THE FUTURE OF BUSINESS IN SOCIAL ECONOMY OF THE WESTERN BALKAN COUNTRIES

Abstract

The most important innovation for Western Balkan countries is combining social, labor and economic development policies, together with sustainable development focus on increasing and sustaining the welfare and wellbeing of the people in this countries. The purposes of this study is to investigate current social economy in the Western Balkans countries (Albania, Kosovo, North Macedonia, Serbia, Montenegro and Bosnia and Herzegovina). To give an answer to the research question whether the socio-economic situation in Western Balkan countries is improving, we have firstly revise the literature to find out what different authors have found in recent researches concerning this area and the methods, models used in collecting, processing and analyzing data. The processing of the data of the above-mentioned has been done by the STATA software program, specifically using Linear Regression, Fixed Effect, Random Effect, Hausman Taylor Regression and Correlation & Covariance. Based on the empirical results of this study, we conclude that the R Square designation coefficient indicating a higher relationship between dependent variable (Social Development) and independent variables (economic growth, education, climate change, environment, health, poverty, social protection and labor). Economic growth, education, climate change, social protection and labor, environment, health and poverty force explain and have an impact on increase/decrease the social development of the Western Balkan countries during for the period 2009-2019. This research paper highlights an empirical analysis based on real data, statistical reports of the World Bank of the Western Balkan Countries. Given that these results are evident, economic situation in Western Balkan countries have to improve with establishing social economy exactly in key area for the rapid grow of this countries.