http://ae.ef.unibl.org/index.php/AE/gateway/plugin/WebFeedGatewayPlugin/atomActa Economica2023-12-29T18:01:09+00:00Dragan Gligorićacta@ef.unibl.orgOpen Journal Systems<p>Acta Economica is the scientific journal of the Faculty of Economics, University of Banja Luka, which was launched in 2002, and twice a year it publishes papers from all disciplines that are studied at the undergraduate and graduate studies, and it also follows current events in the field of economic sciences.</p> <p>The journal publishes papers in Serbian language and in leading foreign languages. Empirical researches and theoretical analyses are equally important and they will be published if, in the opinion of the reviewers and editors, they meet the standards of the journal.</p>http://ae.ef.unibl.org/index.php/ae/article/view/491THE QUALITY OF INSTITUTIONS IN THE COUNTRIES OF SOUTHEAST EUROPE: A COMPARISON WITH THE MEMBERS OF THE EUROPEAN UNION2023-12-29T19:31:49+00:00Jelena Trivić
<p class="p1">The purpose of this paper is to show the importance of the development of institutions and the institutional environment in a globalized world. The methodology used to measure the quality of institutions are components of the World Governance Indicators Database developed by <span class="s1">Kaufmann, Kraay & Mastruzzi (2010)</span> where we performed a comparative analysis of the quality of institutions for three samples of countries, the countries of Southeast Europe (countries of the region), the newest members of the EU and the countries of Central Europe and the Baltic States. After that, we showed the degree of correlation between economic development measured by GDP per capita in purchasing power parity and each of the six indicators of the quality of institutions. The results show that the countries of the region lag significantly behind the countries we call New Europe (Central Europe and the Baltics), but also lag behind the youngest members of the European Union in terms of the quality of institutions, i.e. the rules of the game. When it comes to correlation between economic development and institutional environment, for all 6 indicators of instituional environment, a strong and positive correlation was shown, especially between the rule of law and economic development. The conclusion is that the countries of the region must strengthen the rule of law, fight against institutional corruption, ensure political stability so that the economic standard of their citizens could improve.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/490ECONOMICS OF EDUCATION: THE EXAMPLE OF THE BALKAN COUNTRIES2023-12-29T19:31:49+00:00Ognjen ErićSlaviša KovačevićJelena BjelićDejan Molnar
<p class="p1">Economic growth is an economic topic that attracts a lot of attention in science and research. This is a consequence of the emergence of increasingly frequent regional and global instabilities, which often develop into open economic crises of a larger scale. Therefore, today’s economic stability is largely threatened due to the slowdown in GDP growth. Economic growth is influenced by various economic factors, with education being one of the most important, which undeniably boosts productivity, competitiveness, and growth. Among the first, this topic was elaborated by Solow. In this research, regression analysis was used to analyze the influence of several selected variables that determine the state of education. The research results are presented in two models. The dependent variable is Gross National Income per capita (GNIpc), and the independent variables in the first model are years of education, macroeconomic stability, and ability to accept information technologies. In the first model, none of the independent variables is individually significant for the movement of GNIpc. The continuation of the analysis (second model) excludes the variable of macroeconomic stability. The final results are significant for the movement of GNIpc and show that an increase of one year in education leads to an increase in GNIpc by 4408 units, while an increase in the speed of ICT adoption leads to an increase in GNIpc by 543 units. Thus, the research results show a positive and significant influence of the selected independent variables on the economic growth of the Balkan countries.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/474INDUSTRIAL POLICY IN ASIAN NEWLY INDUSTRIALIZED COUNTRIES: CONTROVERSIES, REVIEW AND LESSONS2023-12-29T19:31:49+00:00Dejana Gajinov
<p class="p1">The paper’s aim is to use the successful example of the newly industrialized Asian countries, as well as the countries of the East Asian region in general, to prove the need to implement industrial policy in many countries, both those lagging behind in industrial development and those that have reached the technological frontier. The paper describes the evolution of industrial policy in these countries and what distinguishes them from other developing countries that were unsuccessful in its implementation: the developmental state, which recognized timely the turning point from the strategy of import substitution to the strategy of export promotion, implemented both strategies simultaneously, picked winners, provided support to infant industries through selective interventions, but also disciplined the recipients of its support, tracked its own comparative advantages and anticipated their changes, with a strong synergy between the state and private sectors, and looking at Japan as a model of industrial development, i.e. the lead goose. Industrial policy is one of the most controversial issues in economics. There has been a long debate between two schools of thought - orthodoxy and heterodoxy - as to whether there is a need for industrial policy in general, as well as the role of the state in the process of its creation and implementation, as opposed to the free market model of development in which there is no place for industrial policy, and if it appears it can be only of a general nature, and by no means in the form of selective interventions. Over the last 10 to 15 years, there has been a revision both at the academic level and in the real world that has made industrial policy more acceptable, and thus the debate about it has become less ideologically colored and more pragmatic and nuanced. At the theoretical level, the market fundamentalist view of little theoretical justification for industrial policy has lost its dominance. Despite maintaining neoliberal orthodoxy as the advice of international financial institutions in the process of creating economic policy in developing countries, industrial policy remained important for the promotion of industrial development, especially the infant industries. It is accepted that there are many types of market failures that must be addressed through industrial policy. It is increasingly recognized that industrial policy is not just a highly idiosyncratic practice associated only with the miracle economies of East Asia, but what most of today’s developed countries used when they were in the position of the catching-up countries. As a conclusion, the paper discusses the possibility of transferring the East Asian model to other countries, and sheds light on the determinants of industrial policy success and failure. The key conclusion is that there is room for successful industrial policy even in countries that have reached the technological frontier and want to push it further, as well as in countries lagging behind in industrial development, although the global context in which industrial policy is situated has changed over time. A special commentary is referred to the economic and industrial development of the former countries of Yugoslavia.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/467OPTIMIZING THE ECONOMIC BENEFITS OF PUBLIC SPENDING FROM NATIONAL YOUTH DEVELOPMENT AGENCY GRANT FUNDING2023-12-30T17:25:06+00:00Asanda FotoyiRonney Ncwadi
<p class="p1">This study examined the economic benefits of the National Youth Development Agency (NYDA) grant funding, in the Eastern Cape, using cost benefit analysis (CBA) and least absolute deviation (LAD) regression analysis on a sample size of 253 respondents. The study found that public investment towards youth entrepreneurship through NYDA grant funding yields positive social returns. The study further found that the development of youth entrepreneurship should go beyond just NYDA grant funding to include favorable policies towards closing gender gaps, supportive education systems as well ensuring diverse economic sectors.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/466EXPLAINING THE CORRELATES OF CHILD’S MULTIDIMENSIONAL POVERTY IN SOUTH AFRICA USING THE ALKIRE-FOSTER APPROACH2023-12-29T19:31:49+00:00Thonaeng Charity MolelekoaAbayomi Samuel Oyekale
<p class="p1">Child’s poverty remains one of the major concerns in the Sustainable Development Goals (SDGs). This study analyzed the determinants of child’s multidimensional poverty in South Africa using the 2017, 2018 and 2019 General Household Survey (GHS) datasets. The Alkire-Foster’s methodology was used to compute child’s Multidimensional Poverty Index (MPI), and its correlates were analyzed using the Tobit regression. The results revealed that some regional and areas of residence factors significantly influenced MPIs across the periods (p<0.05). Also, being a Coloured, Indian/Asian, and White child and biological children of the households’ heads significantly reduced MPIs (p<0.05). Conclusively, policies and programs to address child’s poverty must among others, be sensitive to some racial, provincial and gender factors. It is therefore recommended that the government needs to critically come with strategies to facilitate achievement of some SDGs as a prerequisite for reducing child’s multidimensional poverty.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/463INFLATION AND ECONOMIC GROWTH TRENDS: GLOBAL AND SOUTH AFRICAN PERSPECTIVES2024-01-03T09:38:43+00:00Shelton MandeyaSin-Yu Ho
<p class="p1">This paper explores the global inflation and economic growth trends, with a special focus on South Africa, from the 1970s – the period marked by the crumbling of the Bretton Woods system and the ensuing stagflation – to 2022. Our exploration reveals that global inflation is driven mainly by advanced economies, and there are signs of a negative correlation between the levels of income and inflation rates. We observed a structural break in global inflation in 1995 when inflation substantially decreased and became more stable than before. Our analysis links this structural break and stability in inflation to the emergence of strict monetary policy regimes like inflation targeting. Emerging and developing economies experienced a substantial decrease in inflation after they adopted inflation-targeting policies, as compared to advanced economies. In contrast, AEs benefitted from a significant rise in their economic growth. For South Africa, the trends in inflation and economic growth displayed a different picture. Although negligibly, South Africa’s inflation rose three years after adopting inflation targeting. During the same period, the South Africa experienced rising economic growth. To better understand the relationship between inflation and economic growth, we suggest the use of extensive data and models to investigate the structural breaks experienced.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/461PRINCIPAL COMPONENT ANALYSIS OFGENERATIONAL PREFERENCES REGARDING OVER-THE-TOP SERVICES – A HUNGARIAN CASE STUDY2023-12-29T19:42:40+00:00Tamás VinkócziLili Anna MajczánPetra MiklósJudit Petra Koltai
<p>The rise of video streaming services has not only increased the popularity of the platforms available, but has also changed the way households consume content, displacing the options offered by traditional television. The orientation was to apply a specific interdisciplinary scientific approach, combining economics and sociology, due to the research area of the study. The advantages/disadvantages of streaming platforms may play a role in the perceptions of different age groups of users by the service provider they choose. The aim of the research is to focus on the different video streaming consumption habits of the various generations (Generation X, Generation Y, Generation Z) as customers of Netflix, HBO Max, and Disney+, the widely known video streaming providers as reflected in the literature review. A Likert-scale questionnaire survey was considered the most appropriate method to achieve this objective. In order to test the hypothesis on the relationship between generations and video streaming usage a principal component analyses by generation was applied. The separation of variables resulted in the establishment of two groups, namely manipulation (indicating the influence of the traditional way of life) and enjoyment (influencing the choice and customer retention of service providers). The results of the study indicate that the generational characteristics of consumers partly show different patterns of service use, and that the impact of service use on traditional lifeways differs between generations. The analysis highlights the importance of further researches in this area, as the factors explored can be extended to other important issues in the future.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/458EFFECTIVENESS OF RISK MANAGEMENT IN NIGERIA’S MANUFACTURING ENTERPRISES2023-12-29T19:31:49+00:00Kehinde OlaiyaOlusola OlowofelaMayowa Ariyibi
<p class="p1">This study seeks to examine the effectiveness of enterprise risk management (ERM) implementation in the Nigerian manufacturing sector. The objective of this study is to analyze the risks faced by manufacturing firms in Nigeria and to recommend actions to address and reduce anticipated hazards. This research used both inferential and descriptive statistics to examine the effectiveness of ERM application in Nigeria’s manufacturing sector. The data for this study were collected from the financial statements of manufacturing firms and other relevant publications by manufacturing firms in Nigeria from 2016 to 2020. The study found that ERM has a positive relationship with financial performance indicators such as return on investment, dividend, earnings per share, market capitalization, price earnings ratio, and dividend per share. The study recommends that manufacturing companies in Nigeria should implement ERM as an ongoing activity to improve their risk management practices, enhance their effectiveness, and ensure their long-term sustainability. This study contributes to the literature on ERM implementation in the Nigerian manufacturing sector and provides valuable insights for policymakers, regulators, and business managers.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/457THE IMPACT OF CURRENCY DEPRECIATION ON EXPORTS: AN AUTOREGRESSIVE DISTRIBUTED LAG APPROACH FOR TURKISH LIRA2023-06-30T12:40:37+00:00Yılmaz Onur Ari
<p class="p1">Turkey experienced many economic crises during the 90s and 2000s, and international trade activities changed drastically as the Turkish currency “Lira” fluctuated severely. The Turkish lira has depreciated rapidly against foreign currencies in recent years, affecting Turkey’s international trade activities. The research uses Autoregressive Distributed Lag (ARDL) bounds testing to investigate the effect of the Turkish Lira depreciation on Turkish exports from 1990 to 2020. The findings suggest that the exchange rate is related to exports in both short and long run. In contrast, the inflation rate has a negative and insignificant long run influence on exports, but a negative and significant short run effect. Furthermore, imports have a negative and insignificant impact in the long run, while exports have a positive and significant effect in the short run. In the long run, the deposit interest rate is positive but insignificant at 1 percent and 5 percent significance levels. These results suggest that Turkey should produce its intermediate goods in anticipation of the high exchange rate and export high-value-added technology-intensive products to eliminate the dependency of Turkey’s exports on imports.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/456REMITTANCE INFLOWS AND EXCHANGE RATE IN KENYA: AN EMPRIRICAL INVESTIGATION2024-01-21T15:34:43+00:00Mercy T. MusakwaNicholas. M Odhiambo
<p class="p1"><strong>Purpose:</strong> This study investigated the impact of remittances on the nominal exchange rate in Kenya, using annual data from 1980 to 2020. The study was motivated by the need to find out how remittances affect the exchange rate in Kenya based on an increase in remittance inflows in low- and middle-income countries, including Kenya. This is important as Kenya continues to build a stable macroeconomic environment that supports economic growth and other milestones specified in the Sustainable Development Goals. <br /><strong>Methodology:</strong> The study used the autoregressive distributed lag approach to examine this linkage. <br /><strong>Results:</strong> The study, therefore, concludes that remittance inflows in Kenya are not associated with the appreciation of the currency, as predicted by some previous studies. <br /><strong>Conclusion:</strong> The study, therefore, concludes that remittance inflows in Kenya are not associated with the Dutch-disease phenomenon. <br /><strong>Recommendation:</strong> It is recommended that Kenya may continue to implement policies that support remittance inflows to realize an improvement in the balance of payments in the country.</p>
2023-12-29T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/455SUSTAINABLE DEVELOPMENT THROUGH THE PRISM OF TOURISM AND CONSUMERS IN THE TOURISM MARKET - CASE STUDY OF VLASINA LAKE2023-06-29T08:49:03+00:00Radomir StojkovićDragana Nikolić Ristić
<p>The concept of sustainable development represents an inexhaustible topic of research, which gains additional importance in the conditions of the current energy crisis. In this sense, the attention of the scientific and professional public is directed towards greater use of renewable energy sources in tourism. The aim of the work is to research the attitudes of consumers towards the use of renewable energy sources and the application of the principles of sustainable tourism on Vlasina Lake. The first part of the paper contains a review of the professional literature, while the second part of the paper presents the results of research on consumer attitudes towards the application of renewable energy sources on Vlasina Lake. Statistical analysis was performed using the SPSS software package. The importance of the work is reflected in the potential implications for the development of the strategy for the sustainable development of tourism in Southeast Serbia.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/454FUNCTIONAL CORRELATION BETWEEN BANK ASSETS AND INSURED DEPOSITS IN BOSNIA AND HERZEGOVINA – THE PERSPECTIVE OF THE DEPOSIT INSURANCE FUND2023-06-29T08:49:03+00:00Gorana Krunić
<p>The projection of insured deposits level in banks is of the key importance for the financial planning of the Deposit Insurance Fund as an integral part of the deposit insurance system. On the one hand, in a situation when banks fail, Deposit Insurance Fund are used for payouts of insured deposits in those banks or for financing processes of resolution such banks, which represents a real outflow of the Fund. On the other hand, the main regular inflows into the Deposit Insurance Fund are realized from insurance premiums which, as a rule, are calculated on the basis of insured deposits in all banks. The research problem posed in this paper is how to predict changes in the level of insured deposits in banks, that is, how this level in banks changes in relation to the total assets of the banking sector. The research covered the period from 2009 to 2021. The level of insured deposits in banks was set as the dependent variable and the level of bank assets was set as the independent variable. The research was conducted on the banks operating in Bosnia and Herzegovina. The research confirmed the significant conditionality of the growth of insured deposits with the growth of the bank assets, and also opened up some new directions for further research in terms of the influence of other elements on the financial planning of the Deposit Insurance Fund and the presence of moral hazard in the banking sector.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/453INFLUENCE OF THE SOCIAL ENTREPRENEURSHIP ON THE DEVELOPMENT OF THE TRANSITIONAL ECONOMY AND SOCIETY2023-06-29T08:49:03+00:00Irena ĐalićŽivko Erceg
<p>In this paper, we investigated the impact of social entrepreneurship on the development of the transitional economy. The research was carried out on the territory of Bosnia and Herzegovina (B&H). As the most featured negative side of the transition, we see an increase of social inequality and poverty. One of the ways to solve these problems is the development of social entrepreneurship. The main goal of the research is to find a model for the development of social entrepreneurship that would contribute to the development of society and the economy of developing countries. Ninety seven subjects of social entrepreneurship, from all over B&H, participated in the research. We collected data using questionnaires, and we used correlation and regression methods to analyze them. The results showed that social entrepreneurship is at a low level and that its development would contribute to the development of society and the economy. In this research, we have created a model of social entrepreneurship development and proved that social entrepreneurship could be an excellent way to solve many social and economic problems.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/450REWARDING AND SUCCESS OF INFORMATION SYSTEMS DEVELOPMENT PROJECTS2023-06-29T08:49:03+00:00Boris TodorovicMarija Todorovic
<p style="font-weight: 400;">The purpose of the research is to determine the causes of failure of information systems development projects. We came to the hypothesis that rewarding can improve the success of information systems development projects. For this reason, it is suggested that employment contracts be tied to business results. Extrinsic and intrinsic rewards are a good motivator that affects the improvement of employee performance, i.e. increases productivity, business results and job satisfaction and contributes to increasing the success of information systems development projects. Designers and managers of information systems development projects who participated in the research, gave their views on the impact of rewards on the success of the information systems development project in response to survey questions. The attitudes were evaluated on a five-point Likert scales. We obtained additional data based on conversations with managers and designers who deal with the development of information systems. Through the research design, we determined an independent variable related to the employment contract based on business results, which is the basis for the application of various forms of remuneration, and a dependent variable related to the success of the information systems development project. The main findings of the research are related to the definition of the contract between the owner on the one hand and managers and designers on the other hand, which solves the problems of opportunistic behavior of managers and designers of information systems development project. In addition, the factors of extrinsic and intrinsic rewards that are most often used to motivate managers and designers of information systems development are defined. The practical implications of the research refer to the benefits that the company owner, managers and designers of the information systems development will have. They will receive the best model of employment contract for employees working on the development of an information systems project. In addition, they will receive information about the views of designers and project managers related to reward factors that improve the success of the information systems development project. The originality of the research refers to the creation of a model that links the work contract based on business results with reward factors that help to increase the success of the information systems development project.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/449MARKETING INFLUENCE ON STUDENTS LOYALTY AND FUTURE INTENTIONS IN HIGHER EDUCATION2023-06-29T08:49:03+00:00Perica MacuraNedeljka Elez
<p>Applying the marketing concept in higher education can significantly improve the performance of these institutions. The role of marketing is particularly important in ensuring the loyalty of students and timely influence on their future intentions, especially nowadays when the decrease in the number of students is a big problem in our country, but also in neighboring countries. From the marketing aspect, this paper provides the results of research on the relationship between student loyalty and their future intentions in higher education. The research was conducted on students of two state universities in the Republic of Srpska. Research results show that there is a strong relationship between student loyalty and future intentions of students in higher education. The obtained results are significant for universities that want to keep students at the institution, but also to secure partners even after the completion of their studies.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/448THE IMPACT OF GREEN ECONOMY STANDARDS ON COMPETITIVE ADVANTAGE: THE STUDY OF ROMANIA2023-06-29T08:49:04+00:00Hassiba Hadouga
<p>The study aimed to reveal the impact of green economy practices in achieving competitive advantage in companies operating in Romania, according to the size of the companies. The study used the descriptive causal approach. As for the study population, it consisted of all employees in Romanian companies in the departments of quality assurance, quality control, research and development, and production. The questionnaire was used as a main tool for collecting data and information that was analyzed with a set of statistical means, via the Internet to collect data, followed by the analysis of correlations between specific variables. By applying the Pearson chi-square test, 355 questionnaires were distributed, and only 100 were retrieved. The results of the study have showed that there is an impact of green economy practices in achieving competitive advantage, as well as an impact of total quality management practices in achieving competitive advantage in the Romanian operating companies under study. There were no statistically significant differences in the averages of the impact of green economy practices on achieving the competitive advantage. There is a relationship between the use of green economy standards and the subsequent perception of their effectiveness.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/447BOOK REVIEW: NIKOLA NJEGOVAN (2022) FRIEDMAN’S CHALLENGE 2023-06-04T18:36:28+00:00Rajko Tomaš
<p>Book Review: Nikola Njegovan. (2022). Friedman’s Challenge. Belgrade: Faculty of Economics University of Belgrade, Centre for Publishing, 207 pages.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 http://ae.ef.unibl.org/index.php/ae/article/view/446FOREIGN TRADE AS A DETERMINANT OF ECONOMIC GROWTH OF THE REPUBLIC OF SRPSKA: AN EMPIRICAL ANALYSIS 2022-12-30T20:03:35+00:00Slaviša KovačevićSrđan AmidžićDrago Kurušić
<p>Most studies that investigate the relationship between foreign trade and economic growth analyze it through the interpretation of various indicators. This paper seeks to investigate the relationship between coverage of imports by exports and the openness to foreign trade on one hand and the gross domestic product of the Republic of Srpska on other hand. The research relates to the period from 2001 to 2020. By applying the ARDL model we confirmed the initial hypothesis that an increase in the coverage of imports by exports increases the domestic product. The paper confirms the long-term relationship between independent and dependent variables, expressed through the existence of the cointegration equation. Results based on the applied ARDL method show negative, but insignificant relationship between openness and gross domestic product in the Republic of Srpska in long run, and statistically significant positive relationship between coverage of imports by exports and gross domestic product in long run. Value of coefficient shows that 1% increase in coverage of imports by exports increases gross domestic product by 0.80% in long run.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 http://ae.ef.unibl.org/index.php/ae/article/view/444ANALYSIS OF THE INFLUENCE OF SPECIFIC FACTORS ON REAL ESTATE PRICES IN THE REPUBLIC OF SRPSKA 2023-06-04T18:33:30+00:00Dragan Stanković
<p>The work deals with the analysis of the real estate market and the specificities of the formation of real estate prices in the Republic of Srpska. The specificity is reflected, among other things, in the definition of the market value of real estate if the prices are known from the sales contracts entered in the Real Estate Price Register (formed on the basis of supply and demand for apartments), the formation of value zones (location factor), the value tables (relational tables and value levels), the additional factors of influence (factor of the position of the apartment in the building) and equations for estimating the value of the real estate. The analysis was done using the CAMA algorithm. The research results show that real estate prices from the Real Estate Price Register and real estate prices calculated according to the CAMA algorithm are 70% accurate, i.e. they are within the permitted deviation interval of +,- 10 %, which means that the CAMA algorithm can also be used for real estates that have not been registered in the Real Estate Price Register yet.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 http://ae.ef.unibl.org/index.php/ae/article/view/443DISCOUNT RATE AS A MEASURE OF MONETARY POLICY FOR MARKET STABILIZATION - EXAMPLE OF THE NATIONAL BANK OF SERBIA 2023-06-04T18:29:39+00:00Branka Topić PavkovićMirjana Staka
<p>The increase in interest rate is related to the efforts of monetary authorities to neutralize inflationary pressures; while the rate reduction can be interpreted as an invitation to business sector to access more favorable lending conditions. The effectiveness of these changes largely depends on the development level of financial system, the role of the central bank as a creditor and current economic situation. In this research an econometric regression double-logarithmic model was applied, with the main goal of examining the relationship between discount rate and its influence on interest rates and money supply on the example of the National Bank of Serbia. The results show the correlation between the NBS discount rate and interest rates of commercial banks and the amount of money in circulation, indicating their influence on market stability.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 http://ae.ef.unibl.org/index.php/ae/article/view/442DOES RENEWABLE ENERGY SPUR ECONOMIC GROWTH IN KENYA? AN EMPIRICAL INVESTIGATION2023-06-29T08:49:04+00:00Sheilla NyashaNicholas Odhiambo
<p>In this paper, the dynamic impact of renewable energy consumption on economic growth in Kenya has been empirically examined during the period from 1990 to 2019, using the autoregressive distributed lag-bounds testing approach. The study was motivated by the call to increase renewable energy use in Kenya. Contrary to expectations, the results of the study show that renewable energy consumption has no significant impact on economic growth in Kenya, regardless of whether the analysis is in the long or short run. The study, thus, concludes that the development of the real sector in Kenya is not dependent on the exploration of renewable energy. This implies that Kenya can still pursue the necessary energy conservations policies without compromising its long-term growth trajectory.</p>
2023-06-28T00:00:00+00:00Copyright (c) 2023 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/440TOURISM POLICY DEVELOPMENT AND IMPLEMENTATION IN THE EASTERN CAPE PROVINCE, SOUTH AFRICA: DOES LOCAL STAKEHOLDER INVOLVEMENT COUNT? 2022-12-30T20:01:55+00:00Monwabisi SilwanaCynthia Nokubonga Dube
<p>Municipalities are at the lowest level of Government, and it is where the actual implementation of tourism policies takes place. District municipalities and communities globally often face poorly planned development projects resulting from inefficient and ineffective policy and planning implementation. One of the reasons for this is that there is, at times, a lack of participation by key stakeholders. The success of tourism development policies and their implementation rests on the involvement of all relevant stakeholders. This study adopted a qualitative research approach whereby purposive and snowball sampling methods were used to identify the research sample from the research population. The research population included the district municipality staff, regional and local tourism organisations, also known as tourism forums, tourism development agencies, and the rural planning and economic development departments. Consequently, fourteen (14) semi-structured interviews were conducted with key stakeholders from the district municipality, local municipalities, tourism organisations and Eastern Cape Parks Tourism Agency. A thematic analysis technique was used to analyse the data. This study focused on stakeholder involvement in the development and implementation of tourism policies in the O.R Tambo District Municipality (ORTDM). The key findings from the study revealed that there is a lack of stakeholder collaboration in development and the implementation of tourism-related policies in ORTDM.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/439MACROECONOMIC STABILITY AND EUROPEAN UNION INVESTMENTS 2022-12-29T17:22:06+00:00Jelena BjelićSlaviša KovačevićOgnjen Eric
<p>The quantity and quality of investments represent a condition for sustainable and long-term economic growth. Therefore, in economic theory, the rate of economic growth is a function of investment. This research includes an analysis of the impact of selected key macroeconomic indicators (independent variables) on the state and trend of investments in the European Union as a dependent variable. The research covers the period from 2012 to 2021. The following independent variables are chosen: GDP growth rate, interest rate, inflation, unemployment, income from indirect and direct taxes, public debt and budget deficit. The research shows the impact of these variables on the investments of the European Union, the dependent variable. The results of the regression analysis show that interest rates, unemployment, revenues from indirect taxes, as well as the public deficit and public debt have a negative and statistically significant direction in relation to investments. The GDP growth rates as well as direct tax revenues are statistically insignificant, but they have a positive regression coefficient on investments. Inflation rate is also an insignificant variable, but with negative impact on investments. The chosen model in the context of the joint action of all independent variables is statistically significant given that the coefficient of determination is 0.99. The results of the F test indicate statistical significance below 5%, so the model offers enough degrees of freedom (df) to vary the variables and statistically acceptable rating. Finally, the obtained results are significantly consistent with previous research and theoretical assumptions.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/438REMITTANCE INFLOWS, POVERTY AND ECONOMIC GROWTH IN TANZANIA: A MULTIVARIATE CAUSALITY MODEL 2022-12-29T17:22:06+00:00Mercy. T MusakwaNicholas. M Odhiambo
<p>Purpose: This study examined the causal flow between economic growth, poverty, and remittances for Tanzania, using annual data from 1990 to 2020. Tanzania is working to achieve the policy targets set in its Vision 2025, and the findings of this study will add value to policy effectiveness and timing. The study uses household consumption expenditure per capita (HCE) as a measure of poverty, the rate of change in GDP as a measure of economic growth, and remittance inflows as a percentage of GDP as a measure of remittances.</p> <p>Methodology: The study used autoregressive distributed lag (ARDL) approach to cointegration and ECM-based Granger causality.</p> <p>Results: The study found a bidirectional causality between remittances and poverty in the short run and a unidirectional causal flow from remittances to poverty in the long run. No causality was found between remittances and economic growth, and between economic growth and household consumption expenditure per capita.</p> <p>Conclusions: The findings of this study point to the importance of remittances in poverty reduction and sustainable development in Tanzania. Recommendations: Tanzania is encouraged to continue implementing policies that support remittance inflows to positively influence poverty reduction.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/436THE INFLUENCE OF THE COVID-19 PANDEMIC ON THE FINANCIAL PERFORMANCE OF LISTED RETAIL FIRMS IN SOUTH AFRICA 2022-12-29T17:22:06+00:00Lenny Phulong MamaroNdonwabile Zimasa Mabandla
<p>The objective of the study was to analyse the influence of the COVID-19 pandemic on the financial performance of selected listed retail firms in South Africa. The COVID-19 pandemic had a negative effect on economic growth and resulted in a severe decline in the financial performance of companies. In addition, it disrupted many business and economic development opportunities in South Africa. The study was conducted to investigate the influence of the COVID-19 pandemic on the financial performance of selected retail firms listed on the Johannesburg Stock Exchange (JSE). Panel data analysis was adopted as a methodology to achieve the study objectives. The COVID-19 pandemic was found to have exerted a statistically significant negative impact on financial performance. Positive significant relationships emerged between financial leverage, firm size, financial liquidity and financial performance of selected JSE-listed retail firms. Lastly, growth in sales was found to be positive but exerted a weak significance on financial performance. The study contributes to the existing literature on the influence of the COVID-19 pandemic on the financial performance of listed retail entities in South Africa.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/433THE INNOVATION PARADOX IN THE SERBIAN ECONOMY: THE GRANGER CAUSALITY APPROACH 2022-12-29T17:22:06+00:00Lidija Madžar
<p>Innovations, as the applications of new ideas, solutions and technological practices that improve goods, services and business processes, are the most important driver of economic progress. They lead to greater productivity and efficiency, and therefore to better economic results. The purpose of this article is to examine the state, interrelation and the impact of innovative activities on the economic growth of Serbia. The paper first uses standard multiple regression and concludes that in the period from 2004 to 2020, the number of registered patents did not contribute, while the gross expenditures for research and development (GERD) contributed positively and significantly to the growth of the Serbian GDP. Therefore, it can be said that Serbia is facing a kind of innovation paradox, since the growth of allocations coexists with a dramatic decrease in the number of registered patents. Its second part is based on the construction of the corresponding Vector autoregressive VAR(1) model that traces the causal relationship between GERD and the economic growth of Serbia in the period from 1997 to 2020. It follows that while GERD does not cause GDP in the Granger sense, the GDP causes GERD allocations for innovative activities in Serbia. The scientific research work in Serbia is not efficient and effective enough because it draws funds from the GDP, but does not meet expectations and does not produce tangible results, especially in the expected number of registered patents. Therefore, it is necessary to build an appropriate incentive environment that would stimulate more adequately and value new innovative ventures.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 Acta Economicahttp://ae.ef.unibl.org/index.php/ae/article/view/430THE CASE OF DISPOSAL OF NUCLEAR WASTE IN TRGOVSKA GORA IN THE REPUBLIC OF CROATIA: ECONOMIC AND LEGAL CONSEQUENCES FOR BOSNIA AND HERZEGOVINA 2022-06-26T08:05:16+00:00Vitomir PopovićNjegoslav Jović
<p>The storage of nuclear waste planned by the Republic of Croatia in Trgovska gora, located on the border with Bosnia and Herzegovina in its northern part, causes controversy and has far-reaching consequences for the population, flora and fauna, and the environment itself. In parallel with these consequences, it will affect the economic development of 13 municipalities in the Una basin. Croatia has already carried out part of the research, examined the terrain and moved on to geological research. In addition, an environmental impact study is planned and should be completed by 2023. Bosnia and Herzegovina has committed itself to find a solution through diplomatic channels with the Republic of Croatia and the application of international legal standards in this area, as well as legal options available to BiH to protect its interests and mechanisms to deter Croatia from disposing nuclear waste at the site. In the event that Croatia implements this project and builds a nuclear waste dump in Trgovska gora, in addition to environmental consequences, it will affect the economy of municipalities in the Republic of Srpska in terms of a fall in real estate prices, jeopardize agricultural land and create a significant outflow of population.</p>
2022-06-26T00:00:00+00:00Copyright (c) 2022 http://ae.ef.unibl.org/index.php/ae/article/view/429MONEY SUPPLY, INFLATION AND ECONOMIC GROWTH IN BOSNIA AND HERZEGOVINA: AN EMPIRICAL ANALYSIS 2022-06-26T08:05:14+00:00Branka Topić-PavkovićSlaviša KovačevićDrago Kurušić
<p>The analysis of monetary variables and their impact on the economic growth rate has always been in the focus of economic research. In the broadest sense, economic theory distinguishes two basic views defined by the views of monetarists and Keynesians. Although the basic difference is reflected in the determination of price rigidity and money neutrality, specifics of modern economic systems shift the focus towards the positive influence of monetary on real variables. The aim of our research is to identify and quantify the impact of monetary variables on economic growth in Bosnia and Herzegovina. The research was conducted using data from the period 2000-2020. The paper starts with the hypothesis that money supply and inflation ultimately have a positive impact on the real economic growth in BiH. The money supply M2 and the annual inflation rate are taken as explanatory (monetary) variables in the research, while real growth is a dependent variable. The long-term relationship between monetary variables and real growth rates was tested, taking into account the specificity of the BiH monetary arrangement established in the form of a currency board. In order to prove the hypothesis, we applied econometric techniques such as VEC model, cointegration analysis, innovation analysis based on the impulse-responsive function, decomposition variance as well as a causality test. The research results showed the connection between the money supply and the inflation rate with the economic growth in BiH, the relation being positive and statistically significant in the long run. With this, we confirmed the initial hypothesis of the work.</p>
2022-06-26T00:00:00+00:00Copyright (c) 2022 http://ae.ef.unibl.org/index.php/ae/article/view/428THE OPEN BALKAN AS A DEVELOPMENT DETERMINANT OF THE WESTERN BALKAN COUNTRIES 2022-06-26T08:05:14+00:00Gojko M. RikalovićDejan S. MolnarSonja N. Josipović
<p>The paper starts from the concept of the <em>Open Balkan </em>as a community of countries in the Western Balkans, aimed at strengthening their economic cooperation and development for faster integration in the European Union. Significant attention is paid to the analysis of the interdependence of (in)stability of the state and the economic development of small countries. The position of the <em>Open Balkan </em>and its members is also analysed on the basis of the selected global composite indices. An important subject of the analysis is also the condition of institutional capacities of the members of the <em>Open Balkan </em>and their institutional cooperation from the perspective of faster progress towards the European integration. Two main hypotheses have been tested in the paper: (H1) CEEs countries are not a homogeneous group of countries; and (H2) The Western Balkans is a relatively homogeneous regional integration. To test the convergence hypothesis between 16 Central and Eastern European countries (CEEs), annual data from World Bank’s database on the value of real gross domestic product per capita (in constant dollars 2017, PPP) in the period 2000-2026 were used (projected values for the period until 2026). We employed the method developed by Phillips & Sul (2007) that allows identification of clusters of convergence on the basis of an algorithm that is data-driven and thereby avoids a priori classification of the data into subgroups. Based on the results obtained, it can be concluded that Serbia is the “locomotive” of the Western Balkans and that all countries in this area should join the regional initiative for cooperation, the <em>Open Balkan</em>.</p>
2022-06-26T00:00:00+00:00Copyright (c) 2022 http://ae.ef.unibl.org/index.php/ae/article/view/426MACROECONOMIC DETERMINANTS OF COMPETITIVENESS: EVIDENCES FROM FACTOR EFFICIENCY AND INNOVATION-DRIVEN COUNTRIES 2022-12-29T17:22:07+00:00Mohsen Mohammadi KhyarehNasrin Rostami
<p>The investigation of factors that increase or hinder competitiveness has been one of the core tenets of theoretical and empirical researchers, but so far there has been no consensus. This study responds to this issue by exploring how different facets of the macroeconomic environment influence competitiveness in the three Global Entrepreneurship Monitor (GEM) types of economy (factor-driven economy, efficiency-driven economy, innovation-driven economy). Using Porter’s classification, we divided countries based on factor, efficiency and innovation. Additionally, the generalized method of moments (GMM) was used to capture endogeneity and unobserved heterogeneity of data in an unbalanced panel data for 81 countries (2002-2018). The results show that the variations of competitiveness across countries are mainly determined by variations in the stage of economic development. Firstly, GDP growth, low start-up costs and higher R&D expenditure play a key role in explaining the variation in competitiveness in three country clusters. Secondly, as regards Stage 1 countries, we find that trade openness, tax rate, GDP growth, start-up costs, real effective exchange rate, R&D expenditures and labor productivity are particularly vital for competitiveness. Concerning Stage 2 countries, we may observe that trade openness, tax rate, GDP growth, inflation, start-up costs, financial development, real effective exchange rate, R&D expenditures and labor productivity had a statistically significant impact on competitiveness. When it comes to Stage 3 countries, factors such as trade openness, FDI, tax rate, GDP growth rate, inflation, tax rate, startup costs, financial development, R&D expenditures, and labor productivity have an impact on competitiveness. This article presents some essential features, such as the macroeconomic index to determine competitiveness. These features can be used as guidelines for decision makers because they identify areas where taking further actions can improve competitiveness. Finally, our obtained results are highly consistent across a series of robustness tests and robustness checks covering alternative samples and alternative variable groups.</p>
2022-12-29T00:00:00+00:00Copyright (c) 2022 Acta Economica