Abstract Customer Relationship Management (CRM) is a process that focuses on initiating, maintaining, and retention of long-term customer relationships with the help of information technology, to achieve better economic performance. Therefore, the paper examines the effects of CRM dimensions on financial and marketing performance, and moderates the role of an image on these relationships. The analysis included 106 organizations on the territory of the Republic of Serbia. The paper uses descriptive statistical analysis, correlation analysis, multiple regression analysis, and moderation regression analysis. The obtained results show that there is a negative statistically significant impact of CRM technology on financial and marketing performance. On the other hand, the existence of a positive statistically significant impact of consumer knowledge management on financial and marketing performance was found, as well as the fact that the image has negative moderating effects on these two relationships. The contribution of this paper is reflected in the unique structure of the research model, in the multidimensional observation of CRM, and measuring the impact of CRM dimensions on financial and marketing performance. Given that previous research has focused more on testing the main effects, rather than the interaction effects, the originality of the work is also contributed by testing the moderator role of the image on the relationship between CRM dimensions and organizational performance.
{"title":"Effects of Customer Relationship Management on Organizational Performance","authors":"I.I. Nedeljkovic, Dejana Zlatanović, Veljko Marinković","doi":"10.2478/ethemes-2022-0014","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0014","url":null,"abstract":"Abstract Customer Relationship Management (CRM) is a process that focuses on initiating, maintaining, and retention of long-term customer relationships with the help of information technology, to achieve better economic performance. Therefore, the paper examines the effects of CRM dimensions on financial and marketing performance, and moderates the role of an image on these relationships. The analysis included 106 organizations on the territory of the Republic of Serbia. The paper uses descriptive statistical analysis, correlation analysis, multiple regression analysis, and moderation regression analysis. The obtained results show that there is a negative statistically significant impact of CRM technology on financial and marketing performance. On the other hand, the existence of a positive statistically significant impact of consumer knowledge management on financial and marketing performance was found, as well as the fact that the image has negative moderating effects on these two relationships. The contribution of this paper is reflected in the unique structure of the research model, in the multidimensional observation of CRM, and measuring the impact of CRM dimensions on financial and marketing performance. Given that previous research has focused more on testing the main effects, rather than the interaction effects, the originality of the work is also contributed by testing the moderator role of the image on the relationship between CRM dimensions and organizational performance.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127424571","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-01DOI: 10.2478/ethemes-2022-0013
M. Koprivica
Abstract One of the most commonly used measures of insurance market development is insurance penetration rate, as ratio of gross written premiums to the country’s gross domestic product (GDP). Its important shortcoming is that it neglects the level of economic development of the country. The S-curve is a theoretical model describing the relationship between insurance penetration rate and GDP per capita and allowing a comparison of insurance development between countries at different stages of economic development. The paper analyzes the development level of insurance markets in the Western Balkan countries, in relation to the world average using the S-curve. The world S-curve is derived by estimating a non-linear regression model using data on insurance penetration and GDP per capita for 90 countries from 2006 to 2020. The insurance markets of the Western Balkan countries are below the world S-curve. In order to quantify insurance development gap, we calculated Benchmark Ratio of Insurance Penetration (BRIP) for each country using the world S-curve penetration level as a reference. The results show that the insurance development gap is growing in all countries of the region, except in Albania, where it is the largest. Insurance industry policy for the Western Balkans should focus on improving institutional factors in order to enable sustainable insurance growth in the long run.
{"title":"Analysis of Insurance Market Development Based on the S-Curve - The Case of the Western Balkan Countries","authors":"M. Koprivica","doi":"10.2478/ethemes-2022-0013","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0013","url":null,"abstract":"Abstract One of the most commonly used measures of insurance market development is insurance penetration rate, as ratio of gross written premiums to the country’s gross domestic product (GDP). Its important shortcoming is that it neglects the level of economic development of the country. The S-curve is a theoretical model describing the relationship between insurance penetration rate and GDP per capita and allowing a comparison of insurance development between countries at different stages of economic development. The paper analyzes the development level of insurance markets in the Western Balkan countries, in relation to the world average using the S-curve. The world S-curve is derived by estimating a non-linear regression model using data on insurance penetration and GDP per capita for 90 countries from 2006 to 2020. The insurance markets of the Western Balkan countries are below the world S-curve. In order to quantify insurance development gap, we calculated Benchmark Ratio of Insurance Penetration (BRIP) for each country using the world S-curve penetration level as a reference. The results show that the insurance development gap is growing in all countries of the region, except in Albania, where it is the largest. Insurance industry policy for the Western Balkans should focus on improving institutional factors in order to enable sustainable insurance growth in the long run.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"119 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133006421","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-01DOI: 10.2478/ethemes-2022-0010
Svetlana Popović, Irena Janković, Velimir Lukić
Abstract The paper analyzes the convergence of inflation rates in the group of more developed members of the Eurozone (core countries). What are the characteristics and is the inflation process in these countries sufficiently homogeneous? Are the analysed inflation rates converging, so that there is an indication that these countries tend to form the optimal currency area. We used a unit root test to check the stationarity of a series of average inflationary differentials. They are calculated as the difference between inflation rate in a given country and the inflation rate in EMU. If the convergence process took place, the inflationary differentials will decrease and tend to zero. The variance of differentials will also decrease, so the series of average inflationary differentials will be stationary. The analysis showed that there is a unit root in the series, thus it is not stationary, and we cannot conclude that the process of convergence of inflation rates in the core countries happened. The paper also analyzes the autocorrelation functions of inflation rates, to determine the persistence of inflation, i.e. how long it takes for the shock that caused the inflation growth of 1%, to die off. The values of the first autocorrelation coefficients are high, while the next ones fall slowly, so it takes a long time for the impact of the inflation shock to disappear. In addition, the correlograms of inflation rates are quite heterogeneous, which indicates that inflationary processes differ.
{"title":"Inflation and Inflation Differentials in Core Eurozone Countries","authors":"Svetlana Popović, Irena Janković, Velimir Lukić","doi":"10.2478/ethemes-2022-0010","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0010","url":null,"abstract":"Abstract The paper analyzes the convergence of inflation rates in the group of more developed members of the Eurozone (core countries). What are the characteristics and is the inflation process in these countries sufficiently homogeneous? Are the analysed inflation rates converging, so that there is an indication that these countries tend to form the optimal currency area. We used a unit root test to check the stationarity of a series of average inflationary differentials. They are calculated as the difference between inflation rate in a given country and the inflation rate in EMU. If the convergence process took place, the inflationary differentials will decrease and tend to zero. The variance of differentials will also decrease, so the series of average inflationary differentials will be stationary. The analysis showed that there is a unit root in the series, thus it is not stationary, and we cannot conclude that the process of convergence of inflation rates in the core countries happened. The paper also analyzes the autocorrelation functions of inflation rates, to determine the persistence of inflation, i.e. how long it takes for the shock that caused the inflation growth of 1%, to die off. The values of the first autocorrelation coefficients are high, while the next ones fall slowly, so it takes a long time for the impact of the inflation shock to disappear. In addition, the correlograms of inflation rates are quite heterogeneous, which indicates that inflationary processes differ.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129474531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-01DOI: 10.2478/ethemes-2022-0012
Danijel Milošević, Vladislav Marjanovic
Abstract Covid-19 has hit the world intensely. From the medical point of view it seems that we have found the way to fight it, and the new task is to recover the economies. First of all, we need to assess the impact and specify the industries that suffered the most in order to create support packages. It is, as well, crutial to define the engines that are still able to drive the economies towards the recovery. The main aim for economic policy makers should be to flatten the curve of the recession that will occur, no doubts. During this process, it is of highest importance to balance the extent of the support government will provide for the economy. Namely, what we want is to lower the intensity of the impact by prolonging the effects of the crisis, however without increasing the debt too high. Specific action plans have to be created individually, with regards to particular economies and their determinants. For that reason, there is no pattern that policy makers could follow. Having in mind that Serbian public debt is already high, it is essential to carefully design the support packages, without jeopardizing future income.
{"title":"Specific Aspects of the Economic Policy in the Conditions of the Covid-19 Pandemic","authors":"Danijel Milošević, Vladislav Marjanovic","doi":"10.2478/ethemes-2022-0012","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0012","url":null,"abstract":"Abstract Covid-19 has hit the world intensely. From the medical point of view it seems that we have found the way to fight it, and the new task is to recover the economies. First of all, we need to assess the impact and specify the industries that suffered the most in order to create support packages. It is, as well, crutial to define the engines that are still able to drive the economies towards the recovery. The main aim for economic policy makers should be to flatten the curve of the recession that will occur, no doubts. During this process, it is of highest importance to balance the extent of the support government will provide for the economy. Namely, what we want is to lower the intensity of the impact by prolonging the effects of the crisis, however without increasing the debt too high. Specific action plans have to be created individually, with regards to particular economies and their determinants. For that reason, there is no pattern that policy makers could follow. Having in mind that Serbian public debt is already high, it is essential to carefully design the support packages, without jeopardizing future income.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134312845","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-01DOI: 10.2478/ethemes-2022-0011
Milan Kalinović, Miloš Todorović, I. Marković
Abstract The balance of payments deficit is the problem faced by numerous countries. To solve the problem of the balance of payment deficit, the creators of economic policy try to stimulate the sectors that secure the largest inflow of foreign currencies and have a beneficial impact on the reduction of deficit. The international trade in informational, computer and telecommunication services records enormously high growth rates in the 21st century. The specificity of ICT sector opens a perspective even to less developed economies to take part more significantly in the exports, which hold a large percentage of a value-added. The goal of this paper is to determine the significance of ICT services for the balance of trade and the current account adjustment, as well as the contribution to generating the surplus of the total balance of services. In the case of the Republic of Serbia, the surplus of ICT sector covers almost one-fifth of the balance of trade deficit, almost one-third of the current account deficit, while every fourth dollar achieved by the services’ exports is achieved by the exports of ICT services. If the same trend of ICT sector’s growth continues, the predictions say that the surplus of this sector will be enlarged by almost 60% till the year of 2024, when compared to the level in 2020. Finally, potentially the most significant advantage, which ICT sector brings with itself, is the reduced brain drain, which is the most destructive consequence brought to the less developed countries by the liberalization of workforce’s movement.
{"title":"The Significance of ICT Services for the Balance of Payments in the Republic of Serbia","authors":"Milan Kalinović, Miloš Todorović, I. Marković","doi":"10.2478/ethemes-2022-0011","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0011","url":null,"abstract":"Abstract The balance of payments deficit is the problem faced by numerous countries. To solve the problem of the balance of payment deficit, the creators of economic policy try to stimulate the sectors that secure the largest inflow of foreign currencies and have a beneficial impact on the reduction of deficit. The international trade in informational, computer and telecommunication services records enormously high growth rates in the 21st century. The specificity of ICT sector opens a perspective even to less developed economies to take part more significantly in the exports, which hold a large percentage of a value-added. The goal of this paper is to determine the significance of ICT services for the balance of trade and the current account adjustment, as well as the contribution to generating the surplus of the total balance of services. In the case of the Republic of Serbia, the surplus of ICT sector covers almost one-fifth of the balance of trade deficit, almost one-third of the current account deficit, while every fourth dollar achieved by the services’ exports is achieved by the exports of ICT services. If the same trend of ICT sector’s growth continues, the predictions say that the surplus of this sector will be enlarged by almost 60% till the year of 2024, when compared to the level in 2020. Finally, potentially the most significant advantage, which ICT sector brings with itself, is the reduced brain drain, which is the most destructive consequence brought to the less developed countries by the liberalization of workforce’s movement.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126216383","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-01DOI: 10.2478/ethemes-2022-0015
S. Mijailović, S. Marković
Abstract The perception of satisfaction with the quality of life by an individual in urban and rural areas includes a number of objective and subjective indicators, based on the analysis that could be performed. Measuring the preferences of individuals living in different environments, in terms of life goals, needs, moods, expectations, as well as personal satisfaction with the quality of life, requires more criteria to be included for its evaluation. The research was conducted on the basis of twenty indicators for measuring the quality of life in local governments depending on the preferences of individuals, and of different age, gender, education, social status, and satisfaction motives. The subject of this paper is the selection of criteria in a multi-criteria model for assessing the quality of life in local governments, using adequate statistical tools. In addition to descriptive statistics and testing the significance of differences, the authors of the paper used a modified PROMETHEE multi-criteria method for ranking local governments.
{"title":"Development of the Multi-Criteria Model for the Quality of Life Assessment in Local Governments","authors":"S. Mijailović, S. Marković","doi":"10.2478/ethemes-2022-0015","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0015","url":null,"abstract":"Abstract The perception of satisfaction with the quality of life by an individual in urban and rural areas includes a number of objective and subjective indicators, based on the analysis that could be performed. Measuring the preferences of individuals living in different environments, in terms of life goals, needs, moods, expectations, as well as personal satisfaction with the quality of life, requires more criteria to be included for its evaluation. The research was conducted on the basis of twenty indicators for measuring the quality of life in local governments depending on the preferences of individuals, and of different age, gender, education, social status, and satisfaction motives. The subject of this paper is the selection of criteria in a multi-criteria model for assessing the quality of life in local governments, using adequate statistical tools. In addition to descriptive statistics and testing the significance of differences, the authors of the paper used a modified PROMETHEE multi-criteria method for ranking local governments.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129781770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-01DOI: 10.2478/ethemes-2022-0004
Z. Kostić, Nenad Tomić
Abstract From a negligible market niche in the entertainment industry, video game publishing has become extremely profitable. The emergence of the video game digital distribution platforms has established a permanent connection between the player and the publisher, making it possible to expand the offer. This led to emergance of the game as a service model, based on a continuous flow of revenue from the sale of additional content in an already distributed game. Revenues generated from the sale of virtual goods within the game are called microtransactions. The subject of this paper is the attitudes of video game players in Serbia and Poland towards different types of microtransactions. The paper has two key objectives: first, to determine whether there are differences in attitudes towards different types of microtransactions, and, second, to determine whether there are differences in attitudes of gamers from Serbia and Poland. In order to achieve these objectives, gamers are given a questionnaire to express their views regarding microtransactions. The existence of statistically significant differences in the attitudes of gamers classified in these two samples is determined for all observed forms of microtransactions, using the t-test.
{"title":"Implementation of the Game as a Service Research Model: Microperspective","authors":"Z. Kostić, Nenad Tomić","doi":"10.2478/ethemes-2022-0004","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0004","url":null,"abstract":"Abstract From a negligible market niche in the entertainment industry, video game publishing has become extremely profitable. The emergence of the video game digital distribution platforms has established a permanent connection between the player and the publisher, making it possible to expand the offer. This led to emergance of the game as a service model, based on a continuous flow of revenue from the sale of additional content in an already distributed game. Revenues generated from the sale of virtual goods within the game are called microtransactions. The subject of this paper is the attitudes of video game players in Serbia and Poland towards different types of microtransactions. The paper has two key objectives: first, to determine whether there are differences in attitudes towards different types of microtransactions, and, second, to determine whether there are differences in attitudes of gamers from Serbia and Poland. In order to achieve these objectives, gamers are given a questionnaire to express their views regarding microtransactions. The existence of statistically significant differences in the attitudes of gamers classified in these two samples is determined for all observed forms of microtransactions, using the t-test.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"7 10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128425625","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-01DOI: 10.2478/ethemes-2022-0001
A. Trajkov, Cvetko J. Andreeski, Jovanka Biljan
Abstract Tourism is a significant economic activity for developing any national economy and the world economy as well. Revenues generated through tourism services affect GDP and directly stimulate economic growth. The revenues are important for the national economies, i.e. the foreign exchange inflow, generated through tourist services export. However, many factors directly impact on the volume of foreign tourist arrivals, and thus directly affect both foreign exchange inflows and GDP. Government measures taken for various reasons that have a straight impact on the movement of people significantly reduce tourist travels. It can cause numerous and robust adverse effects on the national economy. The health crisis caused by the pandemic COVID – 19 has led to restrictive governmental measures that had a negative impact on tourist travels, and thus on the revenues generated from the export of tourist services. The paper aims to measure the effect of the COVID - 19 crises on the income generated by the foreign tourists’ arrivals in Ohrid, as a case study destination in North Macedonia. The research results will show the losses this economic sector has suffered from the “lockdown” caused by the pandemic.
{"title":"Measuring the Impact of the Coviid-19 Crisis on the Foreign Tourist Receipts","authors":"A. Trajkov, Cvetko J. Andreeski, Jovanka Biljan","doi":"10.2478/ethemes-2022-0001","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0001","url":null,"abstract":"Abstract Tourism is a significant economic activity for developing any national economy and the world economy as well. Revenues generated through tourism services affect GDP and directly stimulate economic growth. The revenues are important for the national economies, i.e. the foreign exchange inflow, generated through tourist services export. However, many factors directly impact on the volume of foreign tourist arrivals, and thus directly affect both foreign exchange inflows and GDP. Government measures taken for various reasons that have a straight impact on the movement of people significantly reduce tourist travels. It can cause numerous and robust adverse effects on the national economy. The health crisis caused by the pandemic COVID – 19 has led to restrictive governmental measures that had a negative impact on tourist travels, and thus on the revenues generated from the export of tourist services. The paper aims to measure the effect of the COVID - 19 crises on the income generated by the foreign tourists’ arrivals in Ohrid, as a case study destination in North Macedonia. The research results will show the losses this economic sector has suffered from the “lockdown” caused by the pandemic.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125445610","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-01DOI: 10.2478/ethemes-2022-0003
Jovana Stojanović, Bojan Srbinoski, K. Denčić-Mihajlov
Abstract The study examines how the strength of the application of audit and accounting standards, as a component of the institutional infrastructure, affects the greenfield FDI in the four countries of the former Socialist Federal Republic of Yugoslavia over a twelve-year period (2006-2017). Using standard panel data econometric techniques, we conclude that stronger application of audit and accounting standards has a positive impact on attracting greenfield FDI, and that the strength of the application seems to be more important in stable business conditions. Our results are relevant to policy makers, as they point to the need for constant improvement in the accounting and audit system, thus encouraging better transparency and lower transaction costs for investors.
{"title":"Do Audit and Accounting Practices Matter for Greenfield FDI Inflows?","authors":"Jovana Stojanović, Bojan Srbinoski, K. Denčić-Mihajlov","doi":"10.2478/ethemes-2022-0003","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0003","url":null,"abstract":"Abstract The study examines how the strength of the application of audit and accounting standards, as a component of the institutional infrastructure, affects the greenfield FDI in the four countries of the former Socialist Federal Republic of Yugoslavia over a twelve-year period (2006-2017). Using standard panel data econometric techniques, we conclude that stronger application of audit and accounting standards has a positive impact on attracting greenfield FDI, and that the strength of the application seems to be more important in stable business conditions. Our results are relevant to policy makers, as they point to the need for constant improvement in the accounting and audit system, thus encouraging better transparency and lower transaction costs for investors.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115687057","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-01DOI: 10.2478/ethemes-2022-0002
Saša Ranđelović, Nikola Martinović
Abstract The paper evaluates the relationship between the indicators of competitiveness of national economies (real unit labour costs and Global Competitiveness Index) and the flow of FDI in Central and Eastern Europe (CEE) over the last two decades. Our results show that from 2000 to 2020, CEE economies had an average annual inflow of FDI of 3.9% of GDP, with significant variation across the region. We have found out that the relationship between the net inflow of FDI and the real unit labour costs was strongly negative, while the results on the link with the Global Competitiveness Index was less conclusive. In 2020, due to pandemic global flow of FDI, shrank by around 40%, while the net inflow of FDI to CEE countries declined on average by 15%. These trends and results of survey-based analyses from other studies suggest that CEE region, and especially the Western Balkans countries, may benefit from the nearshoring process in the future. To exploit that opportunity, they may need to put focus of their policies on efficiency-enhancing tax reforms (that would reduce the unit labour costs) and other structural reforms that would result in improvement of the stock and quality of their physical and human capital.
{"title":"National Competitiveness and Foreign Direct Investment in Emerging Europe","authors":"Saša Ranđelović, Nikola Martinović","doi":"10.2478/ethemes-2022-0002","DOIUrl":"https://doi.org/10.2478/ethemes-2022-0002","url":null,"abstract":"Abstract The paper evaluates the relationship between the indicators of competitiveness of national economies (real unit labour costs and Global Competitiveness Index) and the flow of FDI in Central and Eastern Europe (CEE) over the last two decades. Our results show that from 2000 to 2020, CEE economies had an average annual inflow of FDI of 3.9% of GDP, with significant variation across the region. We have found out that the relationship between the net inflow of FDI and the real unit labour costs was strongly negative, while the results on the link with the Global Competitiveness Index was less conclusive. In 2020, due to pandemic global flow of FDI, shrank by around 40%, while the net inflow of FDI to CEE countries declined on average by 15%. These trends and results of survey-based analyses from other studies suggest that CEE region, and especially the Western Balkans countries, may benefit from the nearshoring process in the future. To exploit that opportunity, they may need to put focus of their policies on efficiency-enhancing tax reforms (that would reduce the unit labour costs) and other structural reforms that would result in improvement of the stock and quality of their physical and human capital.","PeriodicalId":118717,"journal":{"name":"Economic Themes","volume":"166 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115320271","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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