Acta Economica <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> University of Banja Luka, Faculty of Economics en-US Acta Economica 1512-858X DEVELOPMENT TRENDS AND INSTITUTIONAL CAPACITIES IN KOSOVO AND METOHIJA IN THE FIRST FIFTH OF THE 21st CENTURY <p>This paper is about basic development trends in Kosovo and Metohija during the period 2003-2017. The focus is on the missed opportunities for increasing economic and social well-being in the KiM area. Besides this, an important aspect of the analysis carried out in this paper relates to the quality of the state governance and building institutional capacities. In the empirical analysis, three scenarios were used to show the backlog of the KiM area, i.e. the lost GDP per capita of Kosovo* caused by the inability to take advantage of the wider space of our country. The results of the research show that special attention has to be paid to the rule of law, the efficiency of governance and the control over corruption in Kosovo*. The integration of Kosovo* with the educational, research and economic space of Serbia and the EU could lead to the overall progress of our country as a whole.</p> Gojko M. Rikalović Dejan S. Molnar ##submission.copyrightStatement## 2019-06-30 2019-06-30 17 30 9 23 10.7251/ACE1730009R INTERNATIONAL COUNTRY RANKINGS AS A SОCIO-ECONOMIC PHENOMENON AND A NEW INSTRUMENT OF GLOBAL GOVERNMENT SOFT POWER <p>One of the fundamental determinants of the last wave of the globalization process is the emergence and expansion of international country (economy) rankings. The popularity of these lists is increasing day by day. However, despite their widespread use, the existing body of scientific knowledge about this complex socioeconomic phenomenon is modest, at best. Since international country rankings represent a relatively new phenomenon and an “industry” characterized by explosive growth, the paper will present the basic theoretical foundations of the phenomenon, with particular emphasis on the economic dimension. The concept will be analyzed through the context of mechanisms that determine the appearance and functioning of global society today. It will also be noted that the international ranking lists which use the economic systems of countries as the basic unit of analysis, i.e. certain elements of the given system, are a suitable instrument for shaping an economic reality and development flows of a modern society in accordance with the goals of certain interest groups and centers of power. The findings that will be presented in this paper constitute a prerequisite and a starting point for extensive research on the issues of international country rankings, especially regarding the impact of this phenomenon on the economic sphere of society.</p> Marijana Nikolić ##submission.copyrightStatement## 2019-06-30 2019-06-30 17 30 25 43 10.7251/ACE1730025N STOCHASTIC MULTI-ATTRIBUTE UTILITY MODEL <p>In real situations, the attribute value (mostly variable) can be best represented by introducing the finite number of attribute values level, to which the corresponding probabilities should also be attached. Stochastic Multi-Attribute Utility Model has the ability to analyze such stochastic multi-attribute problems. The choice of one, from the set of available options, is made by choosing the best option based on the maximum expected utility structure. In this paper, we will mention some arguments for the development of the Stochastic Multi-Attribute Utility Model, its advantages (they are closer to reality), disadvantages (analytically difficult technique, subjective assessments of the values of variable attributes), as well as the process of solving the problem.</p> Katarina Račić Željko Račić Saša Damjanac Dunja Milić ##submission.copyrightStatement## 2019-06-30 2019-06-30 17 30 47 58 10.7251/ACE1730047R ANALYSIS OF THE BRAND VALUATION BASED ON THE ASSESSMENT BY INTERBRAND, BRAND FINANCE AND MILWARD BROWN OPTIMOR <p>Brands are significant category in the department of marketing and finance of the company. They also play the key role in the segment of consumer behavior when it comes to decision making during the purchase. Marketing managers in domestic companies still do not have enough experience in using the modern methods for estimation of the brand value. From this, the conclusion can be drawn that the operational structure do not receive an adequate support from marketing department in decision making. Analysis in this work will be based on the research of the concept of the brand value and the methodology of evaluation. The goal is to analyze advantages and disadvantages of different methodologies of well-known consultant agencies for estimation of the brand value. The work consists of a few parts. Attention is first directed towards the concept of the brand value and the classification of the evaluation methods. It is followed by the analysis of necessary measuring of the brand value in domestic practice and the current state in international practice. Then a more detailed analysis of the mode of operations for global agencies follows: Interbrand, Brand Finance and Millward Brown Optimor. Results of the empirical research will be shown through the comparative analysis of the values for the world’s famous brands, which are obtained by using the mentioned methodologies in the same time period.</p> Svetlana Terzić Irena Đalić ##submission.copyrightStatement## 2019-06-30 2019-06-30 17 30 59 82 10.7251/ACE1730059T DIGITAL MANAGEMENT IN LARGER MUNICIPALITIES IN BOSNIA AND HERZEGOVINA <p>Numerous studies and research conducted in the world’s developed countries have unambiguously confirmed that the development and implementation of electronic management and other electronic services have a direct impact on economic, social and political development. The global study “Digital Governance in Municipalities Worldwide Survey“ (2014) explored digital management in larger municipalities around the world. The research assessed the performance of official municipal websites in the area of privacy and security, usefulness, content, service and civic and social engagement. This longitudinal study, conducted since 2003, is a constant effort to evaluate the electronic management in the municipality and to identify the best world practices. In Bosnia and Herzegovina, the larger municipalities have been selected for the research, that is, those with more than 30,000 inhabitants. Where there is no lower administrative unit than the city (for example, Banja Luka), or where the city performs administrative affairs of the municipality, the website of the city was surveyed. The scoring system of the web sites in the work was taken from the mentioned study. The main goal is to provide an insight into the state of electronic management in the major municipalities in Bosnia and Herzegovina.</p> Ismeta Mameledzija Demir ##submission.copyrightStatement## 2019-05-31 2019-05-31 17 30 83 95 10.7251/ACE1730083D ENERGY ACCESS AND HOUSEHOLD INCOME IN SUBSAHARAN AFRICAN COUNTRIES <p>This study empirically examined the energy access and household income in Sub-Saharan African countries between 1990 and 2015. The study employed five variables: energy access, per capita income, energy price, FDI and trade openness, as well as panel unit root test using two criteria to test stationarity. Panel cointegration test was also conducted to test long-run cointegration between the variables employed. Panel granger causality test was employed to check the degree of causality between the dependent and explanatory variables and Auto Regressive Distributive Lag method of estimation was employed to check the long-run and short-run relationships between the variables. The results of the panel unit root test from the LLC and IPS methods show that the order of integrations is mixed with some of the variables being stationary at levels (household income, Foreign Direct Investment and Trade Openness) and first difference (Energy Access and Fuel Price) at the same time. The result of Pedroni cointegration test indicated the bivariate long-run cointegration equation between the variables employed except for EA and GDPPC. The panel granger causality test revealed that there is causality between these three variables (EA, GDPPC and FUELP) and the direction of causality only flows from these variables to energy access. The ARDL result revealed that all explanatory variables accounted for 60% variation of energy access in SSA. However, the study made the following policy implications: energy policy needs to be orientated in favor of expanding the supply of energy to reach an enhanced degree of sustainable economic growth and development, and governments in this region can subsidize energy products to increase its consumption and promote the welfare of their citizens.</p> Musibau Ojo Adejumo Ajide Bello Kazeem ##submission.copyrightStatement## 2019-06-30 2019-06-30 17 30 99 115 10.7251/ACE1730099A CURRENCY RISK EXPOSURE AND ITS DETERMINANTS: THEORETICAL AND EMPIRICAL RESEARCH <p>The study investigates the currency risk exposure of companies. The author presents relevant theoretical knowledge and the results of empirical research of the currency risk exposure of companies and its determinants. Theoretical viewpoints on the impact of company characteristics and ambient factors on the currency risk exposure of companies are consistent. In empirical research, theoretical attitudes about the impact of ambient factors on the currency risk exposure of companies have been confirmed, whereas theoretical attitudes on the impact of company characteristics have not been confirmed or not confirmed in a sufficient number of empirical studies. Based on the obtained results of empirical research, it is not possible to conclude with certainty which characteristics of the company affect the currency risk exposure of companies</p> Nermina Pobrić ##submission.copyrightStatement## 2019-06-30 2019-06-30 17 30 117 137 10.7251/ACE1730117P