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Purpose: This paper aims to focus on analyzing the level of corruption of small- and medium-sized enterprises and their economic performance impact in Western Balkan countries. This study uses survey data from Enterprise Surveys (ES) from 2019, a shared project of the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank Group. The selected countries are Albania, Bosnia and Herzegovina, North Macedonia, Kosovo, Montenegro and Serbia. The questions included in the data set contribute to understanding what firms experience in the private sector. Collected data are based on firms' experiences and enterprises' perceptions of the environment in which they operate. Design/methodology/approach: This paper measures enterprise performance in terms of sales, employees and fixed assets growth. The vector of independent variables comprises enterprise characteristics such as enterprise age, size, ownership structure, legal status, access to formal banking services, gender ownership and other composed variables. Moreover, to capture the level of perceived corruption by firms, we will focus on the following ES questions: "Is it common to have to pay some irregular additional payment or gifts to get things done with regard to customs, taxes, licenses, regulations, services," and the "corruption payment" is defined in the form of a dummy equal to one if the enterprise replies "frequently," "usually" or "always." Findings: Preliminary empirical research results shed light on the level and effects of corruption on enterprises' performance. However, the magnitude and statistical significance are different among the countries included in the sample. Originality/value: Instead of firm-level characteristics, research on corruption frequently focuses on effects dependent on national and institutional characteristics. To better identify the kinds of businesses that are most at risk of corruption, we have selected to focus on differences among firm characteristics in this research. Understanding factors at the firm level is preferred from a policy perspective because these findings assist policymakers to make recommendations. [ABSTRACT FROM AUTHOR]

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The main objective of the paper is analysis and proposal of a concept for establishing an efficient system for disaster management in the Western Balkan countries. After the breakup of Yugoslavia (1992), there has been no effective system for managing emergency situations, while cross-border cooperation in this respect does not exist at all. The paper provides an overview of the situation in the field of emergency and crisis management in five countries of the region and a concept of promotion and cross-border cooperation in this field. The results of the research show that no country in the region has adequate emergency and disaster management system and that, regardless of the negative experiences, an efficient multilateral cooperation system has not been established so far in this field (there is neither regulatory framework nor proposals for the model of organization and for the procedures or technical mechanisms that would make the above possible). Therefore, the concept of establishing the Regional Center for Disaster Management in the Western Balkans territory (RCDM-WB) is proposed as a first step in handling disaster situations that arise from natural phenomena or technical and technological accidents. This is the first scientifically developed proposal of this kind for the above-mentioned region. [ABSTRACT FROM AUTHOR]

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]

The Union's response during the worst contemporary refugee crisis of 2015 was unreliable, fragmented, and it largely affected the Western Balkan countries that are now aspiring to become EU Member States. The crisis has emphasized the urgent need for a consistent approach, both from the individual Member States and the EU as a whole. This paper analyses how the EU's response to the refugee crisis has affected its migration and asylum policy and how it contributed towards the reforms presented in the New Pact on Migration and Asylum. The paper presents an overview of the Common European Asylums System, its adjustments throughout the years and the need for a broader and comprehensive reform. It also analyses the impact of the 2015 refugee crisis on the countries on the Western Balkan route and argues that the EU reforms of its migration and asylum policy will contribute towards strengthening the partnership between the EU and the Western Balkan countries in the area of migration and asylum. [ABSTRACT FROM AUTHOR]

The accessible literature covered in this paper commonly highlights psyllids as a significant group of insects affecting pear trees, posing a continual challenge for commercial orchards. With the development of modern pear cultivation systems, Cacopsylla pyri Linnaeus 1758 (Hemiptera: Psyllidae) has emerged as a major pest in pear orchards across many European countries, including those in the Western Balkans. For years, the agricultural sector has primarily relied on chemical insecticides to control pear psyllas, but these methods often fail to produce satisfactory results. This is largely due to C. pyri's rapid development of resistance to chemical treatments. Consequently, modern agriculture is increasingly shifting towards biological methods to manage C. pyri, involving the identification and conservation of its natural enemies. Although there is an abundance of research on the natural predators of C. pyri and their biocontrol applications across the globe, the Western Balkan region has conducted relatively few studies on the subject. Globally, various parasitoids, predators, and entomopathogenic fungi are often cited as effective against C. pyri. Specific species registered in the agroecological conditions of the Western Balkans include parasitic wasps such as Trechnites insidiosus Crawford, 1910 (Hymenoptera: Encyrtidae) and Prionomitus mitratus Dalman, 1820 (Hymenoptera: Encyrtidae), as well as the predatory bug Anthocoris nemoralis Fabricius, 1794 (Hemiptera: Anthocoridae). However, most Balkan countries have yet to fully utilise the potential of beneficial entomofauna or develop strategies for their commercial application at a national level. Considering that C. pyri is a major pest in pear cultivation and its natural enemies have not been thoroughly explored in most of the Western Balkans, this paper aims to review the literature data on available natural enemies of pear psyllas and to highlight and promote their undeniable potential in biological control. [ABSTRACT FROM AUTHOR]

This paper will analyze the economic performance of six Western Balkan countries. The intention is to utilize the index of economic performance for each country in this region. The analysis will look at the data for the past decade (2010-2022). In addition, secondary data available from publically available databases have been included in this analysis. EPI is constructed by using important macroeconomic indexes such as unemployment, inflation, budget deficit, and annual growth. Also, this paper will analyze the impact that the war in Ukraine has had in affecting the economic performance of Western Balkans countries. To do this, graphs, descriptive statistics, and regression models have been used. In line with conventional wisdom, the results show that countries with lower unemployment have performed better than the countries with higher unemployment rates. Contrary to expectations, higher growth rates have not translated to better performance, as well as increased public borrowing has not correlated to better performance. [ABSTRACT FROM AUTHOR]

The purpose of the paper is to analyse the effects of interpersonal trust in business relations (proxied by trade credit) and institutional trust (proxied by firms' trust in courts) on firms' performance. The analysis is performed on a specific sample of 1298 firms in Western Balkan countries which are usually characterized by negative social capital that is considered to hinder economic and social development at all levels. The methodological approach is based on the propensity score matching method and the obtained results show that firms' perception of courts as fair, impartial and uncorrupted, is connected with lower costs and with positive expectations of an increase in sales in the upcoming period. On the other side, trade credit as a trust variable has a statistically significant and positive effect on firm productivity measured as sales per employee and on expectations of an increase in sales in the upcoming period. The paper contributes to the existing literature in terms of the choice of the post-socialist groups of countries for the analysis, the method that is used (treatment-effects estimation), and in terms of performing firm-level analysis of the effects of two types of trust on selected variables of firm performance. [ABSTRACT FROM AUTHOR]

Copyright of Problems of Sustainable Development / Problemy Ekorozwoju is the property of Faculty of Environmental Engineering 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.)

Startup businesses are becoming an increasingly common term in the business world. Millions of investments, large corporations, as well as the world's best experts are connected to the concept of startup businesses. The basis of this paper is to present the situation with lending startup businesses in the Republic of North Macedonia, through analysis of the situation and challenges of the startup ecosystem in the country, and through comparative analysis of the situation with lending startup businesses in certain Western Balkan countries. The aim was to determine whether the Republic of North Macedonia has made significant progress in support, and whether it has made the transition from traditional to new methods of financing. The scientific-research contribution of this paper is in a better understanding of the strategy of the state regarding the financing of entrepreneurial ventures. The presented and interpreted results could be a useful basis and incentive for further research on this and similar topics related to the initial stage at the state and regional level. [ABSTRACT FROM AUTHOR]

This paper presents the theoretical treatment of the content of the principles on which the Public Administration Reform was built in the Western Balkans countries, led by the European Union. In addition, the principles contained in the EU regulations and which are included in the form of objectives in the Public Administration Reform Strategy in the Western Balkans countries, the claims to join the EU, if we analyse them carefully are derived or adapted from the principles of Weber's theory on Bureaucracy. Since Public Administration Reform is a process closely related to the organization and that of institutions as state organizations with the aim of modernizing them on the same principles as Weber, the idea of the ideal bureaucracy, so that such a bureaucracy should be based on: A formal hierarchical structure; Rules-based Management; Functional Specialty organization; Up-focused or In-focused Mission; Impersonal and Employment-based on Technical Qualifications. It is important that the same principles in which Weber calls for the modern organization of institutions as organizations, but also based on which the idea for Public Administration Reform in the Western Balkans countries was built, to analyse under what preconditions can be reached their realization in practice. Analysing the actions of the states of the Western Balkans to fulfil or not these principles, the weight of the Public Administration Reform process for the development of the institutions of these states will be concluded, the democratization of the societies will be measured, but at the same time it will be tested through these examples as well Weber's Theory of Bureaucracy, and its relevance in the twenty-first century. In order to carry out the work in question, secondary data were used, including scientific literature, reports on the subject from competent institutions, but also analysis from researchers and experts who deal with research and monitoring of the implementation process of the Reform in the Public Administration of the Western Balkans countries. This work will serve to raise the voice for a qualitative reformation in the centre with the citizen as the key cause for the need of such a process. [ABSTRACT FROM AUTHOR]

Using data from 1996 to 2019 covering five Western Balkan countries and applying the linear panel data estimation method, this paper examines the effect of macroeconomic indicators and financial market development on income inequality. Regression results with Driscoll-Kraay standard errors demonstrate that income per capita increases income disparities. Theoretically, there are grounds for both a positive and negative relationship between economic growth and income inequality. In addition, contrary to prevailing literature, our analysis finds no significant impact of financial market development on income inequality, while the rule of law is found to have no effect on income inequalities in these countries. We depart from previous literature by bringing new evidence on the relationship between income inequality and economic growth in the specific context of Western Balkan countries. We study this relationship in an integrated framework and rely on a larger time span, both of which are seemingly important for comprehending the income inequality-economic growth nexus. Certainly, the obtained results bear important policy implications as discussed in this paper. [ABSTRACT FROM AUTHOR]

The subject of this paper is irregular migration and modern models of preventing the smuggling of migrants on the part of the Western Balkan route through the Republic of Serbia. The goal is to show how the new strategic approach of the Serbian police in this area can give excellent results, that the application of modern methods of policing and technical means are aimed at preventing the smuggling of migrants, i.e., the illegal movement and transport of migrants across the state border and state territory to go to countries of the European Union. Based on the conducted research, the authors have drawn certain conclusions: 1) effectiveness, efficiency, and economy in the area of suppression of irregular migration can be achieved by applying an adequate criminal strategy, 2) the new strategic approach led to the discovery and arrest of a large number of people smugglers and the discovery of illegal firearms, 3) the use of modern technical means, coordinated, joint work of different police units and management from a single center by a strategic level manager directly in charge of combating irregular migration and human smuggling in a particular area (territory) which is estimated to be a hotspot of criminal activity, is a prerequisite for success. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic is the cause of the global health crisis, economic downturn and financial crisis. The tourism was the most affected industry because moving and travel restrictions put in place. The purpose of this paper is to analyze the impact of COVID-19 on tourism development in Western Balkan countries. The aim of this paper is to analyze whether it exists the difference impact of COVID-19 on tourism development of Western Balkan countries. The results of research indicate that COVID-19 was the most important impact on tourism development of observed countries during this century. In 2020, the Western Balkan countries recorded the decrease of number of foreign tourists and tourism receipts, but the same time recorded the increase of receipts per tourist. At the same time, the results indicate that tourism and death rate have significant impact on the economic growth of Western Balkan countries. [ABSTRACT FROM AUTHOR]

Due to the environmental radicalization of European politics, which is reflected in the European Green Deal, Farm to Fork strategy, and new CAP 2023–2027, this paper aims to determine the impact of agri-environmental indicators on soil productivity based on the land productivity function model. The paper focuses on the Western Balkans countries, which are in the process of European integration and which, in the coming period, need to harmonize their agricultural policy with the CAP. First, the aggregate Cobb–Douglas production function has been used to create a land productivity function. Then, the sources of land productivity growth have been calculated, which can be particularly interesting in the context of agri-environmental indicators, such as fertilizer use and livestock density. The research results showed that land productivity is the most elastic concerning changes in the number of livestock units per hectare. Consequently, reducing livestock units had a markedly negative effect on productivity. In addition, the research results showed that using mineral fertilizers is a crucial source of growth in land productivity in these countries. These results imply that the creators of the agricultural policy must carefully assess the pace at which they will harmonize ecological and economic goals, especially if they take into account the current Ukraine crisis that can disrupt the food market. [ABSTRACT FROM AUTHOR]

The term internationalization has been mainly used to show the expansion of economic activities of firms outside of their home country where they aim at capturing a bigger market. The Central and Eastern Europe region has gone through a process of market transition over the past few decades, yet the business internationalization process has played an important role in the states' economies. The aim of this paper is to analyze the firm internationalization process in the new member states and the Western Balkans countries and gain a better understanding of the process and its course over time. Due to different geopolitical circumstances, the Western Balkan countries did not attract as many investors as much as the EU member states in CEE did that have had a constant flow of investments once they were members of the EU. [ABSTRACT FROM AUTHOR]

This paper studies the temporalities of EU investments into Southeast European (SEE) roads. Road construction and maintenance and related institutional frameworks, regulation, and project planning signify different modes of infrastructural time. Roads carry narratives of development and progress, but they also confront visions of desired futures with ruins of forgotten pasts. Promises of infrastructural potential intersect with project cycles, financial flows, and construction timelines, and work delays and material malfunctions. As such, infrastructures are a productive entry point to understanding how Europeanisation works through different temporalizing practices and techniques. The paper maps complex temporalities and temporal politics that shape infrastructural development and showcases how Europeanisation works also outside of promises of linear progress to EU membership on the one hand and corresponding classifications of absent futures on the other. [ABSTRACT FROM AUTHOR]

The main goal of this paper is to compare the relative technical efficiency of agriculture in Western Balkan countries to those of the European Union and to propose ways to improve the position of Western Balkan countries. The group of Western Balkan countries includes Serbia, Montenegro, North Macedonia, and Albania, which are candidate countries for European Union membership, as well as Bosnia and Herzegovina, which is currently a potential candidate. An input-oriented Data Envelopment Analysis model with the variable return to scale was applied to an 11-year period from 2006 to 2016. Input variables used in the model included labour, land, and capital, and the output was presented as the value of agricultural production. The highest average technical efficiency was achieved by the EU15 countries for the entire eleven-year period, while the Western Balkan countries had the lowest score. The source of this inefficiency was identified in lower levels of agricultural performance, e.g. a lower-level use of the primary production factors - labour and land. [ABSTRACT FROM AUTHOR]

This paper aims to present a benchmarking framework for short- and long-term risk of enterprises in emerging markets that seek integration in global value chains. The benchmark instrument aims in particular to assess short- and long-term risk based on accounting data and estimations of key financial ratios for enterprises located in the Western Balkan region and operating in the materials, industrials, and customer-discretionary industries. In total, the paper considers 310 enterprises. Given the geographical proximity of the region, the benchmark instrument for short- and long-term risks serves to assess the outsourcing potential these enterprises have toward foreign enterprises dominating larger markets such as the European value chain. The framework is applicable to a large-scale annual data series collected on subindustry level in order to obtain a more granular analysis of a particular industry and its respective value chain. The benchmarking instrument indicates that those subindustries performing better both at short- and long-term risk display a higher outsourcing potential and more opportunities for integration in global value chains. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic has caused major economic imbalances and impeded economic activity in all Western Balkan (WB) countries. This paper analyzes the strength of economic impact of the ongoing health crisis on key macroeconomic variables (GDP, public debt, fiscal balance, and unemployment) in the WB countries. In addition, the paper points out the main challenges that the economies of these countries will face in the years to come. The analysis has shown that the crisis slowed down the WB economies, but its intensity differed among the observed countries. The main economic challenges in the coming period relate to the further course and duration of the pandemic. Due to the great level of uncertainty, more detailed analysis of the crisis' impact on the economic potential will be possible only after the end of the pandemic. [ABSTRACT FROM AUTHOR]

Given the growing shares of renewable energy sources in the grids, the interest in energy storage systems has increased. The role of pumped hydro energy storage systems as flexible solutions for managing peak and off-peak prices from nuclear and fossil power plants in previous systems is now revitalized in the liberalized systems, with a volatile generation of wind and solar energy. Thus, understanding of the patterns behind the economics of energy storage is crucial for the further integration of energy storage in the grids. In this paper, the factors that impact the economic viability of energy storage in electricity markets are analyzed. The method of approach used in this study considers the electricity market price distribution, full load hours, the total costs of energy storage, and linear regression analysis. Using revenues from arbitraging a 10-megawatt (MW) pumped hydro storage system in the Western Balkans, resulting from the electricity market price distribution and the analysis of the total costs of storage, an econometric model is created. This model shows the impacting factors of energy storage development in the context of the rising renewables sector. Research shows that the previous hypothesis about the integration of energy storage systems in proportion to the increase in shares of renewables in the grids is incorrect. There is a significant correlation between energy storage revenues, the dependent variable, and the independent variables of hydro, wind, and solar generation. The conducted analysis indicates the future arbitraging opportunities of pumped hydro energy storage systems and provides useful insights for energy storage investors and policymakers. During the transitional period, until the deployment of renewables changes the effects of fossil power plants, energy storage price arbitrage is profitable and desirable for 500, 1000, and 2000 full load hours in the Western Balkan region. Despite the need for flexibility, with more renewables in the grids, large-scale energy storage systems will not be economically viable in the long run because of "revenue cannibalization". [ABSTRACT FROM AUTHOR]

This paper is built upon the work packages of the Enhancing and Validating Service Related Competencies in Versatile Learning Environments in Western Balkan Universities (e-VIVA), a project undertaken under the auspices of the Erasmus+ Capacity Building in Higher Education. The methodology employed in this paper is based on the e-VIVA project's work packages, mainly those dealing with the research and needs analysis, service related competencies learning approach, validation, desk research, interviews, online questionnaires, focus groups of universities for each Western Balkan country involved in the project during the meeting of November 2021 in Kotor, Montenegro. The findings of the project help to assess the current situation of the Western Balkan universities about the enhancing and validating competencies, as well as to make some recommendations to the relevant ministries of education, business partners and to the universities themselves. [ABSTRACT FROM AUTHOR]

The combination of accelerated digitalization and the recent COVID-19 crisis has increased the number of remote workers worldwide to unimaginable proportions. Among the large number of remote workers that execute their projects from home, there is a significant number of permanently self-employed remote workers, usually referred to as freelancers. Despite the importance of this kind of business activity for modern project management society, perceived drivers of freelancing are still unknown. The goal of this paper was to shed some light on the general subjective well-being of freelancing activity and investigate differences concerning gender, age, and education. The study was performed in late 2020 and included 471 freelancers from Serbia, Bosnia and Herzegovina, Macedonia, and Montenegro that participated in an online questionnaire evaluating their subjective well-being while participating in the “gig” economy. Factor analysis was used as a primary statistical method and two major groups were identified: (1) Impact of working from home on a freelancer’s personal life and health and (2) Fulfillment of expectations in the economic and professional sense. Gender was found not to be significant for overall work satisfaction. However, older freelancers proved to be more satisfied with the fulfillment of economic and professional expectations, which correlate with years of professional experience. Another conclusion is that more educated freelancers are generally less satisfied with both groups of drivers-fulfillment of personal life and professional expectations. Understanding how the combination of occupations, technological infrastructure, and demographic characteristics in the region has affected the well-being of freelancers may help policymakers and organization owners, as well as future entrepreneurs, better prepare for this model of work in the future. It also increases the possibility of exploring individual dimensions of wellbeing useful for targeting interventions at the level of each country separately. In line with this, the present study contributes to the existing body of knowledge and the impact of hybrid models of work on the subjective well-being of workers in the “gig” economy. [ABSTRACT FROM AUTHOR]

In this article, we address the issues of the countries of the Western Balkans related to the accession to the European Union. We focus on areas to which we have so far had the opportunity to obtain information on the countries belonging to the Western Balkans region. In our paper, we aim to introduce the region of the Western Balkans in more detail and look at the arguments that support the integration of countries into the EU. For the European Union, but also for the countries of the Western Balkans, to point out what enlargement policy is like and what the benefits are. From a methodological point of view, we classify the paper among qualitative research, using a descriptive, comparative and analytical method. As part of enlargement policy, it can be seen that this policy is constantly changing. It can be said that nothing is more permanent than change, which brings with it benefits as well as certain challenges and benefits, which we want to point out in this paper. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) plays a crucial role in the growth and development of transitional economies and especially in countries where domestic capital is insufficient to meet the investment needs of the economy. Albania is a country applying for E.U. integration, so the country's central policies in recent years have brought about a liberalized economic framework and improved conditions for business development, attracting highly sought after FDI. This paper will provide an analysis of FDI in Albania and make a comparative analysis with the Western Balkan (W.B.) countries. The focus of the paper will also be on analyzing some of the critical elements that make these countries attractive to FDI, such as: analyzing the sectoral distribution of FDI stocks, the impact that inflows have had on the development of domestic economies, in creating jobs. FDI flows even though they have been in an upward trend, have not yet reached the desired expectations levels. W.B. countries have some very potential sectors to increase in the future and to be more attractive for FDI, such as tourism, service, transport, agriculture, industry. FDI had a positive impact on Albania's economy and in other Balkan countries. However, the region still needs to make many improvements in implementing institutional reforms, building and operating democratic institutions, improving the infrastructure. All countries need to collaborate to enhance political instability, resolve conflicts, and to focus on improvements and policies to attract potential investors. [ABSTRACT FROM AUTHOR]

The paper seeks to locate the Western Balkans in the current age of anxiety. By using the concept of ontological security as its overarching theoretical frame, the paper first develops a concept of anxiety dilemma. The anxiety dilemma refers to a situation in which a social order that provides one group of people with a sense of ontological security is a perceived source of anxiety for the other group and vice versa. The paper proposes that such a dilemma characterizes the present age of anxiety. Trapped in this dilemma are the proponents and the contesters of the liberal (international) order and globalization, often referred to in the literature as cosmopolitans and communitarians. The paper argues that the Western Balkan countries occupy an ambivalent position in this anxiety dilemma. Their governments combine liberal-democratic justification with autocratic tendencies. The paper discusses how the Western Balkans came to occupy this position. It singles out four reasons: (1) the region's authoritarian legacy; (2) ethnonationalism coupled with state- and nation-building projects; (3) search for external legitimacy; and (4) the EU's abandonment of the inextricable link between peace and democracy. The case of the Western Balkans yields another important observation: that local anxiety dilemmas are nested in global anxiety dilemma. The paper makes two contributions. The first one is theoretical, and it consists of furthering the concept of ontological security such that it theorizes ontological security as a systemic inter-group phenomenon. The second contribution is analytical, and it consists in locating the Western Balkans in the ongoing struggles over globalization and the liberal (international) order. [ABSTRACT FROM AUTHOR]

Our paper rests on two fundamentals: firstly, the EU's initiative to deepen cooperation with and the prospect of its enlargement to the Western Balkans region; and, secondly, the urgency to address sustainable development issues in the international environment. As the virtual water perspective represents an innovative approach in the field of sustainable development, the aim of our paper is to analyse trade-related characteristics based on the water footprint concept (complementary to the alternative RCA/RTA indexes designed to calculate a country's comparative advantage or disadvantage). In our paper, we analyse and evaluate selected commodities traded by the Slovak Republic and the Western Balkans countries in terms of the absolute/comparative advantage related to the national water footprints. [ABSTRACT FROM AUTHOR]

Introduction: This paper aims to examine the frequency and significance of diagnostic comorbidity of psychiatric disorders and somatic diseases in a sample of patients with depression as well as present current psychopharmacological treatment of the patients in the sample. Methods: The subjects in this study sample were 489 patients from the four Western Balkan countries with current primary diagnosis of major depression according to ICD 10. Comorbid psychiatric disorders and non-psychiatric illnesses were noted according to ICD 10 criteria during the diagnostic interview and analysed later. Additionally, the pharmacological treatment (existing and newly introduced) for each patient was noted and analysed later. Results: At least one comorbid psychiatric disorder was present in 72.5% of patients. The most frequent were anxiety disorders (53.6%), specifically generalized anxiety disorder (20.2%); non-organic sleep disorders (50.7%), specifically insomnia (48.4%); and sexual dysfunctions (21.4%), specifically lack of sexual desire (20.2%). Comorbidity with any non-psychiatric illness was present in 80.3% of patients. The most frequent were circulatory system diseases (55.9%), specifically hypertension (45.9%); endocrine, nutritional and metabolic disorders (51.3%), specifically hyperlipidaemia (24.0%); and other non-psychiatric disorders (60.7%), specifically low back pain (22.7%). All patients received pharmacological treatment with different medications. Most patients received monotherapy or combination therapy of antidepressants, anxiolytics, antipsychotics and antiepileptics. The most frequently used antidepressants were escitalopram, sertraline, and duloxetine. The most frequently used anxiolytics were alprazolam and diazepam, the most used antiepileptic was pregabalin, and the most used antipsychotics were olanzapine, quetiapine, and aripiprazole. Conclusion: The results of the study confirm the results of previous research studies about the high prevalence of psychiatric and non-psychiatric comorbidities in patients with depression that were conducted in the past. It would be important if future studies could prove the importance of those comorbidities on clinical severity, choice of treatment, and its outcome in patients with depression. [ABSTRACT FROM AUTHOR]

Background: The aim of this paper is to reconsider the necessity for the green transition and the key preconditions for the implementation of a circular economy in Western Balkan countries. With the objective of the research in mind, the method of analysis and synthesis was applied to determine (1) regulatory and institutional prerequisites for the green transition; (2) the need for the Western Balkan countries to redefine the model of sustainable economic growth towards the green transition; (3) the development opportunities for recovery defined in the Green Agenda for the Western Balkans; and (4) the possibility of implementing the circular economy in the Western Balkans. Main text: The main findings of the research indicate that: (1) the countries of the Western Balkan region, following the example of the EU, should define a national strategic approach to the green transition with an accompanying action plan and regulatory framework; (2) the biggest challenge of the green transition is the reform of the energy sector and the restructuring of the energy-intensive economy; (3) the countries have untapped potential in renewable energy sources and report the improvement of energy efficiency; (4) the circular economy can boost the green transition, because the countries of the region have a five-time lower value of resource productivity than the average of the EU, while the generation of waste (excluding major mineral wastes) per GDP unit is lower compared to the EU; (5) cross-sectoral governance should be more coordinated. Conclusions: The green transition might be a development opportunity for the Western Balkans, which should enable sustainable economic growth as well as energy security and environmental protection. However, the implementation of the Green Agenda is not easy, because the region faces the problem of underdeveloped regulatory and institutional capacities that might provide not only the base for long-term planning but also financial resources for the efficient implementation of projects. In addition, it is essential to understand the principles of the Green Agenda and the interaction of all activities that should enable the achievement of defined goals. [ABSTRACT FROM AUTHOR]

This paper investigates the potential applicability of OECD competitiveness and sustainability indicators of tourism in Bosnia and Herzegovina. The analysis assesses the current state of the country's tourism industry and identifies areas that require significant improvement to enhance competitiveness compared to other Western Balkan countries. This comprehensive study covers all relevant data necessary to measure the OECD indicators. Based on the research conducted, it was found that Bosnia and Herzegovina does not adequately monitor the competitiveness of its tourism industry. The main objective of this research is to demonstrate that the political-territorial structure of the country presents the main challenge in achieving a competitive and sustainable tourism industry. [ABSTRACT FROM AUTHOR]

The objective of this research paper is to examine the impact of monetary policy conditions on bank risk-taking in the Western Balkan countries. The paper tries to identify if monetary policy conditions, especially money interest rates, may induce a greater appetite for bank risk-taking in the Western Balkan countries. The impact of macroeconomic and banking indicators on bank risk-taking will be examined, too. For this purpose, we apply pooled OLS techniques, Fixed and Random effects panel, and Hausman-Taylor Instrumental IV model. The econometric results show a negative correlation between the monetary policy rate and bank risk-taking, rejecting the hypothesis that monetary policy rates indicate bank risk increase. However, expansive credit policies or loan portfolio growth have a positive impact on bank risk-taking in the Western Balkans. The study is original, and its findings will be of value to Central Banks and other policymakers in the Western Balkan countries. [ABSTRACT FROM AUTHOR]

The Western Balkan countries, including Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia, participate in the framework of Sustainable Development Goals (SDGs) set by the United Nations. In total, there are 193 countries committed to fulfilling the 2030 Agenda for Sustainable Development, which was implemented in 2015. One of the seventeen Sustainable Development Goals is to promote sustained, inclusive, and sustainable economic growth and decent work for all. This goal is expressed in the following indicators: employment and unemployment rates, people killed in accidents at work, real GDP per capita, resource productivity, and domestic material consumption. The aim of this paper is to analyze SDG 8 in the Western Balkan economies. Since the Western Balkan countries are EU candidates or potential candidates, comparing their performance with the EU average is vital. The results show that although Western Balkan countries have improved their performance, they still fall behind the EU average. They should focus more on increasing their economic growth rates and providing more sustainable workplaces. Therefore, future actions to be enhanced by the economic policy in the Western Balkans should include the implementation of legal facilitations for start-ups and other firms in order to boost the stimulus for entrepreneurship, develop sustainable migration policy, and promote stable forms of employment. [ABSTRACT FROM AUTHOR]

The paper aims to provide an in-depth understanding of the effectiveness of anti-money laundering (AML) regulations in measuring banking sector stability in Western Balkan countries, as well as to explore the possibility of enhancing banking sector policy and performance. The study employs a quantitative methodology created on secondary data from 2012 to 2021. The data analysis methodology incorporates static and dynamic approaches to examine the banking sector stability using OLS and 2SLS. The results of the study show that the tight A M L i , t implementation of both approaches has a positive and statistically significant impact on the banking sector stability ( B S S ). The value of the paper is unique in that it applies the most recent data in this field for Western Balkans countries, and it brings benefits for a better understanding of the effectiveness of A M L regulations. The research will encourage fruitful discussion among policymakers, practitioners, researchers, and financial institution executives. [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]

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This paper pursues a multiple scenario analysis until 2030 to identify past and potential future labour supply and demand dynamics of four different skill groups in the six Western Balkan (WB6) countries. Simulation results of the baseline scenario show that skill shortages and surpluses would coexist: In all WB6 countries, the low educated would experience labour shortages within or shortly after the projection period while in some WB6 countries there is evidence of growing excess labour among Med‐VETs, Med‐GENs and the highly educated. Additional scenarios point to important country‐specific policy options that can help to mitigate these projected labour market imbalances. [ABSTRACT FROM AUTHOR]

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Hardly any studies have investigated the impact of migrant remittances on economic growth (EG) and inequality in the Western Balkans as a whole (WB6). Using the method of instrumental variables (VI), the findings show that while remittances influence economic growth, their inflow also promotes a high level of migration and absorbs a large workforce by influencing the labor market and encouraging uncontrolled individual relocation. This paper also reveals that although remittances have eased income inequalities the share of remittances in a country's economy has declined over the years. After testing for the endogeneity of remittances and controlling for various variables, the results indicate that migrant workers' remittances do not provide strong support for economic growth and inequality. For the sample average, a 1-percent rise in the share of remittances in the economy (i.e., to GDP) will lead to a 0.10-percent rise in the economic cycle i.e. GDP growth, respectively will lead to a 0.05-percent drop in the share of people living in inequality. The findings also show that the interactive effect of remittances and foreign direct investment is lower on economic growth and inequality than the individual effect of each factor. [ABSTRACT FROM AUTHOR]

Digital technologies play an increasingly important role in our society. The ability to connect and interact quickly and efficiently becomes essential and digital skills are even more relevant for companies and individuals. The main objectives in paper are to show the growth potential possibilities of both the market and the social impact of the social enterprises, considering the digitalization of the same. Hence, the digitalization in Social Services in general sense, is define as the massive adoption of digital technologies to generate, process and share information and implement specific tasks via digital devices. Pandemic most explicitly shown us and taught us that there is great room for the digitization of many old and new businesses, especially in the social entrepreneurship in WBC as huge potential. The main focus of this paper is to increase the awareness of the concept of the Digital Social Entrepreneurship (DSE), as a combination of the social and digital aspects of entrepreneurship. Therefore, the possibilities and obstacles of these process in the Western Balkans countries (WBC) is considered. The results from the analysis in WBC, in the field of social enterprises gives overview of the current situation, which is underdeveloped. SEs in the WBC need to bridge the challenges they are facing in the everyday functioning and the digitalisation process. Theory and modern practices show that digitalisation in these services offer many possibilities and positive effects, including new opportunities for entrepreneurs, new companies/business, new and more productive jobs which leads to sustainable growth. This research recognized common issues when it comes to the challenges that countries are facing, and creates recommendations that might benefit social enterprise in their digitalisation. The issue of digitalisation is crucial for social economy enterprises, because the changes offer both challenges and opportunities. Indeed, new digital technologies enable quicker exchanges of best practices and offer tools to support the values of the social economy through new collaborative, shortcircuit and circular economic models, on which social economy actors could have a defining influence if they rise up to the task. [ABSTRACT FROM AUTHOR]

Local governments in the Western Balkan countries are dependent on central governments' transfers, with low fiscal autonomy and limited efforts for own-source revenue mobilisation. The paper identifies that besides central government transfers, other significant factors in determining municipal own-source revenues include central and local public investment, current expenditures, human development index, and population density. Municipal own-source revenue is adversely affected by intergovernmental transfers, implying their de-incentivising effect in collecting local revenues. Local capital expenditure is a significant and strong determinant with a higher strength than central government investments, suggesting their importance for local fiscal autonomy. The human development index as a composite measure, unlike GDP per capita, positively affects the municipal fiscal autonomy. [ABSTRACT FROM AUTHOR]

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]

The main purpose of this paper is to develop possible scenarios for reducing carbon dioxide (CO2) emissions in Serbia by switching from coal-fired to natural gas-fired electricity generation by the end of 2050. Accordingly, the challenges are to establish scenarios and identify measures that are best suited to all Western Balkan countries. In particular, this paper proposes a number of energy mix scenarios that offer some options for reducing CO2 emissions while maintaining an economic way of consumption. Projections of these reduction scenarios are obtained by combining the Kaya identity with the emission factor method. A simplified methodology based on sensitivity analysis is used as a source of data to estimate the nonstatistical uncertainty limits for the projections of the reduction scenarios. The sensitivity analysis is carried out using historical data from Serbia for the period from 1990 to 2019. In addition, a direct verification of the proposed methodology is performed based on historical data for 2020. The developed scenarios 1 and 2 show that CO2 emissions could be reduced by 10.94% and up to 74.44% from baseline in 1990, respectively. The obtained results are also contrasted with the data available for some other countries with similar experiences. Finally, it is found that the developed scenarios are achievable only at significantly decreased levels of coal-fired electricity generation. [ABSTRACT FROM AUTHOR]

In this paper, I investigate the attempts of the European Union to promote and entrench the rule of law standards in the Western Balkans countries. I examine the failures of legal reforms in key policy areas, such as the regulations of judicial independence, the legislative branch of government, vetting and suppression of corruption, that prevent progress in achieving the rule of law standards. I demonstrate how a narrow focus on the judiciary and its performance has harmed the standards. I propose a more specific focus on socio–economic reforms that, at first glance, appear less relevant to the rule of law. These are: higher education reforms, digitalization, decarbonization, and better targeting of anti-corruption measures. More focus on these areas allows a refocusing from a narrow conception of rule of law to other good governance reforms. [ABSTRACT FROM AUTHOR]

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Background: This paper is related to the current stage of development in the Western Balkans. Despite becoming growing instruments to finance sustainable green development, debt swaps and social or sustainability bonds are relative novelties in this region. At the same time, the development needs are huge, especially in the light of the COVID-19 aftermath. Results: The review of both historic financial instruments, such as the debt for nature swaps, and more recent ones, such as sustainability bonds in its variations, highlight the potential for use in developing countries. The relatively recent case from Montenegro and the recent issuance of the green bond in Serbia showcase the possibilities. The focus of this paper is an analysis of the public debt position of Western Balkan countries. The growing level of public debt over the past decade points to a lack of adequate interventions and a relatively imminent need for fiscal consolidation. The research suggests that environmental, social, governance/sustainability-linked bonds and debt-for-climate swap investments as innovative financial instruments that hold promise in leveraging additional finance to support the sustainability goals of the six countries of the Western Balkans. This influx of capital would be particularly advantageous, given their needs relative to EU accession and their economic and structural challenges. The recommendations for policymakers are derived based on the history and features of green bonds as well as debt-for-nature swaps and their diverse underlying mechanisms which are adaptable to the respective countries. Conclusions: The related countries would benefit from exploring more innovative approaches to finance sustainable societies. In close cooperation with the EU and taking the European Green Deal into consideration, it is recommended that the six countries of the Western Balkans design financing mechanisms that will bring increased transparency to the different policies and more accountability for their implementation. Applying the recommended modality may help keep the problem of the public debt at bay, while additional funds may support implementation of structural reforms. [ABSTRACT FROM AUTHOR]

If the standards of living in the Western Balkans are to converge on those in the EU then the current productivity gap needs eliminating. A significant portion of that gap would ideally be eliminated through the expansion of employer-provided training. However, survey data indicate that since 2016 training incidence has been rising in only two of the six countries of the Western Balkans. The main contribution of this paper is to investigate this disappointing performance. A model of the determinants of the incidence of employer-provided training is developed based on theory and investigations in other countries. It is found that in the Western Balkans firms with foreign owners, those who export and those who report that their employees are eager to access training are more likely to provide training, whilst micro and small firms are less likely to provide training. Sentiments regarding the firm's and economy's current performance and their prospects are also significant determinants. The policy implications of these findings are addressed in the concluding section. [ABSTRACT FROM AUTHOR]

In the rapidly changing global economic environment, economic restructuring, innovation, and globalization have led to marked changes in labor markets, creating significant skill gaps and mismatches. The recent economic upheaval, deepened by the COVID-19 pandemic and geopolitical conflicts such as the Russia-Ukraine standoff, has accentuated the need for a new paradigm of growth, one relying more heavily on domestic resources. The Western Balkan region, blessed with abundant natural resources and a prolific agricultural sector, still counts human capital as its most valuable asset. In this context, the evolution of education and the improvement of workforce skills become key components for enhancing economic recovery and growth in the Western Balkan economies. This research paper offers a comprehensive econometric investigation of the dynamics between education, skills, and employment within Western Balkan countries. Utilizing an extensive dataset of 2905 observations from the Balkan Barometer, Regional Cooperation Council (RCC) database, the study delves into the complex roles of compulsory, tertiary, and adult education systems in enhancing employability across six Western Balkan nations - Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia. The research employs a robust ordinary least squares (OLS) model to examine the effect of varying education levels and skills on employment while factoring in additional socio-demographic variables such as age, gender, and geographical location. The study challenges the conventional wisdom that suggests educational attainment alone is sufficient in the current job market. It provides quantitative evidence of the significant influence of both education and skills in obtaining employment. The analysis reveals a positive correlation between education, skills, and the employment index, affirming their crucial roles in job acquisition. Furthermore, the study considers auxiliary variables like age, gender, and residence, unearthing their potential interrelations with education and employment. The findings suggest that increased employment prospects are associated with older age groups, higher education levels, and urban residency. However, a notable gender discrepancy in the job market is observed, with women showing lower employment levels. The research also uncovers country-specific employment-level disparities, with Macedonia displaying the lowest and Bosnia, Herzegovina, and Kosovo exhibiting the highest employment coefficients. This study underscores the need to incorporate practical training and internships into the education system to boost the employability of young individuals. It further emphasizes the necessity for adequate material, human, and financial resources to facilitate this transition. This study underscores the need to align education and skills development for future employment strategies by providing invaluable insights for policy-making in the Western Balkans. [ABSTRACT FROM AUTHOR]

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Background: The European Commission (EC), based on the European Green Deal (2019) and the Recovery plan for Europe (2021), envisages investing 30% of the budget in climate-related programs, projects, and initiatives, which clearly shows Europe's commitment to becoming the first climate-neutral region by 2050. Activities are also planned for countries that are not members of the European Union (EU), which require complex changes in the field of legislation, strategic planning, implementation, and monitoring. To successfully plan short-term and long-term activities on these grounds, it is necessary to have a realistic picture of the state of climate change in each country—as they spill over into the entire region of Europe. The main objective of this paper is to answer the following questions: (i) is climate change observed in Western Balkans? (ii) how are certain sectors vulnerable to climate change in Western Balkans? (iii) what are the climate change adaptation strategies in the six countries of the Western Balkans? The answers to these questions can help in planning activities and initial alignment of Western Balkan countries with the EU plan to achieve net zero greenhouse gas (GHG) emissions by 2050. Main body: The main results of the research show that in all countries of the region, the average annual temperature increased by 1.2 °C compared to 1970, with stabilization and the beginning of the decline which can be expected around 2040. The main reasons for climate change in the region are: industry, energy, and heating sector based on coal exploitation, low energy efficiency, etc. Conclusions: It can be concluded that Croatia as a member of the EU has adopted, and other five Western Balkans countries are in the process of adopting the necessary regulations and strategies towards climate change mitigation, but the implementation of specific activities is at a low level. The reason for this most often lies in the insufficient commitment of decision-makers to make significant changes in the field of climate change transition (lower level of economic development, lack of investment, and preservation of social peace). Finally, this paper provides an overview of climate change by country, scenario analysis, and policy recommendations. [ABSTRACT FROM AUTHOR]