Economic Analysis <p><strong>Economic Analysis</strong>&nbsp; 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, in printed and e-version. Economic Analysis's <strong>mission</strong> 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.</p> <p>Since 2018, the journal is ranked as the leading national journal (M51) in the filed of economics and organizational science according to the decree of the Ministry of education, science and technological development of the Republic of Serbia.</p> <p><strong>For any information, you can contact us on e-mail <span style="text-decoration: underline;"></span></strong></p> Institute of Economic Sciences, Belgrade, Serbia en-US Economic Analysis 1821-2573 <p>Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:</p> <ul> <li>the right to reproduce and distribute the manuscript in printed form, including print-on-demand;</li> <li>the right to print prepublications, reprints and special editions of the manuscript;</li> <li>the right to translate the manuscript into other languages;</li> <li>the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;</li> <li>the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;</li> <li>the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;</li> <li>the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.</li> </ul> <p>Authors reserve the copyright to published articles and have the right to use the article in the same manner like third parties in accordance with the licence&nbsp;<strong>Attribution-Non-Commercial-Non-Derivate 4.0 International (CC BY)</strong>. Thereby they must quote the basic bibliographic data of the source article published in the journal (authors, article title, journal title, volume, pagination).</p> Repo rates as reference interest rates: testing the expectations hypothesis of the term structure of interest rates <p>The subject of this paper is the consideration of the role of the repo market and the quality of repo rates in the formation of reference interest rates that would be used to assess the value of financial instruments and derivatives. Unsecured money markets carry a certain level of risk, thus, the question arises whether the existing reference interest rates should be replaced by repo rates or other interest rates on secured loans. Reference interest rates on the money market play an important role in a country's monetary policy. Through operations on the short-term money market, Central Banks try to influence interest rates with long maturities. One of the most well-known theories that considers the question of the relationship between short-term and long-term interest rates is the expectations hypothesis. In this paper, expectations hypothesis is tested on the example of daily data of overnight interest rates related to secured interbank loans. Two samples were used, and term premiums were estimated for both short-term (up to one year using LIBOR interest rates) and long-term maturities (from two to ten years using ICE swap interest rates). The hypothesis is tested using two econometric tests proposed by Campbell and Shiller (1991). The tests were also applied to the overnight interest rates of interbank loans that are not secured, in order to get a better comparative picture. The results show that collateralized interest rates are good indicators of benchmark interest rates, and in some cases even more accurate predictors of long-term interest rates.</p> Sanja Nenadovic ##submission.copyrightStatement## 2022-10-21 2022-10-21 55 2 8 19 10.28934/ea.22.55.2.pp1-19 Covid-19 and Serbian Stock Market Response <p>In this paper, the authors attempted to explore the relationship between the Covid-19 Coronavirus pandemic and the stock market in the Republic of Serbia. The main research variables on the stock market are the daily values of the Belex 15 and Belex Line indices and trading volume. For the pandemic variables, official daily data on the number of new Covid-19 cases in Serbia, Europe, and the world were taken. By applying the panel regression analysis for the period from 03/06/2020 to 12/30/2021, the empirical results show a positive and significant influence of the number of daily infected in Serbia and Europe on the stock market index value, At the same time, the influence of daily infected ones on trading volume is negative but statistically significant only when it comes to the new cases of coronavirus per day at the level of Europe. The presented results indicate the resilience of the Serbian capital market to internal and external shocks.</p> Bojan Đorđević Sunčica Stanković ##submission.copyrightStatement## 2022-11-01 2022-11-01 55 2 20 30 10.28934/ea.22.55.2.pp20-30 The Quest towards Obtaining a Competitive Advantage in Organizations through Managing the Human Capital <p>The aim of this paper was to shed light on how managing human capital can contribute to obtaining a competitive advantage in organizations. This was done by conducting a literature review by examining and synthesizing the available literature from various research and scholars. Moreover, it included research into the different perspectives pertaining to the elements and approaches of human capital as it relates to competitive advantage in organizations. The literature reveals that Human capital plays a significant role as a contributor to obtaining a competitive advantage in organizations, which ensures high quality in the selection and recruitment of employees. Based on the literature, certain challenges may be encountered regarding human capital, and these challenges may inhibit the attainment of competitive advantages. Furthermore, the paper brings to light the approaches to utilizing human capital to achieve a competitive advantage. The Resource base view and the Human capital theory were the approaches discussed and considered relevant in navigating human capital towards a competitive stance. The distinctive character of the organization could be realized through the human capital concept; investing in employees bring about new ideas and solutions to the organization. While other resources are owned by the organization, such as technology and equipment, the human capital emanates from the employment relationship and could not be regarded as organizational-owned property but is also privy to its success. Human capital is viewed as an essential component of intellectual capital. Industry 4.0 was also seen as an important contributor to competitive advantage as the advanced technology seems to employ more modern ways of getting the job done. Even though advanced technology is necessary, among other factors, the quest towards the achievement of competitive advantage lies in the role of adequately managing human capital because human capital neutralizes threats, exploits opportunities, and enhances organizational efficiency that has the potential to lead to a competitive advantage.</p> Nikaela Wilson Iva Vuksanović Herceg ##submission.copyrightStatement## 2022-11-01 2022-11-01 55 2 31 48 10.28934/ea.22.55.2.pp31-48 Does the Increase in the Number of Registered Patents Affect Economic Growth? - Evidence from Romania and Bulgaria <p>The goal of this paper is to determine whether the increase in the number of registered patents per million inhabitants, as a measure of market verification of the results of R&amp;D activities, affects economic growth and the increase in the country's innovation index. The empirical research covered two countries - Romania and Bulgaria. Given that the main task in the research was to accurately measure the investigated phenomena and discover the connection between them, the analysis was based on a quantitative research design. The analysis used secondary data from the international databases of the World Bank and World Intellectual Property Organization, covering the period from 2008 to 2018. The results of the empirical research showed that no correlations were found, which means that in the cases of Romania and Bulgaria, there is no dependence between the increase in the number of registered patents per million inhabitants and the growth of the innovation index and GDP per capita.</p> Ivana Domazet Darko Marjanović Deniz Ahmetagić Marija Antonijević ##submission.copyrightStatement## 2022-12-06 2022-12-06 55 2 49 65 10.28934/ea.22.55.2.pp49-65 Business Process Innovation of Serbian Entrepreneurial Firms <p class="1Apstratk"><span lang="EN-GB" style="font-size: 10.0pt;">Innovations are vital for the improvements in living standards and can affect not only individuals but also institutions, economic sectors, and the whole country in many ways. This paper investigates the innovation performances of Serbian entrepreneurial firms. It focuses on business process innovations related to product and business process development. The sample consists of Serbian start-ups, which were founded in 2015, from five industries. The data about these entrepreneurial firms were collected via a questionnaire. The respondents assessed various statements about product and business process development innovations on a five-point Likert scale (1-strongly disagree; 5-strongly agree). The statements were derived from several indicators within the Balanced Scorecard’s process perspective. They were modified to fit the new definition of business process innovation provided by the OECD/Eurostat (2018) and according to the context of Serbian entrepreneurial firms. The statistical analysis involved descriptive statistics, frequencies, reliability analysis, and One-way ANOVA. The results indicate that most of the entrepreneurial firms introduced the innovations that enabled them to operate more efficiently, improve their processes, establish certain routines, respond to customer complaints faster than their competitors, and develop a product or a service more quickly than their competitors. No statistically significant differences were found regarding introducing business process innovations among the entrepreneurial firms from different industries. This paper can help policymakers assess the contribution of innovation to economic goals, and monitor and evaluate the effectiveness of their innovation policies.</span></p> Mihailo Paunović Marija Lazarević- Moravčević Marija Mosurović ##submission.copyrightStatement## 2022-12-08 2022-12-08 55 2 66 78 10.28934/ea.22.55.2.pp66-78 Key Features and Challenges of the China-Western Balkan Countries Merchandise Trade Development <p>The economic growth and development of the Western Balkan largely depend on the integration of national economies into international trade flows. Bearing in mind the expanding presence of China in the Western Balkan countries and the considerable increase in bilateral trade over the previous decade, it is of great importance to focus on the strategies for overcoming main challenges and fostering more balanced trade in the forthcoming period.&nbsp; Regarding that, the main aim of the research was to analyze trade flows and patterns and investigate the trade intensity between the Western Balkan countries and China. Furthermore, the research attempted to determine the main challenges and to consider the strategic approach to their overwhelming, including better exploiting the opportunities provided by trade cooperation with China in the rapidly changing global environment.</p> <p>The paper used desk research - a descriptive analysis of data on merchandise trade between six Western Balkans countries (Albania, Bosnia and Herzegovina, Montenegro, Croatia, North Macedonia, and Serbia) and China. The analysis was based on the data available in the UN Comtrade and Trade Map statistical databases for the period 2016-2021. In addition, the Trade intensity index (TTI) was also used in the paper in order to discover how intensively the Western Balkan countries were trading with China.</p> <p>However, despite the rapid trade growth with China, its share in the WB countries' total trade remains at a relatively low level of about 7%. The trade deficit also increased significantly, indicating a deepening of the asymmetry in the economic relations of the observed countries. Although the trade intensity index (TII) confirms the deepening of trade relations, the TII value of 0.24 in 2021 indicates that trade between the Western Balkans and China is still under-represented and there is considerable room for improvement.</p> Elena Jovičić Danijela Stojanović ##submission.copyrightStatement## 2022-12-15 2022-12-15 55 2 79 90 10.28934/ea.22.55.2.pp79-90 Influence of green transformational leadership on the workplace pro-environment behavior <p>Today, environmental problems are worsening, greenhouse gas emissions are increasing, and natural resources are depleting. Solving these problems requires the efforts of everyone in the organization. This study aims to analyze the impact of green transformational leadership on pro-environmental behavior in the workplace. Specifically, the main hypothesis is that green transformational leadership positively influences workplace pro-environment behavior. Two other pathways are also proposed. The relationship can be mediated through green mindfulness and green self-efficacy. The method used in this study is a questionnaire, and data were collected from 163 respondents who work for the Electricity Generation Authority of Thailand. An integrated model containing the hypothesized structure was then tested with structural equation modeling. The results showed that green transformational leadership positively impacted workplace pro-environment behaviors and that this relationship was mediated by green mindfulness. However, green self-efficacy did not mediate between green transformational leadership and workplace pro-environment behavior as there was no relationship between self-efficacy and workplace pro-environment behavior. Rather, green self-efficacy influences workplace pro-environment behavior through green mindfulness. The revised model provides some practical implications for corporations that intend to promote workplace pro-environment behavior. First, green transformational leadership serves as an important factor as it has both direct and indirect impacts on workplace pro-environment behavior. Second, green mindfulness is an important mediator for two indirect effects upon workplace pro-environment behavior. These two factors are key in motivating staff members to work environmentally<strong>.</strong></p> Patarawadee Tongsoongnern Wing Shing Lee ##submission.copyrightStatement## 2022-12-26 2022-12-26 55 2 91 106 10.28934/ea.22.55.2.pp91-106