Acta Economica http://ae.ef.unibl.org/index.php/AE <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 Value Added as a Measure of Economic Profit http://ae.ef.unibl.org/index.php/AE/article/view/367 <p>Economic profit is the concept immanent for the value added. It is an attempt to analyze properly the business success in terms of contribution of profit to the increase in the company value and the stockholders’ wealth. Fundamentally, value added is a measure of the business success where all standard costs and the costs of invested capital are excluded from the realized revenues. Profit as a traditional measure of business success ignores the cost of equity, although equity is the most expensive form of capital. To illustrate better this concept, we made an analysis of the most profitable corporations in Bosnia and Herzegovina listed on Banja Luka and Sarajevo stock exchanges. The analysis showed that the majority of these corporations operate poorly because they do not meet the implicit cost of capital, essentially losing the value of capital entrusted to them by their stockholders. Also, this analysis questioned the importance of the industries which are usually considered to be the most important in BiH economy.</p> Silvije Orsag, PhD Ante Džidić, PhD ##submission.copyrightStatement## https://creativecommons.org/licenses/by-nc-nd/4.0/ 2018-12-31 2018-12-31 16 29 9 37 10.7251/ACE1829009O Human Capital, Entrepreneurship and Rural Growth of the Serbian Economy http://ae.ef.unibl.org/index.php/AE/article/view/368 <p>In the new economy, based on knowledge and innovation, the concept of human capital is becoming an increasingly important factor of growth (and development) not only for urban, but also for rural areas. The studies dealing with the analysis of the available human capital at the local level have highlighted its significant presence in rural areas characterised by a “specific environmental quality”, defined in the literature as rural outdoor amenities. Highly educated individuals who live and work with their families in these areas are responsible for the successful transformation of the local economy, employment growth, the improvement of living standard, development of entrepreneurship, and achievement of high rates of economic growth. This paper is aimed at analysing the relevance of the concept of human capital for rural development, with special emphasis on the rural development of Serbia. The paper presents the results of an empirical study of the model of economic growth of rural areas in Serbia, based on the panel data analysis, during a five-year period. According to the results, human capital and entrepreneurship have a significant impact on economic growth. Additionally, there are significant differences in the rate of economic growth between the rural areas with high and low outdoor amenities in Serbia. Human capital and entrepreneurship are represented in the models of rural economy growth as determinants of the development mechanism through which rural economies grow.</p> Sonja Josipović, PhD Dejan Molnar, PhD ##submission.copyrightStatement## https://creativecommons.org/licenses/by-nc-nd/4.0/ 2018-12-31 2018-12-31 16 29 39 62 10.7251/ACE1829039J (In)consistency of the Selection of the Method of Multiplicative Decision-Making http://ae.ef.unibl.org/index.php/AE/article/view/369 <p>The paper analyzes the main causes of the (in)consistency of the selected method of multiplicative decision-making: data normalization, weight coefficients and the application of the Likert scale for the purpose of measuring quantitative attributes. Normalized data in the methods of multitributive decision making represents the substitute for a subjective attribute ratings by decision makers. Since they are calculated on the basis of mathematical transformations of empirical data, one gains the impression that the choices basen on normalized values are „objective”. Therefore, the sensitivity analysis of the results has dealt exclusively with effects of weight coefficients on the final choices so far, while the potential impact of normalization is complitely ignored; meanwhile, the deformations caused by the normalization of data have been attributed to the effects of weight coefficients and their inevitable subjectivism. We intent to point out at the deformations of empirical values that are the result of normalization and which call into question the application of normalized values as a decision base. It can be proven that the normalized values are an unrealiable information base for decision-making. In addition, the (in)consistency of selection methods of multi-attributive decision-making is also influenced by changes in the method of measuring and formulating attributes.</p> Katarina Račić, BSc Željko V. Račić, PhD ##submission.copyrightStatement## https://creativecommons.org/licenses/by-nc-nd/4.0/ 2018-12-31 2018-12-31 16 29 63 76 10.7251/ACE1829063R Domains and limitations of the utilization of cryptocurrencies and blockchain technology in international business and financial markets http://ae.ef.unibl.org/index.php/AE/article/view/370 <p>The subject of this paper is to analyse utilization of cryptocurrencies in international business. The objectives of the research are to provide the scientific and professional public, researchers and practitioners with an overview of current research on blockchain technology in the economy and to determine the impact of the wider use of cryptocurrencies in international business and their impact on the future of financial markets. The research was carried out by using the method of description, literature analysis and research conducted. The selected examples present the possibility for earning, buying and storing cryptocurrencies, paying with crypto-money and investing in them. The research will offer an answer to the research question “What are the advantages and disadvantages of using cryptocurrencies in international payments and what are the security measures of using cryptocurrencies in the future?” In the answer, this paper will present the direction in which the use of crypts will develop in the future. The contribution of the paper is reflected in the presentation of the scope and restrictions on the use of cryptocurrencies in international business, banking and financial markets. Results have shown that blockchain technology has a bright perspective, even though it would not be known today if bitcoin had not gained in popularity. The conclusions suggest that, as long as the transaction costs are lower than the costs of payment transactions, the rational behaviour of legal and natural persons requires encouraging the use of cryptocurrencies in order to reduce the costs of transactions and to overcome the existence of an intermediary.</p> Goran Radivojac, PhD Miloš Grujić, MSc ##submission.copyrightStatement## https://creativecommons.org/licenses/by-nc-nd/4.0/ 2018-12-31 2018-12-31 16 29 79 102 10.7251/ACE1829079R