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Investment analysis of a piglet producer farm – a Hungarian case study
141-152Views:282The pig population in Hungary was about 8 million in 1990, while this number dropped to only 2.8 million by 2018. The previously so successful integrated domestic pig farming has almost completely disappeared and most of the smaller farms still operating in the 1990s are no longer functioning. At present, a process of concentration can be observed, which was accompanied by the further specialization of pig farming. The main profile of most pig farms is fattening, but there is a smaller number of farms in Hungary today specialized for piglet production, the successful operation of which requires significantly more expertise and more complex technology.
The main aim of this study is to present the production and economic indicators of a pig farm specialized in piglet production in Hungary as a result of a greenfield investment in the current economic environment, on a case study basis. For this purpose, an economic simulation was prepared based on primary data collection, operating on a deterministic basis, modelling the production and economic processes of the farm. The performed calculation does not derive the economic indicators of the activity from accounting records, but assigns the prices of natural inputs used on the basis of technological data. Primary data and information collection (e.g. technological data, input and output prices, unit cost items, etc.) took place between 2018-2019.
At the purchase prices of pigs in the last two years, which have increased significantly due to the African Swine Fever (ASF), the majority of pig farms in Hungary have an outstanding profit-making capacity. The physical efficiency indicators of the analysed pig farm are almost identical to the average data of such farms in the Netherlands, which has one of the most developed pig industry. The income of the examined pig farm at farm level is about 734 thousand EUR, i.e. 232 EUR per sow. Moreover, this activity is profitable even without subsidies. As a result, the greenfield investment pays off in the 8th year by default (average scenario). The investment has a Net Present Value (NPVr=3%) of EUR 2,609 thousand for 10 years, an Internal Rate of Return of 8.5%, and a Profitability Index (PIr=3%) of 1.3. At the same time, risk factors such as sales prices, output and capacity utilization, and feed costs should be taken into consideration as in extreme cases the return on investment may be unfavourable (pessimistic scenario).
JEL code: D24, M11, Q12
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Investment analysis of plum brandy production – methodology approach
103-105Views:148The major prerequisite of successful entrepreneurship venture is quality of decision-making process. Decision in investment is the most important financial decision. It is a part of both long-term business planning process and strategic business definition. Using available investment appraisal methods, entrepreneur should make positive or negative investment decision. Within the development of the economic theory and the practice many of methods made decision-making process rational and gave the scientific and practical base for successful project evaluation.
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The most relevant factors and trends in energy cooperation between Kazakhstan and China, focused on renewable energy sources (RES)
Views:542This paper analyses the good political and legal environments, mutually beneficial strategic policy, along with level of economic development and growth, superior geographical conditions and cultural integration degree of the important effecting factors of the energy cooperation between Kazakhstan and China. By using the main points listed above this article refers to related trade and investment theories, and it’s divided into two aspects: Kazakhstan's export of Chinese energy products with time series data 1998-2014 and China's investment in Kazakhstan's energy sector with time series data 1998-2016 to construct the vector autoregressive model (VAR).We selected relevant variables and data to construct an econometric model from the perspectives of trade and investment to make an empirical analysis on the influencing factors of energy cooperation between Kazakhstan and China. Our results show that China's demand for large-scale market and for opening to the outside world as well as Kazakhstan’s great energy potential are the most important factors their cooperation. It can be stated that in our days Kazakh legislation is suitable for promoting the Chinese energy investments, but in the long run it would be beneficial to mobilize national capital especially in RES investments and research. In the end, we found the most important reserves in competitiveness of electricity and heat (both from fossil and renewable energy sources) are power grid consolidation and waste heat utilization in the short run.
JEL CODE: F14; Q43
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Key aspects of investment analysis
53-56Views:763This paper reviewed principally accepted methods applied to investment analysis. To describe every aspect of investment analysis fully would require far more space than available here, so we highlight only of few of its aspects. This study collects several well-known bibliographies, contrasts them with each other and provides explanations for having done so. There are many questions about which authors and companies agree, including about how to apply certain methods, but on others there is disagreement. Four dynamic methods (Net Present Value, Internal Rate of Return, Profitability Index, and Discounted Payback Period) are demonstrated from the viewpoint of application. Moreover, this study clarifies several sensitive questions, such as handling income taxes, inflation and uncertainty. Other examined issues are only mentioned at the end of this paper, and we will publish on these more thoroughly at a later date.
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Economic aspects of an agricultural innovation – precision crop production
51-57Views:236Innovation in agriculture ensures the wide-spread use of the latest, up-to-date technology. Such new technology is precision farming in crop production, which serves as a validation of the criteria of environmental and economic sustainability. The economic applicability of precision crop production depends on several factors.Among them the following aspects must be emphasized: the size of the farm, the characteristics of the production structure, the current input-output prices and their tendencies, the investment needed for transitioning to precision technology and its capital source, the level of professional knowledge and the managerial attitudes of the farm. I have examined the economic relations between potential savings in chemicals on EU level. It has been found that after switching to precision farming, the active ingredient use for fertilizers can be reduced by 340 thousand tons at the same expected yield level in an optimistic scenario in the EU-27, while the savings in pesticide use can be 30 thousand tons (calculating with the current dose-level). If approximately 30% of the crop producing and mixed farms over 16 ESU adopt this new technology, this will diminish environmental loads by up to 10-35%. The majority of farms characterized by greater output and size can be based on their own equipment but it might as well be presumed that smaller farms can turn to precision farming not based on their own investment. They can buy the technical service from providers, they can establish producer cooperation, for example in the frame of machinery rings. At a certain farm size and farming intensity precision crop production is a real, environmentally friendly farming strategy, with the help of which the farm can reach earnings that cover at least the economic conditions of simple reproduction.
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Off-farm participation and technical efficiency among smallholder farmers in the Northern Region, Ghana
35-43Views:238The study aimed at investigating the effects of off-farm participation on technical efficiency of maize production in the Tolon district of the Northern Region, Ghana. The Logit regression model was used to analyze the determinants of off-farm participation while the stochastic frontier production function was used to model the determinants of maize output and technical efficiency. The empirical results from the logistic regression model indicate that age of farmer, educational attainment, farming experience, farm size, and previous farm income are significant drivers of farmers’ participation in off-farm activities. Farmers’ average technical efficiency level was 90.7% suggesting a 9.3% potential loss to inefficiency. Moreover, participation in off-farm activities had a negative influence on farmers’ technical efficiency level. The study, therefore, recommends that farm-level policy should be directed towards making the agricultural sector attractive by promoting investment and agricultural employment opportunities in the rural areas so as to ensure full commitment to farming activities.
JEL code: Q22
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Political risk effects and entry mode strategies of multinational corporations (MNCS) in Nigeria
Views:519Research on the political risk and entry mode of multinational companies (MNCs) has been one of the major subjects of interest in international business terrain, and the political risk factor has constitute a major basis for explaining whether exporting, licensing, franchising, or joint venture agreement (JVA) and Foreign direct investment seems to be appropriate. As such, the study examined the effect of political risk as it affects the entry mode strategies of selected multinational corporations in Nigeria as the economy of most developing economies has been characterized as being exposed to political instability and risk. The research adopted the survey technique with inference to the expo facto method and adopted questionnaire as an instrument through content and test re-test appraisal before data were analyzed through the IBM Statistical Package for the Social Sciences. The results from the analysis indicated that franchising remains a viable option of multinationals in Nigeria and the second hypothesis indicated that licensing significantly reduces the risk exposure of multinational corporations as the licensor have lesser liability in an unstable political economy of the licensee. Based on these findings companies are recommended to adopt appropriate entry strategies in line with governmental policies and economic situation before entering foreign markets.
JEL CODES: M1, M10 -
Demand and supply of labor market: A case of UAE
145-153Views:250United Arab Emirates (UAE) witnessed a progress of growth booming since its establishment, which as result puched all economic componets to indicated a active movement in term of employment and capital investment as well. This steady economic growth has been marked by an increase in the income by the country’s citizens, both national as well as the foreign residents This paper to axamine the supply and demand of labor market in UAE. The technique used to source the data is a secondary resource and methodology employed in descriptive and analytical. The study found that, the diversification of the economy, and enhance the role of private sector increased the demand for labor as well as increased the diversification for nationalities in the country. From other side, because of diversification strategy, the foreigners labor have more numbers in total employment structure.
JEL CODE: O12
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Some possibilities for risk analysis in the decision support of crop production
79-85Views:149This article has been made according to my dissertation in which I present some opportunity of risk analysis and risk management in the decision support of crop production. Plant production is one of the most hazardous agricultural enterprises. Among risk sources seasonal fluctuation of average yields plays an important role in the assessment of enterprises. Therefore, I analyzed the production risk of the produced crops in Hungary compared to the European Union’s, after that I took into consideration the production site’s circumstances as well. Decision-makers must possess such means, by which they can measure, oversee and manage the effects and consequences of risk. In crop production linear programming models can be used to determine the optimal crop structure, by which income-sensitivity can be taken into account, but it does not reflect the behavior to risk. This deficiency can be avoided by using risk programming models. By the complementary usage of linear programming and risk programming models the optimizing and adaptive planning can be executed. It often causes a problem for the producers to decide when and how much to sell to realize a maximum turnover. The decision is mostly influenced by the selling prices, but also important factors are the financial status of the business, the amount of credit and its conditions, the stock piling opportunities and costs, and the short-term investment opportunities as well. For the resolution of the problem I set up a dynamic, simultaneous financial model by which the system-conceptual analysis of the above mentioned factors and a sound decision-making can be executed.
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A comparative analysis of the profitability of pineapple-mango blend and pineapple fruit juice processing in Ghana
33-42Views:323This study analyzes the profitability of fruit juice processing using data from Kudors Fruit Juice Limited at Kasoa in Ghana. The cost involved in fruit juice processing (which includes the capital cost and the operating cost) was obtained from the Company. This study compares the profitability of blend (i.e. fruit juice made up of pineapple and mango blend) with that of pineapple juice alone. The viability of the project was determined using the discounted measures of project worth: Benefit-Cost Ratio (BCR), Net Present Value (NPV) and Internal Rate of Return (IRR). The empirical results reveal that pineapple juice processing had a BCR of 1.03 which means that going into the pineapple juice processing is profitable. The value of the NPV (GHS11,728.00) and IRR (23%) further confirms that pineapple juice processing is profitable because the NPV is positive and the IRR is greater than the discounted factor (21%). The results also showed that it is more profitable to invest in the blend (pineapple and mango blend) than the pineapple juice alone as it yields a BCR of 1.36 which was greater than the BCR of 1.03 for the pineapple juice only. Furthermore, the value of the NPV (GHS176,831.00) which is greater than the pineapple juice only, suggests that the blend is more profitable even though the IRR for both are the same. Moreover, it is also more likely to recover capital investment earlier in the processing of the blend than when one goes into pineapple juice processing only, because the net cash flow in year 2 (GHS 58,146.00) for the blend is more than triple that of the pineapple juice only (GHS17,826.00).These results have policy implications for the development of Agribusinesses in Ghana.
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Consumer potential analysis of feasibility criteria of geothermal projects
125-130Views:132The University of Debrecen, Faculty of Engineering, has been conducting a research program in geothermal energy since 2008. This program enabled me to devise an analytical study of the monetary and non-monetary criteria of geothermal projects. The monetary criteria of a region or a location for geothermal energy production cover the investment costs of the surface installations and the cost of the drillings. Non-monetary criteria include the geological and geothermal evaluations of a reservoir and the evaluation of consumer potential. This paper represents a small part of the larger study and focuses on consumer potential.
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Determinants of dividend payout policy: An empirical study of banking sector of Pakistan
101-106Views:492One good way to communicate financial performance of a bank to its shareholders is the payment of dividend. The present study is attempted to explore the influence of financial efficiency, safety, risk and profitability on dividend policy using panel data of 10 commercial banks listed at Pakistan Stock Exchange (PSX) for a period of 9 years between 2006 to 2014. The panel regression technique is used to analyze the data. The analysis shows a positive relationship of dividend payout ratio with safety and profitability in banking sector of Pakistan. The study identifies a negative association of dividend payout measure with financial efficiency and risk. The results show the statistically significant association of safety, risk and profitability with dividend payout ratio. Based on these findings it is concluded that safety, risk and profitability measures are relatively strong measures for defining dividend policy. The results are strongly indicating that safer the banks, the greater payout ratio the bank has. Moreover; banks with higher profitability and lower non-performing loans (NPLs) are believed to pay more dividends.
JEL code: G21, G23, G35
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Regional benchmarking process in cognac project (Coordination of RDI policies and their coherence with other policies in the Newly Acceded Countries)
29-32Views:129In order to achieve the Lisbon objectives and create a knowledge based society, Europe needs to increase and improve investment in R&D. This requires improving the effectiveness and coherence of research policies at European, national and regional levels. The first cycle of application of the open method of co-ordination (OMC) to the 3% objective provided an overview of the Member States policies in a number of areas, facilitated mutual learning and led to a number of policy recommendations adopted by CREST in October 2004. The current regional benchmarking practice is made with in a 6th Framework Programme project called Cognac, which is the acronym for Coordination of R&D&I policies and their coherence with other policies in NewlyAcceded Countries. The project is focusing on two priority subjects: public research spending and policy mixes and SMEs and research. The project was supported within the first cycle of the RTD-OMC NET call. The benchmarking exercise tries to show the differences in the performance of participating regions. It supposed to choose the best regions at NUTS II level by the two priority topic of the project: “Public research spending and policy mixes” and “SMEs and research”. Geographically the analysis covers the area of the eight partnering regions.
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Economical aspects of thermal and medical tourism
77-84Views:183Thermal and medical tourism in Hungary are characterised by a continuous development. The management, efficiency, operational effectiveness and offer of enterprises in the field of tourism influence the competitiveness of Hungary’s tourism. In the present day economic life the thorough analysis of the enterprises’ economy is indispensable. The result of the analytical methods applied by the report provide information for different stakeholders (owners, transporters, customers, employees, habilitators). The aim is to have data which inform us about the functioning, financial situation and profitability of the economic entities parallel with the factors and conditions determining these elements. In our paper we present the financial situation of the Demjén Thermal Spa Ltd., being one of the newest thermal spas of Hungary.
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Profitability of cassava production in the Ashanti region of Ghana
66-69Views:746Cassava is a crop that is massively produced and consumed in Ghana even though it is produced by subsistence farmers. The aim of this study is to analyse the cost and returns of cassava farmers. Farmers profitability was accessed using the gross margin, net present value and the benefit cost ratio. SWOT analysis was conducted to access challenges faced by cassava farmers. Data was collected by personal interview from fifty (50) cassava growing farmers in the Sekyere East District of the Ashanti Region, Ghana. The Costs and returns analysis show gross margin of USD 22.75 per acre. It was concluded that cassava is cultivated for both consumption and revenue. Even though there is low investment of capital in cassava production, it helps farmers to make use of available resources (personal savings, land and labour) which would have been idle. Further should compare profitability of crops that compete for use of famers land.
JEL. CODE: Q13, Q19
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Impact of economic globalization on the human trafficking in the Greater Mekong Sub-region countries
123-130Views:411This study examines the impact of economic globalization on the human trafficking inflows into the Greater Mekong Sub-region (GMS) countries. The paper empirically tests for a cross-section of six countries, including Cambodia, the Yunnan Province of the People’s Republic of China (PRC), Lao People’s Democratic Republic (Lao PRD), Myanmar, Thailand, and Vietnam. Employing the Pooled OLS estimator, as the theory predicts, the economic globalization increases trafficking inflow into the GMS. However, only foreign direct investment (FDI) affects the degree of trafficking of persons, while the effect of trade is insignificant. Moreover, Exchange rate, Migration, Population and Democracy induce higher rates of trafficked persons, whereas Gross Domestic Product (GDP) and other factors, such as education, vocational training and micro-finance through village development funds decrease this problem in the region. Gross National Income per capita (GNI per capita) and rule of law do not have any significant effect on human trafficking.
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THE PROFIT EFFICIENCY OF MORINGA OLEIFERA PRODUCTION IN OSUN STATE, NIGERIA
Views:204This study examined the profit efficiency of Moringa oleifera production by farmers in Osun State, Nigeria. Primary data were obtained from 150 respondents. Multistage sampling procedure was used for selecting respondents. The data were analyzed with the aid of descriptive statistics, budgetary analysis and stochastic frontier production function. The findings revealed that male predominate moringa enterprise with about 55.3% male, most producers fall between the age bracket 41-50years with a mean age of 44.92 (± 13.168) years and the average farm size is 0.3 hectares whilst indicating that most producers had less than 0.1 hectares of land. Moringa production had a benefit cost ratio of ₦5.852, profit margin of ₦0.182, expense structure ratio of ₦0.107, net return on investment ₦4.857, rate of return of ₦5.482 and profitability ratio of ₦0.981. The average profit efficiency of moringa producers was 18.73% on the profit frontier. Family labour, hired labour and transport cost were significant and had positive coefficient while the seed cost, pesticide cost, level of education and farm size are also significant but bears negative coefficient. The level of education and farm size are amongst the inefficiency variables considered. This study concludes that Moringa oleifera production is highly profitable but producers have not been able to maximize profit efficiency. It therefore recommends that producers improve on adding value to moringa products and extend their channels of distribution considering the cost incurred on transportation.
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The effects of health tourism investments in tourism businesses in the Northern Hungarian Region
45-50Views:188In my article I woud like to find answers for the question how frequently and effectively the region’s business leaders in Northern Hungary participated in various development programs, as regards investments in health tourism, what developments have been made mainly in the area, what the positive effects of these developments were in the life of businesses, whether the businesses (leaders) feel successful, and how their success was manifested. I carried out a questionnaire survey among enterprises. From the data I calculated mean, SD and spectrum and examined the crosstab correlations as well, and the Cramer’s V associate coefficient and Contingency coefficient. The results of the correlation tests could be summarised as the following: According to the survey, the number of the medium-sized enterprises being involved utilised a significant proportion of their development funds, compared to the micro and small enterprises. Although the idea of spas winterizing their pools was not considered an important development, both the adventure and wellness elements were important for the construction of thermal baths. In the case of hotels, the expansion of wellness elements and other additional services together with the development of marketing activities played an important role. Besides the positive business publicity, enterprises see the positive effects of the investment in the increase of their income; the success can be the result of the adequate supply of components, the professional management and that of positive image.
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Small and medium enterprises as development factor of agribusiness in Republic of Serbia
45-49Views:169Development of strong and competitive sector of small and medium enterprises has very important role in process of total transition in Republic of Serbia. This sector should be one of the guidelines of economical development and future, like in developed countries. Within the Strategy of development of SME and entrepreneurship in Republic of Serbia from 2003 to 2008 government of the Republic of Serbia, not accidentally, placed among many sectors which are expected to contribute and boost economical development, increase the employment rate, and realize increased influx of means deriving from export, the priority is on sector of processing of agricultural products. It can be concluded that significant contribution from agriculture to improvement of total economical situation is expected. Accession to EU should be considered primarily not only as the opportunity but serious task in regard to restructuring of the agriculture. However, impeding circumstance,in regard to export ofagricultural-foodproducts,first ofallto EU countries, isthefact that thismarket is under strict protective measures within the policy of agriculture and measures of agrarian protectionism. In such conditions it is very difficult for producers and processors of food to enter such closed markets. Small and medium enterprises are facing the choice of the business strategy:
– to place the existing product on current market;
– to place the existing product on new markets, including export;
– to sell the new product on existing market;
– to place the new product on new markets, including export.
Therefore, based on analysis of domestic market, volume and structure of import and export of agricultural and food products, as well as analysis of food industry and agricultural production in Serbia, it is necessary to define potential programs for small and medium enterprises with production which could be economically efficient and profitable from the aspect of investment.
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Profitability and efficiency – an analysis of the financial impact of the Szechenyi Plan in the Hungarian hospitality industry
51-56Views:204Continuous changes in the market and macroeconomic factors have made a significant effect on the tourism sector in Hungary. A heavily growing number of hotels could be observed in the past decade. The main question about the hotels built with high investment costs was their expected time of return. Keeping Hungary’s natural conditions in mind, is it more expedient to build new hotels or refurbish old ones? I was seeking answers for these questions during my work. My research was aiming to explore the impacts of the non-refundable subsidies – financed by the government – provided for new health and wellness hotel projects carried out within the framework of the Széchenyi Plan. On the other hand, my study was expanded to the analysis of balance sheets and profit and loss accounts data of the hotels of Hungary according to their star (quality) rating. The major findings of the research: Considering high developmental costs subsidies play an important role in the hotel industry. It is impossible to carry out such investments using internal sources only. However, exclusive bank loans finance could drive insolvency so it is extremely risky. Non-refundable subsides provided for hotel investments created stable, countable payroll taxes and other forms of incomes for the country. In order to achieve more profitable operation, providing higher quality of services is indispensable. Taking Hungary’s conditions into account this can be reached more likely among four star rated hotels than any other star (quality) ranked establishments.
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The status of agricultural financing by commercial banks in Zimbabwe
45-56Views:447Agricultural finance is indispensable for enhancing productive capacity in both small-scale and commercial farming. This study sought to establish the current status of agricultural financing by 12 registered and operational commercial banks in Zimbabwe in the year 2019. Questionnaires and interview guides were used to collect data. SPSS and NVivo were used for data analysis. All the commercial banks participated in agricultural financing with an average agricultural loan portfolio of 30%. However, their participation in agricultural lending is yet to reach the pre-land reform maximum of 91.3% attained in 1999. Land tenure and weather risks, as well as lack of collateral among farmers reduced the banks’ appetite for lending to the agricultural sector. The majority of the commercial banks offered value chain finance, invoice finance, overdraft facilities, and term loans to agricultural sector clients that mainly included; suppliers, medium-scale, and large-scale commercial farmers. The study established a mismatch in the demand and supply of loans in the medium to long term tenure range of 1 to more than 3 years. There was low demand for 1-3-year tenure loans according to the commercial banks, and a corresponding deficit in the supply of highly demanded longer-term loans of more than 3 years for capital expenditure (CAPEX). Therefore, government should aim to; stabilize currency; arrest hyperinflation; restore economic stability; address land tenure to ensure the bankability of the 99-year Lease; and create an environment that is conducive for investment in climate and weather resilience infrastructure. Local farmers should also invest in human and physical capital to improve their access to bank credit.
JEL Code: Q14
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Spatial urban plans as a basis for agribusiness development
139-143Views:126The main goals of the spatial development of rural areas are to protect and prevent degradation of agricultural land, forests and protected areas, as well as to encourage (more) balanced territorial development. Given that the quality and development of agriculture largely depend on the level of consciousness and awareness of the population in rural areas as to the opportunities and benefits of their involvement in the adoption and approval of planning solutions, the aim of this paper is to define a communication strategy to help raise the awareness of the focus groups (landowners, farmers and investors) of the importance of and link between spatial planning and development of agribusiness and rural areas, exploring different techniques and methods of using various communication channels. The methods which will be used in the paper include secondary research, SWOT analysis, and trend and historical analysis. The research results show that it is essential from the very beginning to take the views of various stakeholders into account through frequent thematic dialogues, in order to incorporate a consensus which has been reached together with the expert team of the developer, into planning decisions. Only such an approach can lead to sustainable and enforceable plans as prerequisites for the realisation of realistically planned investment in rural areas. Furthermore, it is very important to legally standardise such an approach so that public participation, as a mandatory legal procedure, can be defined through precisely defined steps and established performance indicators from the very beginning of the process of adopting planning documents.
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Women and microcredit in rural agrarian households of Uganda: Match or mismatch between lender and borrower?
77-88Views:372The alignment of microfinance programs with the context and expectations of the recipients is critical for ensuring clients’ satisfaction and desired program outcomes. This study sought to investigate the extent to which the objectives and design of the BRAC microfinance program match the expectations, context and characteristics of female borrowers in a rural agrarian setting in Uganda. Quantitative and qualitative methods were used to obtain socio-demographic, personality and microenterprise (ME) characteristics of existing borrowers, incoming borrowers and non-borrowers and to obtain information about the microcredit program. We found that BRAC uses a modified Grameen group-lending model to provide small, high-interest rate production loans and follows a rigorous loan processing and recovery procedure. BRAC clients are mainly poor subsistence farmers who derive income from diverse farming and non-farm activities. The major objective to borrow is to meet lump-sum monetary needs usually for school fees and for investment in informal small non-farm businesses. Many borrowers use diverse sources of funds to meet repayment obligations. Defaulting on loans is quite low. The stress caused by weekly loan repayment and resolution of lump-sum cash needs were identified as reasons for women to stop borrowing. The limited loan amounts, the diversions of loans to non-production activities, the stages of the businesses and the weekly recovery program without a grace period may limit the contribution of these loans to ME expansion and increase in income.
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Role of innovations and knowledge – infrastructure and institutions
7-10Views:290There is a well known saying: Research converts money into knowledge, innovation converts knowledge into money. The knowledge-based economy has four pillars: innovation, education, the economic and institutional regime, and information infrastructure. Transformation towards a knowledge-based economy will necessarily shift the proportion and growth of national income derived from knowledge-based industries, the percentage of the workforce employed in knowledge-based jobs and the ratio of firms using technology to innovate. Progress towards a knowledge-based economy will be driven by four elements: human capital development, knowledge generation and exploitation (R&D), knowledge infrastructure. Increased investment in these four areas will certainly have an impact. National experience, however, suggests that an incremental approach will not work. Nations that have achieved accelerated growth in outputs and capabilities have acted decisively, targeting investments in areas of strategic opportunity. The organizational and infrastructural improvement of research requires supranational cooperation and the promotion of the free movement of knowledge. Therefore, the EU decision on the establishment of the European Institute of Innovation and Technology (EIT), which ensures that the GDP proportion for research and development (R&D) shall achieve 3% stipulated by member states in the long run, is particularly welcome.
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The role of sport infrastructure: use, preferences and needs
47-52Views:336Leisure and mass sports are very significant both socially and economically. Physical activities contribute to forming a healthier society. Skills and abilities developed by sport promote people’s well-being and directly improve their physical, mental and psychological performance this way producing better quality of life. The state of health of the workforce is a more and more frequent question in developed and developing economies but mostly in the western civilizations. Researches prove that those who are more active phisicly can perform better at their work and are more efficient in their jobs. They claim less sick leave benefit and their health insurance costs are lower, this way preserving the health of the workforce can be an investment in the future. If we want the population to live in a healthier way and do more sports only education and motivation are not enough, it is very important to provide the appropriate infrastructural background as well. People can have a wide range of choice provided by the local sports establishments and companies and the possibilities resulting from sport infrastructure investments. The effects of sport infrastructure investments and developements are many folded and long-therm, but it is worth approaching their benefits from different points of view. Researching this topic can contribute to better understanding of the society from the points of view of health care, economy and sociology. The aim of our work was to examine the sporting habits and sports consumption. In order to get to know the consumers we carried out a survey with 350 particiant with the help of an online questionnaire. When analyzing it I focused on the answers given by those who were active in sports, which was the 75% of total sample. In the analysis of the answers and relations between the questions and the different factors we used the SPSS Statistics program. Providing sport establishments and facilities and initiating such investments are highly important for each region. From the answers of the quesstionned we can learn what facilities are available for the consumers and what they miss most in the living area.
JEL code: L83
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