j01.ee.23.2.1543

Cryptocurrencies legal regulation

Abstract: This article evaluates the legal framework of cryptocurrency in various countries. The new currency instrument is abstract currencies. They are currencies in the sense that they can be exchanged peer-to-peer. They are representations of numbers, i.e. abstract objects. An abstract currency system is a self-enforcing system of property rights over an abstract instrument which gives its owners the freedom to use and the right to exclude others from using the instrument. Cryptocurrency or virtual currency is a cryptographically protected, decentralized digital currency used as a means of exchange. Due to the development of new technologies and innovations, the rate of use of virtual currency is rapidly increasing throughout the globe, replacing not only cash payments and payments by bank transfer, but also electronic cash payments. Among the best-known representatives of cryptocurrencies are Bitcoin, Litecoin and Ethereum. Legal scholars have not yet reached a consensus regarding the nature and legal status of virtual currency. Virtual currency possesses the nature of obligations righ ts as well as property rights, since it may be both a means of payment and a commodity. Depending on the country, the approach to cryptocurrencies may be different. Today there is already an international cryptocurrency community that does not have a single coordinating center. Only progressive jurisdiction and state regulation of cryptocurrency activity will allow the creation of the conditions that will ensure the implementation of legitimate and safe cryptocurrency relations.

The Role of Small Business in the Economy and Methods of Its Government Support Using the Example of the Republic of Latvia

Abstract: Research purpose. The purpose of this study was to determine the role of small and medium enterprises in the economy, as well as to study and evaluate the effectiveness of government support methods for small business entities (SMEs) using the example of the Republic of Latvia. The subject of the research was the system of state regulation and promotion of SME development. The object of the research was the sphere of small business in the Latvian economy, including SMEs, infrastructure support and development of small business.