ECONOMICS - Innovative and Economic Research 2021-12-18T15:08:51+01:00 Zoran Mastilo Open Journal Systems <p>We are proud to present the magazine "ECONOMICS” Innovative and Economic Research Journal Oikos Institute in Bijeljina that comes out, continuously, twice a year. Oikos Institute is dedicated to the constant development of the journal.</p> <p>Based on the decision of the Ministry of Education and Culture of the Republic of Serbian, number 07.030-053-50-11 / 13 of 06.03.2013. year, approved the registration of "Oikos Institute" doo Bijeljina in the register of publishers, numbered 383 rd.</p> <p>Starting from the fact that most of the economic progress is based on innovation, ECONOMICS - Innovative and Economic Research Journal has focused primarily on knowledge economy and innovation. Only unpublished papers, that represent original scientific research, which contribute to the knowledge economy and innovation, are published in the journal.</p> <p>The reason is very simple: nothing happens in the world economy without being fundamentally connected with technological changes. Innovation is a key driving force that accelerates all kinds of social changes. Innovations and changes within the fourth industrial revolution are the most famous in the world of new technologies that shape the global economic and technological structure, international and local markets, as well as the entire socio-cultural system.</p> <p>The editorial board is edited by eminent professors and associates, as well as renowned scientific and research workers from the country and abroad.</p> <p>All published scientific papers subject to mandatory review by two independent reviewers. Accepted papers are published in English.</p> ECONOMIC RECOVERY, SUSTAINABLE DEVELOPMENT AND POST-COVID INSTITUTIONS 2021-12-18T14:37:34+01:00 Đukić Petar <p>Uvodnik_XII_21</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021 THE EFFECT OF TRANSPORT AND LOGISTICS ON TRADE FACILITATION AND TRADE: A PLS-SEM APPROACH 2021-12-18T14:40:45+01:00 Cynthia Sénquiz-Díaz <p>Trade facilitation promotes increased opportunities to participate in international trade. Current research has mainly analyzed the impacts of tariff-related and trade barriers. Nevertheless, as trade policies shift toward removing non-tariff barriers, studies addressing core elements become relevant, requiring a more systemic view at a simultaneous level. The study proposes that transportation infrastructure (i.e., roads, seaports, railroads, and airports) and logistics are core elements supporting trade facilitation efforts at the local level. The study provides empirical evidence on the direct and indirect effects among transportation infrastructure, logistics, trade facilitation, and trade. Partial least squares–structural equation modeling is the main empirical method employed to examine the interrelationship of the quality of transportation infrastructure, logistics, trade facilitation, and trade using a sample of 80 countries for the years 2012, 2014, and 2016. There is a large direct effect of transportation infrastructure on trade facilitation and a vast direct effect on logistics. Logistics has a small direct effect on trade facilitation. I also conduct mediation analyses, which show that logistics has a larger effect on trade via trade facilitation than transportation infrastructure quality has. These findings suggest that trade facilitation implementation might not be enough to tackle current challenges and ongoing economic development. Governments should prioritize the integration of logistics stakeholders in the public sector to optimize the benefits of global networks. Tus, the significance of transportation infrastructure and logistics in trade should not be neglected, as the private sector (i.e., logistics providers) play a large and relevant role in practice.</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021 THE INFLUENCE OF SOCIAL NETWORKS IN TRAVEL DECISIONS 2021-12-18T14:44:22+01:00 Iulia Elena Varga Manuela Rozalia Gabor <p>Social networks are not the same as they were 10 years ago. Now, in addition to the role of "socialization", their basic role, marketing has also intervened. Marketing can be defined as the art of identifying and satisfying customer needs while producing profit. Nowadays, through social media marketing, a company can promote itself or present products and services very easily, while being able to target exactly the desired people, which translates into making more profit. Our paper provides arguments on the influence of social media in travel decisions, and it’s based on a study of consumer behaviour in this field. The study began from our interest in the way social networks influence our personal decision to travel, to visit a certain area or a certain landmark, so we wanted to find out more information about how this "hypnosis" works. The main hypothesis of the study was that people are influenced by social networks in their travel decisions and according to the results, the hypothesis was confirmed. 91.35% of the total participants in the study were tempted to travel because of a photo seen on a social network, therefore, a good social marketing campaign could really make a difference in travel decisions.</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021 POST COVID-19 WORK STRATEGIES AND IMPLICATIONS: INSIGHT ON INDIAN IT SECTOR 2021-12-18T14:47:26+01:00 Kolluru Mythili Krishnan Kumutha Kumar Kolluru Shyam <p>The purpose of this paper is to examine the work strategies adopted by leading Indian IT companies post COVID-19 and their institutional and individual level implications. Following the exploratory sequential mixed-method approach, in the first phase, the data were collected from 8 leading IT companies in India to understand the work strategies implemented post COVID -19 to ensure employees’ safety without disrupting client deliverables. In the second phase, the primary qualitative interviews were conducted and selected IT companies' financial statements with a systematic analysis of financial indicators were used to gauge the impact of new work strategies. The study reveals the selected IT companies were embracing Work-From-Home or Work-From-Anywhere as their work strategies by ensuring little to no disruption, were armed with a host of technology tools that allowed employees' swathes to new work-norm within hours. The study findings manifold implications of the new work-norm are that it has no negative impact on the companies' client deliverables and profitability. The paper confirms that the remote-working approach has resulted in reduced carbon footprint, work-life balance, and de-urbanization while identifying the flip side of this approach as the negative impact on team cohesiveness and employee emotional wellbeing. Tis research confirms the critical lesson learned from COVID-19 is agile companies must plan for a range of incomprehensible contingencies to ensure business continuity and growth. The research findings contribute towards understanding the Indian IT sector experiences in adopting the remote-work strategies and taken as lessons that can be useful for other global IT sectors.</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021 THE INNOVATIVE IMPACT OF INSURANCE FOR ECONOMIC GROWTH: THE EVIDENCE FROM NEW EU MEMBER STATES 2021-12-18T14:59:23+01:00 Hristo Kondovski <p>Insurance market activity, both as a financial intermediary and a provider of risk transfer and indemnification, may contribute to economic growth by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insurance market activity, particularly in emerging markets given the process of liberalization and financial integration, which raises questions about its impact on economic growth. The aim of this paper is to examine relationship between insurance sector development and economic in 11 new EU member states from CentralandEasternEurope, using annual data fortheperiod 1999-2018. We apply dynamic and fully modified ordinary least squares to estimate the relationship between the variables. The results of our study indicate there are a positive and a significant relationship between insurance, measured through penetration, and economic growth Tus, functions of insurance companies - providing means of risk management and performing mobilization and allocation of resources – are important for economic growth and is in line with previous studies and with our hypothesis These results could be useful for regional governments that seek to improve economic growth as they suggest the need for implementation of stimulative policies for the development of insurance industry</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021 THE IMPACT OF THE INFLOW OF FOREIGN DIRECT INVESTMENTS ON THE ECONOMIC DEVELOPMENT OF SERBIA 2021-12-18T15:01:39+01:00 Slaviša Kovačević Mladen Rebić Drago Kurušić <p>Foreign direct investments present one of the very important products of globalization, by establishing a new economic concept of free international movement of capital, people, goods and services. An analyses of the impact of this type of international movement of capital on economic growth and development is one of the modern tendencies of economic researchers. The subject of this paper is the analysis of the impact of the level and structure of foreign direct investment on the economic development of the Serbian economy, where the impact of foreign direct investment inflow on economic growth, current balance, manufacturing industry through the impact on total industry turnover, employment and productivity will be separately considered. The aim of this research is to prove the importance of FDI for developing countries, as well as to point out the need to improve and enhance the business environment in order to maximize FDI inflows. The main hypothesis of this research is that foreign direct investments significantly contribute to the economic growth and development of the Republic of Serbia. For the purposes of hypothesis analysis and testing, a simple linear regression model was used in this paper. The research was conducted for the period from 2010 to 2019. The obtained results present a positive relationship between the inflow of foreign direct investment and GDP growth, and show a positive relationship between growth of investments in manufacturing and growth in productivity, employment and total turnover, and show a positive relationship between FDI inflow and export value.</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021 IMPLICATIONS OF EMOTIONAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT 2021-12-18T14:52:24+01:00 Camelia Angelica DÂMBEAN Manuela Rozalia Gabor <p>This article reflects an applied theoretical study that addresses the relationship between emotional intelligence, occupational stress, motivation and job satisfaction in the employees of a machine tool manufacturer. Emotional intelligence is very important and indispensable for managers in Romanian institutions, leaders wanting all employees to fulfill their obligations and responsibilities in a pleasant environment, without stress, to have effective productivity. The aim of the paper is to manage emotions, stress and time, follow rules and is to observe the relationship between EQ and work management. Emotional states must be aware, understood and controlled to achieve our goals and purpose. It describes the basic concepts, basic psychological models, purpose, objective, research hypothesis, methodology, tools for measuring emotional intelligence and job satisfaction. The main objective highlights the emotional intelligence of the people involved in the organization, an objective applied at individual and group level that leads to increasing the quality of production. Observation, interview, questionnaire, analysis and data synthesis were used as research methods. The research has 4 hypotheses that have been demonstrated. Statistical analyzes were performed using the SPSS 20 program, focusing on descriptive statistics, percentage frequency analysis, correlations. Emotional intelligence is indispensable in leadership positions, and job satisfaction is directly associated with productivity and efficiency in an organization.</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021 THE IMPACT OF THE COVID-19 PANDEMIC ON THE MACROECONOMIC AGGREGATES OF THE EUROPEAN UNION 2021-12-18T14:55:55+01:00 Aleksandar Đukić Mirjana Štaka Dajana Drašković <p>Economic experts’ predictions of a slowdown in the EU’s global economy and economic growth in the year 2020 were based on various risks and uncertainties existing on a world scale, ranging from the US-China trade war, traditionally strained relations of the EU and the US on the one hand and the Russian Federation on the other, all the way to BREXIT and economic migration to developed EU countries. However, the COVID-19 pandemic has further aggravated those forecasts, so that the entire EU is recording a historic decline in all macroeconomic aggregates. The beginning of the pandemic in the EU was accompanied by the complete border lockdown of the entire Union, which greatly affected the economies of the member states. The EU is experiencing a decline of both real and nominal GDP, declining incomes, employment decline and unemployment increase. Tis paper will investigate the impact of COVID-19 onto GDP, unemployment, and EU public debt. Correlation-regression analysis confirms the positive correlation between these variables and the economic crisis caused by the COVID-19 pandemic. In addition to the economic crisis, a crisis of EU health systems, which requires huge economic investments. A more prominent economic recovery is hard to expect until the global pandemic ends. One thing is for certain, this economic crisis will continue in 2021, whereby a more significant recovery is expected only in the year 2022. Certainly, it will take years to make up for the economic losses caused by the pandemic.</p> 2021-12-18T00:00:00+01:00 Copyright (c) 2021