Serbian Economy Research Articles

INFLUENCE OF PRODUCTION OF PRIMARY PRODUCTS ON THE RATE OF INFLATION IN THE REPUBLIC OF SERBIA

The optimization of production processes leads to an increase in the volume of output from the primary sector, as an instrument to protect the population from crossing the border of extreme poverty. The Republic of Serbia is a traditional producer of primary products, as evidenced by the realized surplus in the net export of agricultural crops. In the period after global financial crisis, the Republic of Serbia achieved an above-average inflation rate growth, compared to the countries of the European Union. In this research, we detect a significant participation of products from agriculture, forestry, fishing, mining to reduce the volatility of product prices. The purpose of the research is to prove the causal relationship between the rate of inflation and the volume of production primary products. The methodological part was carried out through the evaluation of the model using econometric methods. The conclusion indicates a high correlation between the production of primary outputs and the rate of inflation in the Serbian economy.

Exploring the Nexus of Distance Learning Satisfaction: Perspectives from Accounting Students in Serbian Public Universities During the Pandemic

AbstractAmid the COVID-19 pandemic, teachers globally transitioned to distance learning, presenting significant challenges, particularly in developing countries. In that sense, the study investigates the usefulness and satisfaction (US) of distance learning (DL) among accounting students in Serbian public universities during the COVID-19 pandemic. The research focuses on three key factors affecting perceived US derived from existing literature, including teaching process quality (TPQ), technical qualities of distance learning platforms (TQ), and compatibility with social and pandemic conditions (CSPC). The developed theoretical model is predominantly based on the user satisfaction model. Data from 373 surveyed students, gathered through a validated questionnaire, underwent analysis using the partial least squares structural equation model (PLS-SEM). Results reveal that CSPC and TPQ significantly impact the US, whereas TQ has a minor and statistically insignificant effect. The R2 value indicates these three constructs explain a significant portion of the variance for the US, with moderate effects of CSPC and TPQ and a small effect of TQ, indicated by f2 values. Moreover, the model is found to be significantly predictive, according to the Q2 value. Besides theoretical implications, the study suggests important practical implications for university management, emphasizing regular student surveys, continuous improvement of DL systems, and effective and continuous teacher training as the vital measures for enhancing teaching quality. Improving TPQ and TQ also impacts the Serbian economy by fostering workforce development, enhancing digital transformation, stimulating telecommunication industry growth, driving digital information sector development, attracting investment and innovation, boosting global competitiveness, and promoting lifelong learning.

ЦИФРОВАЯ ЭКОНОМИКА И РАЗВИТИЕ СЕЛЬСКИХ ТЕРРИТОРИЙ (НА ПРИМЕРЕ СЕРБИИ)

The foundations for the use of ICT in Serbia have already been laid, but the e-business process is not yet well developed. Systematic studies of the impact of the Internet and ICT on competition have not yet been conducted, but the rapid development of these activities as the fastest growing in the Serbian economy indicates that the competition of firms using ICT is quite strong. However, there is a significant difference in the availability of ICT technologies in urban and rural settlements and indicates that digital inequality has not yet been overcome and that all assumptions regarding the (expected) impact of the Internet and the digital economy on faster rural development have not been made. For this reason, it is necessary not only to have a well-thought-out agricultural policy, but also to stimulate the availability of ICT throughout the country, especially in rural areas.

The Proper Role of Government in Post-COVID Recovery: The Case of the Serbian Economy

ABSTRACT This paper investigates the proper role of the Serbian government during the recovery of the economy after the COVID-19 pandemic. Based on corporate liquidity during the pandemic and with the help of nonhierarchical clustering, this research identifies a group of industry sectors and companies in the Serbian economy with the lowest corporate liquidity in stress. Results of this research show that there are about one-third of companies in the Serbian economy with the lowest corporate liquidity in stress; this is critically sensitive in informing the next steps of the government as well as in financial measures introduced by the government.

Neophodan nivo investicija za ubrzani privredni rast - stilizovane činjenice i politike

To close the gap in economic development relative to the EU average, Serbian economy has to achieve significantly higher growth rates in comparison to other European countries over the longer period. Theoretical and empirical literature indicates that the level of investment in physical capital is one of the key determinants of the dynamics of economic growth. In this paper, based on data on investments and savings in Serbia and in 37 countries that in the previous three decades achieved an average GDP growth rate of over 5% per year (so-called fast-growing economies - FGE), we present and analyze relevant stylized facts. In the observed period, FGE had average total investments of 25.6% of GDP, of which 69% was private and 31% public investments, whereby private investments were predominantly domestic, which is associated with a high rate of gross domestic savings (of 27.4% of GDP). On the other hand, total investments in Serbia were 9.7% of GDP lower than the FGE average, which was a consequence of significantly lower public and domestic private investments, which was, among other things, a consequence of significantly lower domestic savings (by over 20% of GDP). As in the recent period there has been a noticeable increase in public investments in Serbia, in order to accelerate economic growth, it is necessary, in addition to maintaining them at a high level, to encourage a considerable increase in domestic private investments through economic measures policy and wider reforms of the general institutional environment, with the aim of having the total level of investments of over 25% of GDP over the next few decades.

Značaj menadžmenta u razvoju gradskog turizma u Srbiji

Tourism today plays an increasingly important role in the economy, and its further growth depends on the coordinated development and adaptation of the tourist product to modern market trends, where different forms of tourism of special interest are gaining more and more importance. City tourism is one of the special forms of tourism that offers this branch of the Serbian economy a long-term competitive advantage. The main strength of the city's tourist destination is the attraction complexes, which have two functions - to attract the guest and fulfill his expectations. The potential of this demand can be fully utilized by a planned and coordinated approach to the development of this tourist product. The development of urban tourism will also mean a better place for residents to live, and economic benefits for the entire community will be brought not only by higher tourist demand, but also by increased consumption of the local population stimulated by a more attractive place to live created by the development of tourist facilities. Despite numerous attractions and values, Serbian tourist products have not been properly marketed, adequately developed, nor presented and commercialized on the international tourist market. Serbia must significantly raise the competitiveness and attractiveness of tourist products through respectable world experiences and its own innovations, relying on those products and business sectors in tourism that have a global perspective and where Serbia can build global competitiveness.

Ekonomski efekti srpske neutralnosti u Ukrajinskoj krizi - rizici i koristi

The article explores and evaluates the dangers, advantages, opportunities, and risks for the Serbian economy stemming from its neutral stance in the Ukrainian crisis. Methods employed include content analysis of documents and official announcements, statistical description, analysis, and comparison of data. The research revealed an anticipated uptick in Serbia's trade with Russia, attributed to its lower energy prices. This led to increased production in various sectors, such as machinery, motor vehicles, and the electrical industry. Contrary to expectations, trade with the EU not only increased but also improved structurally, particularly in higher-value goods exports. Recommendations advocate for internal resource investment in EU-threatened industrial sectors, specifically in bolstering production of products witnessing export growth.

STRATEGIC MANAGEMENT OF THE RISKS OF ATTRACTING FOREIGN DIRECT INVESTMENTS - NEW FINANCIAL CHALLENGES

At the time of the coronavirus pandemic COVID 19, many economies, including the Serbian economy, are facing an unknown cause of many problems, which is bringing many companies into crisis. In such conditions, the strategic approach and way of thinking becomes crucial for the survival or recovery of companies and even the economy of a country. This is especially the case with small underdeveloped and developing economies, which are particularly affected by the pandemic. In such conditions, foreign direct investments are a decisive factor in the survival and recovery of the economy, and decisions of this type are strategic. Especially in the conditions of a pandemic, investors are sensitive when making strategic investment decisions, and economic freedoms are an important factor in that. The aim of this paper is to determine the impact of economic freedoms in Serbia on making strategic decisions on foreign direct investment, and thus the development of Serbia. The results of the research show the existence of a positive correlation between these factors on the development of Serbia. The econometric model of Pearson Correlation and Greene’s multiple correlation analysis model was used in the analysis.

SUSTAINABLE BANKING AND ITS MAIN DETERMINANTS – EVIDENCE FROM THE SERBIAN BANKING SECTOR

Throughout the past decade, sustainability has been one of the most important topics among academics and within the business community. The adoption of ESG practice and the creation of holistic business models is on the agenda of the entire financial industry, predominantly among banking and investment entities. The paper aims to analyse the regulatory framework and current practice of sustainable business models with respect to the most important international banks operating within the Serbian economy. The analysis encompasses the descriptive assessment of ESG regulations, the reporting framework in the sustainability domain, and the quantitative analysis of ESG metrics and their statistical relationship with banks’ financial performance. Due to various limitations, such as a lack of quantitative metrics and an unstandardized reporting practice, research was performed on a sample of four international banks operating in Serbia, for the period between the years 2015 and 2021. The statistical results of the regression analysis do not show a significant relationship between ESG metrics and the financial performance of the examined banks.

“Successful entrepreneurs, known for their commitment to honest business conduct, can play an instrumental role as mentors, guiding and motivating the youth.” – Interview with Professor Mladen J. Cudanov, Professor Sandra Jednak and Dr. Nedeljko Milosavljevic from Serbia, University of Belgrade

The Review of Economic Theory and Policy requested an interview from Professor Mladen J. Cudanov, Professor Sandra Jednak and Nedeljko Milosavljevic, PhD about the entrepreneurial activity in Serbia and the development path of the Serbian economy regarding the role of entrepreneurs. Mladen J. Cudanov is full professor at the Faculty of Organizational Sciences, University of Belgrade, Sandra Jednak is also full professor and dean at the Faculty of Organizational Sciences, University of Belgrade and Nedeljko Milosavljevic is the Director of the Center for Technology Transfer at the University of Belgrade.

SUSTAINABLE COMPETITIVENESS OF THE REPUBLIC OF SERBIA FROM THE ASPECT OF ENVIRONMENTAL INDICATORS

From the aspect of sustainable competitiveness, which emphasizes productivity as the basis of prosperity and long-term growth while ensuring the sustainability of society and the environment, the competitiveness of countries was analyzed based on annual reports of the World Economic Forum, International Institute for Management Development and the World Bank. Indicators that we believe best reflect the country's potential for promoting sustainable development and lead to a faster approach of Serbia to the most competitive national economies with joint engagement at the state, regional and local levels, including households, have been singled out. In order to determine the impact of consumer behavior on the environment, in our research we applied the life cycle assessment method (LCA) and analyzed 15 environmental indicators. In accordance with the obtained results, we have defined recommendations for increasing the sustainable competitiveness of the Serbian economy, having in mind the behavior of consumers and possible reduction of their impact on the environment, from the aspect of more economical use of electricity, reduction of biowaste and continuous education of the population. educational process and appropriate legal regulations.

Misuse of institutions and economic performance: some evidence from Serbia

ABSTRACT Having in mind the current global trends and the transition processes, it is necessary to explain the role, influence, and importance of institutions in providing conditions for economic growth and development. Theory has proven, and practice confirms, that the institutional structure (the way of forming institutions, decision-making process, decision-making effectiveness, and economic justification of goals) is one of the most important factors in achieving macroeconomic stability and economic development. This article explores the impact of the quality of institutions on the economic performance of the Republic of Serbia. A comparative analysis of the content of relevant institutional indicators and their economic effects shows the institutional matrix of possible misuse of political and economic institutions in the direction of realising short-term political goals, to the detriment of long-term sustainable economic growth and development of the Serbian economy.

Uloga bilateralnih investicionih sporazuma u podsticanju internacionalizacije preduzeća u Srbiji

Bilateral investment treaties are traditionally considered to be an instrument for attracting foreign direct investment in Serbia. However, their provisions may also support the internationalization of its enterprises. In this paper, we explore how effective bilateral investment treaties are in promoting the most challenging aspect of the internationalization of enterprises in Serbia -foreign direct investment outflows. Additionally, we investigate the role of other main motivations for the investment outflows. We conduct our analysis by estimating a gravity model using the panel data on Serbia and its 147 partner economies, observed in the period between 2011 and 2019. The gravity model was estimated using the Poisson pseudo-maximum likelihood estimator. We find that bilateral investment treaties have a statistically significant positive effect on bilateral foreign direct investment outflows. Furthermore, the outflows are particularly affected by the treaties containing higher anti-discrimination standards and providing a more liberal investment regime. Unilateral liberalization of the host countries' investment regime is also found to be positively associated with the investment outflows, whereas both the geographic and psychic distances have negative effects. Market-seeking motives of the internationalizing enterprises in Serbia are revealed to be the dominant driver of the investment. The results provide useful implications for the policymakers aiming to support the internationalizing efforts of the enterprises and the consequent improvement of the international competitiveness of Serbian economy.

Srbija između zapadnog individualizma i pravoslavnog kolektivizma

The paper discusses the problems that come with the contradictions between individualism and collectivism. Discussions about these contradictions are still present in academic circles today. In Eastern European countries, individualism became relevant after the fall of the Berlin Wall. Up to then, the collectivist spirit prevailed. By accepting neoliberalism, post-socialist Eastern European countries began economic reform, including further educational reform, health reform, cultural reform, etc. This reform also meant the transition from collectivism to individualism because modern neoliberal capitalism belongs to individualism, in which the main focus is on the individual as the largest consumer. The transition to neoliberal capitalism led to a considerable number of workers losing their jobs after the liberalization, deregulation, and privatization of the Serbian economy, resulting in the lifeless demographic image of Serbia, which worsens significantly yearly. Today, Serbia remains without a working-age population, which, in addition to young and highly educated workers, also consists of artisans of various occupations. For the Serbian political elites, the path to the EU does not lead to the question. We've been on that road for twenty years, and it doesn't seem like we've moved much since the beginning. According to the principle, "one step forward, two steps back."

Serbia and Romania: The issue of salt supply and negotiations for a trade agreement in 1906

?his article examines the process of concluding a trade agreement between Serbia and Romania in 1906 when the Tariff War between Austria-Hungary and Serbia began. Memoirs of a Serbian diplomat Mihailo G. Ristic, who served as a Minister in Bucharest between 1906 and 1914, significantly contributed to our understanding of the diplomatic relations between Serbia and Romania in this period. Furthermore, documents from the State Archives of Serbia helped us gain insight into economic issues. Given the fact that since the end of the 19th century Serbia imported 25,000 tons of salt from Romania per year, the pressure of the Austro-Hungarian government on Serbia to purchase salt from Hungary alarmed the Romanian government. Considering that the salt export for the Serbian market was relevant to the Romanian economy, this problem threatened to damage the good diplomatic relations between Serbia and Romania. However, although Romanian political circles and the Romanian Embassy in Belgrade viewed this issue as very important, the Romanian negotiators did not raise the matter of salt supply at the negotiations for a trade agreement in October 1906. Although Austria-Hungary tried to crush the Serbian economy with the Tariff War, it allowed Serbia to develop trade and find new markets for its products. By concluding a trade agreement with Romania in December 1906, Serbia secured the issue of transporting Serbian goods through Romanian ports and strengthened trade connections with its neighbor.

Razvoj inicijative "Pojas i put" u Srbiji

The paper presents a general overview of the projects, observed according to the sectors of the Serbian economy, which were implemented in Serbia through the Belt and Road Initiative or are in the phase of implementation, planning or signed memoranda between China and Serbia. This initiative to strengthen trade, infrastructure and investment links between China and the countries of Asia, Africa and Europe, through a network of land and waterways, has affected the landscape of global trade, investment and financing, thereby expanding China's influence in the world. As a European country which is not a member of the European Union, Serbia found itself in a specific situation and was able to independently manage its relations with China and conclude contracts directly. In addition to the European Union as the main economic partner, Serbia is also turning to China, so this cooperation has a growing trend in the form of Chinese investments in Serbia, which are being investigated here, in contrast to the almost non-existent implementation of Serbian projects in China. Chinese companies in Serbia are actively building infrastructure, investing in the energy sector as well as the privatization and renewal of production of the former metallurgical giants of Serbia, and more. So, despite the large trade deficit with China, this initiative brings tangible economic and social benefits at the local level, creating new opportunities for employment and income generation in the community. That is why it can be said that the Belt and Road Initiative contributed to the development of cooperation between Serbia and China.

Uporedna analiza pokazatelja transportne efektivnosti rečno-morskih brodova na sektoru donjeg Dunava

An important place in the process of increasing the effectiveness of the transportation of cargo by water transport is occupied by direct river-sea transportation between ports located on inland waterways and sea ports. Such transportation can be realized in two ways: 1) without transshipment of cargo in ports at the mouths of rivers into the sea and, 2) with transhipment of cargo from sea vessels to river vessels and vice versa. Increasing the effectiveness of transportation should be based on the introduction of new resources and energy savings, as well as the introduction of advanced technologies in the field of transportation. In order to consider the possible introduction of direct transport technology on the river-sea route for the needs of the Serbian economy, it is necessary to determine the technical, technological and economic parameters by means of which the justification for the application of such a method of transport is determined. This paper approaches, applying the methods of known indicators of exploitation, the determination of the transport properties of several characteristic types of river-sea ships that carry out transport on the waterways of the Russian Federation and which, at the same time, to a certain extent, participate in the transport of cargo on the Danube.

Istraživanje ekonomske pozicioniranosti zemalja zapadnog balkana koriščenjem LOPCOW i EDAS metoda

The issue of analyzing the factors of the dynamics of the economic performance of each economy, which means also the countries of Western Balkan (Albania, Bosnia and Herzegovina, Montenegro, Kosovo, North Macedonia, and Serbia), is continuously very current, challenging, significant and complex. Adequate control of the analyzed economic indicators can have a significant impact on the achievement of the target economic performance of each economy, including the countries of the Western Balkans. The application of multi-criteria decision-making methods enables adequate control of the key factors of the economic performances of the economies of the Western Balkan countries. In this paper, starting from that, the economic performances of the economies of the Western Balkan countries are comparatively analyzed based on the LOPCOW-EDAS method. According to the results of the given research, Serbia is the leading country in the Western Balkans in terms of economic performance. Followed by: Montenegro, Kosovo, North Macedonia, Albania, and Bosnia and Herzegovina. Recently, the economic performance of the Serbian economy has significantly improved. Adequate control of relevant influential factors can greatly influence the achievement of the target economic performance of the Serbian economy. The digitization of the company's entire operations certainly plays a significant role in this.

EMIGRATION FROM SERBIA AND DEPOPULATION

In Serbia, one of the Western Balkan countries, emigration from the country continues at a high level while immigration to the country has been small. Concomitantly, a decline in population and depopulation in the rural areas continues. This paper aims to grasp how the mechanism of persisting rapid emigration was formed historically. The paper is constructed as follows: Section 2 will give an overview of the Serbian economy after the Second World War, Section 3 will give an overview of the Serbian economy after the system change in 1990, and Section 4 will discuss actual situations of emigration and related problems. Section 5 examines problems of ‘brain drain’ focusing on the area of medical care, and Section 6 examines challenges the country has to tackle. Finally, the paper concludes by stressing the importance of human capital and the necessity for promotion of return migration of highly-skilled Serbian workers living in advanced EU member states.

On the Celebration of Failure in Serbian Technological Entrepreneurship from an Anthropological Perspective

The entering of the Serbian economy into a more markedly neoliberal phase after 2008 has been accompanied by attempts to implement the concept of the entrepreneurial economy into a national economic policy, thus creating the conditions for the emergence of an altered way of cultural conceptualization of the entrepreneurship phenomenon, and also for a change in the way in which the phenomenon of entrepreneurial failure is conceived. This paper analyzes “stories of failure”, typical narratives that technological entrepreneurs present as part of so-called Fuckup Nights, events organized in Belgrade as well as in a number of other cities around the world. The educational, propaganda and autodidactic function of these stories, which seek to bring about a change in the social perception of the phenomenon of entrepreneurial failure, is realized within an interpretative framework delineated by the discourse of the neoliberal system, which circulates a certain kind of implicit knowledge regarding the way that the surrounding reality and socially desirable roles assigned to subjects are defined. The way in which the phenomenon of entrepreneurial failure is conceived is linked to the paradoxes stemming from the concept of the entrepreneurial economy which, existing within the dominant neoliberal discourse, emphasizes the use of both innovativeness as an economically grounded concept and of creativity as an intrinsic, universal human quality, which is shaped by the mechanisms of culture but also in accordance with the demands of the current economic policy, with the aim of preserving the now already weakened neoliberal system. Through these concepts the modes of functioning of various types of entrepreneurial enterprises are examined, those involving elements of startups as well as entrepreneurial enterprises launched as part of the business processes of established technological companies. Starting from the assumption that the process of technological innovativeness functions both on the level of thought processes and the level of social interactions, that it involves the activity of the innovative as well as of other aspects of creative intelligence in individual subjects who engage in interaction on the level of the technology companies they work for on the one hand, and on the other, with consumers as a source of unrefined stimuli for the reconstruction of existing frameworks or their surpassing, with the aim of successfully (re)creating a certain product. By looking at the causes of failure in Serbian technological entrepreneurship, the paper points to the importance of the concepts of creativity and innovativeness in the narrative semantic structure of the analyzed stories, as well as to the heuristic potential of those concepts for the anthropological analysis of ideas and practices related to the phenomenon of contemporary Serbian entrepreneurship, which is connected to the characteristics of the process of Serbian transition in the period after 2008, which is referred to in the paper as the “mature phase” of the second transition.