ACADEMIC JOURNAL OF ECONOMIC STUDIES

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1 ACADEMIC JOURNAL OF ECONOMIC STUDIES DIMITRIE CANTEMIR CHRISTIAN UNIVERSITY OF BUCHAREST FACULTY OF FINANCE, BANKING AND ACCOUNTANCY President: Eugen NICOLĂESCU, Ph.D. Editor in chief: Sorinel CĂPUŞNEANU, Ph.D. Executive Editors: Mirela Cătălina TURKEŞ, Ph.D. Alina Georgiana SOLOMON, Ph.D. P-ISSN: On-line ISSN: Volume 3, Issue 1, 2017 Bucureşti, 2017

2 Editorial Board Volume 3, Issue 1, 2017 P-ISSN , On-line ISSN Honorary Editors Professor Momcilo Luburici, PhD, President of Dimitrie Cantemir Christian University Professor Corina Adriana Dumitrescu, PhD, Rector of Dimitrie Cantemir Christian University President Professor Eugen Nicolăescu, PhD, Dean of Faculty of Finance, Banking and Accountancy Editor in chief Senior Lecturer Sorinel Căpuşneanu, PhD, Faculty of Finance, Banking and Accountancy Executive editors Lecturer Mirela Turkes, PhD, Faculty of Finance, Banking and Accountancy Lecturer Alina Georgiana Solomon, PhD, Faculty of Finance, Banking and Accountancy Advisory Board Gary Cokins, Founder and CEO of Analytics-Based Performance Management LLC, USA Hassan Danial Aslam, Founder President, Human Resource Management Academic Research Society, Pakistan Professor Alina Bădulescu, PhD, Vice-Rector, University of Oradea, Faculty of Economic Sciences, Oradea, Romania Professor Horia Neamţu, PhD, The Bucharest Academy of Economic Studies, Romania Professor Georgeta Ilie, PhD, Vice-Rector of Dimitrie Cantemir Christian University, Faculty of International Business and Economics, Bucharest, Romania Professor Sorin Briciu, PhD, 1 Decembrie 1918 University, Faculty of Sciences, Alba-Iulia, Romania Professor Alexandru Lucian Manole, PhD, Rector of Artifex University, Bucharest, Romania Professor Gheorghe H. Popescu, PhD, Dimitrie Cantemir Christian University, Faculty of Finance, Banking and Accountancy, Bucharest, Romania Professor Gheorghe V. Lepădatu, PhD, Dimitrie Cantemir Christian University, Faculty of Finance, Banking and Accountancy, Bucharest, Romania Senior Lecturer, Corina-Maria Ene, PhD, Vice-Rector of Hyperion University, Bucharest, Romania Senior Lecturer Liliana Aurora Constantinescu, Dimitrie Cantemir Christian University, Faculty of Finance, Banking and Accountancy, Bucharest, Romania Lecturer, Dan Ioan Topor, PhD, 1 Decembrie 1918 University, Faculty of Economic Sciences, Alba-Iulia, Romania Academic Journal of Economic Studies Faculty of Finance, Banking and Accountancy Dimitrie Cantemir Christian University, Bucharest, Romania Address: 176 Splaiul Unirii editorajes@ajes.ro, ajesjournal@ajes.ro Website: Editura Universitară, Bucharest, 2017 All rights reserved. No part of this journal may be reprinted or reproduced without permission in writing from the publisher. Publishing quarterly. 2

3 Scientific Board Professor Gastón Milanesi, PhD, Universidad Nacional del Sur, Buenos Aires, Argentina Professor Jingjing Xu, PhD, University of Plymouth, Faculty of Business, United Kingdom Professor Adriana Tiron Tudor, PhD, Babeş-Bolyai University, Cluj-Napoca, Romania Professor Victor Munteanu, PhD, Dimitrie Cantemir Christian University, Faculty of Finance, Banking and Accountancy, Bucharest, Romania Luca Giordano, PhD, International Organization of Securities Commission (IOSCO), Research Department, Madrid, Spain Marco Sorrentino, PhD, Pegaso Telematic University, Department of Law and Economic Sciences, Naples, Italy Jonas da Silva Oliveira, ISCTE Instituto Universitário de Lisboa, ISCTE Business School, Portugal Professor Graça Maria do Carmo Azevedo, University of Aveiro Institute of Higher Learning in Accounting and Administration, Portugal Professor Manoela Popescu, PhD, Dimitrie Cantemir Christian University, Faculty of Touristic and Commercial Management, Bucharest, Romania Senior Lecturer Aniela Bălăcescu, PhD, Constantin Brancusi University of Targu-Jiu, Vice-Dean of the Faculty of Economics, Targu-Jiu, Gorj, Romania Senior Lecturer Cezar Militaru, PhD, Dimitrie Cantemir Christian University, Faculty of International Business and Economics, Bucharest, Romania Senior Lecturer Emilia Pascu, PhD, Dimitrie Cantemir Christian University, Faculty of Tourism and Commercial Management, Bucharest, Romania Senior Lecturer Nicoleta-Elena Buzatu, PhD, Dimitrie Cantemir Christian University, Faculty of Juridical and Administrative Sciences, Bucharest, Romania Senior Lecturer Florin Cristian Ciurlau, PhD, Dimitrie Cantemir Christian University, Faculty of Finance, Banking and Accountancy, Bucharest, Romania Senior Lecturer Mihaela-Liliana Gondor, PhD, Petru Maior University, Faculty of Economics, Department of Finance- Accounting, Tîrgu-Mureş, Romania Senior Lecturer Cristian-Marian Barbu, PhD, Artifex University, Faculty of Finance and Accounting, Bucharest, Romania Senior Lecturer Daniela Penu, PhD, Dimitrie Cantemir Christian University, Faculty of Finance, Banking and Accountancy, Bucharest, Romania Senior Lecturer, Marilena-Carmen Uzlau, PhD, Hyperion University, Bucharest, Romania Senior Lecturer Oana Maria Milea, PhD, Dimitrie Cantemir Christian University, Faculty of Touristic and Commercial Management, Bucharest, Romania Senior Lecturer Anca Sorina Popescu Cruceru, PhD, Artifex University, Faculty of Management-Marketing, Bucharest, Romania Senior Lecturer Carmen-Judith Grigorescu, PhD, Dimitrie Cantemir Christian University, Faculty of Finance, Banking and Accountancy, Bucharest, Romania Senior Lecturer Roxana Ionescu, PhD, Dimitrie Cantemir Christian University, Faculty of Tourism and Commercial Management, Bucharest, Romania Senior Lecturer, Raluca Oana Ivan, PhD, 1 Decembrie 1918 University, Alba-Iulia, Romania Associate Professor Elena Bugudui, PhD, Artifex University, Director of Finance and Accounting Department, Bucharest, Romania Associate Professor Dorina Nicoleta Mocuta, PhD, University of Agronomic, Economic Engineering in Agriculture and Rural Development, Bucharest, Romania Associate Professor Cyril Ayetuoma Ogbokor, PhD, Namibia University of Science and Technology, Windhoek, Namibia Lecturer Loredana Ciurlău, PhD, Constantin Brancusi University of Targu-Jiu, Faculty of Economics, Targu-Jiu, Gorj, Romania Lecturer Andreea Marin-Pantelescu, PhD, Bucharest University of Economic Studies, Romania Lecturer Adriana Zanfir, PhD, Dimitrie Cantemir Christian University, Faculty of International Business and Economics, Bucharest, Romania Lecturer Adrian Anica-Popa, Department of Financial and Economic Analysis, Bucharest University of Economic Studies, Romania Lecturer, Cristina Otilia Ţenovici, PhD, Constantin Brâncoveanu University, Rm. Vâlcea, Romania Lecturer Nicoleta Magdalena Iacob, PhD, Faculty of Finance, Banking and Accountancy, Dimitrie Cantemir Christian University, Bucharest, Romania 3

4 Lecturer Costinela Luminita Defta, PhD, Dimitrie Cantemir Christian University, Faculty of Tourism and Commercial Management, Bucharest, Romania Lecturer Dana Maria (Oprea) Constantin, PhD, University of Bucharest, Romania Senior Researcher Mihaela Simionescu, PhD, Institute for Economic Forecasting, Romanian Academy Dr. Tatiana Mazza, Faculty of Economics and Management, Free University of Bozen, Italy Dr. Mirela Liliana Moise, 195 Secondary School, Bucharest, Romania Editura Universitară, editură acreditată CNCS Copyright 2017 Editura Universitară Editor: Vasile Muscalu B-dul N. Bălcescu nr , Sector 1, Bucureşti, Tel /

5 About Academic Journal of Economic Studies Aims and Scope of Academic Journal of Economic Studies Academic Journal of Economic Studies is a Romanian academic publication, edited by Dimitrie Cantemir Christian University in Bucharest. The Academic Journal of Economic Studies wants to become an important journal that publishes high quality original studies disseminates economic results of scientific research in economics from academic and business world. The journal focuses on promoting research worldwide, encouraging international dialogue and supports the exchange of ideas between researchers across the academic and business world. The Academic Journal of Economic Studies is an open access journal and is a valuable scientific resource; published articles are available online without restriction to researchers, practitioners, students and other categories of users. The journal s frequency is quarterly. Month s appearance will be: March, June, September and December. The journal encourages the submission of interdisciplinary studies, international empirical research and comparative analysis. Articles are accepted for publication after a rigorous, anonymous and impartial evaluation of each article separately by specialized scientific reviewers. Paper review process Papers submitted to the journal are minimum double-blind reviewed by members of the reviewer committee or other suitably qualified readers. The Editor reserves the right to reject papers that, in the view of the editorial board, are either of insufficient quality, or are not relevant enough to the subject area. The editor is happy to discuss contributions before submission. The review criteria considered are the novelty and originality of the paper, the quality of research methodology, the organization and clarity, the reference to prior work, and the quality of results. The result of the review process can be: accept, accept with revision, or reject. Authors will be informed of the outcome of the review process. Indexing and abstracting Academic Journal of Economic Studies is indexed and abstracted in the following international databases: RePEc (IDEAS, EconPapers), DOAJ (Directory of Open Access Journals), CEEOL (Central and East European Online Library), Gale Cengage Learning (Academic OneFile, Business Economics and Theory), J-Gate. International registers Academic Scientific Journals (Cite Factor), Advance Science Index (ASI), Information Matrix for the Analysis of Journals (MIAR), Open Academic Journals Index (OAJI), Eurasian Scientific Journal Index (ESJI), Directory of Abstract Indexing for Journals, Infobase Index, Google Scholar. Virtual libraries WorldCat (OCLC), BVB Bibliotheks Verbund Bayern, KOBV Berlin Brandenburg, HEBIS, Union Catalog Hesse, ZDB OPAC Zeitschriftendatenbank, WZB Berlin Social Science Center (EZB), Wilbert Wildauer Bucher, Universitat Bibliothek Leipzig (UBL), Bibliothekssystem Universität Hamburg, GIGA German of Global and Area Studies, Hamburg, SWB, Union catalog Southwest, Germany, GBV, Union Catalog Northern, Germany, Universitat Vechta, Hochschule Hannover, Airiti, Socionet, SCIPIO. Publication Ethics 1. Authorship Authorship credit should be based on meeting the following criteria: 1) substantial contribution to paper concept or design, acquisition of data, or analysis and interpretation of data; 2) drafting the article or reviewing and introducing fundamental changes in it; 3) final approval of the version to be published. All persons designated as authors and coauthors should meet these criteria. As co-authors of a paper there should be identified all persons who have made significant scientific contributions to the work reported, and who therefore share responsibility its content and results. Authors should also appropriately recognize the contributions of technical staff and data professionals. All contributors who do not meet the criteria for authorship (e.g. financial support) should be listed in the section Acknowledgements (financial disclosure). Editors retain the right to request information about the contributions of each person in writing the article. 2. Sources of data and ideas Authors are required to faithfully acknowledge and identify contributions of other persons to their reported work as well as clearly identify sources of both data and ideas. Authors should cite all publications that have been important in development of the submitted study and that will guide the reader to the earlier researchers that are essential for understanding the present analysis. Authors are required to make reasonable and diligent efforts to find, and then accurately cite, original sources and publications. Authors should only present as reliable either personally verified or peerreviewed sources of scientific data and literature. Authors must not engage in plagiarism or self-plagiarism. Plagiarism is 5

6 verbatim or near-verbatim copying, or paraphrasing without due modification, of text, data, or other material containing results of another person s work, without explicit identification of the source of such material. Similarly, self-plagiarism is replicating of the author s own previously published text or results without acknowledgement of the source. 3. Duplicate publications It is prohibited for an author to submit manuscripts describing essentially the same research to more than one journal of primary publication, unless it is a resubmission of a manuscript rejected for or withdrawn from publication. An author is required organize his or her paper so that it provides a well-rounded description of the examined issue. Fragmentation of research reports excessively consumes journal space and unduly complicates literature research; therefore authors are expected to avoid it whenever possible. 4. Conflicts of interest Conflict of interest is a situation in which the process of research and publication may be corrupted or its results may be biased because of some other interests of its participants. It may concern any one or more of the participants of research and publication process the author, the reviewer, or the editor. Conflicts of interest may occur for financial (e.g. employment opportunities, fees or other compensation arrangements, beneficial ownership of stock) or other reasons (e.g., personal relationships, pursuit of academic career, intellectual passion, political involvement etc.) that can reasonably be expected to influence motivations or results of actions of participants of the publication process. Editors of Academic Journal of Economic Studies may use information disclosed in conflict-of-interest and financialsupport statements as a basis for editorial decisions. The corresponding author must either notify the editor at the time of submission that there is no conflict of interest to declare, or fairly and effectively communicate all conflicts of interest, which will then be acknowledged in the published article. 5. Reviewing and Editing Academic Journal of Economic Studies is a peer-reviewed journal. Submitted papers and short communication are evaluated by independent referees or Editorial Board members specialized in the article field. Paper reviews evaluate submitted material s scientific significance and novelty, define its accordance to general journal profile, scrutinize its content for compliance with the journal s publication ethics. After the refereeing process is complete, the paper may be rejected, returned to the author for revisions, or accepted for publication. The authors are responsible for the contents of their paper or short communication. Editors may request an author, when considered necessary, to elaborate on the content or technical details of the paper. 6. Open Access Policy This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge. Copyright for articles published in this journal is retained by the authors, with first publication rights granted to the journal. The Academic Journal of Economic Studies/Editura Universitara is not responsible for subsequent uses of the work. It is the author s responsibility to bring an infringement action if so desired by the author. 7. Privacy Statement The names and addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party. 8. Content license Academic Journal of Economic Studies applies the Creative Commons Attribution (CC by NC) license to works we publish. This license lets others remix, tweak, and build upon your work non-commercially, and although their new works must also acknowledge you and be non-commercial, they don t have to license their derivative works on the same terms. 9. Authors fees Academic Journal of Economic Studies charges no fees to the authors for submissions and publishing of articles. 6

7 Abstracts 1. The Impacts of Tax Reforms on REITs. An International Empirical Study Authors: Yishuang Xu, Chung Yim Yiu Abstract: Tax exemption is one of the REIT s most unique characteristics. To improve the development of REITs market, the Congress had passed several Tax Reform Acts. Plenty of previous study had already explored the effects of tax legislation changing on REITs market. However the findings had not come to consensus. This might because most of them explored this topic by event study, which cannot control other events happening on the even dates. This paper tries to avoid the complications encountered in previous research by investigating the tax reform effects through the normal panel model with the data in the United States and then retest the hypothesis by a novel empirical model with panel market data in both U.S. and Australia. The results provide evidence that the Tax Reforms would truly affect the REIT s performance with more solid empirical evidences. Furthermore, the results shed light on the tax policy and governance of a REITs market. Keywords: REITs, tax benefits, international study JEL Codes: C31, G28, R38 Pages: People s Republic of China, An Introduction to the Party and Its Socialist Base: Is the Banking and Financial Industry a Natural Monopoly? Author: Christopher Daniel Watson Abstract: The market ideology of the People s Republic of China (PRC) has undergone substantial reformation over the past three decades in regards to their engagement in international trade and investment. There is no doubt that China has embraced aspects of capitalism, however admitting this is a more difficult task for them. The inclination of Socialism with Chinese Characteristics has been apparent and the official economic and market position of the Communist Party of China (CPC) since its architect Deng Xiaoping instituted these reforms. Moreover, this market platform can be identified as Market Socialism with Chinese Characteristics or simply Market Socialism. According to the State Council, the banking and financial industry does not constitute a strategic and/or pillar industry, in which the CPC maintains an absolute or strong influence in. However, regardless of this determination, this paper argues that the CPC maintains a decisive and strategic role in the operations and practices of its financial champions. With respect to strategic trade theory, the idea that governments introduce mechanisms, which attempt to capture increased market share and profits for domestic enterprises. Traditionally, creating national champions through industrial policy has been a mode of augmenting the competiveness of domestic enterprises engaged in commercial affairs. This approach can also be applied in creating national champions in the banking and financial industry, which can equally prove to be instrumental in aiding in the national economic agenda. This paper attempts to analyze certain aspects of the PRC banking structure to preliminary determine how inter-connected their operations are to China s Market Socialism. Keywords: State-owned Banks (SOBs), State-owned Enterprises (SOEs), Financial SOEs, equitization, market socialism JEL Codes: F50, P16 Pages: Returns Effect, Shocks and Volatility Transmission between Foreign Exchange-Stock Markets in Nigeria Author: Agya Atabani Adi Abstract: The paper examined effect of passed return on current return, shocks spillover and volatility transmission between FX-Stock markets. Using result obtained from VAR-GARCH models, we also calculate the optimal weight and risk minimizing hedging ratio for FX-Stock markets and employed the newly developed bivariate GARCH framework Findings reveal evidence of short term predictability in both markets through time. One period lagged returns significantly impact current return in both markets, and impact was greater in FX market both VAR-GARCH and VAR-AGARCH models. There were evidence of bi-directional volatility transmission in both markets and uni-directional shocks spillover from stock to FX market in both models. VAR-AGARCH model showed evidence of leverage effect; bad news has more impact on volatility than positive news of the same magnitude. We showed that optimal polio of FX-Stock market should holds more foreign exchange to stocks in their asset polio. Our result showed evidence of effective hedging in FX-Stock markets in Nigerian. Hence, the inclusion of stocks in diversified polio of foreign exchange could improve it risks adjusted performance of hedging ratio. Keywords: Shocks and Volatility Spillover, Foreign Exchange-Shock market, Returns Impact in Nigeria JEL Codes: C, C5, C58 Pages:

8 4. Modeling the Volatility of Exchange Rates: GARCH Models Author: Fahima Charef Abstract: The modeling of the dynamics of the exchange rate at a long time remains a financial and economic research center. In our research we tried to study the relationship between the evolution of exchange rates and macroeconomic fundamentals. Our empirical study is based on a series of exchange rates for the Tunisian dinar against three currencies of major trading partners (dollar, euro, yen) and fundamentals (the terms of trade, the inflation rate, the interest rate differential), of monthly data, from jan 2000 to dec-2014, for the case of the Tunisia. We have adopted models of conditional heteroscedasticity (ARCH, GARCH, EGARCH, TGARCH). The results indicate that there is a partial relationship between the evolution of the Tunisian dinar exchange rates and macroeconomic variables. Keywords: Exchange rate, fundamental macroeconomic variables, conditional heteroskedasticity models JEL Codes: O24 Pages: Monetary and Fiscal Policy Coordination in Nigeria: A Set Theoretic Approach Author: Victor Ugbem Oboh Abstract: In this article, we use the Set Theoretic Approach (STA) to determine the extent of coordination between monetary and fiscal policies in Nigeria from 1981 to Our main findings generally indicate a weak level of policy coordination estimated to be 17%. A further disaggregation of the results showed that the highest level of coordination of 36.4% occurred during the period of low growth and high inflation. However, there was no evidence of coordination during periods of high GDP growth and inflation. These findings point to the obvious need for fiscal and monetary authorities to strengthen policy coordination towards enhanced macroeconomic stability. Keywords: Monetary policy, fiscal policy, coordination, STA, Nigeria JEL Codes: E52, E5, E63 Pages: Global Integration, Non-Oil Export and Economic Growth in Nigeria Authors: Ozoemena Stanley Nwodo, Fredrick Onyebuchi Asogwa Abstract: This study focuses on global integration, non-oil export and economic growth in Nigeria. The direct and interaction effect of the both openness variables and non-oil export on economic growth in Nigeria is investigated using quarterly data from For analysis, it uses one measures of financial openness: de facto (total capital flow) variables following Aizenman and Noy (2009).and a measure of trade openness adopted by Okoh (2004). The study applies the Autoregressive Distributed Lag Model (ARDL). The results show positive impact of non-oil export on economic growth in Nigeria both in the short run and in the long run, negative effect of trade and financial openness on economic growth however, the result recorded a negative effect of the interaction of trade openness and non-oil export on economic growth and a positive effect of the interaction of financial openness and non-oil export on economic growth. Thus, the study recommends among others that government should get the fundamentals right in the economy first that will boost non-oil sector before opening the economy for trade. Keywords: Trade openness, financial openness, globalization, economic growth, non-oil export JEL Codes: F10, F15, F43 Pages: Determinants of Foreign Direct Investments in Bulgaria and Romania in the Context of Recent Economic Crisis Author: Mirel-Daniel Simionescu Abstract: The objective of this paper is to select some relevant macroeconomic determinants for foreign direct investment (FDI) in Bulgaria and Romania since the start of the recent economic crisis ( ). Even if the economic recession installed in 2009 in Romania, the foreign investors decisions were influenced by the moment of global recession from A Bayesian approach was proposed, because of the small sample for the variables in analyzed period: FDI as percent of GDP, real GDP rate, unemployment rate, inflation rate, real interest rate, real effective exchange rate index (2010=100) and money demand (M2) as percent of GDP. The estimation results reflected that foreign investors in both countries were attracted by the increase in GDP from a year to another. On the other hand, for Bulgaria the inflation rate was the strongest determinant, indicating the economic stability of the country that made huge efforts in getting one digit inflation rate. In Romania, as expected, the foreign investors were searching for cheap labour force and the increase in unemployment rate attracted more FDI during the crisis period. Keywords: Foreign direct investments, economic crisis, Bayesian model, posterior distribution JEL Codes: C51, C53, E22 Pages:

9 8. An Autoregressive and Distributed Lag Model Approach to Inflation in Nigeria Authors: Chimere Okechukwu Iheonu, Godfrey Ikechukwu Ihedimma, Samuel Nzube Eze Abstract: This study scrutinized the precursors of Inflation in Nigeria between the periods 1980 to The Augmented Dickey-Fuller test was engaged to test for stationarity of the variables while the Autoregressive and Distributed lag (ARDL) Model was applied to capture the affiliation between inflation and selected macroeconomic variables. Our findings revealed that there exists a long run relationship between Inflation, money supply, interest rate, GDP per capita and exchange rate in Nigeria while in the short run, money supply has a significant positive one period lag effect on Inflation and Interest Rate also has a significant negative one period lag influence on Inflation in Nigeria. Recommendations are that in the short run, monetary policies should be geared towards the control of money supply and interest rate in Nigeria in other to regulate Inflation and also, the Nigerian economy can afford to vary any of human capital development or technological advancement to boost productivity without causing inflation as GDP per capita proved insignificant in the short run. Keywords: Inflation, ARDL, money supply, interest rate JEL Codes: C23, C51, E31 Pages: The GDP per Capita Convergence in the European Union Author: Mihaela Simionescu Abstract: This paper tests the hypothesis of convergence in per capita GDP for the period using the case study of European Union (EU) Member States. We also included Croatia into the analysis, even though it became an EU member only in The general framework for testing the convergence hypothesis is based on the panel data approach. Our results show that there was a convergence in per capita GDP (expressed in thousands Euro PPS in the EU-28) during the period , at a significance level of 5%. The outcomes of the Im-Pesaran-Shin test demonstrate that not all the EU-28 countries yielded the same speed of convergence towards the corresponding steady state. The quantitative approach of the convergence in GDP per capita in the European countries based on the fixed effects model is complemented by the presentation of maps, cartograms, and histograms. Keywords: Convergence, steady state, GDP, panel data, Im-Pesaran-Shin test, European Union JEL Codes: C23, C51, F43 Pages: Energy Use and Growth of Manufacturing Sector: Evidence from Turkey Authors: Idoko Ahmed Itodo, Shahrzad Safaeimanesh, Festus Victor Bekun Abstract: This study investigates the relationship between Energy use and the growth of the Turkish Manufacturing Sector, using Vector Error Correction and Granger causality, between 1960 and The research found a long-run association among these variables. However, while the VEC granger causality test result suggests no causality running, either direction, from predetermined Energy Use to Growth in Manufacturing Sector, the Variance decomposition and impulse response tests suggested a positive causality, running from contemporaneous values Energy Use to current and future values of Growth in the Manufacturing Sector of Turkey. It is recommended that more investments be made in the energy sector to help sustain the current performance in the manufacturing sector. Key words: Energy use, manufacturing sector, cointegration, vector error correction and Granger causality JEL Codes: Q42, Q43, P28 Pages: Theoretical Considerations Regarding Identification and Analysis of Risks to Develop the Audit Program of a Public Institution Author: Dan Ioan Topor Abstract: This article addresses some theoretical considerations on risk identification and analysis for the development of a public institution audit program. Starting from the three proposed objectives, the author makes a synthesis of the literature based on the two central concepts of the study: Audit and Risk Management. Here are presented the internal audit organisation mode at a public institution and the stages that are going to identify and analyse the risks in order to draw up the audit program at the public institution and finally highlight the audit program of the public institution. The whole article is sprinkled with figures and tables designed to facilitate the perception of readers and specialists interested in the field of auditing. The article concludes with the author's conclusions regarding the identification and analysis of risks for the preparation of the audit program of a public institution. Key words: Audit, risk management, public institution, risk analysis, audit mission JEL Codes: M42 Pages:

10 Table of contents About Academic Journal of Economic Studies.. 5 Abstracts. 7 The Impacts of Tax Reforms on REITs. An International Empirical Study Yishuang Xu, Chung Yim Yiu People s Republic of China, An Introduction to the Party and Its Socialist Base: Is the Banking and Financial Industry a Natural Monopoly? Christopher Daniel Watson Returns Effect, Shocks and Volatility Transmission between Foreign Exchange-Stock Markets in Nigeria Agya Atabani Adi Modeling the Volatility of Exchange Rates: GARCH Models Fahima Charef Monetary and Fiscal Policy Coordination in Nigeria: A Set Theoretic Approach Victor Ugbem Oboh Global Integration, Non-Oil Export and Economic Growth in Nigeria Ozoemena Stanley Nwodo, Fredrick Onyebuchi Asogwa Determinants of Foreign Direct Investments in Bulgaria and Romania in the Context of Recent Economic Crisis Mirel-Daniel Simionescu An Autoregressive and Distributed Lag Model Approach to Inflation in Nigeria Chimere Okechukwu Iheonu, Godfrey Ikechukwu Ihedimma, Samuel Nzube Eze The GDP per Capita Convergence in the European Union Mihaela Simionescu Energy Use and Growth of Manufacturing Sector: Evidence from Turkey Idoko Ahmed Itodo, Shahrzad Safaeimanesh, Festus Victor Bekun Theoretical Considerations Regarding Identification and Analysis of Risks to Develop the Audit Program of a Public Institution Dan Ioan Topor