Electronic Library of Scientific Literature
Volume 44 / No. 1 / 1996
In the article are presented results of the first part of research devoted
to the measurement of the extent of hidden economy in the Slovak Republic.
In the second part is defined the meaning of hidden economy and its three
basic forms: underground economy, informal economy, and illegal economy.
It is based of the definition of Eurostate and the System of National Accounts
in the year 1993.
In the third part are explained methodological avenues used in exposing hidden economy in the formal sector. The methodological stand is based on the measurement of the amount of labor in work teams and on the estimate of added tax with the consideration of assumed work productivity. On the basis of detailed facts concerning the extent of work from two aspects of labor work: from the side of supply and demand which is not statistically included, is identified.
In the fourth and the fifth part is analyzed detailed breakdown of the share of hidden economy in the Slovak Republic according to the information for the year 1993. Estimated are only certain components of hidden economy in the formal sector, such as statistically-excluded activities, non-registered activities, seasonal work, and underevaluation of published statistical information.
In the conclusion are summed up the results of the estimates, yet it is emphasized that the presented results are incomplete. In the next stage of the research the author will continue to quantify other constituents of hidden economy in the Slovak Republic.
Pavol KÁRÁSZ - Juraj RENČKO
The agro-food industry represents today one of the most problematic
sectors in the transforming economy of Slovakia. On the one hand, there
came about a substantial lowering of productive capacity, especially in
agriculture. On the other hand, the evolution of the situation among the
retired population in the context of the development of price level caused
substantial decrease in the overall and per capita food consumption.
The need of stabilizing the agro-food sector and the food market is soon becoming one of the most demanding problems from the economic and social perspective. The key role in this area plays the development of consumer food prices and the factors which influence this development. The goal of this article is to help to clarify the national economic dimension of this problem.
The determination of consumer prices in the national economy is the starting point for achieving this goal. The authors maintain that the food prices cannot (in the modern market economy) rise up to the level at which is impossible to secure a standard level of living for most of the population. This level of prices would be, however, "inadequate" from the view of the consumer and socially unacceptable. On the other hand, the price must guarantee to cover the expenditures and adequate profit for the producers. If the level of market prices from this perspective is low, it is possible to talk about "inadequateness" of food prices of producers and their economic non-acceptance.
In the developed European market economies the food prices are insufficient mainly according to producers and to solve this situation is applied support system. In other words, these economies are sufficiently effective for the retirees in so far as the government support system is able to balance the inadequacies of prices for the producers and maintain price level adequate for the consumers.
For today's economic conditions of Slovakia is characteristic the inadequateness of food prices in both above-mentioned specified meanings. Consequently, this reality must be taking into account within the construction of the government support system. The article provides the theoretical framework of support system for the solution of this problem. At the same time, it stipulates the preconditions which are indispensible for the functioning of the proposed system.
The article analyzes the basic determinants of price development in
the area of agriculture and food industry.
The economic growth, the increase in real income, and the lack of competition create preconditions for the increases in food prices. From the perspective of agricultural and food producers this growth is desirable because higher food prices create space for possible increase in prices for agricultural and food producers. The current level of prices for agricultural and food producers cover only the necessary costs of production. The acceptance of higher level of prices for food, however, depends on the formation of disposable income among population. In 1995, the level of disposable income attained by households was at the level of those during the first half of 1980's. Even in case further continuation of economic growth within the transformation continues, the freeing up of disposable income in the near future among population will be gradual. This will not create space for more significant growth of consumer food prices. It is possible to predict that in the next period there will continue to be relatively independent development of prices among agricultural producers. This is also a consequence of regulation whose aim is to maintain prices of agricultural producers at the low level. The faster growth of prices for agricultural producers can influence the reduction of agricultural production. It is estimated that also in the next period the prices for food producers will be a "mere copy" of consumer food prices. The prices of food producers will be influenced by an average growth of input prices from the industry and development of inputs from agriculture.
This article is oriented also on the possibilities of development of food prices from the perspective of Slovakia's entrance into the European Union. In this area a serious problem is the significant difference in prices of agricultural and food producers as well as the level of food prices in Slovakia in comparison with the countries of the European Union.
The article deal with the problem of establishing a point of return
for the multi-production structure. While the theory is capable with adequate
precision to determine a point of profit on the basis of the level of return
for one product, in the case of multi-production structure the theory in
most cases does not go far enough. Many firms, however, need to examine
this area closer and also to analyze certain specific cases in the area
The article tries to provide precisely this aspect from the economic dimension of entrepreneurship in conjunction with the regulation of profit. It clarifies the accounting of the point of return in multi-production structure, and in certain special areas with the framework of services. It includes two basic methods, i.e., according to the method of coordination on the basis of contribution expansion, and according to a method of adding fixed expenditures on products on the basis of productive contribution of payment. Simultaneously, it points to the opportunities of examining the sensitivity of profit for the sake of change and the amount of expenditures on the basis of calculations with incomplete outlays and payment of compensation.
The articles presents results of research from selected authors concerning
certain relations between selected variables of marketing mix in the world
and Slovakia. In the analysis were incorporated four relationships of marketing
Just as in the developed economies so in Slovakia the consumer uderstands the relationship between product (its quality) and the price as mutually binding: the higher the price, the higher the quality. Consequently, the price in regard to most of the products is the dominant determining criterion for an understanding of quality. The quality again is the dominant criterion for decision making for the purchase of the product.
Similarly also is the relationship of the product and promotion in the perception of the consumer which is more promoted to the position of better quality product. An understanding of product as quality has a positive influence for its consumption. Equally is the influence between product and distribution or price and distribution. The quality of the location of sale is often dependent on product and its price.
In more complicated relations is explored the linkage of price and promotion. On this relationship has influence in the market many more factors, and for this reason the conclusions in this part can differ according to the concrete conditions in the market.
The research applied on the basis of selected group, which was composed by the four-year university students who were oriented toward management and marketing, demonstrated that normal trends in developed countries have their application also in our socio-economic conditions. An uderstanding of the relationship of marketing variables establishes for firms preconditions for their effective conduct in the market.
The article discusses the development of advertising environment in
the Slovak Republic in the period of economic transformation. During the
last five years the development of advertising market in the Slovak Republic
went through several phases which definitely led toward the professionalization
The author by the use of concrete statistics establishes the extent of advertising activities from the regional perspective, and includes a short overview of the most successful advertising organizations in Slovakia.
While the domestic advertising market during the past years developed quickly, the advertising activities of Slovak firms abroad is substantially backward.
In order to prevent misrepresentation of Slovak Republic abroad, it is important to work out unified short and long-term conception of governmental-political propagation in all areas of media and advertising activities which are linked with specified economic and entrepreneurial advertising.