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DIGITAL TECHNOLOGIES, LABOR MARKETS, AND
ECONOMIC REPUTATION

DIGITAL TECHNOLOGIES, LABOR MARKETS, AND ECONOMIC REPUTATION

Author(s): George Lăzăroiu,Derek Rommer / Language(s): English Issue: 2/2017

Following Gandini (2016), this paper strives to prove that knowledge work hasaltered with the incorporation of digital technologies into operations of production andorganization. Influenced by the boost of electronic and social media, a digital and independentknowledge economy focused on a collective, dispersed cultural idea of reputation as usefulnessresulted. Imagining reputation as a type of value is the predominant elucidatory pattern ofknowledge work in the digital epoch. We aim to address these increasing features by elaboratingon the fact that knowledge work has altered as a consequence of the visionary assessment ofinventiveness as a slogan for cutting edge and professional development. We plan to determinethat reputation becomes a particular type of particularized social capital for knowledgeemployees. We use meta-analysis to assess evidence proving that because the social buttonsmanaging social undertakings on digital media platforms deal with and preserve an individual’sfull online activity, determining it with statistics, the reputation of a distinct employee ispublicly observable, concrete, obtainable, and possibly quantifiable. We inspected the Web ofScience and identified 240 papers covering the impact of reputation on the socio-economicinteractions in digital labor markets. We analyzed them carefully and present our conclusions,highlighting that reputation adjusts the professional market of the knowledge economy byfunctioning as a particular kind of capital or positive feature for people in a setting constitutedof networked and recently mediatized social interplay

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HOW THE INTERNAL STAKEHOLDERS
PERCEIVE THE IMPLEMENTATION OF
CONTROLLING

HOW THE INTERNAL STAKEHOLDERS PERCEIVE THE IMPLEMENTATION OF CONTROLLING

Author(s): Mariana Sedliačková,Maria Moresova,Miloš Bikár,Dana Benčiková / Language(s): English Issue: 2/2017

Controlling is considered to be one of the key tools that help to make the managementof an enterprise more efficient, and thus adjust to continual changes of the economicenvironment of the present times. By implementing controlling into an enterprise, it becomesits inevitable part which helps coordinate all systems in the enterprise. It is all internalstakeholders who encounter controlling, i.e. the owners, managers, and the employees.However, for controlling to be efficient in an enterprise, it is essential to implement itappropriately, promote and enforce it, and gradually build it up, in order to achieve its mostappropriate form. Psychological aspects help to understand how implementation of controllingis perceived by the employees, managers, and the owners. The main objective of this paper isto determine the effect of controlling from the psychological point of view, and from the viewof the internal stakeholders. Using the data obtained in a survey, the paper also aims atproposing a model of implementing, enforcing, and using controlling in an enterprise. Withinthe empirical research, the authors have used a questionnaire as a method of surveying the givenproblem in the practice of Slovak enterprises. The results of the research enabled identificationof the main barriers of implementing, enforcing, and using this tool in enterprises, as perceivedby the employees, managers, and the owners. Based on the results, a standardized model ofimplementing, enforcing, and using controlling in Slovak enterprises has been proposed. Thismodel will help to ensure the acceptance of controlling by all stakeholders, eliminate barriersto its implementation and enforcement in an enterprise, help understand its benefits by internalstakeholders, and enable an effective use and functioning of this tool.

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FUZZY MODELS OF WEB SERVICES SELECTION IN THE
DEVELOPMENT OF SERVICE-ORIENTED INFORMATION
SYSTEMS FOR SMALL AND MEDIUM ENTERPRISES

FUZZY MODELS OF WEB SERVICES SELECTION IN THE DEVELOPMENT OF SERVICE-ORIENTED INFORMATION SYSTEMS FOR SMALL AND MEDIUM ENTERPRISES

Author(s): Irina Shpolianskaya,Alexei Dolzhenko,Sergey Glushenko / Language(s): English Issue: 2/2017

Nowadays, small and middle enterprises (SME´s) competitiveness increasinglydepends on their ability to adapt successfully to a rapidly changing business environment.Because of this information system that provides integrated support for all business proccesesof an enterprise must be highly dynamic and flexible. Service-oriented architecture (SOA)considered as a set of interacting web services is able to ensure the information systemflexibility, reduce software development, maintenance and upgrades costs, and therebyincrease responsiveness of the system to changing business requirements. In service-orienteddesign web-services have a direct impact on the possibility of development, adaptation andmodernization of the information system. The paper discusses principles and methods forSOA design for SME´s considering the structure of business processes as a basis ofcoordinated service interactions. Taking into account the business requirements the problemof web services optimal selection for service-oriented information system is solved. Theproblem of web service selection is formulated as a problem of choice with fuzzy preferences.Fuzzy logic and expert methods are used for evaluation and selection of web services. Thedeveloped procedures allow the user to evaluate and select from a set of available services theservices with the required functionality and quality. The proposed fuzzy model and algorithmsof web services selection provide the effective decision-support mechanisms for constructionof SOA-based systems for small and middle enterprises.Тhe new approach helps SME’s tostrengthen competitiveness through developing the information systems with flexiblestructure that allows to consider all changes in business environment, and reduce the time-tomarket with the system.

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Health and illness in memes – People’s attitudes in words and pictures

Health and illness in memes – People’s attitudes in words and pictures

Author(s): Gabriela-Corina Șanta (Câmpean) / Language(s): English Issue: 2/2022

The paper aims to analyse memes dealing with the antagonistic concepts of HEALTH and ILLNESS so as to reveal how the two concepts are perceived and expressed on the Internet. The corpus comprises a set of memes in English dealing with the concepts of HEALTH and ILLNESS retrieved from specific websites dedicated to the topic or social media networks. A conceptualisation of the messages conveyed by the memes represents an objective as memes embody people’s attitudes and beliefs rooted in their mental lexicon. The starting point is to detect memes dealing with the concepts of HEALTH and ILLNESS and group them according to the criteria of the concept and conveyed message, followed by a stage of analysis to detect similarities and differences in approaching the two concepts. The semantic meaning of the memes and the relevance of the pictures are considered together and analysed accordingly, as there is an indissoluble connection between words and images in memes. Additionally, the analysis will lead to the stage in which the memes are clustered into conceptual metaphors as they link to the mental lexicon and concepts in people’s thoughts. Consequently, the memes are analysed and conceptual metaphors are identified so as to unveil similarities and differences concerning the vocabulary, images and concepts. Finally, the conceptual metaphors are interconnected to reveal additional similarities and differences between the expressions of the concepts.

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Новите интернет технологии и туризмът

Новите интернет технологии и туризмът

Author(s): Kremena Nikovska,Stamen Stamov / Language(s): Bulgarian Issue: 1/2016

We characterize current internet technologies and their application for tourism. Ways for online communication and their specifics, as well as real examples related to tourism activities are presented. We also illustrate the utility of the internet as a modern and increasingly used tool by both the tourist industry and the tourists themselves for information, advertising, communication, and purchase of services. Sociological/marketing research data related to the impact of the Internet on tourism is discussed. Provided is a brief report on using the Internet in key areas of tourism.

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Mediating Role of Parasocial Relationships on Social Media Influencers' Reputation Signals and Purchase Intention of Beauty Products

Mediating Role of Parasocial Relationships on Social Media Influencers' Reputation Signals and Purchase Intention of Beauty Products

Author(s): Surug Saleh Taher,Tak Jie Chan,Izzal Asnira Zolkepli,Mohamad Noor Salehhuddin Sharipudin / Language(s): English Issue: 3/2022

Social media influencer has become an important component of marketing communication. Hence, this research aims to determine the facets of social media influencers’ reputation signals (communication skills, influence, perceived authenticity, and perceived expertise) that contribute to the customers’ purchase intention of X beauty products, mediates by the parasocial relationship. The study applied the Stimulus-Organism-Response (S-O-R) model and used a survey design. The results showed that the communication skills and expertise of the social media influencers have a significant relationship with parasocial relationships, and the parasocial relationship has a significant relationship with purchase intention. In addition, the parasocial relationship was found to mediate the relationship between the expertise of social media influencers and purchase intention. The study provides valuable insights to public relations and marketing practitioners of the beauty industry to be used in building a successful social media marketing strategy.

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The Effectiveness of a Cognitive-Behavioral Therapeutic Program Delivered Online in Reducing Social Anxiety Symptoms

The Effectiveness of a Cognitive-Behavioral Therapeutic Program Delivered Online in Reducing Social Anxiety Symptoms

Author(s): Andreea Bogdana Isbășoiu / Language(s): English Issue: 2/2022

Social anxiety is one of the anxiety disorders that strongly interferes with daily life, having a high prevalence rate among the general population. Although it has a vast number of untoward side effects, it is well known that a small percentage of people with anxiety disorder require or benefit from the treatment of this disorder. Cognitive-behavioral therapy managed through the Internet is a modern intervention technique for social phobia. The trial detailed in this work investigates the efficiency of an online intervention for the reduction of social anxiety-related symptoms. After the first evaluation, 76 people were diagnosed with social anxiety and they have been randomly placed into two groups: the experimental group, receiving active treatment, and the control group, which was considered as a waiting list, mainly because after the study had been finished, these participants got the active treatment as well. Out of the entire study, in this article, we will present only the evolution of the social anxiety level of these participants, after the treatment modules had been applied during the program. Similar studies done in Sweden, Australia, and Switzerland support the efficacy of the cognitive-behavioral interventions applied online. Therefore, this study contributes to the consolidation of knowledge, regarding the efficacy of online interventions for the reduction of social anxiety, also forming an additional argument for the growth of online treatment accessibility in Romania.

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Požadavky českého průmyslu na pracovníky v podmínkách Průmyslu 4.0

Požadavky českého průmyslu na pracovníky v podmínkách Průmyslu 4.0

Author(s): Michal Janíčko,Filip Klicnar,Patrik Budský,Petr Weisser / Language(s): Czech Issue: 4/2020

The article deals with effects of automation on the extent and contents of human work in manufacturing. The findings are based on a survey, in which 273 Czech manufacturing companies took part in 2019, and on follow-up in-depth interviews with some of them. The companies regarded unskilled workers, welders and assistant administration employees as professions most vulnerable to automation. However, the overall estimated effect of technologies on labour displacement is relatively small, automation in the Czech manufacturing was not disruptive before the COVID-19 pandemic crisis and expected changes in the number of employees were linked to economic development in sectors rather than to automation. According to the respondents, operating new machines will require more IT skills while, on the other hand, some tasks are becoming less complex.

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Čtvrtá průmyslová revoluce, nebo změna srovnatelná s průmyslovou revolucí?

Čtvrtá průmyslová revoluce, nebo změna srovnatelná s průmyslovou revolucí?

Author(s): Radim Valenčík,Pavel Sedláček / Language(s): Czech Issue: 4/2020

The issue of the Fourth Industrial Revolution and some of its attributes (digitalisation, artificial intelligence, continuous robotisation, etc.) should, according to the authors, be considered as a change comparable with the original Industrial Revolution. The article presents specific facts and the analysis thereof that prove that this does not only concern a further stage of the ongoing industrial revolution, but the birth of a new dominant sector that makes up a new productive services sector, i.e. services that contribute to the acquisition, preservation and utilisation of human capital. This sphere will act to fundamentally boost the innovation dynamics, and lead to a change in the character, of economic growth. Production in the productive services sector will be absorbed particularly by creative intergenerational teams that will become the basic form of human involvement in the production process. The perspectives and problems associated with the above-mentioned changes can be observed particularly in the field of the development of startups into the form of both vertically- and horizontally-connected creative intergenerational teams, the support of which is currently not sufficiently effective. The article identifies manifestations of the inertial thinking approach to this issue and subsequently presents the theoretical basis for overcoming the barriers that occur as a result of the inertial approach.

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Za hranice kapitalismu

Za hranice kapitalismu

Author(s): Pavel Hulec / Language(s): Czech Issue: 4/2020

Review of the book: Barša, Pavel − Dokupil Škabraha, Martin (eds.): Za hranice kapitalismu (Beyond Capitalism). Praha: Rybka Publishers, 2020, 247 stran, ISBN 978- 80-87950-74-6. The review presents, and provides an assessment of, a book entitled Beyond Capitalism, which focuses on a critique of the characteristics of late capitalism and the introduction of alternatives to the current socio-economic system. The book provides an interesting contribution to the domestic critical debate and has the potential to appeal to a wider audience; however, it is limited to a certain extent by its essay and discussion approach, which slightly diminishes its value for the purely academic audience.

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Customer Churn Prediction Model: A Case of the Telecommunication Market

Customer Churn Prediction Model: A Case of the Telecommunication Market

Author(s): Yana Fareniuk,Tetiana Zatonatska,Oleksandr Dluhopolskyi,Oksana Kovalenko / Language(s): English Issue: 2/2022

The telecommunications market is well developed but is characterized by oversaturation and high levels of competition. Based on this, the urgent problem is to retain customers and predict the outflow of customer base by switching subscribers to the services of competitors. Data Science technologies and data mining methodology create significant opportunities for companies that implement data analysis and modeling for development of customer churn prediction models. The research goals are to compare different approaches and methods for customer churn prediction and construct different Data Science models to classify customers according to the probability of their churn from the company's client base and predict potential customers who could stop to use the company's services. On the example of one of the leading Ukrainian telecommunication companies, the article presents the results of different classification models, such as C5.0, KNN, Neural Net, Ensemble, Random Tree, Neural Net Ensemble, etc. All models are prepared in IBM SPSS Modeler and have a high level of quality (the overall accuracy and AUC ROC are more than 90%). So, the research proves the possibility and feasibility of using models in the further classification of customers to predict customer loyalty to the company and minimize consumer’s churn. The key factors influencing the customer churn are identified and form a basis for future prediction of customer outflow and optimization of company’s services. Implementation of customer churn prediction models will help to maintain customer loyalty, reduce customer outflow and increase business results.

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Digital Workplace Transformation: Innovative Approach after Covid-19 Pandemic

Digital Workplace Transformation: Innovative Approach after Covid-19 Pandemic

Author(s): Ljubiša Mićić,Zoran Mastilo / Language(s): English Issue: 2/2022

COVID-19 had undoubtedly speeded up adoption of digital technologies. Most of the theoreticians agree that changes that happened in the pandemic period would not happen in the next several years or even decades. There is almost no business operation that has not been affected by the pandemic, from customer relation and sales to supply chain. It influenced different business sectors leaving permanent change and making a significant proportion of organizations working in at least hybrid mode: combining digital and traditional pre-pandemic ways of working. COVID-19 had significantly changed the workplace and way of working. Workplace has shifted to digital or at least hybrid and employees and companies have adopted new ways of working, including usage of digital technologies but also accepting more agile and flexible procedures and rules. The research community has followed this phenomenon and tried to provide best possible recommendation to it accordance to recognized research methods. The paper provides a systematic literature review of the most significant scientific and industry publication in the years after the pandemic start. It is based on Kitchenham methodology of the systematic review with selected publication from recognized bibliographic databases. First part provides general effects of the pandemic to digital transformation of businesses all over the globe, mostly connected to analysis of the employees’ workplace preference. The second part is focused on digital workplace transformation and presents key theoretical and professional findings in the post-pandemic workplace. This part is consisted of the preview of benefits of the digital workplace transformation, identification of critical success factors and the most significant challenges of the process.

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How Can Blockchain Contribute to Developing Country Economies? A Literature Review on Application Areas

How Can Blockchain Contribute to Developing Country Economies? A Literature Review on Application Areas

Author(s): Tom Gillpatrick,Semra Boğa,Oncel Aldanmaz / Language(s): English Issue: 1/2022

Blockchain technology originally finding applications in Fintech and supply chain management is rapidly expanding applications to other industries as well as the public sector. “Blockchain has been compared to the invention of the internet and its comprehensive impact on almost every industry.” R. Beck and B. Markey-Towler (2017) A recent study by PWC (2020) found that, “Blockchain technology has the potential to boost global gross domestic product by $1.76 trillion USD over this decade.” It has been argued that the digital revolution has favored more developed nations and that has helped create a “digital divide” with less developed nations. Business and governmental infrastructure in developing nations have lagged that of more developed nations. Some of these challenges faced by developing nations include the registration of property ownership, financial systems, modern efficient supply chains often accompanied by a lack of trust and the ability to verify and audit organizational processes rapidly and economically. Blockchain technology has the promise to address many of the critical needs of developing countries internally and in external trade relationships to help enable them to be more competitive. This paper will review the literature and examine the impact of Blockchain technology on how its adoption may ameliorate many of these critical challenges for developing nations helping to improve governance and economic benefits that are shared more equitably. Potential for both positive and negative impacts with be discussed along with policy implications for public policy makers and private enterprises.

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Impact of Covid-19 Pandemic on Financial Innovation, Cashless Society, and Cyber Risk

Impact of Covid-19 Pandemic on Financial Innovation, Cashless Society, and Cyber Risk

Author(s): Nikola Fabris / Language(s): English Issue: 1/2022

The global pandemic, as an unprecedented event in the recent past, has significantly changed the modern world. Numerous companies and individuals have faced various challenges that are still present. The aim of this paper is to review the impact of pandemic on financial innovation, fintech companies, cryptocurrencies, the development of a cashless society, and cyber risk. It tests two already confirmed hypotheses: H1: COVID-19 pandemic has affected the development of financial innovations and cashless society; and H2: COVID-19 pandemic has led to increased cyber risk. The method applied is desk research, i.e. a review of the existing studies and their unification. The paper shows that fintech companies proved to have been resilient during the crisis since they have managed to change their business model and offer new products and services (financial innovations). It also indicates that it is obvious that the number of cashless transactions have increased due to the pandemic, but that it is still not reasonable to expect a completely cashless society in the near future. The paper highlights that cyber risks are on the rise owing to the growth of cashless transactions and digitalisation of businesses driven by the global pandemic.

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Post Covid-19 Work Strategies and Implications: Insight on Indian IT Sector

Post Covid-19 Work Strategies and Implications: Insight on Indian IT Sector

Author(s): Mythili Kolluru,Kumutha Krishnan,Shyam Kumar Kolluru / Language(s): English Issue: 2/2021

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. This 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.

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Anti-Fraud Strategy

Anti-Fraud Strategy

Author(s): Zdravko Todorović,Boris Todorović,Darko Tomaš / Language(s): English Issue: 2/2020

Fraud is not an individual problem, but rather, we deal with a systematic fraud, particularly in the public sector through the creation of a private monopoly over public sector. Therefore, the first step, which needs to be set in organization in order to develop an efficient system for fraud control is development of anti-fraud strategy. Anti-fraud strategy is based on a policy of integrity and zero tolerance for fraud. Under the fraud we imply: corruption, assets misappropriation and fraudulent statement. Fraudsters are in the organization and beyond. Factors influencing performing of fraud are: pressure, opportunity and rationalization. Costs incurred due to the fraud may be difficult to realistically consider. Battle against fraud is determined by political will, effective legislation and anti-fraudulent culture and strategy.

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The Digital Transformation of Marketing: Impact on Marketing Practice & Markets

The Digital Transformation of Marketing: Impact on Marketing Practice & Markets

Author(s): Tom Gillpatrick / Language(s): English Issue: 2/2019

Digital technology technologies and business practices are expected to radically transform the competitive landscape and society. Central to changing business practices is how digital technologies are transforming the practice of marketing which in turn is transforming the nature of markets globally. This paper, guided by the literature concerning the wave of digital disruption brought about by new technology, changes in consumer demand and new forms of business competition discusses industry level and macroeconomic impact of the digital transformation of marketing. The drivers of the digital transformation in marketing, the critical role of understanding the consumer value chain relative to marketing practice and the impact of changing business practices on the larger economy. A new model developed by (Teixeira, 2019) to assess consumer demand is described as a marketing practice innovation that can be used to gain new insights for innovation and marketing. These innovations in gaining market insights and in marketing strategies are discussed regarding implications for industry and macroeconomic policy. The authors call for calls for further research using this methodology to better understand how digital disruption is likely to impact firm competitiveness and the nature of larger global economy.

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Effects of Digital Transformation and Network Externalities in the Telecommunication Markets

Effects of Digital Transformation and Network Externalities in the Telecommunication Markets

Author(s): Snežana Radukić,Zoran Mastilo,Zorana Kostić / Language(s): English Issue: 2/2019

The main purpose of the paper is to address the effects of digital transformation in the telecommunications markets which are characterized by network externalities. By acknowledging disruptive effects of digital transformation age, the paper highlights challenges which were created by advancement of technological capabilities. The specific aim of the paper is to present a methodological framework for measuring the information society. The research will be based on an analysis of the number of subscribers by types of telecommunication services, in developed and developing countries, in the last two decades. In this regard, increasing the number of subscribers leads to higher value of the selected network. We expect confirmation of both hypotheses respectively (H1: Digital transformation affects the simultaneously continuous growth of the number of subscribers and the continuous decline in prices of telecommunication services; H2: There are similar trends in developed and developing countries, which are related to the number of the telecommunication services subscribers). Therefore, digital transformation and the effect of network externalities contribute to increasing the number of subscribers, reducing the number of networks (distortion of the market competition) and reducing the prices of telecommunication services.

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Digital Village Transformation: A Model for Relativizing Regional Disparities in the Republic of Serbia

Digital Village Transformation: A Model for Relativizing Regional Disparities in the Republic of Serbia

Author(s): Aleksandar Manasijević,Marko Milojković,Dejan Mastilo / Language(s): English Issue: 2/2019

The regional reality of the Republic of Serbia is characterized by strong regional disparities and adverse demographic trends. This situation is the result not only of inadequate actions of makers of macroeconomic policy and implementation of inefficient models of regional development in modern conditions, but of a long-term process of inheritance and deepening of regional disparities. The consequences of uneven regional development are numerous, and despite the economic ones, it is very important to emphasize the importance of non-economic consequences of uneven regional development. This primarily refers to the unfavorable demographic flows caused by the bipolarization of the state to the developed north and undeveloped south. Migratory trends in the Republic of Serbia can be observed in three different, however, interrelated processes. The first relates to migration from villages to cities, the second to migration from south to north and the third to migration directed beyond the borders of our country. These processes led to the extinction of the Serbian village and to the demographic emptying of the periphery of the Republic of Serbia. This is best supported by the fact that every fourth village is in the process of demographic disappearance, while every fourth agricultural resident of the Republic of Serbia is at risk of poverty. However, in the Zajecar district, the municipality of Sokobanja, one can notice the digital transformation of Vrmdža village, similar to the digital transformation of villages in developed countries. This transformation has attracted a large number of young families from this village doing business activities through the internet and modern digital technologies. The aim of this paper is to investigate the digital transformation of the village of Vrmdža by presenting a specific model of village transformation that can significantly contribute to the relativization of regional disparities in the Republic of Serbia.

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Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina

Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina

Author(s): Milan Šušić / Language(s): English Issue: 1/2018

From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of economic entities in the micro segment. Investments present an essential element of any economic policy, as their presence provides a platform, not only for economic development, but also create a basic condition for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and the most common presenting the most important tool in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large and therefore the states are directing significant activities in order to create a more favorable environment to attract investors. The paper pays special attention to direct investmens in financing the economy on a global scale, their importance for the development of the global economy and particulary screens the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The emphasis is placed on activities that have to be carried out in order to realize more investments. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is fundamental prerequisite for generating and accelarating of economic development in general. The inflow of foreign capital has an exstraodinary positive impact on the economic development and increase of business activities in visably undeveloped and slow economic in Bosnia and Herzegovina.

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