Journal of Balkan Economies and Management
The Journal of Balkan Economies and Management (JBEM) is dedicated to publishing original scientific research that advances understanding of economic and management practices within the Balkan region. Our mission is to foster academic excellence by disseminating methodologically rigorous, theoretically sound, and empirically robust research.
Reiner Osbild and Will Bartlett (Eds.), Western Balkan Economies in Transition: Recent Economic and Social Developments. Cham: Springer International Publishing, 2019 (Societies and Political Orders in Transition series). xii + 171 pp. Hardcover ISBN 978-3-319-93664-2; eBook ISBN 978-3-319-93665-9
The Western Balkans occupy an unusual place in the European imagination. As Reiner Osbild and Will Bartlett observe in their introduction, the region tends to attract international attention chiefly in moments of crisis, the wars of Yugoslav succession in the 1990s, or the migration flows of 2015, while the patient, often frustrating work of economic and institutional convergence with the European Union goes largely unremarked. This edited volume sets out to correct that imbalance. Bringing together twelve contributions, several of which originated at a 2016 conference held at the University of Applied Sciences Emden-Leer, the book offers a measured, empirically grounded survey of the economic and social challenges confronting Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia as they pursue accession to the EU.
Copyright (c) 2026 Aytug Zekeriya Bolcan (Author) https://creativecommons.org/licenses/by-nc/4.0
Digitalization and Economic Growth in the European Union:A Panel Analysis for the EU-27 (2015–2024)
Digitalization has become a central driver of economic growth, influencing productivity, innovation, and national competitiveness. This study examines the impact of digitalization on GDP per capita in the EU-27 over the period 2015–2024, using the Digital Economy and Society Index (DESI) alongside traditional determinants of economic growth: investment in physical capital, human capital, trade openness, and institutional quality. Panel data are analyzed using Fixed Effects and Random Effects models, with the Hausman test employed to identify the appropriate specification. The results indicate that digitalization exerts a positive and statistically significant effect on GDP per capita. Moreover, institutional quality, investment, and education emerge as critical complementary factors that amplify the impact of digitalization. The study provides relevant empirical evidence for public policies aimed at integrating digitalization, investment, and education into strategies for sustainable economic growth in the European Union.
Copyright (c) 2026 cornelia tomescu dumitrescu, Ass.Prof.PhD. Constanta Enea, Ass.Prof.PhD. Genu-Alexandru Căruntu (Author) https://creativecommons.org/licenses/by-nc/4.0
A Systematic Analysis of Published Articles in the Fieldof Auditing in Western Balkan Countries
Auditing plays a significant role in evaluating the efficiency, effectiveness, cost-efficiency, and overall performance of public administration institutions and private sector organizations. It also encompasses managerial activities, organizational structures, management systems, and administrative processes. The main objective of this study is to analyze and critically examine published research related to auditing in Western Balkan countries. The study investigates the development, effectiveness, and importance of auditing practices in both the public and private sectors across the region. Through a systematic review of academic publications and professional studies, this research aims to identify the role, relevance, and evolution of auditing over the years, particularly in recent periods. Furthermore, the study highlights the growing importance of auditing as a mechanism for transparency, accountability, and financial control in Western Balkan countries by combining theoretical perspectives with numerical and comparative data analysis.
Copyright (c) 2026 Qendrim Bytyqi (Author) https://creativecommons.org/licenses/by-nc/4.0
The Allocation of Capital in the Early Republic:The Credit and Participation Policies of Türkiye İş Bankası, 1924-1933
This article analyzes the mechanisms of capital allocation in the early Republican period through an examination of Türkiye İş Bankası’s credit and participation policies between 1924 and 1933. Its central argument is that, during this period, İş Bankası functioned not merely as a commercial bank that collected deposits and extended loans, but as an active institutional actor that shaped the direction of private capital. The study interprets early Republican economic policies not as a sharp rupture between the liberalism of the 1920s and the statism of the 1930s, but within the continuity of the idea of milli iktisat (national economy). In this sense, the bank is treated as one of the institutional instruments through which the milli iktisat tradition inherited from the Second Constitutional Period was reformulated under Republican conditions. By reading the annual reports and balance sheets for 1924-1933 both quantitatively and qualitatively, the article draws an analytical distinction between credit policy and participation policy. Accordingly, while credit policy served a broader financing function directed especially toward commercial circulation, participation policy reflected the bank’s preference for committing capital directly to fields it regarded as more selective, long-term, and strategic. The article further argues that the Great Depression of 1929 and the subsequent shift toward statism did not constitute a rupture that rendered İş Bankası obsolete; rather, they redefined its function in line with new objectives of industrialization and capital direction. Consequently, Türkiye İş Bankası is evaluated as a hybrid institution of capital allocation, situated in the permeable space between the state and private enterprise, and as an actor that influenced the sectoral and institutional distribution of capital in accordance with the principles of milli iktisat.
Copyright (c) 2026 Muhammet Ali Yapıcı, Gülden Ülgen (Author) https://creativecommons.org/licenses/by-nc/4.0
Determinants of Green Innovations in North Macedonian SMEs: A Stakeholders Perspective
Green innovation has emerged as a strategic mechanism through which firms strengthen their environmental performance and long-term competitiveness. In the context of North Macedonian SMEs, stakeholders play a decisive role in shaping the extent, direction and success of green innovation practices. This study focuses exclusively on examining how key stakeholder groups such as customers, suppliers, competitors, employees, technology providers and government institutions influence the adoption, development and implementation of green innovations. Findings from the empirical analysis demonstrate that stakeholder pressures, expectations and collaborations act as critical drivers for stimulating eco-innovative activities within SMEs. Customers increasingly demand environmentally friendly products, suppliers facilitate access to greener materials and technologies, while employees contribute through environmentally responsible behavior and internal capabilities. Competitors accelerate innovation by creating competitive pressures, and government institutions further reinforce green transformation through regulations, incentives and policy frameworks.
Copyright (c) 2025 Sara Muca, Bujamin Bela (Author) https://creativecommons.org/licenses/by-nc/4.0
Leadership Theories in Transition From Tradition to Technology
This paper presents a review of main leadership thieveries with providing comments on the main theories and (history, applications, principles, strengths and weakness and how do they look to the employees). There are numerous types of leadership styles and definitions. This study is focused on basic leadership seemed throughout the years. It covers also the relationship and effectiveness of leadership in management field, to investigate more new aspects about those theories and their implementations. As a conclusion for this study the researcher has focused on main two elements related to leadership that are ;first the qualities of the leader as it is important to create the personality and the character of the leader regardless whether they are inherited or getting learned, at the end we focus on the result. Second, is the nature of the behavior that appeared in a situation in the organization, or in the other words how do the leader act in the institution to gain the success of it. If those are strong enough the leadership can be strong and successful. those elements are required for the new command of E-leadership that is about to be a most in the new technology world and in the common situation of Covid-19 that force may companies to use this remote kind of leadership to go ahead.
Copyright (c) 2025 Abeer Muqbel (Author) https://creativecommons.org/licenses/by-nc/4.0
Medium-Run Effects of Central Bank Independence Reforms on Inflation and Income Inequality: Evidence from Panel Data and a New Keynesian Model
We examine the medium-run impacts of central bank independence (CBI) reforms on inflation, unemployment, and income inequality by combining panel event-study and local projection evidence with a small structural macroeconomic model. Using a panel of 30 countries from 1991–2019, we identify major CBI reform events and estimate their dynamic effects. The event-study shows no significant pre-trends in inequality and no detectable change in net income Gini following CBI reforms (Figure 1). Local projections confirm that while CBI reforms significantly reduce inflation by about 2 percentage points after 4–5 years, they have no statistically significant effect on unemployment or net income inequality. We then build a backward-looking New Keynesian model calibrated to high vs. low CBI regimes. The model reproduces the empirical inflation–unemployment dynamics and predicts only a negligible difference in inequality between high- and low-CBI scenarios (on the order of 0.03 Gini points). Our findings suggest that enhancing CBI delivers disinflation benefits without exacerbating income inequality in the medium run. We discuss robustness checks, policy implications for emerging and advanced economies, and the role of complementary policies.
Copyright (c) 2025 Aytuğ Bolcan (Author) https://creativecommons.org/licenses/by-nc/4.0
Ethical Values in the Audit Profession: A Simple Descriptive Study from Stakeholders’ Point of View
Ethics plays an important role in improving the audit quality and regaining the stakeholders’ trust, especially after several recent worldwide organizations bankruptcies; that’s why audit firms have their codes of conduct to make sure of having a reference for ethical values that control the audit process and its outputs. This study aims to provide an understanding of the stakeholders’ perceptions about the ethical values adopted by the audit firms and uses descriptive statistics to find the most important ethical value that leads to trust an audit firm from their point of view. The data was collected using an online survey from 112 Yemeni stakeholders, who were asked to give a score from 1, representing the least important, to 10, representing the most important, for 10 ethical values adopted in the Big 4 audit firms. Based on the calculation of the mean and standard deviation, it was found that from the point of view of Yemeni stakeholders, integrity and honesty is the most important ethical value, whereas social responsibility is the least important ethical value that leads to trust an audit firm in the Yemeni business environment, which may differ from any other business environment. This study provides insights to audit firms about the stakeholders’ point of view on the most important ethical value in the audit profession and their expectations about the audit firms’ commitment to ethical values when practicing the audit profession.
Copyright (c) 2025 Marwan Ghaleb (Author) https://creativecommons.org/licenses/by-nc/4.0
Modernization and the Elite Cycle: Economic Power and State Formation in the Ottoman Empire
This study focuses on the question of why states need elites. Throughout history, political powers (such as tribal leaders, great emperors, or nation-states) have shared some of their power, albeit in a limited manner, with certain individuals who held authority to rule, setting them apart from the general population. Over time, as the central power of a political entity weakened, the power of those acting on behalf of the center increased. Conversely, when the administrative power of the center strengthened, the powers in the periphery remained more limited. These individuals with whom power is shared are commonly referred to as the elite. Though not entirely separate from society, the elite occupy a higher position in the social hierarchy compared to the rest of society. The primary focus of this study is to trace how the pre-modern state-elite relations transformed during the process of modernization. During the 18th and 19th centuries, the Ottoman Empire, like other contemporary states, sought to embrace change and modernize. Consequently, the relationship between the political power and peripheral powers underwent reconfiguration. As the Ottoman state attempted to eliminate existing elites, new ones were simultaneously created to take their place. Another important aspect addressed by this study is the exploration of the organic link between the new elites and the state. This includes examining the economic relations of the emerging 19th-century Ottoman elite with the state and amongst themselves.
Copyright (c) 2025 Mustafa Can Güripek (Author) https://creativecommons.org/licenses/by-nc/4.0
Bujamin Bela and Ü. Serdar Serdaroğlu,Balkan Economies Structure, Transition andTransformation of North Macedonia, 1991-2024
The health crisis caused by Covid-19 pandemic has had consequences for all economies in Balkan countries. SMEs as the most important part of economy play significant role in transformation of economies. The aim of this Book review is to express the contribution of the book in each economies, SMEs, countries in transition etc. By placing the situation of North Macedonia in Balkan level, each chapter offers analyses of history, policy makers, financial crises, inflation, public debt and FDI, which presents contribution in academic field also presents basis for future studies.
Copyright (c) 2025 Mimoza Arifi Iseni (Author) https://creativecommons.org/licenses/by-nc/4.0
Petrit Pollozhani, Merale Fetahi and Arbresh Raveni, Albanian Emigrations and Their Effects on Demographic and Socio-Economic Developments in North Macedonia
Copyright (c) 2025 Arbresh Raveni (Author) https://creativecommons.org/licenses/by-nc/4.0
Costas Lapavitsas and Pınar Çakıroğlu, Capitalism in the Ottoman Balkans: Industrialisation and Modernity in Macedonia
This review is based on the book by Costas Lapavitsas and Pınar Çakıroğlu, published by I. B. Tauris in 2019, Capitalism in the Ottoman Balkans: Industrialization and Modernity in Macedonia. The book, which deals with one of the early examples of capitalism in the non-European world, draws attention to the existence of capitalist movements in the Ottoman Empire, one of the relatively weakened powers of the period, contrary to popular belief. In this respect, the book is of a remarkable nature.
Copyright (c) 2025 Mustafa Sacid Ozturk (Author) https://creativecommons.org/licenses/by-nc/4.0
Globalization and Harmful Tax Competition
This study focuses on the difficulties in taxing capital, which can easily overcome time and space limitations with the globalization process. It is observed that especially developing countries resort to low tax rates and various tax privileges in order to attract foreign capital to their countries due to the economic conditions they are in. The continuation of this trend among countries, in other words, tax competition among countries erodes tax bases, disrupts the integrity of tax structures and, in particular, weakens tax justice. This harmful tax competition leads to a shift in the tax burden from highly mobile capital to relatively less mobile labor. This study analyzes the changes in corporate tax rates of OECD countries and Balkan countries during the globalization process. In order to solve the global problem of harmful tax competition and other global tax problems, states should work together. Harmonization of tax systems, comprehensive cooperation between tax administrations and transparent exchange of information are crucial to minimize the erosion of tax bases.
Copyright (c) 2025 Önder Bingöl (Author) https://creativecommons.org/licenses/by-nc/4.0
Is Bitcoin Haram in Sharia? A Methodological Critique of the Prohibition Fatwa
This article critically evaluates the Sharia legitimacy of Bitcoin by applying Usul al-Fiqh—the foundational principles of Islamic jurisprudence—to several influential fatwas that prohibit it. Despite stemming from sincere concerns, many such fatwas rely on incomplete factual understanding, unverified analogies, or secondary policy considerations rather than explicit textual or consensus-based evidence. Consequently, these rulings risk conflating genuine harms (fraud, volatility, illicit use) with Bitcoin’s inherent characteristics, which classical fiqh frameworks may otherwise recognize as permissible if carefully regulated. Drawing on examples of fatwas that deem Bitcoin permissible, the study demonstrates how thorough subject comprehension and methodologically robust legal derivation (ijtihad) often yield more nuanced conclusions. It further underscores that well-established Qur’anic and Prophetic principles— such as avoiding excessive uncertainty (gharar) and upholding wealth preservation—need not preclude thoughtful, evidence-based engagement with emerging financial technologies. Concluding that clear methodological grounding and accurate technology assessment are indispensable, the paper advocates ongoing dialogue between Sharia scholars, economists, and technical experts to ensure balanced rulings that protect Muslims’ interests while fostering innovation.
Copyright (c) 2025 Essa Al-Mansouri (Author) https://creativecommons.org/licenses/by-nc/4.0
The Quest for Fairness and Fulfillment: A WVS-Based Study on Income Equality and Life Satisfaction in North Macedonia
This study investigates the relationship between income equality acceptance and life satisfaction in North Macedonia using World Values Survey data across multiple waves. Employing ordinal logistic regression, the analysis controls for demographic, socioeconomic, and cultural factors. Findings reveal that individuals who accept income inequality as a motivational necessity report higher life satisfaction, while those favoring greater equality exhibit lower well-being, potentially reflecting frustrations with perceived systemic unfairness. These results highlight the significance of distributive justice in shaping subjective well-being within a transitional economy. The study provides insights for policymakers to promote equitable growth and social cohesion in post-socialist contexts.
Bridging the Sustainable Development Funding Gap: A Crowdfunding Approach
This research investigates the nuanced role of crowdfunding in bridging the Sustainable Development Goals (SDGs) funding gap. Employing panel data and quantile regression, we move beyond aggregate analysis to examine the heterogeneous impact of crowdfunding on poverty reduction, economic growth, renewable energy, energy intensity, and climate action across countries with varying income levels. Our findings, robust to a battery of econometric tests, reveal that crowdfunding's effectiveness is fundamentally contingent on development stage. While crowdfunding demonstrably contributes to poverty reduction in high-income countries and fosters economic growth in middle- and lower-income nations, it paradoxically associates with increased poverty in the poorest countries and impedes renewable energy adoption in middle-income economies. These starkly heterogeneous effects, often obscured by traditional analysis, underscore the imperative for tailored policy frameworks. Specifically, we argue that maximizing crowdfunding's potential for sustainable development necessitates a shift from universal prescriptions to context-specific interventions that address distributional challenges and promote sustainable investments.
Copyright (c) 2025 SHADI Al Shebli, Ahmet F. Aysan, Ruslan Nagayev (Author) https://creativecommons.org/licenses/by-nc/4.0
James D. Gwartney, Richard L.Stroup, Dwight R. Lee, Tawni H.Ferrarini, Joseph P. Calhoun,Randall K. Filer, Common Sense Economics, Economic Fundamentals Initiative, 2021, pp.360
Economics (2021) was published by the Economic Fundamentals Initiative in New Jersey. The authors of the book are James D. Gwartney is professor emeritus of the Department of Economics at Florida State University, where he taught for 53 years, Richard Lyndell Stroup was a professor emeritus of economics at both North Carolina State University and Montana State University and was co-founder of the Property and Environment Research Center and a senior fellow, Dwight R. Lee a professor emeritus of the Department of Economics at the Southern Methodist University, Tawni H. Ferrarini a professor of economics and the Director of the Center for Economic Education and Entrepreneurship at Northern Michigan University and also served as the university’s ambassador across 15 rural and remote counties in the Upper Peninsula of Michigan, Joseph P. Calhoun a professor of economics at Florida State University that served as chief economist for the Joint Economic Committee of Congress and Randall K. Filer a professor of economics at Hunter College and the Graduate Center of the City University of New York and a Visiting Professor of Economics and Senior Scholar at CERGE-EI.
Copyright (c) 2024 Bujar Chahili (Author) https://creativecommons.org/licenses/by-nc/4.0
Zdenko Zlatar, Dubrovnik’s Merchants and Capital in the Ottoman Empire (1520-1620). A Quantitative Study, The Isis Press, Istanbul 2010, pp. 664.
Zdenko Zlatar, known for his works on Dubrovnik in the early modern period, was born in Dubrovnik and undoubtedly has a special interest in his birthplace. He completed his early education in his hometown before earning his PhD at DePaul University. In this book, Zlatar focuses on the commercial relations between Dubrovnik merchants and the Ottoman Empire, and his previous works have also primarily concentrated on the economic history between Dubrovnik and the Ottomans.
Copyright (c) 2024 Muhammed Seyyid Katırsız (Author) https://creativecommons.org/licenses/by-nc/4.0
A Comparative Analysis between Islamic Economics and Environmental Economics: Historical Development and its Significance for Contemporary Challenges
This article investigates the possible relationship between Islamic and Environmental Economics to address environmental concerns. Comparative analysis shows that Environmental Economics has been more successful in addressing environmental challenges, even though both frameworks approach the economic activity with different concepts. Environmental Economics has been successful because of its all-encompassing focus on environmental factors, acceptance on a worldwide scale, relevance of policies, and individual-centered methodology. On the other hand, Islamic economics, which functions mainly at the community level, needs more clarity with broader implementation. The strengths of each strategy are examined in this research, which concludes that environmental economics provides a more flexible and universally applicable framework for promoting economic activity by environmental preservation. The results add to the current discussion on sustainable development by highlighting the significance of combining realistic, internationally recognized strategies with moral principles to create a sustainable future.
Copyright (c) 2024 Ahmet Faruk Aysan, Miranda Canga, Umar Nawaz Kayani (Author) https://creativecommons.org/licenses/by-nc/4.0
The Contribution of Total Factor Productivity on Economic Growth in Selected Southeastern European Countries
This paper delves into the impact of capital accumulation, effective employment, and total factor productivity (TFP) on the economic growth of five Southeastern European countries: Albania, Croatia, North Macedonia, Serbia, and Slovenia. The examination is based on the Solow-Swan neoclassical growth model and the Cobb-Douglas production function, which dissects economic growth into capital, labour, and productivity inputs. The analysis pays particular attention to the growth dynamics of North Macedonia over the entire period (1998-2019) and two sub-periods (1998-2008 and 2009-2019). The article seeks to provide a comprehensive evaluation of the primary drivers of economic growth in Southeastern European countries, emphasising the evolving roles of capital, labour, and productivity over time. Through a detailed analysis of these determinants, the study offers insights into the necessary policy actions to ensure sustainable long-term growth, especially in transition economies. The empirical analysis utilises the growth accounting framework and employs regression analysis to estimate the output elasticities of capital and labour inputs. The data analysis covers the period of 1998-2019, specifically focusing on two sub-periods to investigate shifts in growth drivers over time. Each factor's contributions are presented in absolute terms (percentage points) and relative terms (percentages) to provide a comprehensive understanding of their roles. The findings indicate that capital accumulation has been the predominant growth driver in most countries, especially Albania, Croatia, and North Macedonia. However, in Serbia and Slovenia, total factor productivity (TFP) played a more significant role, contributing substantially to growth. In North Macedonia, TFP showed strong contributions during 1998-2008 but declined sharply in 2009-2019, leading to increasing reliance on capital and labour inputs for growth. This study is valuable in emphasising the shift in growth drivers over time and highlighting the importance for Southeastern European countries to concentrate on productivity enhancements, innovation, and labour market reforms to sustain long-term growth. These findings provide significant insights for policymakers seeking to improve economic performance in transition economies.
Copyright (c) 2024 Gunter Merdzan, Dr. Ervin Domazet (Author) https://creativecommons.org/licenses/by-nc/4.0
Foundations of Organizational Culture: A Comprehensive Review
This paper aims to provide a comparative analysis of seminal cultural studies by Schein, Hofstede, and the Project GLOBE initiative, examining their influence on contemporary organizational contexts. The study conducts a literature review and comparative assessment of the cultural models proposed by Schein, Hofstede, and the Project GLOBE initiative. Additional cultural models from Schwartz and Trompenaars are briefly reviewed to acknowledge their relevance. The analysis reveals that Schein’s model emphasizes cultural artifacts, beliefs, and assumptions; Hofstede’s model focuses on six dimensions of national cultures; and the Project GLOBE initiative identifies nine cultural dimensions affecting leadership and organizational processes. These models collectively offer a comprehensive understanding of organizational culture and its impact on behavior and performance. This paper contributes to the field by synthesizing and comparing key cultural models, highlighting their enduring significance in organizational studies and providing insights into their practical applications in various organizational settings.
Copyright (c) 2024 Kujtim Hameli (Author) https://creativecommons.org/licenses/by-nc/4.0
Comparative Perspectives on Digital Entrepreneurship and Economic Growth: A Focus on the Western Balkans
This study explores how digital entrepreneurship drives economic growth in the Western Balkans by examining factors such as digital infrastructure quality, venture capital investment, digital literacy, and policy environment. Using a mixed-methods approach, the research analyzes data from regional statistical offices, interviews with digital entrepreneurs, and investment trends. Results indicate an average internet accessibility rate of 70% and annual venture capital investments of approximately $100 million in the region. Correlation and regression analyses reveal a strong positive association between digital infrastructure quality and GDP growth, as well as between venture capital investment and the emergence of new startups. Additionally, while digital literacy shows a positive correlation with employment in the digital sector, its impact is less significant. Based on these findings, the study recommends focusing on enhancing digital infrastructure and literacy programs to support economic development. This research highlights digital entrepreneurship as a crucial catalyst for economic advancement in the Western Balkans, offering actionable insights for policymakers and identifying avenues for future research.
Copyright (c) 2024 Abil Baush (Author) https://creativecommons.org/licenses/by-nc/4.0