Economic Analysis is a scientific journal published by the Institute of Economic Sciences (IES). It is published twice a year (in June and in December) in English, as e-version. Economic Analysis's mission is to inform scientific and professional public about the results of original research in the field of economics, as well as about the positive public policies intended for surpassing the identified challenges. Since 2025, the journal is ranked as the leading national journal (M24) in the filed of economics and organizational science according to the decree of the Ministry of Science, Technological Development and Innovation of the Republic of Serbia. For any information, you can contact us on e-mail jelena.banovic@ien.bg.ac.rs
Institute of Economic Sciences, Belgrade, Serbia
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Fiscal Transparency and Accountability in Local Self-Government Units: Evidence from North Macedonia
The debate on the openness of governments and local self-government authorities toward improving transparency has become a fundamental postulate of democratic governance—not only in the Republic of North Macedonia but more broadly. Creating an efficient and transparent control system over public spending should prevent misuse of public funds and help combat the high incidence of corruption. Therefore, the aim of this research is to analyze the fiscal transparency and accountability of local self‑government units in the Republic of North Macedonia. A key novel contribution of this study is the integrated application of the PEFA framework and the Index of Open Municipalities (IOM), two complementary yet rarely jointly employed methodologies, to assess municipal fiscal transparency. By combining a performance-based expenditure assessment (PEFA) with an institutional openness index (IOM), the study offers a multidimensional evaluation of transparency. The research relies on publicly available data for a representative sample of 16 municipalities over a three-year period (2021–2023), supplemented by primary data obtained through interviews and structured survey questionnaires. Another innovative aspect of the study is the comparative perspective across municipalities, particularly the systematic differentiation between urban and rural local governments. This approach draws attention to structural disparities in transparency practices that remain largely unexplored in the domestic literature. The findings confirm that fiscal transparency is not merely a normative obligation but a key mechanism for strengthening accountability, inclusiveness, and responsible governance at the local level. Although positive trends have been observed, the analysis shows that the average level of transparency in Macedonian municipalities remains unsatisfactory. Significant differences were noted between urban and rural municipalities, with the former demonstrating higher levels of transparency across all dimensions. By integrating PEFA and IOM and by introducing a comparative assessment between different types of municipalities, this study provides new empirical evidence and a more comprehensive analytical framework for evaluating fiscal transparency at the local level in North Macedonia.
fiscal transparency, accountability, local self-government, PEFA, index of open municipalities
Public Finance, Local Governance, Fiscal transparency
Copyright (c) 2021 Economic Analysis http://creativecommons.org/licenses/by-nc-nd/4.0
Technical Performance and Productive Dynamics in Angolan Maritime Fisheries: An Intertemporal DEA-VRS Approach
The study aims to evaluate the trend of relative technical efficiency within the context of the optimization of productive resources of the seven Decision Making Units. The study encompasses the seven provinces of the Angolan coast. The Data Envelopment Analysis (Variables Returns to Scale model), with an input-oriented approach, was used, adapted to the Angolan production context, which is marked by financial constraints and exchange rate instability. The results show an upward trajectory of mean efficiency across the five analysis windows used, with a moderate positive trend. The results also revealed that intertemporal factors explain, in a differentiated way, a relevant part of the variation in the technical efficiency of the provinces, highlighting Cabinda, Zaire, Bengo, and Kwanza Sul, which showed upward evolution, and, on the other hand, Luanda, Benguela, and Namibe, which showed low performance or decline. Between 2016 and 2023, no province showed full technical efficiency, highlighting gaps in the optimization of available resources. The total fish catch load was a more critical variable, registering high levels of pure technical inefficiency, requiring a sustainable increase in production at the sectoral level. The absence of previous studies on technical efficiency in the Angolan fishing sector reinforces the pioneering nature of this research, which can serve as a basis for future investigations and the formulation of public policies. .
Imports versus Domestic Production and the Food Security Dilemma in the Arab World: Evidence from a Panel CS-ARDL Approach
This study examines the determinants of food security in a panel of eleven Arab countries over the period 2000–2023 using the cross-sectionally augmented autoregressive distributed lag (CS-ARDL) approach. The aim is to explore both short-run dynamics and long-run equilibrium relationships affecting food self-sufficiency. The results indicate that per capita income exerts a negative effect in the short run, reflecting changing consumption patterns and greater reliance on food imports, while agricultural production emerges as the most consistent positive driver of food self-sufficiency. Short-run dynamics also confirm a rapid adjustment process, with the error correction term (ECT = –1.3569, p < 0.01) indicating strong and more-than-complete convergence toward equilibrium. In the long run, agricultural value added is the only variable with a robust and significant influence, underscoring the strategic importance of the agricultural sector for sustainable food security. These findings highlight the structural vulnerability of food systems reliant on imports and call for policies aimed at enhancing agricultural productivity, promoting self-reliance, and reducing exposure to volatile international food markets.
An Empirical Analysis of Supply and Demand Determinants of Global Oil Prices: The Role of OPEC
This paper examines the key determinants influencing global oil prices from both supply and demand perspectives, including structural and shock-related factors such as the COVID-19 pandemic. Particular emphasis is placed on the influence of OPEC production quotas, non-OPEC production volumes, trade openness, industrial production, and shock-related factors such as the pandemic and major geopolitical events. The analysis covers the period from 2000 to 2023 and applies multiple linear regression, including OLS, Newey-West, and Bootstrap techniques, to test three primary hypotheses concerning the relationship between oil prices and these explanatory variables. The results reveal that a one percent reduction in OPEC quotas leads to a 1.59 percent increase in global oil prices, confirming the organization’s significant influence on the supply side. Additionally, the findings show that a one percent increase in global industrial production results in a 12.06 percent price increase, underscoring the strong link between economic activity and oil demand. Conversely, greater trade openness is associated with lower oil prices; specifically, a one percent increase in openness correlates with a 1.62 percent price decrease, likely due to enhanced competition and greater supply efficiency. The COVID-19 variable was also found to have a statistically significant and negative effect on oil prices during the crisis period. These relationships are statistically significant and robust across all model specifications. In contrast, the variable representing non-OPEC production volumes yields a statistically significant positive effect only in the OLS and Newey-West models, while turning statistically insignificant in both Bootstrap models, highlighting potential sensitivity to distributional assumptions and underlying structural heterogeneity. Additionally, the 2001 geopolitical shift, included as a structural dummy variable, did not show statistical significance, suggesting that global oil markets may have absorbed its impact without lasting price disruption.
Assessing Economic Takeoff and Growth in the Arab World
Economic takeoff is a critical phase in the development of emerging economies, signifying a transition towards sustained economic growth. This study assesses the relationship between economic takeoff and economic growth in 11 Arab countries from 1990 to 2023 using econometric methods. Employing panel unit root tests, the Pedroni cointegration test, and the Fully Modified Ordinary Least Squares (FMOLS) estimation technique, the study examines the long-term equilibrium relationships between investment, capital accumulation, foreign trade, and economic growth. The findings reveal that economic takeoff is characterized by overcoming structural constraints through investment and capital formation. The study confirms that investment, capital accumulation, and trade balance positively and significantly influence economic growth, highlighting the need for policies that enhance infrastructure, financial systems, regional trade integration, and human capital development to sustain long-term economic expansion in Arab economies.
Copyright (c) 2025 Economic Analysis http://creativecommons.org/licenses/by-nc-nd/4.0
Two Sides of a Digital Coin: Comparison of CBDC and Cryptocurrencies
This paper aims to compare central bank digital currencies (CBDCs) and cryptocurrencies by examining their fundamental differences, with a focus on their implications for financial inclusion, political and corporate influence, and monetary policy effectiveness. The analysis is based on a conceptual and comparative approach, drawing on an extensive literature review and theoretical insights to identify and contrast the key characteristics, advantages, and disadvantages of both CBDCs and cryptocurrencies. The findings highlight that cryptocurrencies offer greater resistance to political and corporate control and support decentralized financial systems, while CBDCs provide enhanced tools for monetary policy implementation and state oversight. Both models have the potential to improve financial inclusion, but their approaches differ: CBDCs rely on institutional infrastructure, whereas cryptocurrencies depend on technological accessibility and user digital literacy. The study also reveals that CBDC could pose risks to personal financial autonomy, while cryptocurrencies may undermine monetary stability in less developed economies. This paper contributes to the understanding of digital money by presenting a structured comparison of two competing models, offering insights into their complementary potentials and long-term implications for the global financial system. Unlike most existing studies, the analysis integrates the perspectives of financial inclusion, political and corporate influence, and monetary policy effectiveness within a single comparative framework. In addition, it emphasizes the relevance of these issues for emerging markets and developing economies, where the introduction of CBDCs or the widespread use of cryptocurrencies could generate distinctive challenges and opportunities. It also highlights how their interaction may shape future developments in financial infrastructure, regulation, and user trust.
The Effects of Strict Social Norms on Home Bias
Despite the documented advantages of international portfolio diversification, investors tend to over-allocate to domestic markets, leading to exposure to home bias. This paper explores the behavioral explanation of this phenomenon by investigating the relationship between cultural tightness-looseness and equity home bias. Based on foreign portfolio holdings data from 28 of the most developed markets and over the period 2001-2022, we find empirical support using the OLS methodology that investors from culturally tighter countries register higher levels of home bias, compared to investors from looser countries. In cultures where stricter social norms are imposed and little deviation is allowed, investors exhibit higher confidence in domestic returns and associate international investments as more costly. Due to higher levels of innovation and fewer behavioral constraints, investors from looser countries overcome the cost associated with the unfamiliarity of foreign stocks, managing to better diversify their portfolios internationally. Additionally, we identify that financial education and economic openness of the investor country alleviate the effect stricter norms have on home bias. The significance of the study is reinforced by the robustness tests performed, such as employing alternative measures of both our dependent and independent variables and testing the identified relationships through different estimation methods. This paper contributes to the extensive literature on home bias by identifying the strictness of social norms as a key cultural determinant in shaping international portfolio allocation and exploring channels to mitigate its effect on home bias.
Flexible Work Arrangements and the Hybrid Work Model: Attitudes of Employees in the Scientific Research Sector in Serbia
The paper analyses the advantages, disadvantages, and possibilities of implementing flexible work models in modern organisations, focusing particularly on the hybrid work model. The aim of the research is to identify the key benefits of the hybrid work model and examine the attitude of employees in the scientific research sector in Serbia regarding this relatively new and innovative concept. By using the desk research method and the empirical approach, the main advantages of flexible work models have been analysed, as well as the key challenges managers face during the implementation. The research findings indicate a growing popularity of the hybrid work model across various sectors, including scientific research in Serbia. Due to its numerous benefits, the model has been actively adopted by employees in the field of social sciences and humanities.
Corporate Taxation and Subsidy Distortions as Barriers to Private Domestic Investment in Serbia
This paper examines the structural barriers to private domestic investments in Serbia, with a particular focus on the role of corporate taxation and subsidy policy. The analysis combines descriptive empirical data, comparative legal assessment, and institutional diagnostics to explore why domestic investments have remained persistently low relative to both foreign direct investments and levels observed in comparable EU economies. Using Eurostat and World Bank data for the period 2013–2022, the paper documents that total investment growth in Serbia has been primarily driven by rising FDI inflows and increased public investments, while domestic private investments have remained weak. Despite a relatively high fiscal effort devoted to investment incentives, including both tax-based instruments and direct subsidies, the design and allocation of these measures appear to disproportionately benefit large investors – most often foreign. The paper contextualises Serbia’s statutory and effective corporate tax rates within EU norms and identifies significant structural asymmetries in incentive accessibility between firms of different sizes. It also develops a classification of corporate tax incentive regimes in selected EU member states and Serbia, based on the structure and conditions of tax-based investment support, which is used to assess Serbia’s position relative to prevailing EU practices in the design of fiscal incentives. Institutional barriers, including legal uncertainty and administrative inefficiency, further constrain domestic investments. The findings suggest that Serbia’s current investment model is unlikely to support sustainable long-term development unless policy is rebalanced to improve the investment climate for domestic firms. The findings inform policy recommendations aimed at rebalancing incentive structures and strengthening institutional and financial conditions for domestic investments.
Digital Development of Serbia Compared to Selected European Countries: A Comparative Analysis
The aim of this research is to analyze the level of digital development achieved by sixteen European countries based on Microsoft’s Digital Future Index from 2021. The countries analyzed in the report are classified into three groups: a) Digitally Advanced “Benchmark” Countries of Western Europe (the Netherlands, Denmark, Sweden, and Finland), b) Europe’s Fast-Growing Digital Leaders (Czech Republic, Estonia, Malta, Slovenia, and Portugal), and c) Digital Followers of Central & Eastern Europe (Croatia, Hungary, Poland, Romania, Russia, Serbia, and Greece). By applying comparative graphical analysis, using a 45-degree line, the relationship between the Level of Digital Development and the Benefits of Digitization in these countries was examined. The findings indicate that economies with a relatively lower Digital Development Score achieved relatively higher Economic and Social Gains Scores. This highlights the need for more efficient management of digitalization factors in countries leading the digital development process. Furthermore, the inputs to the development of digitization and the economic and social results of achieved digital development were visually compared both for the three previously identified groups of European countries and specifically for the Republic of Serbia. The research findings demonstrate that the digital Followers of Central & Eastern Europe significantly lag behind the “Benchmark” countries of Western Europe and Europe’s fast-growing digital leaders in terms of achieved digitalization levels. Serbia lags in the development of digital infrastructure, digital skills, the adoption of digital technologies, and the overall level of human capital development compared to other European countries.
Navigating Sector Momentum: Evaluating Performance in the US and Global ETFs for Retail Investors
Modern day investing comes with too many options and complexities for non-professional investors. An easy way for them to earn acceptable returns is investing in market index exchange-traded funds (ETFs). However, the previous research suggests that they can achieve superior results by using a simple sector momentum strategy. The aim of this study is to examine whether those conclusions remain when a different data set is used as well as to assess the performance attribution of such a strategy. The research is based on two sets of sector ETFs, which are focused on the US market and on the global market, in order to investigate whether the results are applicable in both cases. For each of them the performance measures were calculated, and the factor analysis was performed. The results suggest that the sector momentum strategies achieve superior results than the benchmark, though there is not one universally optimal strategy for every investor and for every investment opportunity set. The factor analysis confirms that the strategy generates alpha and that its performance cannot be explained by traditional factors fully. Therefore, the study further supports the use of sector momentum investing, especially for retail investors, though it has its limitations, e.g. the neglect of transaction costs.
geometrically decreasing weighted portfolio
Is there a Connection between Finance and Innovation?
Within the current macroeconomic environment, the innovation activity, especially the radical one is developed under extreme uncertainty conditions. There are a number of researches proving the existence of severely asymmetrical information generated by innovation activities. Our research objective focusses on whether or not the development of financial systems influences the level of innovation, also analyzing the real impact of several features of the financial system on the overall innovative process of a country. In this respect, we propose a two-fold contribution. First, we address the impact on innovation which is exercised by the financial intermediation entities granting credits to the private sectors of the economy. Such ‘financial resources availability’ view excludes the role played by financial markets or by the firms’ internal resources. Second, we employ a Bayesian nonparametric empirical framework able to deal with various types of uncertainty about the ‘true model’ governing the relationship between finance and innovation. Our findings show that, at an empirical level, finance does matter in explaining the status of innovation processes and outcomes. However, this conclusion should be nuanced by adding that different features of the financial system have a non-uniform importance: while the global supply of financial resources through credit granted to private sector is putting forth a positive and robust influence on innovation, the expansion of commercial banks network appears to play a more ambiguous and less robust role. Additionally, the existence of geographically spread specific mechanisms is clearly influencing the amplitude and shape of financial variables’ impact on innovation. It is our view that the paper may contribute to proving that the development as well as the functional capabilities of the financial systems are highly relevant for the status of innovation processes in modern ‘knowledge-based’ economies.
Bayesian nonparametric ‘infinite-probits mixture linear’ regression model
Revisiting the Consumption-Wealth Nexus: A Nonparametric Exploration
This study investigates the relationship between non-durable consumption and asset prices in 12 developed and 11 emerging economies, members of the European Union, emphasising the presence of nonlinearities through a nonparametric framework. Utilising the Categorical Regression Splines (CRS) approach, the analysis challenges traditional parametric models by allowing data to dictate the functional form of the relationship. The findings reveal distinct consumption-wealth dynamics: income remains the key driver in the emerging economies sample, with stock market fluctuations exhibiting potentially non-linear effects. Furthermore, consumption is primarily income-driven, with housing wealth playing a more pronounced role due to less-developed mortgage and financial markets in these emerging economies. Money wealth effects vary in significance, depending on the economic context and time period. These results underscore the advantages of nonparametric methods in accurately capturing complex economic relationships, providing insights for policymakers in designing effective strategies to support household consumption and economic stability.
Judicial Impact on Bankruptcy Efficiency: An Empirical Analysis of Case Duration in Serbian Bankruptcy Liquidations
This paper examines how judges shape the efficiency of liquidation proceedings, using case duration as a central indicator of procedural performance. Drawing on a dataset of over 1,300 closed bankruptcy liquidation cases in Serbia from 2010 to 2024, we apply hierarchical and cross-classified random-effects models to quantify the influence of judges, courts, and administrators, while controlling for case-level characteristics such as estate size, case complexity, contested claims, and debtor type. The analysis reveals substantial variation in case duration attributable to both judges and administrators, with administrators emerging as particularly influential in the cross-classified specifications. Moreover, we assess whether specific judge–administrator pairings systematically affect outcomes beyond their individual effects. While interaction effects are modest, they account for additional variation in procedural efficiency. The results highlight the importance of operational capacity and coordination between key institutional actors, offering evidence that agent-level discretion, beyond the legal framework, plays a role in shaping case trajectories. These findings contribute to the literature on judicial behavior, bankruptcy governance, and institutional performance in transitional legal systems.
Economic Determinants of Export Diversification in Algeria:
This study aims to identify the key economic determinants of export diversification in Algeria, a rentier state, over the period 1995–2022. Using annual data from various official sources, a quantile regression model is employed to assess the heterogeneous effects of selected variables across different levels of export diversification. The results show that foreign direct investment does not support export diversification, while oil rents and trade openness are factors that hinder the process. Conversely, domestic investment and manufacturing exports contribute positively to a more diversified export structure. The study contributes to the literature by offering new insights into how structural economic factors shape diversification patterns in resource-rich countries, emphasizing the role of targeted investment and industrial development policies in reducing dependence on natural resources.
Mapping Agility Factor Dependencies in the IT Sector of Humanitarian Organizations Using the ISM Approach
Organizations are gradually relying on Information Technology (IT) to assist them in addressing unexpected challenges they face in their daily operations. The reliance is particularly essential in humanitarian settings where agility and adaptability are crucial. To examine the factors influencing IT agility in the humanitarian context, Interpretive Structural Modeling (ISM), along with MICMAC analysis, were applied. After identifying interconnections among the factors, they were classified according to their driving and dependence power. This study emphasizes the importance of continuous monitoring and flexible strategies to maintain operational efficacy. While the diverse insights gained from the research are valuable, this diversity could also be considered a limitation. The IT experts, who participated in the study, hold diverse positions across different IT sectors within the organization. The consistency of the results may be impacted by differences in how these factors are seen and prioritized in their specific work settings, rather than a unified perspective on IT agility. Future studies can explore the dynamics across different sectors or with a larger sample size to validate the results in a broader context. This study contributes to the understanding of how IT agility can be managed and optimized in humanitarian contexts, providing valuable insights for practitioners and researchers.
Empowering Sustainable Growth Through Emerging Technologies in Serbia and North Macedonia
This study explores the perceived economic, social, and environmental impacts of emerging technologies (including artificial intelligence, IoT, and big data) on sustainable growth in Serbia and North Macedonia. Drawing on survey responses from participants across professional sectors, the analysis employs descriptive statistics, Mann–Whitney U, and Kruskal–Wallis H tests to assess motivational factors, barriers to adoption, and sectoral differences. Findings indicate that innovation an competitiveness are dominant motivators, especially in North Macedonia, while high costs, skill shortages, and limited awareness remain key barriers. Economic benefits such as cost savings and operational efficiency are widely recognized, though environmental outcomes, particularly renewable energy adoption, are less developed. Sectoral comparisons reveal that business organizations lead in benefit realization, whereas government entities lag behind. The study highlights the need for context-specific policies and inclusive digital strategies to ensure that the adoption of emerging technologies supports long-term, sustainable development across varying institutional and sectoral environments.
The Relationship between Green Growth and Trade Openness: Empirical Evidence from Indonesia
This study explores the relationship between green economic growth, regional trade openness, renewable energy consumption, and CO2 emissions in the agglomeration area of Sumatra Island, Indonesia. Using panel data from 2010 to 2023, this research examines the region’s efforts to reduce the environmental impact of fossil-based energy consumption by transitioning to renewable energy, supporting ecological resilience. This transition, however, requires significant time and financial investments. The Sumatra Island agglomeration, with its shared environmental characteristics, plays a crucial role in trade openness and presents opportunities for alternative financing mechanisms to ensure economic sustainability. Employing ARDL and VEC model analysis, this study highlights both short- and long-term relationships between regional trade openness and green economic growth, providing insights into the future economic prospects of the Sumatra Island agglomeration. The findings indicate that regional trade openness significantly influences green economic growth in a positive direction in both the short and long terms. The study recommends fiscal policies, including tax incentives for trade that supports the green economy and the implementation of carbon taxes to regulate CO2 emissions, to promote sustainable development in the region.
The Effects of Patriotism, Consumer Xenocentrism, Cultural Sensitivity, Cultural Heritage, and Country of Origin Image on the Purchase of Luxury Foreign Brands
The process of globalization has led to an increase in the number of multinational companies. However, current global crises such as the COVID-19 pandemic, the war in Ukraine, population migrations, and economic instability have led certain countries to implement protectionist measures in the form of sanctions against other countries, as well as the closure of national economies and a shift towards deglobalization policies. In times of crisis, conservative views, respect for one's own culture, and concern for the national economy come to the fore. On the other hand, consumers who have preferences for foreign cultures often travel abroad, visit cultural landmarks of other countries and prefer luxury brands that originate from countries known for their production. The research was conducted with the aim of analyzing the impact of patriotism, consumer xenocentrism, cultural sensitivity, cultural heritage of other countries, and country of origin image on consumers' decision to purchase foreign luxury brands. Empirical research was conducted through a survey method in early 2024 in the territory of the Republic of Serbia (Belgrade, Novi Sad, Kragujevac). The total number of respondents in the sample was 488. Their responses were analyzed using appropriate statistical methods with the SmartPLS 4 software. The research results showed that patriotism has a negative impact on consumers' purchase of luxury brands, while consumer xenocentrism, cultural sensitivity, cultural heritage of other countries, and country of origin image have a positive impact on consumers' purchase of luxury brands. The research provides useful information for marketers of multinational companies, and based on the results, it can be concluded that during crises, instead of a global or local marketing strategy, it is optimal to apply a glocal marketing strategy that considers the needs of consumers with pronounced nationalist sentiments, as well as consumers with cosmopolitan views.
Corrigendum: Kareem Abidemi Arikewuyo, Lateef Adewale Yunusa, Babatunde O. Oke, Babatunde Adekunle Okuneye (2021). Do labour and Political Will Affect Agricultural Output? Evidence from Sub-Saharan Africa, Vol. 54, no. 2 (2021). doi: https://doi.org/10.28
Do Labour and Political Will Affect Agricultural Output?: Evidence from Sub-Saharan Africa
Agriculture has been at the forefront in employment creation and revenue generation in Africa until there was a shift from the sector to the non-farm or service industry which threatens the economic sustenance despite the growing population of youth in the region. The neglect of the agricultural sector resulted from labour migration and lack of political will in sub-Saharan Africa (SSA), which has severe implications on agricultural output. This study, however, investigated the nexus among labour, political will and agricultural production in SSA from 1998 – 2018 using the dynamic System – GMM estimation technique. The study found employment in the agricultural sector, agricultural raw material, exchange rate, political will, and agricultural material and exchange rate interaction significantly influenced agricultural output in SSA. Therefore, it is recommended that for SSA future to be sustained, the governments should discourage labour migration from the agricultural sector through government supports to boost employment and poverty reduction. This article has been corrected. Link to the correction https://doi.org/10.28934/ea.25.58.1.pp1
‘Green’ Energy in ‘Red’ Yugoslavia: The Failure of Renewable Energy in Yugoslavia between the 1960s and 1980s
This research focuses on the positive and negative experiences with renewable energy in socialist Yugoslavia in order to provide suggestions to contemporary policymakers based on a historical experience that is very limited. The fact that the country produced at times up to 75% of its electricity for industry and households in the hydroelectric power plants is an admirable achievement from the perspective of the contemporary EU Green Deal. However, the experiences were sometimes catastrophic, ranging from city blackouts to production stoppages in industry. The existing Serbian or regional scholarship has not yet analyzed this topic except from technological or engineering perspectives. Starting from that point, this research employs a critique of the sources as a standard historical method. It is based on primary and secondary sources, stretching from official Yugoslav policies and statistics, expert analyses, and newspaper articles. Previous experiences with electricity production in hydroelectric power plants in Yugoslavia, are crucial in adequately approaching the EU Green Deal agenda that includes the expansion of renewable energy sources, which is and will most certainly be one of the pressing challenges in the future. At the current level of technological capabilities, transition to renewable energy, whether from hydro, solar, wind, or geothermal sources, faces a challenge in providing a continuous flow of energy to industry and households. Lacking capacities for storage of vast amounts of electric energy, the solutions to this challenge will have to be found in conventional sources, among which nuclear power currently seems to be the best option, despite other environmental and safety concerns it raises.
European Sustainability Reporting Standards: Lack of Progress, Alignment, and Harmonization in Western Balkans
This paper aims to investigate the status of alignment and harmonization of corporate reporting in Western Balkans (WB) countries with the European Sustainability Reporting Standards (ESRS). Specifically, the research will focus on understanding the extent to which WB countries have initiated the adoption of ESRS, particularly in the context of the Corporate Sustainability Reporting Directive (CSRD) that mandates its use for companies within the European Union (EU) and its branches. The paper will compare the achieved level of sustainability reporting in Western Balkan countries with other countries located in Europe that are not members of the European Union. Despite the mandatory nature of ESRS for companies within the EU, our preliminary analysis indicates a lack of progress in the alignment and harmonization process among the WB countries. Western Balkan countries are also lagging behind, compared to other non-EU member countries, such as Switzerland and Norway, which have been selected for comparative analysis. The research seeks to uncover the reasons behind this lag and to explore the potential challenges faced by companies in the WB region in implementing these standards. It is crucial to understand the current state of sustainability reporting practices in WB countries and the challenges faced in aligning with ESRS. It will provide valuable insights for policymakers, businesses, and stakeholders on the necessary steps to enhance sustainability reporting practices in the region and foster alignment with international standards.
European Sustainability Reporting Standards
Corporate Sustainability Reporting Directive
The MCDM-based Assessment of Solutions for Transition to Sustainable Industry 4.0: The Case of Serbia
Industry 4.0 implies the transformation of organizations into digital entities (Sony & Naik, 2020). It represents a new level of industrial development that has changed demands, competition, industry structure, and sustainability awareness (Dalenogare et al., 2018). The primary objective of this paper is to use Multiple-Criteria Decision Making (MCDM) to identify the principal obstacles and solutions for successfully adopting the technologies that will facilitate a transition of the Serbian industry to sustainable Industry 4.0. The barriers' significance was defined using the Preference Selection Index – PSI (Maniya & Bhatt, 2010). The assessment of the solutions was performed by three decision-makers using the following MCDM methods: PSI, Compromise Ranking of Alternatives from Distance to Ideal Solution – CRADIS (Puška et al., 2022), and Integrated Simple Weighted Sum-Product Method—WISP (Stanujkic et al., 2021). The results revealed that logistics, reverse logistics management, and technology integration are the most significant barriers. The significance of logistics and warehousing management lies in their role as crucial facilitators for the sustainable development of industries, ensuring efficient and responsible movement, storage, and distribution of goods. Also, the application and development of new technologies can improve efficiency and reduce the environmental impact of the Serbian industry. Based on the MCDM methods, the framework enabled the assessment of the barriers and solutions for technology adoption in light of the current business conditions in the Republic of Serbia. The managers and policymakers could easily perceive the main obstacles and optimal actions to fulfill the requirements of Industry 4.0 and promote sustainable operation.
Sustainable Industry 4.0, PSI, WISP, CRADIS, technologies
Introductory Word from the Guest Editors
The Use of Information and Communication Technologies Among Generation X in Serbia: A Comparison Before and After the COVID-19 Pandemic
The aim of this paper is to examine the use of information and communication technologies (ICT) among Generation X in the years before and after the COVID-19 pandemic. The pandemic brought significant changes in digital technology usage and accelerated shifts in work, communication, and societal functioning. Generation X, comprising individuals born between the 1960s and 1980s, grew up during a time when digital technologies and the internet were not as prevalent. Given that they now live and work in a digital era, it is crucial to understand how they adapt to the rapid changes driven by digitalization. For this research, microdata from the study "The Usage of Information and Communication Technology by Individuals/Households in the Republic of Serbia" was analyzed for the years 2019 and 2023. Results show a slight increase in internet and computer use, particularly among younger members of Generation X. Additionally, 2023 saw a noticeable rise in online shopping and the use of communication services that gained popularity during the lockdown. Regarding public administration services, respondents in 2023 primarily accessed services related to the pandemic, such as vaccine information and green certificates. However, a significant number of respondents, 49%, did not use public services in either 2019 or 2023, suggesting potential issues with trust or perceived complexity. The main contribution of this paper is a detailed analysis of this group's behavior before and after the pandemic, focusing on ICT use and responses to changes triggered by the COVID-19 pandemic.
Evaluation of Population Projections for Serbia 2011-2041 after the 2022 Census Results
Following the 2022 Population Census, the first assessment of Serbia's official population projections based on data from the 2011 Census and other vital statistics and migration sources has become feasible. According to the Census results, the population of Serbia in 2022 is approximately 2.3% below the projected values for that year, according to the closest projection variant – the constant variant. This paper explores the differences in terms of projected and realized values of fertility, mortality, and migration balance. Hypotheses regarding the total fertility rate and the number of live births were largely confirmed. However, a notable deviation was observed in mortality rates, primarily attributed to the COVID-19 pandemic period, during which life expectancy decreased by nearly two years. Apart from the pandemic's effect, the deviation between projected and realized population values is also due to the assumption of a positive migration balance for the period 2011-2022. Contrary to this optimistic assumption, the vital statistics method reveals negative external migration during this period.
Farming Standards as a Catalyst of Green Agriculture and Food Export: Middle Income European countries Case Study
IFA GLOBALG.A.P. is a leading private and voluntary standard for sustainable agriculture in all countries worldwide. Its implementation and certification are increasingly becoming a prerequisite for exporting food and vegetables to the EU countries and other high-income markets. The aim of the paper is to examine whether farmers’ progress in terms of sustainable agriculture and implementation of the IFA GLOBALG.A.P. standard in 13 middle-income European countries can represent a “catalyst” which improves the export performance of these national economies in the sector of agriculture. The export performance was represented by the following criterion variables: (a) annual values of fruit and vegetable export, US dollar thousand; (b) annual values of fruit and vegetable export to high-income importing markets, US dollar thousand and (c) the percentage share of food and vegetable export to high-income markets in the total food and vegetable export. The predictor variable was defined as the number of IFA GLOBALG.A.P. certified farmers. All variables were presented per country and per year. The research included the period from 2010 to 2021, while the hypotheses were tested using the panel regression analysis. Individual models were tested for each criterion variable, and all three models were adequate. The results show that the rise of the number of IFA GLOBALG.A.P. certified producers leads to the increase in the values of all three studied criterion variables. The obtained results complement and enrich the scarce academic literature in this field related to developing countries in Europe. In addition, the research offers guidelines and recommendations for directing national policies towards greater implementation of private and voluntary farm certification schemes for sustainable agriculture.
National fiscal rules, Maastricht fiscal criteria and non-linear public debt dynamics in Serbia
The aim of the paper is to assess the reaction of fiscal policymakers in Serbia when the public debt-to-GDP ratio is above the 45% limit set in the national fiscal rules. The paper proposes a two-regime nonlinear self-exciting threshold autoregressive (SETAR) model as an appropriate econometric framework for modeling the asymmetries in the dynamics of the public debt/GDP ratio with respect to the 45% public debt limit. The empirical evidence suggests that fiscal policymakers in Serbia do not adhere to the 45% public debt/GDP ceiling and instead use the Maastricht limit of 60% as a target reference point for public debt management. The article contributes to the current policy debate by providing empirical evidence to support the claim that the behavior of fiscal policymakers in Serbia between 2001Q1 and 2023Q2 could jeopardize the credibility of fiscal policy and increase the probability of default by the Serbian government on its maturing public debt.
Exploring the Interrelationship between Scientific Knowledge and Economic Growth in Serbia: Empirical Insights
The primary objective of this study is to examine the nature of the relationship between the production of scientific knowledge and economic growth in Serbia during the period 1996-2022. For this purpose, the Vector Autoregression approach, along with the impulse response function and forecast error variance decomposition, was employed. Results suggest an impact of economic growth on the production of scientific knowledge, while no impact in the opposite direction is detected. The Serbian government should persist in investing in science and work closely with the scientific community to overcome barriers to scientific knowledge's full contribution to economic prosperity.