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> en-US <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> (Jelena Banović) (Srđan Jurlina) Fri, 02 Aug 2019 12:57:04 +0000 OJS 60 Business Sector Innovation and Economic Growth a Comparative Analysis Between EU Countries <p>This paper examines the relationship between innovation carried out by the business sector and economic growth in the 28 member states of the European Union, divided into two groups (1 and 2) according to their innovation performance. We use fixed effects panel data methods to test the hypothesis that business sector innovation plays a relevant role in explaining the behaviour of real GDP per capita, estimating two growth regressions according to data availability (1990-2015 and 2008-2015; unrestricted/restricted sample). The results indicate that the role of business sector innovation in economic growth not only varies according to the sample of countries and the period under analysis, but also the proxy for innovation used. In group 1 (above average innovation performance) the innovation indicators statistically significant in explaining growth also present a positive sign (with a few exceptions). In group 2 (below average innovation performance) on the other hand, the statistically significant business sector innovation indicators present a negative sign. One possible justification for these signs are differences in absorptive capacity, so that the growth benefits of innovation activities depend on aspects such as human capital availability, accumulated knowledge, technological and financial support. Since group 1 includes countries with higher absorptive capacity, business sector innovation is effectively translated into faster economic growth. In group 2, innovation activities do not translate into productivity increases due to a lack of absorptive capacity. Additionally, resources used in innovation activities might compete with other activities more relevant in terms of the stage of the growth process these countries are in so that innovation saps growth.</p> Cláudia Caseiro, Marta C. N. Simões ##submission.copyrightStatement## Mon, 24 Jun 2019 13:10:42 +0000 Comparative Analysis of Insurance Pemiums in Serbia and Bosnia and Herzegovina - Multiple Linear Regression Analysis Model <p>In the last few years, the global insurance market has shown a trend of concentration growth, which was conditioned by the processes of mergers and acquisitions in insurance. The aim of this paper is to make a comparative analysis of insurance premiums in Serbia and Bosnia and Herzegovina. Dynamic analysis of market concentration indicators calculated on the basis of absolute amounts of premiums indicates that the insurance market in Bosnia and Herzegovina is characterized by low concentrated supply, i.e. there is greater equality of market share in relation to high inequality and high concentration among market participants in the insurance sector of the Republic of Serbia. Having applied the multi-linear regression model in order to analyze the impact of selected macroeconomic indicators on the amount of insurance premiums in the period 2000-2017, it can be concluded that the greatest impact on the amount of the premium in Bosnia and Herzegovina had Gross Domestic Income and Wage and Salaries Workers. In the Republic of Serbia, the greatest influence on the amount of premium in the observed period had the Average Net Salary, Households and Final Consumption Expenditure and Gross Domestic Income.</p> Tijana Kaličanin, Sandra Kamenkovic, Ivana Simeunović ##submission.copyrightStatement## Mon, 24 Jun 2019 13:14:13 +0000 The Development and Implementation of the Integrated Marketing Communications Concept <p>Understanding consumers’ needs implies creating adequate offering, which leads to good and sustainable relations over time. Consumers, under the influence of (new) technologies change their habits, attitudes and behavior in usage of certain product or service as well as the way they communicate. The objective of this paper is to analyze the effects of created communication on brand through developing IMC model. Taking into account consumers’ demographic structure, not only the points at their path to purchase, usage or recommendation, the effects among different groups will be analyzed. Questions that are important for this paper are about awareness of brands in the category, noticeablity of certain ways of communication, and the influence of that communication on behavior is measured. The ultimate goal of every communication is sales and repeated sales, but in that process potential users should be introduced to brand, create need and want to use that brands, to be satisfied, loyal and be it’s ambassadors. Beside usage of the results of primary research, desk method of collecting and analyzing is also used, in order to have detailed insight of certain aspects that are related to the objective of this paper. The results of conducted research indicate that implementation of integrated marketing communications leads to additional sale and better brand positioning, as well as company positioning in the market. Additionally, effective integrated communications positively influence brand positioning and consumers ‘satisfaction is in positive relation with repeated purchase of the brand.&nbsp;</p> Tatjana Cvetkov Čikošev ##submission.copyrightStatement## Mon, 24 Jun 2019 13:16:57 +0000 Assessing Organizational Maturity in Predictive Analytics of Telecommunications Companies in the Republic of Macedonia <p>Data analytics and predictive analytics are among major&nbsp;trends companies are facing worldwide. In a highly digitalized environment it is not only to question the usage of data analytics, but how analytically mature organizations are. The goal of this paper is to assess organizational maturity in predictive analytics of telecommunications companies in the country.</p> <p>In order to assess the level of organizational maturity in predictive analytics we use Predictive Analytics Maturity Framework Assessment (PAMFA) (Capgemini, 2012), since it best describes maturity levels in telecommunications sector. The method of analysis is based on interviewing managers with questionnaire that guides respondents through all dimensions and levels proposed by the framework. According to the PAMFA five dimensions are analyzed (Vision and strategy, Enablers, Competence, Deployment and Governance). For each dimension, four maturity levels are defined: Level 1: Impromptu, Level 2: Solo, Level 3: Ensemble and Level 4: Symphony.</p> <p>Survey results confirmed that analysed companies fully understand the benefits of predictive analytics as valuable source of gaining competitive advantage from data. The overall level of predictive analytics maturity is set between levels 2 or 3 for almost all dimensions.</p> <p>This research is the first attempt to analyze organizational maturity in predictive analytics in the country. Its originality derives from the specific characteristics and development of the telecommunications sector. This sector is one of the most advanced service sectors in the country and hence represents a benchmark concerning digital transformation. Results of this survey provide useful information needed to design a roadmap for migrating towards higher maturity levels.</p> Kalina Trenevska Blagoeva, Marina Mijoska ##submission.copyrightStatement## Mon, 24 Jun 2019 12:45:40 +0000 The Impact of Globalization on Entrepreneurship <p>This paper aims to explore the importance of globalization for the development of entrepreneurship. Changes in global business environment require new business strategies. Small business owners are expected to be able to develop the resiliency of their businesses so that they can face severe external conditions. Their sustainability depends on the resilience but also on the perspectives of long-term business operations. Therefore, small and medium-sized enterprises must demonstrate their ability to anticipate changes in the market, react to them, and initiate them. This implies improvement of basic processes, learning new skills and closer cooperation with external and internal partners. Small enterprises need to redefine their goals and use their resources more effectively as a necessary condition for expanding maneuvering space for growth and for achieving sustainable development. Finally, it is concluded that organizations must establish the right balance between the challenges and benefits of globalization, and the four basic areas for achieving the right balance are adequate cost, human resources and risk management, as well as the formulation of a strategy that follows the requirements of the global market game.</p> <p><strong>&nbsp;</strong></p> Mirjana Radović-Marković, Zvonko Brnjas, Vladimir Simović ##submission.copyrightStatement## Mon, 24 Jun 2019 00:00:00 +0000 Challenges and Perspectives of Development of Private Pension Funds in Serbia <p class="1Apstratk">Following the successful implementation of the Chilean reform, the World Bank proposed a solution from three pillars of the pension system: compulsory state, compulsory private and voluntary private pension insurance. Serbia, like many other developed and undeveloped countries, has only adopted the third pillar, in addition to the already existing state. The introduction of compulsory private insurance was also considered, however, there are no market conditions or financial possibilities for achieving this idea. Voluntary pension funds in Serbia were introduced by the 2005 laws. There are seven voluntary pension funds in Serbia, managed by four management companies. So far, the funds have achieved positive yields, although due to limited investment opportunities, these rates were very modest. In addition to limited investment opportunities, one of the problems is the accumulation of funds. The problem of population savings has many sides, and it is certain that some of the causes can be sought in bad experiences from the past. The paper analyzes the limitations and possibilities for further development of private pension funds.</p> Marija Đekić, Miloš Nikolić, Tamara Vesić ##submission.copyrightStatement## Mon, 24 Jun 2019 13:07:23 +0000 Review of Initiatives taken by the Government and the Banking Regulator for Successful Transition to a Financially Inclusive Economy: An Empirical Study of India <p>The current study was taken up to review the initiatives taken by the Government of India and Reserve Bank of India to promote financial inclusion in India. The aim was also to study the impact of these initiatives on the financial inclusion. The paper also intended to explore the impact of increasing penetration of mobile phone and internet on financial inclusion. The study revealed that government initiatives like Pradhan Mantri Jan Dhan Yojana, Aadhar Enabled Payment Systems and Direct Benefits Transfer; regulatory reforms by Reserve Bank of India such as Immediate Payment Service, Prepaid Payment Instruments, differentiated banks; digital revolution and active participation of private technology companies, are facilitating in successful transition into a financially inclusive economy.</p> Reena Agrawal ##submission.copyrightStatement## Mon, 24 Jun 2019 13:01:35 +0000 Organizational Culture in Serbian Companies According to the Denison Model <p class="1Apstratk">Organizational culture is an important research topic of modern management science. The results of research conducted in order to cast light on organizational culture in Serbia are shown in the following paper. Since finding a balance between the demands for consistency of an organization and its required adaptability to change is a major challenge in managing organizations in the contemporary world, the Denison Model was applied to the research. The essence of the model is consisted of four dimensions of organizational culture: mission, consistency, involvement of employees, and ability of an organization to change thus including its need for stability as well as for flexibility. The obtained results specifically point to aspects of organizational culture the advancement of which will improve the efficiency and competitive advantage of enterprises in Serbia, which can serve as useful information to policy creators for making better decisions.</p> Snežana Kirin, Gordana Gavrić, Sandra Kirin ##submission.copyrightStatement## Mon, 24 Jun 2019 12:59:26 +0000 A Literature Survey of the Environmental Kuznets Curve <p>Since the 1970s, the issue of environmental degradation has received considerable attention. Environmental Kuznets curve is one of the most well-known hypotheses that explains the relationship between economic growth and environmental pollution. It represents an important model that enables policymakers to deliver quality information-based decisions. In this paper we provide the theoretical framework of the Environmental Kuznets curve and examine existing literature on the EKC hypothesis. The systematic literary survey includes studies conducted for single countries as well as for group of countries. The most of the studies were testing empirically existence of inverted U-shaped relationship between economic growth and carbon dioxide emissions. Due to the chosen time period, set of independent variables and methodological framework, the results are inconclusive in nature, which is consistent with previous literature surveys on the same topic.</p> Petar Mitić, Milena Kresoja, Jelena Minović ##submission.copyrightStatement## Mon, 24 Jun 2019 12:34:05 +0000 The Impact of Accounting Harmonization on Financial Statements Quality in Serbia <p>The general process of the world market globalization and the great influence of international financial organizations, &nbsp;&nbsp;especially the IMF and the World Bank, caused the need for standardization and harmonization of financial statements of the participants involved in international economics and trade. In this process, in the Republic of Serbia, the International Accounting Standards Board (IASB) and the IASB.S project for IAS/IFRS implementation have a crucial role. By adopting the International Financial Reporting Standards - IFRSs (including International Accounting Standards - IASs), financial statements prepared in Serbia may be comparable with financial statements in other countries. Starting from this, the main goal of the research is to indicate whether the financial statements in Serbia based on the IASB project can be comparable with financial statements in other countries, and on this basis can they satisfy the needs of external users of information (investors, creditors and others). In doing so, it points to the experience in the Republic of Serbia, the accounting practice and experiences of other countries, above all members of the European Union. The results of the research show that, in addition to the IAS/IFRS, the US generally accepted accounting principles (GAAPs) and the Directive 34 of the European Union represent the key segments of professional regulation contributing to greater accounting harmonization, and on this basis, the higher quality of financial reporting. Most countries that have national accounting regulations align the accounting rules in the most important issues with those regulations.</p> Danijela Anđelković, Danijela Zubac ##submission.copyrightStatement## Mon, 24 Jun 2019 12:52:09 +0000 Analysis of Cooperation Between Science and Business in the Function of Improving the Effectiveness of the Republic of Serbia Economic Growth <p>The subject of this paper is the analysis of cooperation between science and business in the Republic of Serbia. The main goal of the paper is to identify the level of cooperation, the achieved results and the scientific areas in which the cooperation is being carried out, through the analysis of the current state of cooperation between science and business. The paper should serve as the starting point for future research, where the effects of profitability of investments in science at macro and micro level will be evaluated. The analysis used the official data on the achieved results in scientific research activities from the Statistical Office of the Republic of Serbia, and data from the Ministry of Education, Science and Technological Development. The obtained results showed that Serbia has a potential in the science sector, but that it is not sufficiently used by the economy since researchers focus exclusively on the production of scientific work.</p> Ivan Stošić, Duško Bodroža, Mihajlo Đukić ##submission.copyrightStatement## Mon, 24 Jun 2019 00:00:00 +0000