Elma Satrovic | Independent Researcher (original) (raw)

Papers by Elma Satrovic

The aim of this research is to provide empirical evidence on the relationship between human devel... more The aim of this research is to provide empirical evidence on the
relationship between human development and renewable energy. The time-series data
are collected over the period 1992-2015 for the case of Turkey. Turkey is observed since
it is considered to be one of the fastest growing energy markets in the world. In
addition, Turkey reports impressive growth in terms of human development. In order
to conduct empirical research we have applied time-series econometrics including
Johansen test for cointegration and Granger causality test. The stationarity of variables
is also tested. The Johansen cointegration test confirms that the null hypothesis on no
co-integration (r = 0) is rejected by both the maximum eigenvalue and trace statistics.
This indicates the existence of a long-run equilibrium relationship between economic
terms of interest. Additionally, Granger causality test reports a unidirectional
relationship between the economic terms of interest clearly indicating that renewable
energy tends to contribute to human development. Human development is not found
to foster the renewable energy in terms of Turkey. The findings of this paper suggest
that Turkish decision makers need to make a stronger effort in order to foster
renewable energy since it is found to have a significant contribution to the main
dimensions of human development.

The aim of this paper is to summarize a large number of economic and demographic determinants tha... more The aim of this paper is to summarize a large number of economic and demographic determinants that are used to predict the demand for life insurance into a smaller number of component variables (components) and to determine which component has a stronger influence on demand for life insurance. Data are collected for 150 countries during the period 2005-2010. Final crosscountry database is consisted of six-year average values on variables for selected countries. The methodology includes techniques of multivariate analysis: principal component analysis (PCA) and multiple linear regression. Results show that initial determinants of demand for life insurance can be summarized into two components: economic and demographic. Both components have a statistically significant positive influence on the demand for life insurance. On the basis of standardized regression coefficients it can be concluded that economic component is stronger determinant of demand for life insurance in comparison with demographic.

This article aims to explore the relationship between foreign direct investments and the financia... more This article aims to explore the relationship between foreign direct investments and the
financial development in both, developed and developing countries. The relevance of
financial development (FD) on foreign direct investments (FDI) is explored in three panels.
The first overall panel contains 93 economies; the second contains 32 developed economies,
while the third panel contains 61 developing economies over the period 2002-2015. A
Granger causality test that implements a vector autoregressive (VAR) framework within the
panel setting is employed. Besides this, panel regression model is estimated. In order to test
the sensitivity of the results and avoid robust errors, we employ a panel ARDL model. The
findings of ARDL model indicate that there is a long-run relationship between FD and FDI
for both developed and developing countries as well as for the overall sample. A short-run
relationship is reported for the overall sample of countries as well as for developed countries.
The estimation of panel regression model indicates a significant positive impact of domestic
credit to private sector (% GDP) on FDI in overall sample.Granger causality test indicates a
bidirectional relationship between financial development and foreign direct investments in
overall sample as well as in developing countries. A unidirectional relationship running from
financial development to foreign direct investments is reported for developed countries.

Sustainable tourism is defined as tourism that improves the quality of life of the host community... more Sustainable tourism is defined as tourism that improves the quality of life of the host
community, providesa high quality of experience for the visitors and maintains the quality of the
environment on which both the host community and the visitor depend. In order to measure
sustainability in tourism researchers use set of subjective and objective indicators. However, the
analysis conducted in this paper shows both types of indicators have some weaknesses, so there is a
need to use other measurement tools. As far as we know, there have been no studies of the three
most commonly used sustainability measurement tools (AIChEBRIDGESworks Metrics, GEMI
Metrics NavigatorTM and IChemE Sustainability Metrics) in tourism. Our study is the first one to
deal with these measurement tools. The aim of this paper is to describe most commonly used
sustainability measurement tools; their special requirements for tourism and to answer the question
how tourism contributes to sustainable development. Analysis shows that tourism contributes to
sustainable development primarily through community-driven tourism development; minimization
of negative social and cultural impacts; optimization of economic benefits; protection of physical
and man-made resources, ethics, policy, standards; visitor satisfaction, maintaining destination
attractiveness, use of proper tools and full community participation. Methodology that is used is
comparative analysis of three most common sustainability measurement tools. Results obtained by
comparative analysis indicate thatAIChEBRIDGESworks Metrics, GEMI Metrics NavigatorTM and
IChemE Sustainability Metrics have some common requirements for different businesses. However,
requirements for tourism are very strict since it is considered as non-community based business,
short-term planning, no protection of natural and human resources, huge economic benefits provider
and business that has non-ethnical attitude towards environment. Conclusion states that taking into
consideration the weaknesses of all analyzed tools, there is a need for further development of
sustainability measurement tools in tourism.

Purpose-Paper aims to give empirical evidence on the impact of control of corruption on happiness... more Purpose-Paper aims to give empirical evidence on the impact of control of corruption on happiness as a proxy of social progress by collecting panel data for 59 countries over the period 2007-2016. Methodology-Initial as well as extended model that controls for government consumption are estimated using linear static and dynamic panel data estimators. In order to test for the sensitivity of the results and to estimate short-and long-run coefficients, panel ARDL framework is employed. Findings-The results of linear static and dynamic panel data estimators indicate the significant positive impact of control of corruption on happiness in both, initial and extended models. ARDL model reports a significant relationship between control of corruption and happiness in initial and extended model only in the long-run. Conclusion-The convergence process from corrupt to hones politics is complex and is likely to be achieved only in the long-run period.

A number of empirical and theoretical studies as well as real life experiences provide supportive... more A number of empirical and theoretical studies as well as real life experiences provide supportive evidence to the fact that political instability has an ability to harm the inflow of the Foreign Direct Investments (FDI). This study aims to explore the causal relationship between macro-level political stability and FDI while focusing on Turkey. The choice of Turkey as a subject of study is motivated by the fact that Turkish ruling party has ended the political and economic instability caused by the previous coalition governments. Despite of MTC (Multinational Terrorist Corporation)’s recent attacks and 15 July failed coup attempt which was completely different from the previous similar attempts, since it was a bloody-terrorist coup attempt targeting Turkish stability, Turkey continued to stand strong in the sense of political and economic conditions thanks to the political stability and national will. Political risk is studied since it has not received much attention in up-to-date studies treating the case of Turkey. For this purpose, the causal relationship between FDI and political stability is estimated using several econometric methods including Johansen cointegration test, the bounds testing (ARDL) approach, ECM-ARDL model as well as Granger causality test. Time series data are collected over the 15 years period ranging from 2002 to 2016. To the best of our knowledge, there have been no studies identified yet which give empirical evidence on the causal relationships between political stability and FDI inflow in Turkey. Our study aims to fill in this gap in literature and may be useful for the foreign investors and key decision makers. The results confirm a bidirectional long-run and short-run positive causal relationship between political stability, absence of violence and terrorism and FDI.

Glavni cilj regionalnog i destinacijskog menadžmenta ogleda se u uspješnoj konkurentskoj poziciji... more Glavni cilj regionalnog i destinacijskog menadžmenta ogleda se u
uspješnoj konkurentskoj poziciji odredišta. Kvalitet strateškog planiranja i završne strategije predstavljaju ključni faktor konkurentnosti. Sektor turizma se smatra ekonomskom oblasti u kojoj metode rangiranja nemaju široku primjenu niti aplikativnu upotrebnu vrijednost. Problem istraživanja je nedovoljno istraženo stanje i pozicija grada Sarajeva u odnosu na odabrane glavne gradove (turističke destinacije) regiona i EU. Primarni cilj rada je kreiranje kompozitnog indikatora za rangiranje glavnih gradova kao turističkih destinacija, primjenom z-score metode. Sekundarni cilj rada je utvrđivanje stanja i pozicije grada Sarajeva u odnosu na odabrane glavne gradove regiona i EU u kontekstu kreiranja strateških razvojnih pravaca Kantona Sarajevo. Metod z-score obuhvata set podataka za 11 odabranih glavnih gradova, i to: Prag, Bratislava, Beč, Budimpešta, Ljubljana, Zagreb, Beograd, Sarajevo, Podgorica, Skoplje i Atena. Sekundarni podaci prikupljeni su desk metodom, analizom
službenih statističkih ureda Austrije, Slovenije, Hrvatske, Bosne i
Hercegovine, Crne Gore, Srbije, Makedonije, Grčke, Mađarske, Slovačke i Češke. Vremenski okvir za rangiranje glavnih gradova je 2013. godina. Rezultati ukazuju da je Beč na prvom mjestu. Nadalje gradovi su rangirani: Prag, Budimpešta i Atena respektivno. Grad Zagreb se nalazi na petom mjestu i pozicioniran je najbolje od svih glavnih gradova zemalja jugoistočne Evrope. Sarajevo se nalazi na devetom mjestu i pozicionirano je bolje samo u odnosu na Skoplje i Podgoricu. Izvodi se zaključak da je pozicija grada Sarajeva izrazito nepovoljna u odnosu na ostale gradove. Detaljnijom analizom izvodi se zaključak da visoka pozicioniranost u pojedinim zasebnim varijablama nije garant visoke ukupne pozicije.

The aim of this paper is to provide empirical evidence on the relationship between financial deve... more The aim of this paper is to provide empirical evidence on the relationship between financial development and economic growth and to examine whether there are differences in the size of the impact of financial development on economic growth in countries with different income levels. Furthermore, the impact of additional determinants of economic growth is analyzed. Research problem is lack of empirical evidence on the relationship between financial development and
economic growth when financial development is measured by proxy variables on banks and stock markets; low treatment of potential endogeneity problem as well as lack of empirical evidence on
the differences in the size of the impact of financial development on economic growth in countries with different income levels. Balanced panel data for 94 countries during the period between 1992 and 2011 are used in this analysis. Five-year averaged data are used to reduce the
impact of business cycles and measurement errors. Six models are estimated by using panel fixed and random effects models. However, the analysis indicates that distribution of error terms deviates from normal; the assumption of homoscedasticity is rejected and the presence of
endogenous regressor is reported. Therefore, in order to overcome these issues, the dynamic one step system GMM estimator is used to estimate models. The obtained results indicate that banking sector and stock market development have statistically significant positive impact on
economic growth. It has been shown that the impact of banking sector development strongly contributes to economic growth compared to stock market development. Besides, the results show that education has no statistically significant impact on economic growth while inflation,
government spending and trade openness have a negative impact. The sixth model indicates that on average financial development strongly impacts economic growth in high and middle-income
countries compared to low-income countries, and that the strongest impact is obtained for high income countries. The results of this paper may motivate policy makers to foster the financial development since it contributes to economic growth. Since financial development contributes to economic growth in countries with different income levels, there is a need to foster its development in low-income countries as well.

This paper uses data on 79 municipalities in the Federation of Bosnia and Herzegovina (FBiH). The... more This paper uses data on 79 municipalities in the Federation of Bosnia and Herzegovina (FBiH). The aim of this paper is to create quality of life (QoL) indicator for municipalities based on quantitative criteria and to rank them based on index scores. Data on municipalities
were obtained from public databases. Variables that are used are: number of doctors, number of hospital beds, number of students in secondary schools, number of teachers in secondary schools, employment rate, unemployment rate compared to active population, GDP per capita and area covered by roads (km2). In order to rank municipalities, the variables were divided into five categories, or indices: health, education and training, work, economic well-being
and services. The first method that is used is mean-standardized rank method, where each of the indices are standardized, so that the differences between each of the indices are re-scaled to be consistent across each index. The standardized indices are then averaged and used to rank municipalities according to the mean. All indices were weighted equally. Since a relationship between the population of the municipality and the placement in the overall ranking seemed to appear, a population adjusted method was used to account for this, and the indexes
were regressed. Results of the first method identify top 3 municipalities: Grad Mostar, Tuzla and Centar-Sarajevo. Results of the second method indicate that the actual change in rank is negative for the larger municipalities – they did not rise as much as expected, and the
actual change in rank is positive for the smaller municipalities – they fell in rank more than expected. Comparison of two methods indicates there is a fair amount of agreement between the two ranking methods in the top municipalities. However significant differences appear in the bottom municipalities.

This study investigates the nature of causal relationship, if any, between tourism (TOUR) and for... more This study investigates the nature of causal relationship, if any, between tourism (TOUR) and foreign direct investments (FDI) using the case of Turkey. The observed period is between 1995 and 2015. In order to examine the existence of cointegration between the selected
variables, the Johansen test for cointegration is applied. Moreover, the study applies the Granger causality procedure in a vector autoregression (VAR) model in order to estimate the relationship between the variables and the direction of relationship. VAR model is estimated following AIC information criteria that offers 5 lags. Findings indicate that the null
hypothesis on no cointegration between the variables can be rejected. Therefore, evidence on the long run relationship between FDI and TOUR in Turkey can’t be rejected. In addition, Granger causality test indicates a positive relationship running from FDI to TOUR. Besides that, a positive relationship running from TOUR to FDI is also reported. Therefore, the
Granger causality test indicates a bidirectional relationship between FDI and TOUR in Turkey in the short run.

Persons with disabilities have relevant working capacity. Employers who recruit those persons ass... more Persons with disabilities have relevant working capacity. Employers who recruit those persons assume that their disabilities do not decrease organization's productivity. Persons with disabilities can normally fit into working environment. The studies of employers' attitude towards persons with disabilities are rare and of limited scope in Bosnia and Herzegovina (BiH). The aim of this multidisciplinary research is twofold: to investigate factors that may influence employment of persons with disabilities, and to examine employers' perceptions of persons with disabilities in terms of potential employment. The research team uses a sample of 101 employers from BiH and performs the logit model maximum likelihood estimation. The results show that the size of organization, in terms of the number of employees, primarily influences the likelihood of employment of persons with disabilities.

Over the past several decades, the relationship between tourism and economic growth, for both dev... more Over the past several decades, the relationship between tourism and economic growth, for both developing and developed countries, has been a popular issue of debate. Taking into account the fact that the tourism is an important sector in the world economy, the knowledge of the sign and size of the impact of tourism earnings on economic growth is of particular importance to policy makers. This paper aims to explore the impact of tourism earnings on economic growth. Panel data of 113 countries are used for the years that span from 1995 to 2015. The potential contribution of tourism to economic growth is analyzed within the conventional augmented Solow growth model. GMM method is employed to account for a dynamic phenomenon of economic growth. The obtained results indicate a significant positive impact of tourism on economic growth. Furthermore, the obtained results indicate that tourism-economic growth nexus differs among income disparity. The obtained findings imply that low-income countries should enhance their economic growth by strengthening their tourism industry.

The impact of human capital on financial development has not been studied quite extensively in up... more The impact of human capital on financial development has not been studied quite extensively in up-to-date studies. Hence, this article tries to fill in this gap by exploring the impact of human capital on financial development in Turkey. Human capital is expected to have a positive impact on financial development since it reduces information asymmetry. In addition, it is expected to increase demand for financial services and instruments. This article investigates the long-run and short-run relationship between financial development and human capital in Turkey using ARDL approach. Data are collected over 30-years period (1986-2015). In order to estimate the relationship between these economic terms, financial development is approximated using two proxy variables: broad money (% of GDP) and liquid liabilities (% of GDP). Two proxy variables of financial development are used in order to check for the sensitivity of the results. In addition, the impact of gross capital formation (% of GDP) is controlled. The obtained results indicate a significant positive impact of human capital on broad money (% of GDP) as well as on liquid liabilities (% of GDP) in both, short-and long-run. Control variable is not reported to be significant. Pesaran/Shin/Smith ARDL bounds test confirms the existence of a long-run relationship.