Strategic decision making and influence of economic freedoms on foreign direct investment (FDI) in Bosnia and Herzegovina

Мilоvаnоvić, Drаgаn; Marković, Nenad

doi:10.5937/straman2200011m

Cited by 3 publications

(3 citation statements)

References 28 publications

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“…When it comes to the COVID-19 period in the countries of the Western Balkans, overall economy was affected, such as GDP, inflation, the ways of doing business (e.g. Szeiner, Kovács, Zsigmond & Poór, 2021), foreign direct investments (Milovanović & Marković, 2022) etc., while the new business models were developed (Erceg & Zoranović, 2022). The highest GDP growth (12.43%) was recorded in Montenegro in 2021, as well as the growth of GDP deflator and inflation (4.37% and 2.41% respectively).…”

Section: Resultsmentioning

confidence: 99%

The effect of the inflation rate on gross domestic product: An economic analysis for the Western Balkans countries

Malenković¹

2023

Strategic Management

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Background: One of the key indicators of a country's macroeconomic stability is certainly inflation. During the past year, there has been a general increase in inflation in Europe. The question arises as to how inflation affects other relevant indicators of the stability of a country. One of the most important indicators is gross domestic product. Purpose: This paper analyses the effect of the inflation rate on gross domestic product in the countries of the Western Balkans for the period 2006-2021, which includes the initial period of the emerging health crisis. Study design/methodology/approach: Official data from the World Bank was used to review the analysis of the state of inflation and gross domestic product. The same data was transformed into appropriate logarithms for proper econometric modelling. The methodology used to determine the effect of the inflation rate on the gross domestic product is multiple regression analysis with the ordinary least squares estimation method. Findings/conclusions: The results of the analysis indicate a positive effect of the gross domestic product deflator on economic growth in the sample countries, while the impact of inflation measured according to the consumer price index is not significant. Limitations/future research: Recommendations for decision-makers about inflation targeting, and further methodological approaches are given as part of the research conclusions.

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Section: Resultsmentioning

confidence: 99%

The effect of the inflation rate on gross domestic product: An economic analysis for the Western Balkans countries

Malenković¹

2023

Strategic Management

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“…Foreign investments can be made more easily into a country with a developed capital market, which is particularly beneficial for nations lacking in the required financial resources (Brzaković, 2007). The decision on where, how and when to invest depends on economic conditions and economic freedoms (Milovanović & Marković, 2022). The inflow of capital into developing countries and developed economies takes place in different patterns, since it adapts to different economic and political structures.…”

Section: Literature Reviewmentioning

confidence: 99%

The position and factors of capital market development in the financial system of the Republic of Serbia

Petrović,

Orlandić,

Marković

2024

Ekonomika

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In the financial system of the Republic of Serbia, the capital market does not play a significant role - it practically does not perform one of its basic functions - the transfer of resources from surplus to deficit sectors. The Belgrade Stock Exchange, as the only organizer of the Regulated Market and MTP in the country, played a one-time role of transfer and concentration of ownership in the first years of privatization. After that, and considering the significant costs and reporting obligations of listed companies, the delisting process followed - only companies that had to do so by force of law remained on the stock exchange. Also, although the last two decades have been marked by significant regulatory improvements (from shareholder protection, takeover obligations, transparency of public companies' operations), the trading platform is aligned with the practice of regional markets, new market participants are included in the market game (such as investment funds), the domestic capital market has all features of underdeveloped markets. The aim of this paper is to establish how the market participants themselves perceive the factors of capital market development. For this purpose, research was conducted by sending a Google questionnaire to the addresses of all members of the Belgrade Stock Exchange and all registered investment fund management companies. Participants in the research declared themselves on twelve statements that were formulated in such a way as to establish a connection between certain factors and the development of the capital market. The results of earlier research, which represent the basis for the formulation of said claims, are listed in this paper. In addition to the results of earlier research, the formulation of the mentioned claims was also conditioned by the appreciation of the specifics of the domestic capital market, as well as the author's knowledge based on many years of experience in dealing with securities. A five-point Likert scale of attitudes was established for each statement (from 1 to 5), which refer to the determination of respondents regarding the circumstances of the development of the capital market. Respondents were offered a choice between five answers from "Completely dissatisfied", "Partially dissatisfied", "Neither dissatisfied nor satisfied", "Partially satisfied" to "Completely satisfied". The results of the research are presented through frequencies and percentage representation for each claim. Concluding considerations stem from the created descriptive statistics. The results of the survey showed the highest degree of conviction of the respondents when they declare the conditionality of the development of the capital market on the one hand and good mechanisms for informing the investment public on the other. At the same time, the respondents were the most reserved when considering the relationship between foreign portfolio investments and the development of the capital market, that is, the chosen model of privatization and development of the capital market. The research concept represents a new approach in the study of the domestic stock market, with the basic intention to perceive the factors of capital market development from the perspective of the market participants themselves. The intention is to determine their value judgments on the basis of the views of the respondents, in relation to the twelve formulated claims, but also to provide guidelines for future research and potential improvements of the domestic capital market. Each individual claim provides a basis for specific further research, and longer time series data are a solid statistical basis for correlation and regression analysis of defined variables.

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“…The decision-making systems for foreign direct investment are very popular nowadays. The regression (Milovanović and Marković, 2022) and autoregressive (Kurecic and Kokotovic, 2017) methods are usually used to create decision-making systems for foreign direct investment based on machine learning. The construction of only linear models is the disadvantage of such methods.…”

Section: Introductionmentioning

confidence: 99%

Proceedings of 10th International Conference on Monitoring, Modeling & Management of Emergent Economy

2022

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The movement of Ukrainian guest workers in the direction of Poland until 2019 was predominantly transnational in nature, as there was a constant movement of labor migrants between the national spaces of Ukraine and Poland with financial participation in the economies of the two countries at the same time. This fact is confirmed by the results of empirical sociological researches conducted by the Ukrainian Institute of the Future, the Cedos analytical agency, the Personnel Service employment agency, the Gremi Personal, and the statistical data of the International Organization for Migration, the State Migration Service of Ukraine, the State Statistics Service of Ukraine, the Ministry of Family and Social Development of Poland. However, the trends changed dramatically due to the global COVID-19 epidemic, later in 2022 with the outbreak of the war in Ukraine. The desire for temporary, pendulum labor mobility gave way to the desire to leave Ukraine forever and settle abroad with the whole family. A new migration trend may be associated with the movement to Poland of Ukrainian men who come after the end of the war to reunite with their families, who were moved there earlier since the beginning of hostilities in Ukraine.

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Strategic decision making and influence of economic freedoms on foreign direct investment (FDI) in Bosnia and Herzegovina

Cited by 3 publications

References 28 publications

The effect of the inflation rate on gross domestic product: An economic analysis for the Western Balkans countries

The effect of the inflation rate on gross domestic product: An economic analysis for the Western Balkans countries

The position and factors of capital market development in the financial system of the Republic of Serbia

Proceedings of 10th International Conference on Monitoring, Modeling & Management of Emergent Economy

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