rss_2.0Economic Themes FeedSciendo RSS Feed for Economic Themes Themes Feed and Unemployment Interdependance: Evidence From the Western Balkan Countries<abstract><title style='display:none'>Abstract</title> <p>The discussion over the relationship between the inflation, unemployment and economic growth has been relevant over the centuries to a wide range of economic interests. It is agreed among the researchers and economists that reaching the price stability, ceteris paribus, will have a beneficial effect on employment and economic prosperity measured with GDP growth, particularly under the assumption of identifying and maintaining an optimum sill. However, as achieving the ideal deal is quite challenging to the monetary authorities and the unemployment keeps to be one of the main obstacles across the globe, particularly for emerging economies, assessing the relationship among these variables remains in the focus of economic audience. Thus, the aim of this study is to examine the interdependence between the inflation, unemployment and economic growth through an empirical assessment of the inverse relationship between the first two and testing the validity of the Okun’s law for the sample of the Western Balkan (WB) countries and the European Union as a whole. For this purpose, the panel data available on the World Bank platforms for the time period from 2006 to 2021 were used. In addition, aiming to assess the contribution of unemployment and inflation to GDP growth, the regression analysis was performed based on the standard model. The findings of this research confirm the trade-off between inflation and unemployment for all examined countries (Serbia, B&amp;H, Montenegro, Albania) and the EU, except for North Macedonia. Differently, mixed results were obtained considering the Okun’s law. While some results confirm the validity of this law, other disprove it. The results of the regression analysis for all countries show that a rise in inflation and drop in unemployment positively contribute to the countries’ GDP growth.</p> </abstract>ARTICLEtrue of Information and Communication Technology on Professional and Personal Life and Employee Satisfaction<abstract><title style='display:none'>Abstract</title> <p>Modern information and communication technology (ICT), as a complex system of tools and systems, affects the individual and society as a whole. Its presence and application are not limited to the professional environment but are woven into all aspects of an individual's everyday reality. The key research question of this study focuses on analyzing the impact of ICT on employees' work and personal life and on their overall levels of satisfaction. Both positive and negative experiences of ICT use, expectations that come with its use, the degree of dependence on ICT, and its role in interpersonal relationships are examined.The results of the study were obtained using an anonymous online questionnaire distributed between June 10th and 20th, 2023, to a random sample of employees who actively use ICT in their professional environment. It is found that the majority of employees have a positive attitude toward ICT because of its contribution to optimizing communication, supporting global processes, and enabling the acquisition and exchange of information in the context of professional and personal life. Negative effects have also been identified, such as increased pressure on work performance, reduced personal interaction, limited time for family life, blurring of boundaries between work and personal life, dependence on ICT, and disruption of work processes.The research contributes to an in-depth understanding of the impacts of ICT on the professional and private lives of employees. Awareness of the positive and negative aspects of ICT use is key to developing guidelines that promote the balanced use of technology and the creation of a supportive environment to improve productivity and the quality of interpersonal relationships.</p> </abstract>ARTICLEtrue and Behavioural Approach to Risk in Finance<abstract><title style='display:none'>Abstract</title> <p>Making financial decisions under risk and uncertainty has become part of everyday life. Traditional finance explores the objective side of risk, analysing the decisions made by perfectly rational individuals in efficient market conditions. Behavioural finance seeks to connect theory with practice by combining elements of behavioural psychology with finance. The centre of interest of this theory is an individual with limited cognitive abilities and the tendency to make rational choices. The paper presents the risk component of financial and investment decisions from behaviour finance view point. In addition to precise “objective” measures, when expressing risk, subjective elements should be considered – investors’ risk perception and risk attitudes. This paper aims to highlight the key characteristics of the subjective elements of risk to obtain a full picture of the outcomes of financial decision-making. Based on the analysis of theoretical and empirical studies, we define challenges, as well as recommendations to individual investors regarding the influence of psychological factors when making investment decisions.</p> </abstract>ARTICLEtrue Drives the Performance of Value-Added Tax? Investigating the Effectiveness of Tax Administration in Serbia<abstract><title style='display:none'>Abstract</title> <p>It is generally accepted that within nations devoid of significant limitations on administrative capacity, all products and services should be subject to a uniform value-added tax (VAT). If compliance is impeccable, the c-efficiency of VAT in these countries, which measures actual revenue over prospective revenue, should be one. The establishment of a proficient VAT administration, characterized by streamlined processes and procedures, is advantageous for many stakeholders. This includes national administrations as well as individual taxpayers and citizens. The study used primary data sources to identify the relationship between tax administration and the performance of VAT. This paper offers an assessment of tax administration effectiveness in Serbia in the period from 2005 to 2022. The investigation aims to accumulate empirical information regarding administrative components that affect the c-efficiency ratio through careful observation and data collection. The study assured that tax administration significantly affects the performance of VAT. The outcome variable, the c-efficiency ratio is highly affected by the effectiveness of tax administrators.</p> </abstract>ARTICLEtrue Practices Through the Lens of Technology and Digital Transformation<abstract><title style='display:none'>Abstract</title> <p>The company’s digital transformation requires the optimization and automation of processes through Industry 4.0 technology, leading to a new business model. Along with technology, effective human resource management (HRM) is crucial for this model. HRM and Industry 4.0 technology are interdependent. Technologies require new HR operating models, and HR, through organizational management strategies such as change management, agile organizations, and talent management, influences the provision of a workforce capable of implementing these disruptive technologies. This paper focuses on HR's role in digital transformation and the resulting changes in HRM and HR practices. It presents use cases of Industry 4.0 technology and their benefits. The study presented in this paper examines the impact of HR practices on operational, financial, and employee performance in relation to the use of disruptive technologies. A survey questionnaire was used to examine this impact on 11 large and medium-sized companies in Serbia, using statistical methods of descriptive statistics and correlation analysis through SPSS 23 software to analyze the results. The research showed that the use of artificial intelligence and machine learning (AI/ML) in HR processes has a positive effect on employee performance, as well as operational and financial performance. Other hypotheses were only partially proven. The research also revealed the lack of training for HR employees regarding the use of digital technologies in HR processes and digital skills compared to other sectors in the company. The recommendation is that HR managers begin training on the digitization of HRM as soon as possible.</p> </abstract>ARTICLEtrue Banking Services – Students’ Perspective<abstract><title style='display:none'>Abstract</title> <p>The number of users of digital banking services has grown in recent decade, since digital banking services are being done easier, faster and at lower cost than banking services performed in a traditional face-to-face manner. Banks should work on enhancing their digital services according to their demand and conveniently improve customer experience especially for unbanked younger generations. The aim of this paper is to reveal student’s perception of digital banking services in Serbia. Research has been conducted via empirical survey in the form of an online questionnaire, with the descriptive statistics applied. The results showed diverse pattern of digital banking engagement with the largest proportion of students specifying that they use DBS at least once per week. When they did use banking services, most often they used them for money transfer and paying bills, emphasizing the vital role of digital platforms in facilitating financial transactions. Overall students’ satisfaction with DBS is on the high level, and students appreciate technologies development of banking offerings. The results of this research could be used by banks to reveal students’ perception on digital banking service, and to help them create adequate digital services and pivot their business models in that direction.</p> </abstract>ARTICLEtrue of Foreign Direct Investment on Economic Growth: Evidence from Arab Region<abstract><title style='display:none'>Abstract</title> <p>Theoretical literature indicates that foreign direct investment can bring about major changes in host economies, especially in developing countries, because of its advantages in financing, transferring modern technology, contributing to the development of human capital, contributing to inventions through research and development activities, contributing to the openness of the host economy on the global markets, and other accompanying advantages, but these advantages cannot be benefited from unless certain conditions are met in the host economy. In this context, this paper sought to investigate the impact of inflow foreign direct investment on economic growth in the Arab countries region between 1990 and 2000, using ARDL bounds testing approach. The results showed that there was a very weak effect of foreign direct investment on economic growth in the long run, but in the short run there was no effect. The reasons for this are mainly due to the lack of appropriate and necessary conditions that attract and incubate foreign direct investments in most Arab countries.</p> </abstract>ARTICLEtrue The Efficient Use of Visible Intellectual Capital Determine the Profitability in the Automotive Industry?<abstract><title style='display:none'>Abstract</title> <p>Intellectual capital (IC) is one of the core determinants of the value of companies, and value creation for stakeholders as well as improvement of the competitiveness of the companies. Effective management of all visible and invisible elements of the total IC is extremely important for business success, since the effective providing, creating, developing and efficient use of intellectual resources affects various business performances, such as income, market share, net profit, and profitability of the company quantified by various performance measures of Return on assets (ROA) and Return on equity (ROE). One part of the total IC is disclosed and visible in the assets side of the balance sheet (Intellectual assets and Goodwill - Iag), while the other, is undisclosed and invisible (Human capital - Hc and Structural and relational capital - SRc). Efficiency in the usage of all these elements of IC has an impact on profitability. The purpose of this research (based on 12 leading companies in the automotive industry from 2010 to 2019) is to examine the interdependence, as well as the influence, of the Efficiency in the use of Intangible assets and goodwill (Eiag) on various rations of ROA and ROE using the EIC (the Efficiency of Intellectual Capital) model for calculation of the Eiag indicator. Although there are numerous studies that use the VAIC methodology to research the interdependence and impact of the efficiency of certain elements of IC on business performance, as well as, in particular, on profitability, the originality of this paper is based on an investigation of the interdependence and influence of Eiag on profitability (ROA and ROE), which is not the case with the studies of other researchers so far, because Pulić’s VAIC methodology does not separate the visible IC component i.e. Iag. The outcomes of this study confirm a positive relationship between the efficiency in the use of intangible assets and goodwill (Eiag) and profitability (ROA and ROE), as well as the growing impact of Eiag on profitability indicators (ROA and ROE). The findings imply the extreme importance of effective and efficient management of all elements of intellectual assets that are visible on the assets side of the balance sheet, taking into account the evident impact on profitability.</p> </abstract>ARTICLEtrue Impact of the Covid-19 Pandemic on the Compensation of Top Managers of the CSR Organizations in the Field of Tourism and Hospitality in EU<abstract> <title style='display:none'>Abstract</title> <p>This paper investigates the impact of the Covid-19 pandemic on the compensation of top managers and business performances of large socially responsible companies CSRin EU in tourism and hospitality industry. By applying the methods of correlation and regression analysis on a sample of 241 large organizations in the field of tourism and hospitality, we examined whether the Covid-19 pandemic caused a decrease in the total compensation of top managers and some of their parts (basic salary and variable part of compensation) and a change in their structure in a socially responsible company in the field of tourism and hospitality in the EU and how these changes in return affected the performance of the mentioned organizations measured by return on investment ROE. The results showed that there was a significant decrease in the total compensation of top managers in the observed companies during 2020 and 2021compared to 2019, as well as that there was an increase in the share of the basic salary (to the detriment of the variable part) in the total earning of top managers in the same period. The results also showed that changes in the compensation of top managers due to the pandemic had a significant impact on the performance of large socially responsible companies in the tourism and hospitality industry in EU that they lead.</p> </abstract>ARTICLEtrue in Research Activities of the Manufacturing Industry and Innovativeness in Economy of the Republic of Serbia<abstract> <title style='display:none'>Abstract</title> <p>The aim of the study in this paper is to examine the effects of investment in research and development activities of the manufacturing industry on the innovativeness in economy of the Republic of Serbia, and to draw conclusions in which direction further investments should be managed, bearing in mind that the importance of the processing industry for the overall economy has been growing from year to year. The comparative analysis shows the movement of the basic indicators of the manufacturing industry sector, as well as the movement of three basic indicators of the innovativeness in economy of the Republic of Serbia: GII (Global Innovation Index), GCI (Global Competitiveness Index) and SII (Summary Innovation Index). Based on the application of regression and correlation analysis, a weak contribution of gross domestic expenditures for research and development in the manufacturing industry to the improvement of the innovativeness in economy of the Republic of Serbia can be seen. On the other hand, a strong connection was established between the total gross domestic expenditures for research and development (at the level of the economy) and indicators of economic innovation, which indicates the need to restructure research and development expenditures in the direction of the manufacturing industry, with the aim of its greater contribution to the innovation of the overall economy. The progress of the economy of the Republic of Serbia viewed through the ranking and points of the used indicators of innovation can be attributed to investments in research and development activities in the area of other sectors of the economy, which can be the subject of some future research.</p> </abstract>ARTICLEtrue Tourism Destinations in the World<abstract> <title style='display:none'>Abstract</title> <p>In recent decades, cities have faced numerous problems related to the accelerated process of urbanization, which leads to ecological, spatial and social consequences. At the same time, globalization destroyed productive activities and created structural problems related to unemployment. For these reasons, cities are trying to attract new and growing industries that will provide jobs and enable the physical and economic regeneration of cities. One of the activities that increases employment and enables the urban regeneration of certain city zones is tourism. Urban tourism at the end of the 20th and beginning of the 21st century, with the process of globalization and the use of shorter vacations by tourists, experienced an expansion in the number of visitors, as well as the number of urban destinations. Urban destinations, as powerful financial, traffic, political, trade, etc. centers, in addition to cultural, architectural, construction, artistic, historical and environmental heritage, provide diversity and quality of tourist offer, completed by organizing congresses, professional gatherings, sports fairs, etc. Large world agglomerations, as the most important destinations of urban tourism, are visited annually by several million tourists.</p> </abstract>ARTICLEtrue Financial Fraud: The Vital Role of Forensic Accounting and Auditing in Modern Business Practice<abstract> <title style='display:none'>Abstract</title> <p>This article explores the critical roles of forensic accounting and auditing in modern business, focusing on uncovering financial irregularities and promoting transparency. Through a meticulous literature review and analysis, the study emphasizes the significance of these practices. The purpose is to underscore their importance, methodologies, and implications. Methodologically, the article employs a comprehensive literature review and meticulous analysis of real-world applications. It investigates cases of corporate fraud, financial statement analysis, and dispute resolution. Ethical and legal considerations are highlighted, emphasizing the adherence to professional codes and standards. The study reveals that forensic practices are pivotal in detecting financial misconduct, upholding financial transparency, and ensuring accountability. Technological advances, such as data analytics and AI, enhance efficiency and accuracy. The research establishes the need for continuous development and professional education to tackle the evolving financial challenges. In summary, this article highlights the central roles of forensic accounting and auditing in modern business, their methodologies, and ethical considerations. The study underscores their importance in detecting financial fraud, promoting transparency, and fostering trust.</p> </abstract>ARTICLEtrue Industrial Clusters Contribute to Organizations’ Innovation Performance? Path Analysis<abstract> <title style='display:none'>Abstract</title> <p>The increasing turbulence of the economic environment leads to changes in the business style, and adapting to this new style requires a cluster approach. In this sense, the goal of the research relates to determining the impact of the cluster internal and external interaction on innovative performance and innovative performance on organizational performance, as well as determining the impact of the cluster internal and external relational embeddedness on innovative success and innovation success on organizational performance using path analysis. The obtained results indicated direct positive and statistically significant influences between the observed variables, except in the case of the influence of innovative performance on organizational performance, where no direct significant connection was found. The study’s findings showed that the promotion of industrial clusters alone cannot ensure the generation of innovations for the benefit of the organizations that are members of the cluster, but should also consider the organization’s specificity for successful implementation.</p> </abstract>ARTICLEtrue Relationship Between Socio-Demographic Variables and Job Satisfaction: The Case of the Republic of Croatia<abstract> <title style='display:none'>Abstract</title> <p>This paper examines the relationship between socio-demographic variables and job satisfaction in the Republic of Croatia. Job satisfaction is a critical factor affecting employee well-being and organizational performance. Understanding the socio-demographic variables that influence job satisfaction is crucial for formulating effective human resource strategies and activities to improve the overall job satisfaction level of employees. This study utilizes a quantitative research design, collecting data from a sample frame of employees across various industries and sectors in the Republic of Croatia. Socio-demographic variables such as age, gender and hierarchy level are analysed relating to job satisfaction by applying t-test and one-way ANOVA analysis. The analysis conducted on the sample of 284 employees showed that respondents’ job satisfaction differed in terms of age and hierarchy level. Specifically, younger workers are happier with their jobs than older and senior management compared to workers. These findings contribute to the existing literature by providing insights into the unique socio-demographic factors influencing job satisfaction in the Republic of Croatia. The results can guide organizations in developing targeted strategies to enhance employee satisfaction, such as tailored training programs, flexible work arrangements, and career development opportunities.</p> </abstract>ARTICLEtrue Environment Problems and Challenges in the Pre-Pandemic and Post-Pandemic Society<abstract> <title style='display:none'>Abstract</title> <p>Competition and a competitive environment serve as a crucial foundation for the effective use of resources and the growth of economy, pushing enterprises to be more efficient, limit costs, and spend more in inventing and developing new goods. Customers may obtain more advantages at a lesser cost and of better quality when there is a strong competition. The competitive climate makes the state more appealing to investors, increasing the possibility of attracting local or international investment. Consumer protection and competition are critical for achieving economic growth and decreasing poverty. The jurisdiction and economic environment in which a enterprise works have a considerable impact on the quality of competition. The goal of the state and associated institutions is to encourage competition and to avoid any activities that place market participants and consumers in an unfair situation. It is also critical that the state’s activities and appropriate regulatory standards do not impose a significant burden on the business sector, since both business and consumer rights must be respected.</p> </abstract>ARTICLEtrue Price Prediction of the Largest Automotive Competitors Based on the Monte Carlo Method<abstract> <title style='display:none'>Abstract</title> <p>The transition to electric vehicles would be a great improvement for the population. On the other hand, this transition will make a great pressure for companies in the automotive industry, since they would have to develop such vehicles and make them better than traditional ones. Moreover, the transition period can last a long time. In the meantime, fossil fuel car sale rates are still dominant in the world. In this paper, the stock price prediction is made for two of the world’s largest competitors in automotive industry - Toyota and General Motors. The prediction covers one year, based on historical data of stock price trends using Monte Carlo simulation in two possible cases: the first, with 1,000 outcomes, and the second, with 10,000 outcomes. After price simulation, a comparative analysis of the results obtained for these two companies follows. The results show that the greater the number of outcomes specified in the prediction, the greater the variability of the results compared to the variability of historical data. In other words, the transition of General Motors to the leading position is not impossible.</p> </abstract>ARTICLEtrue - Africa Trade and Investment Relations Under the Belt and Road Initiative<abstract><title style='display:none'>Abstract</title> <p>China’s investment activities and infrastructure development in Africa under the Belt and Road Initiative (“BRI”) have changed the prospects of economic cooperation between African countries and Asia’s largest economy. Africa plays a prominent role in one of the key BRI corridors, which explains China’s active engagement on the continent through the construction of hard infrastructure, port development and trade and investment activities. China is Africa’s largest bilateral trading partner and foreign direct investor. This paper analyses China’s investments and trade flows with Africa, the importance of African countries for the BRI and China-Africa relations within the geopolitical triangle US-EU-Russia. We applied correlation analysis to assess the intensity of the relationship between FDI and trade and an autoregressive model to extrapolate import and export data for a given period with the aim of forecasting trends in the development of China - Africa economic relations. Empirical results indicate a strong correlation between China’s FDI to African countries and their trade flows. The autoregressive model estimates a substantial increase in their trade flows, which, along with China’s infrastructural development in Africa, suggests a change in the dynamics of their trade cooperation and in the geographical structure of African countries’ foreign trade.</p> </abstract>ARTICLEtrue the Determinants of the Bank Efficiency in the Republic of Serbia: Two-Stage Dea Approach<abstract><title style='display:none'>Abstract</title> <p>The important role of the banking sector in the economic development of the country imposes the need for continuous measurement and monitoring of bank efficiency. Besides, identifying industry-specific and macroeconomic factors that affect the achieved efficiency is an important task in order to detect potential disruptions, as well as to provide adequate guidelines to improve the efficiency. Therefore, the main goal of this paper is to quantify the achieved efficiency and uncover its determinants. The study is conducted in two stages. In the first stage, using the DEA method, the efficiency of banks for the period from 2005 to 2022 will be assessed, while in the second stage, the factors of efficiency will be determined by applying Tobit regression. The results indicate that when it comes to industry-specific factors, greater market concentration unfavourably affects the efficiency of banks. Regarding the macroeconomic factors, the growth of gross domestic product, inflation rate and global financial crisis have a significant influence on the achieved level of bank efficiency in the Republic of Serbia. In addition to expanding the existing knowledge on quantification of efficiency and defining the determinants of efficiency on the example of banks in the Republic of Serbia, the results in this paper also hold relevance to policymakers and practitioners.</p> </abstract>ARTICLEtrue All Text News Just a Noise for Investors? Impact of Online Texts on Bitcoin Returns<abstract><title style='display:none'>Abstract</title> <p>The paper demonstrates the power of alternative data. Relying on the indicators obtained by mining online publicly available news articles, authors analyze their impact on Bitcoin returns. This research shows that in the first quarter of 2022 Bitcoin returns could be explained by the sentiment of information obtained from news published on online portals. However, we find negative relation between Bitcoin news sentiment and its returns. Such result can be explained as anomaly of researched period which is characterized by inception of global political crisis caused by the war in Eastern Europe and turmoil on crypto market. Our research also confirms that the news about Ethereum, Bitcoins’ investment substitute, affected Bitcoin's returns as well. On the other hand, the obtained results show that there is no relation between the lexical readability of the news (i.e., the clarity with which the text is written, measured by the fog index) and the returns on Bitcoin in the analyzed period. Collected evidences speak in favor of Bitcoin’s market inefficiency. In this paper we also demonstrate that returns forecasts based on online news are more accurate in comparison to those generated by ARMA-GARCH model, a conventional financial tool for predicting returns.</p> </abstract>ARTICLEtrue Channels for Organic Food in the Republic of Serbia<abstract><title style='display:none'>Abstract</title> <p>Continuous organic production growth in the Republic of Serbia poses the issue of the existence of adequate distribution channels for these products, as they require specific storage and distribution requirements. In addition, the development of organic food production and demand for these products indicates that this market segment is not negligible. Hence, there is a need to analyze the degree of customer satisfaction with organic foods with existing distribution channels. Are there adequate channels for the distribution of organic food? How much trust do consumers have in distribution channels and whether the level of trust in distribution channels can affect consumers’ buying decisions? These are just some questions that come up. In this regard, the subject of research will be the existing distribution network of organic products in the Republic of Serbia, as well as the degree of satisfaction and trust of consumers in distribution channels, in order to define guidelines and recommendations for the redesign of the organic food distribution network. In order to answer those questions, empirical research was conducted on the territory of the Republic of Serbia, and for the purposes of statistical analysis was used following statistical methods: ANOVA, MANOVA, cluster analysis, and descriptive statistics.</p> </abstract>ARTICLEtrue