Search

The following research paper conducts a comprehensive analysis into the intricate dynamics governing the relationship between Foreign Direct Investment (FDI) and International Trade, with a specific focus on the Western Balkan Countries-6 (WB-6). This research spans the period from 2000 to 2020 and seeks to shed light on the interplay between FDI and International Trade within this region. To analyse and interpret these dynamics, various regression models, including Ordinary Least Squares (OLS), Fixed Effects, Random Effects, and the Hausman-Taylor model, are employed as analytical tools. Moreover, the research takes into consideration the influence of specific institutional factors within each country, which play a pivotal role in shaping foreign investors' decisions to invest in a particular country. The study's results reveal that gravity factors, in conjunction with institutional determinants such as economic integration, control of corruption, political stability, and other indicators of governance quality, significantly impact the attractiveness of the WB-6 countries to foreign investors. The findings of this paper hold substantial relevance for the development of an analytical framework aimed at evaluating national policies and institutions geared towards enhancing the appeal of Western Balkan countries to foreign investors. Furthermore, the research underscores the importance of these host countries prioritizing efforts to bolster the effectiveness of governmental institutions, combat corruption, streamline bureaucratic processes, and improve overall economic conditions to attract and retain foreign investment. [ABSTRACT FROM AUTHOR]

Although Western Balkan economies are still on the list of EU candidates or potential candidate countries, they do have some integration with EU economies. The EU is the leading trading partner of the Western Balkans and is one of the top destinations for the flow of people. The Western Balkan economies have been trying to address their populations' ongoing emigration (the so-called "brain drain" phenomenon) by implementing targeted economic policies. Since one of the main contributors to economic growth is the ability to create innovation, it is crucial to building innovation potential. The main challenge for innovation policy is to provide a favourable environment for entrepreneurship and economic growth to create jobs. Thus, this paper aims to examine innovation potential - an innovation input - as it creates the conditions needed for innovation development. The results of analysing the data (on research and development spending, human resources, an environment friendly to innovation, and intellectual property rights) indicate that the Western Balkan countries are lagging behind the EU in many aspects of innovation potential, so they should still develop their strategies towards creating higher innovation potential. Thus, they will be able to have a higher level of innovation and, as a result, be more competitive in economic terms. [ABSTRACT FROM AUTHOR]

Taking into account the circumstances that Kosovo has faced since the 1990s until now, we can say that significant steps have been taken to advance the country's economic development, but it is still regarded as a country that is not economically developed enough, with a deep negative trade balance and an unfavorable macroeconomic policy to ensure a faster development trend, despite recent economic growth that has been insufficient to affect this. For analysis, we took the life and non-life insurance sector, which turns out to be undeveloped and participates in the financial sector with only 2.7%, so it is a symbolic indicator that speaks for itself about the development of the insurance sector. This industry is characterized by a low level of development, and the main motive is to analyze the development trend of this sector while comparing it with the countries of the region.The purpose of this paper is to identify and examine gross written premiums in the insurance sector in the Western Balkans. In this paper, we will analyze the trend of the gross written premium in the insurance sector in Kosova compared to the countries of the Western Balkans. The sample contains data such as the number of inhabitants, the total gross income at country level, the income per capita, the gross written premium, the rate of insurance density, and the penetration rate for the countries of Kosova, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, and Serbia for the period 2010–2021.The empirical research is done by collecting data from the official reports published on an annual basis by the financial institutions of the countries in the region as well as the World Bank. A research paper is classified as an exploratory, descriptive, or explanatory study. Comparative analysis and descriptive statistics will be the methodologies applied in this paper.The analysis of these data shows that the development of the insurance market in Kosova and the countries of the Western Balkans from 2010 onwards, despite the new market entries of branches of large groups, has not been characterized by real strategies for the exploration of new segments of the market and an increase in demand. The insurance sector needs to be influenced by strategic approaches that move from transaction value to product lifetime value and from product life cycle to customer life cycle. The commitment to create an attractive environment for business initiatives and foreign investments, in addition to being a constant challenge for underdeveloped economies, should also be a strategic goal. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyze the factors that will influence the economic growth. Factors that have impeded investment and economic development in these nations include political unrest, weak institutions, and restricted access to credit and finance. (OECD 2021). The region's current socio-economic conditions provide an impetus for Balkancountries governments to induce more foreign investment as a mechanism for fostering economic growth FDI promotes economic growth in both the host country and the country of origin. The host country benefits from FDI by financing projects planned, developing new technologies and generating new jobs. Investing companies benefit from the expansion of markets and, consequently, the growth of their shares in international markets. The world is full of development opportunities, be it for countries that have just begun to modernise to the richest countries. Overall, the region's economic growth and development still have a lot of room for improvement, even though some Balkan nations have made strides in recent years. Higher rates of economic growth and development in the Balkans may be facilitated by policies aimed at enhancing political stability, bolstering institutions, decreasing corruption, encouraging investment, and expanding access to finance. [ABSTRACT FROM AUTHOR]

The Covid-19 pandemic has affected the economy across the globe and generated uncertainties in the functioning of the industries, governments and the daily life of people. The impact that this crisis has on poverty alleviation, the global GDP and the rapid development of the digitalization process are some of the factors that have reshaped the world. Hence, the way in which the companies and different sectors have operated is now in the past. The new economic condition requires quick adaptability to the new trends and fast implementation of digital solutions. Therefore, new strategies and more advanced practices are a necessity not only for the proper functioning of the businesses, but for the governments and the countries as well. The rapid shift towards the digital channels caught many businesses off guard. All these fast changes and the late transformation slowed down the economic growth, mostly in the countries that did not reacted immediately. Considering that the Balkan region tried to provide digitally enhanced offerings and maintain the economic growth during the pandemic, many people were laid off, many business sectors were affected and many companies were closed. All these transformations affected the economic development and stagnated the growth. Therefore, the aim of this paper is to evaluate what are the main factors that have affected the economic growth in the Balkan region and the reason that contributed to digital transformation of these countries. [ABSTRACT FROM AUTHOR]

This research paper aims to empirically analyze the relationship between economic growth and financial development, in the region of Western Balkan countries, over the period 2010-2020. The relationship is demonstrated by the effects of independent variables such as trade (T), inflation consumer prices (ICP), general government final consumption (GGFCE), domestic credit to the private sector (DCPS), broad money (BM), and the real interest rate (IR), on the dependent variable, such as GDP growth. Hence, to evaluate this impact, we employed the regression model. Although, a correlation matrix is presented to identify the relationship between the study variables. Based on the results presented, there is a positive relationship between trade, inflation rate, and interest rates. Additionally, based on the regression results that were produced using the fixed effect technique, it can be seen that trade (T), inflation (ICP), interest rates (IR), and domestic credit to the private sector (DCPS), positively impact economic growth. The main objective of this paper is to contribute to a better understanding of this connection and draw new conclusions that might greatly benefit policymakers and the Western Balkan community, by considering the fundamental role of the financial sector in sustainable economic growth. The study's second objective is to fill the vac-uum in the literature for this period and a sample of counties according to specific macroeconomic variables. [ABSTRACT FROM AUTHOR]

Copyright of New Economist / Novi Ekonomist is the property of University of East Sarajevo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The Western Balkan countries’ economic growth and development largely depend on the integration of national economies into international trade flows. Bearing in mind the expanding presence of China in the Western Balkans and the considerable increase in bilateral trade over the previous decade, it is of great importance to focus on the strategies for overcoming main challenges and fostering more balanced trade in the forthcoming period. Regarding that, the main aim of the research was to analyze trade flows and patterns and investigate the trade intensity between the Western Balkan countries and China. Furthermore, the research attempted to determine the main challenges and to consider the strategic approach to their overwhelming, including better exploiting the opportunities provided by trade cooperation with China in the rapidly changing global environment. The paper used desk research - a descriptive analysis of data on merchandise trade between six Western Balkans countries (Albania, Bosnia and Herzegovina, Montenegro, Croatia, North Macedonia, and Serbia) and China. The analysis was based on the data available in the UN Comtrade Trade Map, and WTO statistical databases for the period 2016-2021. In addition, the Trade intensity index (TTI) was also used in the paper in order to discover how intensively the Western Balkan countries were trading with China. However, despite the rapid trade growth with China, its share in the WB countries' total trade remains at a relatively low level of about 8%. The trade deficit also increased significantly, indicating a deepening of the asymmetry in the economic relations of the observed countries. Although the trade intensity index (TII) also confirms the deepening of trade relations, the TII value of 0.24 in 2021 indicates that trade between the Western Balkans and China is not developed at a desirable level, and there is considerable room for improvement. [ABSTRACT FROM AUTHOR]

Numerous theoretical and empiric studies investigate the correlation between education and human capital and economic development. Full affirmation of knowledge and the role of education in stimulating economic growth were provided by endogenous theory. The subject of this paper is to analyse the correlation between education and educational system and the economic growth of the Western Balkans countries (WB). The hypothesis of this work says that: education and educational system in the WB affect the growth of GDP per capita. A better education system stimulates and accelerates the economic growth and development. The aim of this research is to prove that an optimal education system stimulates the growth and development in each observed national economy. In this paper, the results of the correlation analysis indicate high compliance of higher education with GDP per capita i.e. higher education population is particularly important for the level of development whereas there is a highly compliant but inverse relation of the population with informal level of education and economic development in the WB countries. [ABSTRACT FROM AUTHOR]

Copyright of TEME: Casopis za Društvene Nauke is the property of TEME: Casopis za Drustvene Nauke and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper deals with the idea that EU has to reformate as a result of the latest challenges, including the Brexit. A possible effect and opportunity from this can be a stronger position for the EU Balkan Member States. The analysis in the paper takes into consideration all Balkan economies, including candidate countries in order to obtain a general approach for the region. This approach is new because it puts together member and candidate members from a region, in the context of re-evaluating the EU, and leads to the idea of finding a regional leader able to generate regional progress and to support the region's interests in the European Institutions. The analysis covers five representative economic indicators (GDP growth rate, gross fixed capital formation, unemployment rate, inflation rate and general government gross debt) and is realized on three levels: a comparative analyses, a cluster analysis, and a cumulative analysis as well. Moreover, regression is used in order to point out the economic disparities across the region. The main conclusion of the analysis is that the great regional economic disparities can be decrease using common regional policies. Moreover, the analysis identifies a regional economic leader able to coordinate common initiatives at least on short and medium terms. The analysis and the conclusions in the paper are supported by the latest official statistic data, pertinent tables and diagrams. [ABSTRACT FROM AUTHOR]

Macroeconomic stability is one of the important factors influencing the growth and development of national economies in today's modern global economy. Economic policy should create conditions for macroeconomic stability and economic growth based on increased investment, exports, savings, productivity, and competitiveness, while reducing macroeconomic imbalances, especially the fiscal deficit, inflation, and the current account deficit. In order to achieve macroeconomic stability, as well as sustainable economic growth, it is important to pursue a rational economic policy and carry out accelerated structural reforms. The main objective of the paper is to analyze the impact of key indicators, i.e., export and import of goods and services and FDI on economic growth of the Western Balkans countries. Such an analysis is important to show the state of the economy and predict its stability. The research focuses on the countries of the Western Balkans, while the analysis uses secondary data from the UNCTAD database for the period 2011-2020. The research results indicate that Serbia is progressing much faster than other countries of the Western Balkans. In the coming period, a growth trend can be expected in all Western Balkan countries, which will result in better economic development and increasing openness to new investments. [ABSTRACT FROM AUTHOR]

The economies of the Western Balkan countries (Kosovo, Albania, Macedonia, Montenegro, Serbia and Bosnia and Herzegovina) rely heavily on diaspora remittances. The purpose of this paper is to estimate that remittances constitute an important source of income, financing aggregate demand and household. In this paper, an empirical econometric model was developed to assess the impact of remittances on nominal and real nominal growth for PB countries for the period 2010 - 2021. The empirical methodology is applied based on SPSS cointegration analysis: As a linear regression analysis (enter method), multiple regression analysis, reliability analysis, Spearman correlation analysis, factorial analysis and Kruskall Wallis model. Based on the empirical results obtained from this paper, it was found that the impact of remittances is positive in the economic growth in the Western Balkan region during the research period, while from the analysis of statistical differences, statistically significant differences were found in five countries of this region. Direct foreign investments also have a positive impact on economic growth from controlling variables. It is recommended to form a trust fund so that remittances from the diaspora can be collected and invested in capital projects such as the opening of manufacturing plants, investments in securities, and international stock markets, i.e. the relationship with the diaspora should change from a relationship of solidarity to a relationship of the market economy, where immigrants will invest their funds. [ABSTRACT FROM AUTHOR]

Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The Balkan countries undergoing the transition must advance their economies to be more competitive. The aim of this paper is to analyse economic growth with a primary focus on the analysis of economic convergence in the Balkan region in the period of 1997-2020. The research analyses the following Balkan economies: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Montenegro, North Macedonia, Romania, Serbia, and Slovenia. This study applies Gross Domestic Product (GDP) as a measure of economic growth and is based on the neoclassical economic growth model: the Solow's convergence concept. The results show that the Balkan countries experienced economic convergence with a speed of 1.82% in the cross-sectional model and 7.87% in the panel data model. It means that the initially less developed economies noted higher economic growth than those richer. [ABSTRACT FROM AUTHOR]

Greening the economy plays a significant role in achieving sustainable development, as a paradigm with no alternatives for the survival of the planet Earth. It is the only way to create a positive impact both on the society and the environment. Hence, it is an inclusive concept, embedded in the overall development of a country, which emphasis a responsible way of planning and acting. The green economy trend is increasingly present worldwide; an increasing number of countries are developing and implementing policies and practices that support the green economy concept. The main objective of this research is to emphasize the commitment of the Western Balkan countries and of People’s Republic of China in regard to greening their economies. The methodological framework rests on the several scientific methods - analysis, synthesis, induction, deduction, selection, generalization and comparison. The research focuses on policies and practices that contribute to green economy in non-EU Western Balkan countries: the Republic of North Macedonia, Republic of Monte Negro, Republic of Serbia, Republic of Bosnia and Herzegovina, and Republic of Albania. At the same time, this Paper emphasizes the policies and successful practices implemented in the People’s Republic of China, as one of the world's leading economies that is rapidly moving on the path of greening its economy. In order to quantify the countries’ efforts towards the Green Economy, the Green Growth Index is presented and used. The results of the research point to the conclusion that in the selected Western Balkan countries and the People’s Republic of China, efforts are being made for implementation of the concept of green economy, but there is much that can be done to improve it. [ABSTRACT FROM AUTHOR]

Copyright of TEME: Casopis za Društvene Nauke is the property of TEME: Casopis za Drustvene Nauke and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this paper is to research the impact of a public administration reform on the economic development of the Western Balkan (WB) countries. The research covers a ten-year period (2009 - 2019), and is conducted on a sample of 19 countries (so called New EU Member States, Turkey and 6 countries from the WB). The paper attempts to quantify the effect that the public administration reform has on the two variables of economic development, namely the real GDP Growth Rate and Trade Per Capita, in the context of analysis and impact of six governance indicators created by the World Bank, within the WGI (The Worldwide Governance Indicator). In order to prove the hypotheses, we used the dynamic panel method. The results show that there is a significant positive impact of public administration reform in the WB on the GDP growth and trade. [ABSTRACT FROM AUTHOR]

The Republic of Macedonia in its evolutionary path to independence was mostly under the Ottoman Empire, so it is of great historical and economic meaning to analyze the importance it gained in that period, primarily due to the geographical position in which it is located, occupying the central part on the Balkan Peninsula, a section which important regional and national roads pass through and the possibility of foreign trade with other countries. The research design on this paper is based on collecting relevant data that reflect the purpose for which the paper was written, i.e. through careful analysis and using the historical method, the collecting data method and statistical methodologies and procedures, to show the exchange of goods and services that took place on the territory of Macedonia in the XIX century. [ABSTRACT FROM AUTHOR]

This study aims to provide evidence for the good timing to forming a unity between Bulgaria and the countries of the Western Balkans in a coordinated effort for building strategic profile and capacity in the commercialization, brokerage and servicing of international innovation and technology transfer (IITT). The timing is right, especially in a post pandemic economic recovery of the world and the course of accession of the Western Balkans to the EU. The study justifies the need of a unified strategic framework, to avoid political and partisan momentary discourse, which might negatively affect the whole region politically, socially, and economically. All the arguments and reasoning in the study assume that the economic crisis of the COVID-19 pandemic is the crisis of the broken supply chains (GSC). Lives are lost, jobs are lost, and global governments are facing a thread that leaves the citizens of their respective countries with neither medical, not economic safety. It is a priority are to secure sustainability and resilience for each country and region. Countries do consider recovery through reposition on the new global value chains (GVC) structure. Globalization is inevitable and irreversible but at the same time proximity and regional sustainability are a critical factor in international trade and will continue to be on focus. The competitive advantages and even economies of scale in production are not sufficient for the contemporary global economy and international trade. Technologies are and will be more often the objects of international commercial transactions. Thus, more economies are and will continue trying to build economic capacity by implementation of innovations and new technologies. Timing is critical and internal national research and development (R&D) is often not adequate to the urgency of economic needs. Thus, national and corporate economic subjects are more likely to acquire technology capacity to satisfy their needs, rather than trading the demanded goods or services. In such cases, the IITT is the most efficient and justified approach, though it requires capacity to evaluate, adapt, integrate, monitor, and navigate through a solid scientific background. IITT management set of skills is unique and requires multidisciplinary protocols and scientific expertise. The paper is reasoning that the development of such specialization on the Balkans is well justified by the similarities in the economic background of countries in the region and the open cohesion and convergence programs. In addition to those, the accession process to the EU for the Western Balkans and the EU membership of Bulgaria are tools and access to additional funding sources and IP protection. The EU framework and the union infrastructure are also an engine to reposition Bulgaria and the Western Balkans on the EU markets with products of higher level of technology input and showcase the added value of a specialization of the region in knowledge transfer and application. The paper is advocating the conclusion that economic growth and sustainable development of Bulgaria and the Western Balkans is not possible through a simplified cohesion and convergence process only but through advanced specialization in IITT. The current study concludes, that by a targeted regional policy for industrial specialization in IITT, Bulgaria and the Western Balkans will have a chance to take a leading role in the European economy and in the GVC of the near future. Structuring of the economic profile with substantial dominance of IITT is an opportunity to achieve high level of sustainability, upgrading the social and demographic environment of all individual countries. The Research and Development of new technology as an immense consequence of the IITT specialization of the region is the second stage perspective, which all together with the new technology solutions implication in the region will build and advance proprietary capacity of each individual country and the region for the next decades. [ABSTRACT FROM AUTHOR]

Foreign direct investments are potentially very important for each country as they could significantly contribute to its economic development. The importance of foreign direct investments reflects in their ability to contribute to development of comparative advantages and competitiveness. In the last 20 years, WB countries have tried to attract as many foreign investors as possible using various policy incentives. Foreign direct investment inflows followed the pace of economic transformation and reforms towards a market economy, leading to economic growth. The aim of this paper is to analyse characteristics of the inflow of foreign direct investments in the Western Balkans (WB) countries, as well as the impact they might have on their economic growth and development. In order to determine the amount of foreign direct investments, but also the position, i.e. competitiveness of each of the observed countries, there have been used secondary data from the official UNCTAD reports. The paper will also present an analysis of the greenfield investments for selected economies, as a very important type of foreign investments that probably have the largest positive spillovers. The time period covered by this research was from 2010 to 2019. The results of the conducted research indicate that Serbia is the most attractive investment destination, considering that in the observed period, more than 60% of the total amount of foreign direct investments that were directed to the countries of the Western Balkans ended up on its territory. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyze the relationship between economic growth and unemployment rate, applying the Okun's Law for the case of Western Balkan Countries. The annual data are used which cover the time period from the year 2000-2017. It is used the difference version of Okun's Law, while the estimation procedure consists on panel regression models, such that fixed and random effects. The Hausman test is also performed to categorise between fixed or random effects for sample countries. The obtained results reveal that there is a negative correlation between economic growth and unemployment rate but statistically insignificant. The tstatistics is below the critical value, for both fixed and random effects. This implies that the null hypothesis of no relationship cannot be rejected. These results cannot confirm the hypothesis set in this research that there is a significant and negative relationship of unemployment and economic growth. Thus, the results imply that Okun's Law is not applicable for Western Balkan countries and the same cannot be used for forecasting purposes as well as conducting economic policies based on that. Accordingly, the implementation of economic policies related to structural change and reform in the labor market should be priority by policymakers. [ABSTRACT FROM AUTHOR]

The European Union (EU) represents a certain partnership and alliance between states and countries. It is not governed as the United States of America, nor intergoverned as the United Nations. Member States of the EU are sovereign countries united to become privileged and globally successful. Every enlargement of the Union is significant, but the fifth enlargement has been recognised, so far, as the most significant, showing the unification of Eastern and Western Europe. However, the most significant enlargement is yet to come with the Western Balkan countries becoming Member States of the EU (Serbia, Bosnia and Herzegovina, Montenegro, Albania, Kosovo and North Macedonia), considering the political and economic situation of the region. The European Commission has proposed the Stabilization and Association Process (SAP) for South East Europe, as the most significant frame for the EU to ensure relations with the Western Balkan countries and to direct its overall enlargement policy to this part of Europe. Associations of the Western Balkans are usually negative, referring to weak economic development, wars and political instability, which have led to the pre-accession strategy for the EU membership known as the Stabilisation and Association Agreement (SAA). The aim of this paper is to present the progress of the Western Balkan countries towards the EU membership, their current state, and the problems they face on that path and to explain the SAP and the SAA. [ABSTRACT FROM AUTHOR]

Copyright of Investigaciones Geograficas is the property of Universidad de Alicante, Instituto Universitario de Geografia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Actually economic policies in many countries aimed to stimulate their economic growth, particularly after negative impact of the global economic crisis. In this regards, fiscal regulation are an important aspect of those policies, that can promote or obstacle the economic growth in general. In this point of view this paper aims to analyze the system of administration rules in different Western Balkans Countries, (which includes Albania, Bosnia & Herzegovina, Croatia, Kosovo, Macedonia (FYROM), Montenegro and Serbia). Moreover, a special attention is given investigation of the regulation and administrative facilitation aspects of doing business in the above-mentioned countries, whether this system stimulates, or not, the development of private business and economic growth. The paper is divided into three main sections. The first part provides a retrospective of economic growth in the Western Balkan countries and the dependence of this growth on global economic development. The second part proceeds with the investigations of the impact of administrative regulation on economic growth. The third part, based on an econometric model, will analyze the correlation between economic growth and elaborated indicators which present the level of business administrative regulation system. Furthermore, this last section discusses the results and concludes. In this analysis, the paper is based substantially on the data base of "Doing Business 2013" (World Bank). [ABSTRACT FROM AUTHOR]

Nearly three decades after the beginning of transition from communism to democracy and open market economy in Central and Eastern Europe (CEE), the Washington Consensus in general received the mark as a failure. While the experience from the CEE apart from common results showed considerable variations, the package of reforms is questioned even in the long-term perspective, especially for producing high social costs. Recent mass emigrations from the Western Balkans due to poor economic conditions and from the Middle East, have brought to attention the credibility of exporting or imposing the American type of democracy, and with it, the Washington Consensus as a model of economic transformation and development. But is there an alternative? It already existed even before the systemic changes in CEE began, and can be more preferable even now to the countries that have to undergo a considerable economic transformation. That is the social market economy, which still can be applied in some countries that have lagged behind in transition. This paper explored the perspective of introducing and implementing such a model in the Western Balkan countries, with a reference to the role by the state, taxes, income distribution, and business development. [ABSTRACT FROM AUTHOR]

The paper intends to analyze the impact of global economic crisis on the economies of Western Balkan Region. In Western Balkan Region here are included Albania, Bosnia & Herzegovina, Croatia, Macedonia (FYROM), Montenegro, Serbia, and Kosovo are part of this Region. The purpose of the paper is not to analyze the global crisis impact on specific sectors of the economies of the Western Balkan, indeed it focuses mainly on the macroeconomic level, identifying and analyzing fluctuations of major macroeconomic indicators of the economies of this Region. In this regard the paper analyzes the trends of macroeconomics indicators that reflect the development and macroeconomic balances of those economies, such as GDP, the level of employment, inflation, budget deficit, trade relation, etc, in two periods of time: before the crisis, and during the years of crisis. Highlighting the deterioration of these indicators, the paper tries to identify factors that have contributed to these results, for example the level of opening of the economies of these countries, foreign direct investment, remittances, etc. Analysis of macroeconomic indicators shows that the world economic crisis of 2008 has interrupted the positive trend of the development of the Western Balkan Countries. Characteristic of this influence is the fact that the global crisis actually appeared 9 or 12 months later than what was reflected in the developed European countries. On the other hand, the trend of positive growth, although modest, in industrialized countries starting from 2010, has been confirmed in the Western Balkans as well. The paper has considered the different studies in view of economic development of the Western Balkan countries during the global economic crisis; based also on the data for economic development of these countries provided by the statistics IMF, and in particular on recent reports of the European Commission for EU Candidate and Pre-Accession Countries (October 2010 and January 2011). [ABSTRACT FROM AUTHOR]

The stabilized economic growth in the long-run lies ahead as an obstacle in the long road of development for many transition economies especially for those are in the Balkans. Some of the Balkan countries such as Croatia and Bulgaria have managed to get aboard to the European Union train. But for many others, the train has not arrived yet. Furthermore, many of those non-European Union member transition economies in the Balkans have to deal with an inheritance of a war economy experienced during early 90s. Today non-European Union member transition economies in the Balkans need to increase the capital flows to their countries for economic growth purposes. The literature on foreign direct investments suggest that there may be some positive effects on the economic growth of the host countries depending on many conditions - most commonly on absorptive capacities. However, are they really ready for this? Are the absorptive capacities in those countries at the extent in which enable them to extract benefits from foreign investments? The answer to this question is the key to truly understand the effects of foreign direct investments in those countries. Therefore, in this study, the effects of foreign direct investments on the economic growth of non-European Union member transition economies in the Balkans are investigated from the absorptive capacity perspective. This paper serves a role in comprehending the true dynamics of absorptive capacities measured through a new technique presented in this paper. The results confirm that current foreign direct investment flows to those non-European Union member Balkan countries are not able to work miracles given the absorptive capacities of the host countries. [ABSTRACT FROM AUTHOR]

The aim of the paper is to analyze economic convergence of the Western Balkan countries towards the European Union member states with two types of measurement methodology, sigma and beta convergence. Sigma convergence measures the dispersion of real per capita GDP among the countries and beta convergence is based on the neoclassical growth theory. The main hypothesis of the paper is that the recent financial crisis has negatively affected the convergence process of the Western Balkan countries towards the twenty-eight member states of the European Union (EU-28). The relationship between selected macroeconomic variables and the rate of per capita GDP growth are econometrically tested. Sigma and beta convergence are estimated for the period 2004-2013 and two sub-periods: 2004-2008 and 2009-2013. The empirical findings support the hypothesis of economic convergence. The negative effects of the crisis on per capita GDP growth are confirmed, resulting in a slower convergence process. Dissimilarities between the growth patterns of the analyzed groups show the considerable heterogeneity of growth, i.e. the convergence clubs. [ABSTRACT FROM AUTHOR]

By analyzing the impact of the economic crisis on the Western Balkan (WB) countries, the paper concludes that their export, inflow of remittances and FDI have suffered due to the crisis. Regarding the rapid credit growth in years before the crisis it spurred an increase in imports, which in context of relatively uncompetitive economies, led to increased current account deficits despite significant remittances and FDI inflows. The impact of the crisis in the region can be explained mainly by their degree of European integration. But, the European Union (EU) is more uncertain to embrace the economically weaker countries, causing loss of EU credibility. It seems that the EU integration is a double-edged sword for the WB: in good times EU delivers its prosperity, but at a time of crisis, it is creating instability. [ABSTRACT FROM AUTHOR]

Huggins R. and Strakova L. Knowledge-based economic development in emerging regions: policy issues and implications in the Balkan Peninsula, Regional Studies. This paper analyses the policy implications related to the progression of three key emerging metropolitan regions in the Balkan Peninsula towards the development of knowledge-based economies. It suggests that a challenge for these regions is realizing the ‘new value’ of knowledge. The paper finds that regional policy-making is a relatively new area of intervention. It is suggested that the problems and barriers found in these emerging regions, and the potential policy solutions, resonate with those of the less competitive regions of more advanced national economies. In the case of the emerging regions, however, the policy learning curve remains relatively steep. Huggins R. and Strakova L. 新兴区域中基于知识的经济发展：巴尔干半岛的政策介入及其影响，区域研究。本文分析了巴尔干半岛三大新兴大都市区向知识经济发展进程中相关的政策影响。研究表明，对于上述区域而言，挑战在于如何实现知识的“新价值”。 研究发现，区域政策制定是进行干预的新领域。上述区域中存在的矛盾、障碍以及潜在的政策解决办法与发达国家经济体中竞争力较弱的地区类似。然而在上述新兴区域，政策学习曲线仍旧相对较陡。 区域发展 知识经济 创新 新兴区域 巴尔干 区域政策 Huggins R. et Strakova L. Le développement de l'économie de la connaissance dans les régions naissantes: des questions et des politiques dans la péninsule balkanique, Regional Studies. Cet article cherche à analyser les implications pour la politique liées au progrès vers le développement des économies de la connaissance de trois régions métropolitaines naissantes motrices situées dans la péninsule balkanique. On laisse supposer que la réalisation de la ‘nouvelle valeur’ de la connaissance constitue un défi pour ces régions-là. Il s'avère que la mise au point de la politique régionale est un domaine d'intervention relativement nouveau. On suggère que les questions et les obstacles de ces régions naissantes, et les propositions de politique, font écho à ceux des régions moins compétitives situées dans les économies développées. Cependant, pour ce qui est des régions naissantes, la pente de la courbe d'apprentissage qui dessine la politique reste relativement raide. Aménagement du territoire Economie de la connaissance Innovation Régions naissantes Balkans Politique régionale Huggins R. und Strakova L. Entwicklung der wissensbasierten Wirtschaft in neu entstehenden Regionen: politische Probleme und Auswirkungen auf der Balkanhalbinsel, Regional Studies. In diesem Beitrag werden die politischen Auswirkungen der Progression von drei neu entstehenden Metropolitanregionen auf der Balkanhalbinsel hin zur Entwicklung von wissensbasierten Wirtschaften untersucht. Es wird die These aufgestellt, dass ein Problem für diese Regionen darin besteht, den ‘neuen Wert’ des Wissens zu erkennen. Im Beitrag wird festgestellt, dass es sich bei der regionalen politischen Gestaltung um einen relativ neuen Bereich der Intervention handelt. Ebenso wird die These aufgestellt, dass die in diesen neu entstehenden Regionen auftretenden Probleme und Hindernisse sowie ihre potenziellen politischen Lösungen denen von weniger konkurrenzfähigen Regionen in fortgeschrittenen nationalen Wirtschaften ähneln. Im Fall der neu entstehenden Regionen gibt es jedoch weiterhin eine relativ steile politische Lernkurve zu bewältigen. Regionalentwicklung Wissenswirtschaft Innovation Neu entstehende Regionen Balkan Regionalpolitik Huggins R. y Strakova L. Desarrollo de economías basadas en el conocimiento en regiones emergentes: cuestiones y repercusiones políticas en la península balcánica, Regional Studies. En este artículo analizamos las repercusiones políticas relacionadas con la progresión de tres importantes regiones metropolitanas emergentes en la península balcánica hacia el desarrollo de economías basadas en el conocimiento. Sostenemos que uno de los retos para estas regiones es darse cuenta del ‘nuevo valor’ del conocimiento. En este ensayo destacamos que la política regional es un ámbito de intervención relativamente nuevo. Sugerimos que los problemas y los inconvenientes hallados en estas regiones emergentes, y las posibles soluciones políticas, van a la par con las de las regiones menos competitivas de las economías nacionales avanzadas. Sin embargo, en el caso de las regiones emergentes, la curva del aprendizaje por parte de la política continúa siendo relativamente empinada. Desarrollo regional Economía del conocimiento Innovación Regiones emergentes Balcanes Política regional [ABSTRACT FROM AUTHOR]

A significant increase in the flows of foreign direct investment to the Balkans has had positive effects on the entire economic and political environment of countries in the region, increasing their level of competitiveness. Large demand in and high competition between Balkans countries has influenced the provision of better conditions for foreign investors. Nevertheless, the high levels of openness and the high dependence of this region on FDI have made western Balkans countries vulnerable during the current crisis. Policies towards the attraction of foreign capital should prefer productive, self-sustaining and competitive sectors, along with a strong fi- nancial and fiscal sector, so as to alleviate the effects of future crises. Factors of attraction are significantly different between sectors and should be taken seriously into consideration in the new development strategies of countries via a focus on the development of the respective sectors as well as on strategies for the attraction of foreign investment to the region. [ABSTRACT FROM AUTHOR]

The aim of this paper is to shed light on the Polish outward foreign direct investments (OFDIs) with special attention on the growing interest of many Polish companies to expand abroad utilizing equity-based modes of entry. The paper shows that the increase of Polish OFDI in recent years reflects the growing ability and willingness of Polish companies to expand mainly to European markets. It is also observed that the emerging Polish multinationals primarily expand to regional markets of Central, Eastern, and Southeastern Europe as well as Germany. The major motivation for the expansion was to increase market power and access to the market. The current economic crisis resulted in a deceleration of OFDI flows. However, in the case of Polish companies, the deceleration is not as high as one might expect and in 2008 and 2009, Polish companies made a relatively high number of cross-border deals. The paper also analyzes three cases of companies built from scratch in the transition period that now belong to the group of emerging Polish multinationals. When analyzing these cases, it can be seen that there were two stages in their development: during the first stage (approximately one decade), these companies focused on the development of their position in their home market; after they acquired a relatively strong position in the home market, they decided to expand abroad. Their first choice when expanding abroad was to build a strong position in regional markets of the Central and East European countries. [ABSTRACT FROM AUTHOR]

This paper deals with the failures in the promotion of the rule of law in the six countries of the Western Balkans that are in different stages of their EU accession process. Drawing on concrete examples from more than two decades of rule of law promotion through the enlargement circles, the paper identifies the different evolutionary stages of this undertaking. It finds that the current dominant paradigm of rule of law conditionality concerning the benchmarking of progress in the areas of Chapters 23 and 24 of the acquis fails to tackle state capture as the main structural obstacle to the rule of law in the Western Balkans. The paper proposes that this situation is to be improved by re-imagining rule of law promotion as an effort focused not merely on standards but on building a rule of law constituency. Four different approaches to rule of law promotion that have been less frequently used so far are offered: legal mobilisation, institutional strengthening, the politicisation of anti-corruption, and economic development. The paper concludes with reflections on the realistic reach of the proposed interventions into efforts to promote the rule of law, arguing that while imperfect they remain necessary in order for the project to succeed. [ABSTRACT FROM AUTHOR]

The process of economical and political transition in the Western Balkans, up to this point has shown a high correlation between achieved economical results and the determination of national authorities for drawing and implementing policies for economical stabilization and development as well as structural reforms with the support of the International Monetary Fund, the World Bank and other relevant international institutions. The analyzed countries from the Western Balkans region have managed to achieve appropriate levels of macroeconomic stability and an improvement of the business climate due to the implemented reforms, these countries have not been successful enough in attracting Foreign Direct Investments as a precondition to ensure a more dynamic economical development and an appropriate fall in the level of unemployment and poverty. A comparative analysis of the real economic indicators of the Western Balkans countries as contracted to the EU average shows that these countries are well under the real convergence levels of the EU countries. The main objective of the paper is to provide some additional arguments regarding the potential positive or negative correlation between the business climate and the levels of Foreign Direct Investments in the Western Balkans countries, some of which are already members of the EU and others aspiring to become members in the future, having in mind the asymmetric economic positions of the countries being analyzed. [ABSTRACT FROM AUTHOR]

ne of the main expectations in European transition economies is that the processes of building the market economy and European integrations lead to a significant increase in the living standard, as well as to catching up with the level of the income per capita achieved in developed European economies. A quarter century after the beginning of transition, many of the former socialist countries joined the EU and significantly increased their GDP per capita. On the other hand, transition in the countries of the so-called Western Balkans has disappointed in this sense. The paper tests the existence and speed of income convergence in the Western Balkan states and developed EU countries, in comparison with the so-called „New Member States". The results indicate that, despite the achieved income convergence in the pre-crisis years, the outbreak of the global economic crisis has revealed many structural and reform problems that the countries of the region have been facing for a long time. Catching up with developed EU members' average GDP per capita stopped in the Western Balkan states after the beginning of the crisis, with a simultaneous increase in the income gap between the Western Balkan states and the new EU member states. [ABSTRACT FROM AUTHOR]

Copyright of Socioloski Pregled is the property of Srpsko Sociolosko Drustvo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Ekonomika is the property of Society of Economists 'Ekonomika' and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The objective of this paper is to describe and analyze the obstacles impacting the growth of small and medium enterprises (SMEs) in Kosovo. In the process of transition from communism to a market economy, Kosovo experienced a severe war, international governance, and subsequently the declaration of its independence. The Government is trying to position SMEs at a central point and make them a key factor for economic development in the country, however, findings indicate that there are a number of factors affecting negatively the growth of SMEs in the country, such as access to finance, corruption, lack of skilled labor, lowinvestments in innovation, technology and marketing, etc. The empirical data for the description is primarily provided by the World Bank and statistical office of Kosovo. The overall objective of this research is to elaborate particular obstacles and institutional settings of Kosovo, and not to provide generalizations about national government systems. [ABSTRACT FROM AUTHOR]

Copyright of Comparative Economic Research is the property of Wydawnictwo Uniwersytetu Lodzkiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The migration landscape is a dynamic phenomenon shaped by geopolitical shifts, economic transformations, and climate change. North Macedonia, located in the heart of the Balkan Peninsula, serves as a critical transit country for significant migration patterns due to its strategic location and political aspirations towards Europe. Facing internal demographic challenges such as population decline and aging, the country is transitioning towards attracting immigration and becoming a destination for migrants. The Mediterranean Crisis of 2015 highlighted North Macedonia's pivotal role in migration routes, with over 800,000 individuals crossing its borders amid Europe's refugee and migrant influx. Despite containment efforts, the country remains part of mixed-movement routes, with significant border crossings observed in subsequent years. The long-term suspicions of brain drain were confirmed when the demographic census of 2021 revealed a startling 10% population decline over nearly two decades, emphasizing persistent outmigration and aging trends. To address migration challenges, North Macedonia adopted the Resolution on Migration Policy 2021-2025, aiming to establish a robust framework for managing both legal and illegal migrations. Anticipatory governance emerges as a proactive approach to navigating migration complexities, incorporating foresight and policy integration to shape sustainable migration policies in the country. The development of an Anticipatory Migration Governance model that seeks to foster transformative mindset shifts among stakeholders and institutionalize forward-looking planning, ensuring the effectiveness of migration management strategies. Through capacity development, improving of data collection, and decisions based on data, North Macedonia aims to navigate migration dynamics and achieve economic development with future-looking inclusive policies and collaboration. [ABSTRACT FROM AUTHOR]

Copyright of Industry / Industrija is the property of Economics Institute and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The political culture, according to scholar Kavanagh is part of the overall societal culture, and represents a set of basic values, emotions, knowledge, attitudes and convictions, within which the political system operates, shaping and feeding political processes. Culture came as a sequence to efforts to factor the spiritual world of people in explicating policy. Political culture brings to surface some kind of independence of culture from economic factors, and the role of culture in political order and economic development. This paper provides the theoretical aspects of political culture and political systems, within which its reflection is analysed on several aspects of interethnic relations in a democracy. Also, it accentuates the preferred paths of Western Balkan countries, including Macedonia, towards integration with the European Union, which is spiked with many challenges. In the political culture of multi-ethnic societies, ethnic divisions may have an influence. The ethnic principles are still present in the political arena of Macedonia, where although there is some "interethnic reconciliation", the failure in implementing the Ohrid Framework Agreement, signed in 2001, between Albanians and Macedonians, there are often political contractions, affecting national interests, which is in contradiction to all values of the European Union, mainly with human rights, but also ethnic rights. The object of the analysis of this paper is specifically related to: - extended transition of Macedonia, - political consensus, - role of political parties, and - interethnic relations after the Ohrid Framework Agreement. Political culture in South-Eastern European countries has been analysed in different views, especially in the reform process, where it has an important role. Conclusions of this paper are that Macedonia must fulfil the conditions set forth, both political and institutional, based on the political culture for EU integration, since political culture, according to scholar L. Pye represents a "set of basic values, emotions and knowledge shaping and feeding political processes". [ABSTRACT FROM AUTHOR]

The existing macroeconomic evidence predominantly demonstrates positive effects of foreign direct investment (FDI) on growth and competitiveness. Countries thus tend to have systematic policies in place for FDI promotion, devised and implemented especially through investment promotion agencies (IPAs). This paper adds to the literature on FDI incentives by examining the beliefs or attitudes of people working in the FDI promotion industry and the extent to which they coincide with the known FDI pull factors. To that end, we utilize a data set of attitudes of people largely working in regional and national IPAs in Europe and the Western Balkans. Cluster analysis reveals that in fact we can talk about three sets of beliefs or attitudes toward FDI: "pessimistic," "Keynesian," and "neoclassical." Keynesians largely favor fiscal measures for attracting FDI, whereas neoclassicals dislike fiscal measures and government interventions and prefer good economic fundamentals and infrastructure and qualified personnel. Interestingly enough, most of the eastern European Union as well as southeastern European respondents can be classified as Keynesians; on the other hand, almost all neoclassicals are from western Europe. [ABSTRACT FROM AUTHOR]

The concept of pro-poor growth focuses on the interrelation between economic growth, inequality, and poverty. According to an absolute definition, growth is pro-poor if the absolute income gain of the poor is larger than those on average. In contrast, a relative definition requires that the growth rate of income is higher among the poor than the nonpoor. The pro-poor literature has often considered the concept of pro-poor growth within a country by using household data in one country, or a large cross section of countries and time periods. This paper measures pro-poor growth across countries. We show how the concept of pro-poor growth in income per capita can be applied easily to a set of economies in the course of growth. This approach enables us to highlight the link to income convergence studies. The empirical investigations consider the experience of five Balkan countries during the period 1989-2005. The results show that many episodes of growth are not pro-poor because poverty and inequality worsen between Balkan countries. Although economic reforms seem to have a positive effect on well-being in Balkan countries, the overall effect on growth has been small for most countries. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to assess the economic performance of Balkan countries compared to the European Union over the period 1989-2005. We use three economic indicators of income, productivity and employment. The analysis rests on the test of the real convergence process of these indicators. The results show evidence of real convergence (i.e., convergence hypothesis and reduction of inequalities) of labour productivity in Balkans, but they are mixed for income per capita and employment rate. The development gap between the Balkans and the European Union, which has widened considerably in the 1991-1993 period, shows a sign of recovery after this date. However, the gap remains very deep and the process of catching up with the European Union is too slow. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the effect of financial development and remittances on economic growth across six Western Balkan countries (WBC) using panel data from 2000 to 2017. Previous studies have neglected the effect of financial development and remittances on economic growth with regard to WBC. Based on system GMM analysis, we found that financial development (broad money stock ratio) and remittances shows positive impact on economic growth across WBC. However, the interaction of financial development and remittances provide a significant and negative effect on economic growth. The results imply that remittances together with financial development substitutes the economic growth of WBC. In order to expand the financial system in the WBC, policies targeted to develop the non-deposit financial institutions and using the narrow interest rate margin policy to encourage investment and thus high economic growth. [ABSTRACT FROM AUTHOR]

The aim of this paper is to examine the determinants of public debt in the Western Balkan countries, with an emphasis on the effects of economic growth and social expenditures. The study covers the period 2006-2017, and we implement the dynamic panel GMM estimation, using both first-difference and system GMM. The results suggest that incremental growth change significantly reduces debt, while social expenditures push the debt-to-GDP ratio up. Also, there is a negative relation between inflation and debt, while interest payments on previous borrowing increase public debt additionally. Finally, unemployment is not statistically significant in this setting. The main policy implication is that policy makers in these countries should favor a growth-oriented policy toolbox and efficiency-oriented social reforms, in order to keep the public debt sustainable in the long run. [ABSTRACT FROM AUTHOR]

Southeast Europe’s economic backwardness and very slow industrialization prior to 1945 continues, even in recent research, to be attributed to an unproductive peasant economy and traditional peasant society. However, the radical paradigm shift in the view of peasants as agents of economic growth and of their ability to adjust to modern growth after 1960 has surprisingly never been highlighted in economic history research on the Balkan-states (Romania, Bulgaria, Yugoslavia, Greece). Interpreting agricultural development as a mainly demand-driven process this paper argues that the potential for agricultural growth was much more restricted in the Southeast than the Northwest of Europe but that Balkan peasants seem to have exploited their growth potential as far as possible. There is a lot of evidence that the reasons for sluggish industrialization before 1940 were definitely not rooted in 'peasant traditionalism' as often claimed by Balkan elites and many scholars. [ABSTRACT FROM AUTHOR]

The newly created economies in the former Yugoslav space advance on the transition road with more or less success. Each of the former Yugoslav republics has implemented its own transition policy, encountering different economic, political and social opportunities, as well as constraints. From another aspect, certain important similarities are also evident. This paper aims to present divergent economic and transition policies implemented in the Yugoslav space, and different outcomes in building the new economies. Particular attention is paid to comparative analysis of the privatization process carried out in all of them. Finally, the paper analyzes the progress achieved in building market economy structures in the new states. The analysis supports conclusions that, regardless of the speed of liberalization and privatization, different transition outcomes may have been influenced in the short run by the initial conditions, but in the long run the most important factors have been macroeconomic policy and institutional and regulatory reforms. [ABSTRACT FROM AUTHOR]