Algita Miečinskienė

A Survey on Foreign Direct Investment Impact

In global economy foreign capital flows from one country to another, and mostly from developed countries to less developed countries in order to take advantages of low rates of raw materials and wages, is an often phenomenon. Foreign direct investment is usually treated as important factor of economic growth. A separate part of this research includes the analysis of the factors influencing FDI flows in the countries. These factors are export, market capacity, tax rates, education level and the level of research and development. The research shows strong relation with all these determinants in Lithuania. Article in Lithuanian

Dependence of sustainability on country risk indicators in EU Baltic Sea region countries

Country risk and economic sustainability become more and more important in the contemporary economic world. This paper proposes the analysis on relationship between country risk and economic sustainability in EU Baltic Sea region countries, based on statistical data of the year 2012. Investigations and calculations of rankings for country risk and sustainability were made and the results were optimized by implementing MOORA (Multi-Objective Optimization by Ratio analysis) and MULTIMOORA (MOORA plus Full Multiplicative Form) methods. Furthermore, correlation analysis was prepared and the informative results were obtained. Starting with a system of 8 alternative responses on 21 objectives (indicators), from several approaches the unambiguous results were obtained, which could be engaged in the process of creating new model for country risk assessment and its dependent sustainability indicators for EU Baltic Sea region countries.

Complex Model of Market Price Development and its Simulation

The purpose of this study is to suggest a complex model of market price development for liquid assets, which is able to simulate all of the main features particular to the real price development and has a realistic financial explanation. First, the paper defines assumptions for the model construction from empirically observed processes. Then, the model is implemented in the real simulation environment. Finally, the ability of the model is checked to simulate empirically observed features, e.g. leptokurtic characteristics or skewness of the price distribution. Also, this paper newly defines and implements the resonance effect. FFT analysis is used to support oscillation processes. Finally, selected markets are provided with parameter optimisation of the model based on empirical observations. It was found that the model built under the previously mentioned assumptions was able to explain empirically observed effects that reversely support the correctness of those assumptions. The practical value of the constructed model can be found in many areas, including risk management and asset valuation.

The Research on the Impact of the Changes of Commodity Price Level in the World Commodity Exchanges on Variation of General Price Level

ABSTRACT. The purpose of the paper is to investigate the influence of changes of commodity price level in the world commodity exchanges on variation of general price level index in Lithuania. Object of the research is commodity price level in the world commodity exchanges. The methodology applied is following: study of the recent scientific literature, collection and analysis of statistical data, correlation regression analysis. The conclusion can be made that variation of general price level in Lithuania depends on changes of commodity prices in world commodity exchanges, mostly from the prices of aluminium, cocoa, coal and oil. Regression function made with analysed commodities is adequate to real situation and chosen variables X explain the 64% of inflation variability and 36% are explained by other factors. The results show that the determinate regression function could be practically used to forecast the dependence of inflation rate on the particular factors.JEL Classification: E31Keywords: general price level, inflation, commodity price, commodity exchange, market, Lithuania.(ProQuest: ... denotes formulae omitted.)IntroductionFor many years modern economies is facing significant problem of overall increasing general price level. During which the value of monetary unit falls and decreases its purchasing power - so called inflation appears. Inflation affects not only the area of prices, but directly and indirectly it touches the various areas of economic and social life, causing many negative consequences for countrys economic development.Commodity prices are volatile as well as most of commodity exchanges are volatile and dynamic. It affects the domain of specific fields, such as agricultural economics. For many financial institutions worldwide commodity trading has become an important mean to gain profit. Commodities nowadays are an important component of many investors" portfolios.One of the most influential factors affecting inflation rate is the price of production costs, from which mainly depends the final price of goods and services in a market. Therefore the price changes of the most important commodities in the worlds commodity exchange markets influence the price of local producers or imported production. This paper analyses the influence of price changes of commodities to general price level in Lithuania. The aim of the research is to analyze the variation of general price level in Lithuania and changes the prices of commodities in the worlds commodity exchange markets, identify the influence of the price changes of commodities on variations of general price level as inflations parameter. In order to achieve the aim correlation regression analysis was used. It allows to set the relation and establish the connection between price changes of commodities and general price level.1. Inflation and factors conditioning itRelative prices changes, income and assets are repartitioned among the different people and groups, indexes of national production and employment depart form the average during the inflation period. In such situation some are winners, some are losers. But these factors have an influence on the whole economy. The costs of inflation depend not only on its rate, but also on the expectation factor. When inflation is expected people may prepare better, and impact will be less painful (Snieska, 2006). It is important to notice that increase of prices of one product or several groups of products is not evaluated as inflation. Scientific and technological development and demand fluctuations allow the prices to increase and decrease. At the other hand change of prices of particular groups of products can be named as increase of price level. That is why the inflation and the change of price level are adequate terms when it comes to the growth of general price level. Some economists emphasize that the inflation is not onetime, but long term change of price level. …

Developing a new approach for evaluation of business processes in a fuzzy environment

AbstractEvaluation of business processes plays a significant role in business development and improvement. Therefore, organizations need a systematic approach to evaluate all the changes through robust and powerful techniques that can formulate the relationship between the available information and the degree of the inherent uncertainty. In this paper, a set of operational variables are defined. Then, the SPSS software package is utilized to validate the gathered data. After that, the variables are categorized by the use of a clustering technique. Finally, five major factors are determined as the most effective components. According to the inherent uncertainty involved in the process of modelling, fuzzy set theory, a powerful mathematical tool is applied to handle the vagueness. In order to construct a knowledge base based on the fuzzy set theory, the linguistic concepts for each variable are defined. Lastly, membership functions are described and a set of fuzzy rules based on input-output parameters are ...

Relationship between Economic Security and Country Risk Indicators in EU Baltic Sea Region Countries

The globalization phenomenon raises new challenges in terms of country risk and economic security for small open economies. The objective of this paper is to evaluate the relationship between economic security and country risk indicators in EU Baltic Sea region countries. This paper, after surveying definitions and typologies of risks, proposes the analysis of the relationship between economic security and country risk in EU Baltic Sea region countries based on statistical data from 2012. The results were optimized by implementing MOORA (Multi-Objective Optimization by Ratio analysis) and MULTIMOORA (MOORA plus Full Multiplicative Form) methods. Findings provide evidence for economic security being dependent on country risk ratios. This result is robust with respect to the applied method of investigation. It is crucial to identify the potential for different types of risks, security indicators as well as methods for risk evaluation and assessment. The key variables of interest include domestic economic variables, macroeconomic policy evaluation, balance of payments stability and social indicators. A general sustainability context (monetary, social and environmental indicators) should be also taken into consideration. Several investigations come to strongly conclusive results, which could be used in creating a new model for country risk assessment and the derived economic security indicators for EU Baltic Sea region countries.