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24-25 April, 2014

Sarajevo, Bosnia and Herzegovina

BOOK OF ABSTRACTS

Edited by
Teoman DUMAN
Merdžana OBRALIĆ
BOOK OF ABSTRACTS
International Conference on Economic and Social Studies (ICESoS’14)
“Regional Economic Development”, April 24-25, 2014
Sarajevo, Bosnia and Herzegovina

Publisher:
International Burch University

Editors:
Teoman Duman
Merdžana Obralić

Conference Partners:
International Burch University, Sarajevo, Bosnia and Herzegovina
Zenica University, Zenica, Bosnia and Herzegovina
Tuzla University, Tuzla, Bosnia and Herzegovina
Lumina University, Bucharest, Romania
Yıldız Technical University, Istanbul, Turkey
SASE, Sarajevo, Bosnia and Herzegovina
Borsa Istanbul, Istanbul, Turkey

DTP&Design:
IT Center, International Burch University
Irfan Hasić

Printed by: International Burch University


Circulation: 400 copies
Place of Publication: Sarajevo
Copyright: International Burch University, 2014
International Burch University Publication No: 01

ISSN: 2303 - 4564


Reproduction of this Publication for Educational or other non-commercial purposes is authorized
without prior permission from the copyright holder. Reproduction for resale or other commercial
purposes prohibited without prior written permission of the copyright holder.

in this publication, Burch University will not assume liability for writing and any use made of the
proceedings, and the presentation of the participating organizations concerning the legal status of
any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or
boundaries.
Honor Committee:

Mehmet Uzunoglu, the Rector of International Burch University


Huseyin Padem, the President of Lumina University
Azamat Akbarov, Vice Rector on Scientific Research and International Relations
Gunay Karli, Vice Rector on Education and Student Affairs
Ali Goksu, Vice Rector on Planning and Development
Dijana Husaković, the Dean of faculty of Economics, Zenica University
Safet Kozarević, the Dean of faculty of Economics, Tuzla University
Kenan Aydin, the Dean of Faculty of Economics and Administrative Sciences, Yıldız Technical University
Tarik Kurbegovic, the Director of the Sarajevo Stock Exchange (SaSe)
M. İbrahim Turhan, the Director of the Istanbul Stock Exchange

Administrative assistants:

Emina Mekic
Amina Sljivo
Sumeja Softic
Almir Ljeskovica
Adnan Murad

NAME SURENAME UNIVERSITY


Ümit Alniaçik Kocaeli University
Hamza Ateş Medeniyet University
Muzaffer Aydemir Yildiz Teknik University
Kenan Aydin Yıldız Teknik University
Kenan Aydın Yıldız Tecnical University
T.S.Devaraja B.Com University of Mysore
Anto Bajo Zagreb University
Tomislav Bakovic Zagreb University
Zoltan Barackai Zagreb University
Yusuf Bayraktutan Kocaeli University
Vlatka Bilas Zagreb University
Predrag Bjelic Belgrade University
Ruzica Brecic Zagreb University
F. Burcu Candan Kocaeli University
Vladimir Cavrak Zagreb University
Tamer Çetin Yıldız Teknik University
Thierry Coville Novancia Business S.Paris
Mirjana Dragicevic Zagreb University
Ivana Dražiæ Lutilsky Zagreb University
Teoman Duman International Burch University
Karl Dunz The American University of Paris
Ufuk Durna Akdeniz University
Can Erguder Izmir Development Agency
Ugur Ergun International Burch University
Milorad Filipovic Belgrade University
Thomas Gehrig University of Vienna
Ali Goksu International Burch University
Aida Habul Sarajevo University
Erk Hacihasanoglu Istanbul Stock Exchange
NAME SURENAME UNIVERSITY
Mehmet Hacisalihoğlu Yıldız Teknik University
Amir Hadziomeragic Sarajevo School of Science and Technology
Meliha Handzic International Burch University
Fahmi Ibrahim Glasgow Caledonian University
Erkan Ilgun International Burch University
Sanchez Fung Jose Kingston University London
Mislav Josic Zagreb University
Vesna Karadzic Montenegro University
Resat Karcıoğlu Atatürk Üniversitesi
Nafija Kattarwala Deemed University
Harun Kaya İstanbul University
Marko Kolakovic Faculty of Economics Zagreb
Zarylbek Kudabaev American University CA
Tarik Kurbegovic SASE
Maja Lamza Maronic Josip Juraj Strossmayer University of Osjek
Ivana Mamic Sacer Zagreb University
Goran Mirascic Sarajevo School of Science and Technology
Adisa Omerbegovic Sarajevo School of Science and Technology
Nermin Oruc International University of Sarajevo
Nidzara Osmanagic Zagreb University
Jasmina Osmankovic Sarajevo University
Gökhan Özer Gebze Institute of Technology
Kursad Ozlen International Burch University
Anita Pavkovic Zagreb University
Ashly H. Pinnington The British University in Dubai
Semsudin Plojovic University of Novi Pazar
Zijada Rahimic Sarajevo University
Sukrija Ramic Islamski predagoski fakultet
Maja Rimac-Bjelobrk Sarajevo School of Science and Technology
A. Tansu Say Kocaeli University
Hrvoje Simovic Zagreb University
Dubravka Sincic Coric Zagreb University
Lorena Skuflic Zagreb University
Dimitris Sotiropoulos Kingston University London
Name Surname University
Kasim Tatic Sarajevo University
S. Gonca Telli Yamamoto Okan University
Ahmed Tolba American University in Cairo
Meral Uzunöz Yıldız Tecnical University
Meral Uzunöz Yıldız Teknik University
Jaroslaw Witkowski Wroclaw University of Economics
Azra Zaimovic Sarajevo University
Tarik Zaimovic Sarajevo University
Cemal Zehir Yıldız Teknik University
Alexander Zeitlberger University of Graz
Matej Živkovć International Burch University
Mahmut Zortuk Dumlupınar University
Foreword

The International Conference on Economic and Social Studies 2014 (ICESoS'14). The
main theme of the conference is "Regional Economic Development". Conference is
organized with the solo purpose to attract and bring together researchers and
participants with the economic and internationla relation bacgrounds from the
different countries such as: Albania, Bosnia and Herzegovina, Croatia, Czech
Republic, Iran, Kuwait, Macedonia, Nigeria, Poland, Saudi Arabia, Serbia, Turkey
and United Kingdom.

We would like to thank all participants, partners in organization and organizing


members at the ICESoS'14 for contributing theri theme, effort and skills to make this
amazing event once again possible.

Following is the list of themes which conference will cover explore and discuss:
European and Balkan Studies, Economics, Finance and Accounting, Information
System, Management and Organizations, Marketing and Social Science.

Teoman DUMAN, Ph.D.


Merdžana OBRALIĆ, MA
European and Balkan Studies

24-25 April, 2014


Sarajevo, Bosnia and Herzegovina
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Motives of People in Utilizing the Freedom of Movement within the EU: The
Case of Kosovo and Visa Liberalization with the EU

Alban Asllani
AAB University, Kosovo
Albania
alban.asllani@universitetiaab.com

Shkumbin Misini
Universum College, Kosovo
Albania
shkumbin.misini@gmail.com

Kujtim Bytyqi
Universum College, Kosovo
Albania
kujtim.bytyqi@gmail.com

Abstract: This study intends to identify the main motives for travel of citizens from Kosovo to
the EU Member States once the visa liberalization takes place. The authors of this paper take
into account demographic information from the surveys handed out to citizens of Kosovo, and
try to correlate them with their motives for travel to the EU Member states. The study argues
that visa liberalization for Kosovo is of imperative importance in preparing Kosovo for EU
membership. The study also argues that citizens of Kosovo benefit substantially by creating
networks with professionals in the areas of research, technology, and education. These
networks could potentially lead to local businesses gaining from outsourcing, which would
overtime increase economic development of the country. However, the study’s focal point is the
analysis of the survey of Kosovars on how they would utilize the EU visa liberalization regime,
using descriptive, correlation, and regression analysis. The descriptive statistics and simple
correlation analysis show a strong negative correlation between employment status, and work
and study as a reason for visiting the EU member states after visa liberalization, while there is
strong positive correlation between employment status and business, tourism and research as
reasons for visiting the EU. Similarly, strong correlations have been found between education
level of the respondents and their age group as demographics in one side, and work, study,
tourism, doing business, and conducting research as reasons for visiting EU after the visa
liberalization regime is granted to Kosovo. By conducting such analysis, the authors of this
study expect to give an overview of the current situation in terms of economic and socio-
political implications regarding the visa liberalization, and the motives of Kosovars in utilizing
the visa liberalization regime based on the responses received from the questionnaires.

Keywords: Demographics, Visa Liberalization, Mobility, Networking, people-to-people contact,


Motives for travel, Correlation analysis, reforms
7
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

23 Years after the fall of Communism the Challenges of Albania in the Political
System

Marsela Fejzaj
Epoka University
Tirana / Albania
mfejzaj@epoka.edu.al

Jonida Dhroso
Municipality of Vlora
Vlore / Albania
jonida.dhroso1@hotmail.com

Abstract: Albania was the last country 23 years ago that broke down the communist regime
paving the way for the establishment of pluralism and the creation of Democratic Party, the
first political force in the country. In these years Albania has undergone profound changes and
has achieved a big leap. It should be noted that it might have progressed more quickly if
transition will not be related with trauma that delayed it in time. Transition in theory is called
historical process during which the communist states carry out radical transformation of the
political regime into pluralist democracy and market economy. Albania during these years had
faced many defeats that hindered its political and social development.
This paper examines the challenges of Albania in efforts to be a developed country, the
problems that Albania has experienced with the fall of communist system and the multiple
transitions toward democracy. How have numerous political parties influenced Albanian
political system? What is the impact of new electoral system in Albania and which steps have
led Albania towards democratization? What are the challenges that Albania have experienced
in these years? What are the success and failures of Albanian politics?

Methodology that it is used is single case study through qualitative method. Literature is based
in different books, newspapers and various articles related with this topic. The first part
analyzes the political system in communism regime and after the fall of communism the
situation of Albania. The second part discusses the challenges of Albania in political system and
democratization. Additionally, the paper argues about the attempts of government towards
democratization of the country and the current situation.

Keywords: communism, transition, democracy, Albania, challenges, developed country, current


situation, challenges, political system

8
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Importance of the European Union Regional Development Fund: The Case of


Turkey

Onur Durukal
Adnan Menderes University
Turkey
onurdurukal@adu.edu.tr

Recep Tekeli
Adnan Menderes University
Turkey
rtekeli@adu.edu.tr

Abstract: Development is one of the major concepts that determine the countries’ place among
other nations in the world and the welfare of the citizens of country. The concept of
development in the globalization process can be discussed in transnational, national and
regional dimensions. While nation-states are improving their own development strategies,
transnational structures try to employ different methods on a global scale in order to promote
development. In this context, answering these questions such as what the main factors is to
determine the development index and what degree these factors influence on the development
are very important.

In this paper we will review the literature to find out (1) which factors are effective to ensure
the development, (2) what type of work these actors carried out in order to ensure the
development, (3) what are the common elements in the documents that national and
transnational organizations revealed, and (4) in the process of European Union membership,
what proportion of the grant programs has impact on Turkey's regional development. In our
study we will examine these issues by comparing the grant programs with the development
criteria.

We will analyze project proposals that Turkish Regional Development Agencies, Turkish
Ministry for European Union andTurkish Ministry of Development called for during the period
of 2007-2013 IPA (Instrument for Pre-accession Assistance). We will compare the fund release
with millennium development criteria and IPA components over the period undertaken and
tabulate the results.

Keywords: Development, Regional Development, Grant, European Union, Turkey.

9
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Compatibility of Dayton System for Bosnia and Herzegovina’s EU Accession

Yigit Anil Guzelipek


Cankiri Karatekin University
Turkey
guzelipek@gmail.com

Abstract: This study seeks to produce a critical approach regarding the compatibility of Dayton
system for Bosnia and Herzegovina’s EU accession in the framework of a new perspective for
the future of Bosnia. Nowadays, EU accession became the most important foreign policy goal of
Bosnia and Herzegovina in order to create a more operative state system and complete the
country’s reformation process. Nevertheless, still the country’s complete system is based on the
“Dayton regime” which was established in 1995. Needless to say that the main goal of the
Dayton system was creating a self-sufficient Bosnia and Herzegovina for the following years.
On the other hand, today it’s seen that the international community still has a very constitutive
role over Bosnia and Herzegovina. A productive national economy, operative democracy and
dialogue stage between the ethnic groups might be considered as the most important
uncompleted issues of the post-war period. In particular, when we consider the fact that some of
the constitutive countries of former Yugoslavia had completed their EU accession or they
became an official candidate for EU; the importance of EU for Bosnia and Herzegovina can be
much more understandable. The main argument of this paper is producing the incompliance of
Dayton system for Bosnia and Herzegovina based on the fact that Dayton system in Bosnia and
Herzegovina created a state which is dependent to the existence of international community
over the region. Additively, a bipartite comparative approach will be used both between the pre
and post Dayton terms and between Bosnia and Herzegovina and other EU member former
Yugoslav countries.

Keywords: Bosnia and Herzegovina, Dayton Regime, International Community, EU Accession,


Consolidation of Democracy

10
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Crisis of the European Union and its Effects on the EU Enlargement Policy: Case
of Western Balkans

Hatice Yazgan
Cankiri Karatekin University
Turkey
yazganhatice@hotmail.com

Abstract: European Union (EU) Enlargement is identified as a successful tool for the EU in
order to enhance economic and security benefits as well as to Europeanize the prospective
members. Despite its achievements until now, enlargement have also some negative
repercussions since the enlargement process gives rise to exceeding burden to the EU budget,
institutions and some key policies in the short term. Current economic crisis of the EU, along
with its political and social impacts add another dimension to the challenges of enlargement.
Today Western Balkan countries, Turkey and Iceland are the countries involved in the future
enlargements. Main aim of this paper is to analyse the impact of the EU crisis on the
enlargement of the EU in general and on Western Balkans in particular. Although the EU
enlargement process continues officially, current economic crisis has negatively affected the
process. On the one hand, the EU with an ongoing crisis lost some attractiveness for the
candidates and on the other hand, its absorption/integration capacity has decreased in the
sense that a new enlargement wave with burdensome candidates would not be feasible for the
EU. Besides, the crisis deepened the North-South divide in the EU and thus Western Balkan
countries will be mostly among the Southern part in terms of economic and social development.
Bearing in mind the negative perception of the European public opinion towards EU
enlargement which deepened with the crisis, EU needs more legitimacy in order to justify the
Western Balkans Enlargement. Last but not the least, growing EU demand from the candidates
as a result of the evolving enlargement conditionality through the years is the other factor
affecting the future of enlargement. Main argument of this paper is; although the economic and
political crises of the EU do not present favourable conditions for both sides, the EU already
has the justification for Western Balkans’ Enlargement due to its geographic location “in”
Europe and the EU’s ineffective position to prevent the violence during the wars of 1990s which
will be reverted to an active position with enlargement.

Keywords: Conditionality, Crisis, European Union Enlargement, Western Balkans

11
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Challenges of Western Balkans towards the European Union

Loren Senja
Epoka University
Albania
lsenja@epoka.edu.al

Abstract: Integration of the Western Balkans in the European Union is one of the major
challenges in the policies of this Union. There are different reasons for this situation. European
countries look with distrust coexistence of peoples of the Balkan under the mantel of EU. The
economic crisis that has involved the European Union has created difficulties in integration of
the Western Balkans. As a result of economic crisis extremist spirit was added in some states of
the Union.

This paper presents challenges faced by Western Balkan countries towards EU integration.The
hypothesis of this paper is to analyze economic crisis in European Union and diminished
initiative to expand to new countries. Paper also analyzes the impact of Balkans interior
conflicts of 1990s and approaches towards integration. Additionally paper examines the steps
that are following Western Balkans to become EU member. What are the challenges of Western
Balkan countries towards EU integration? Why Enlargement of Union was not supported too
from citizens of EU? What new brought economic crisis in EU?

Strong economic dependence of Balkan states with European Union and national deficits has
less opportunity for progress. Solving the economic crisis is seen with more priority by
countries members of the EU rather than its expanding initiatives. Furthermore the paper
discusses the fact that economic crisis raised the extremist spirit of some European Union
member states. Countries like Netherlands and Greece have their veto for the further expansion
of the Union. Methodology used is multiple case reports through qualitative method. Literature
is based in different books, newspapers and various articles related with this topic. First part
discusses Balkan internal problem and EU. The second part analyzes European Union
economic crisis and integration of Western Balkans.

Keywords: Western Balkans, European Union, Economic Crisis, Expanding, Integration

12
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Informal Economy in Albania: Concepts, Approaches and Policy


Considerations

Erinda Imeraj
Epoka University
Albania
eimeraj@epoka.edu.al

Julinda Keci
Epoka University
Albania
jkeci@epoka.edu.al

Abstract: Informality or informal economy and development is a clue problem that is broadly
discussed as it is caused by various factors such as: rapid economical and political changes,
inadequate planning and housing policy, out-of date legislation and public structures, etc. This
situation has created important challenges in many cities, especially post-communist ones in
Sothern and Eastern Europe. The comparison of Western Countries and economies with the
Third World or developing ones has always brought interesting and paradoxical situations.
They have the house but not the title of it, De Soto explains.

This study presents a typology of informal settlements, reviews the traditional policies and
presents the emerging trends in legislations and regulations in Albania. The three most
discussed approaches to informal economy are briefly analyzed in this study. Based on the
theory of developing countries as Albania is, the methodology of the study is based on
analytical approach together with the official data of Albania gathered from official sites for
statistics as INSTAT and ALUIZNI of Albania. Furthermore, it provides an in-depth economical
analysis on the challenges associated with this phenomenon, demonstrating the complexity of
the situation and the need for a sensitive solution. The costs of the approaches, as well as the
advantages or disadvantages of them, are identified based on the Albanian situation.

The conclusion of this study leads to the third most important approach, which is legalization,
being as the most efficient for the Albanian informality situation and the continuing of the
country development. Therefore most of the developing countries are working on the same
approach by developing the legislation and practicing it.

Keywords: Informality, Legislation, Albania.

13
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Female worker in European Union Labor Law and Turkish Labor Law

Kübra Öz
Cumhuriyet University
Turkey
kubra.oz@hotmail.com

Abstract: The European Union social policy includes issues like increasing employment rate,
ensuring free movement of labor, improving working conditions and living conditions,
providing temporary assistance for unemployed, and freedom of social security and
organization within the general lines. Besides all these applications, other European Union
social policies can be considered as treating men and women equally, preventing
discrimination and social exclusion. Even though the European Union policy developed policies
just for workers and unemployed initially, today this policy has become a policy which covers
everyone who is economically weak.

The first policy which is related to treating women and men equally takes place in Treaty of
Rome and according to the provision no. 119. Some arrangements were made which is about
balancing the charges for men and women. And this first step taken for equity of wages paved
the way for regulations in order to be equal between men and women in the other areas like
social security and social welfare. Also European Union Community is established for the
purpose of economically this caused many regulations for women. And in this context, up to
present EU, there are many legislative work and action programs in order to protect women
workers, ensure equal treatment for women and men, and provide equal opportunities for
women, increase women employment rate, improve family life and working life. Along these
studies, the new approach which is adopted by EU within the framework of equality of women
and men is about exposing equality of women and men under the main plan and policies.

When we examine Turkish law system, the principle of equal treatment for everyone is
guaranteed by the constitution. In true sense, the first embodiment in Turkish work life for
women who gained worker status with the industrial revolution took place in Public Health Law
in 1930. Although there is no special law for women in our country, there are some provisions
to prevent discrimination between men and women. At the same time, in the process of
harmonization of Turkish legislation with union acquits, the arrangements for women workers
have taken place in Turkish labor legislation. In this paper, the arrangements towards women
workers in the context of both European Union labor law and Turkish labor law will be
discussed.

Keywords: female labor, working life, European Union labor law.

14
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Feldstein–Horioka Puzzle among EU Members: A Panel Approach

İbrahim Örnek
University of Kahramanmaras Sütcü Imam
Turkey
iornek@hotmail.com

Selen Utlu
University of Gaziantep
Turkey
selenu@gmail.com

Abstract: The degree of integration to the international capital markets is a crucial issue for the
economic policy implementations in developing countries. A major determinant of the degree of
international capital mobility is the saving-investment association.
One of the biggest problems of developing countries is the insufficiency of savings. This gap is
financed by foreign capital in today’s global economies. It is generally believed that, the
correlation between national savings and domestic investments becomes weak when there is
high capital mobility between countries. The degree of capital mobility through the domestic
saving-investment interaction is firstly analyzed by Feldstein and Horioka (1980). The purpose
of this paper is to investigate the level of capital mobility in European Union members in a
period of 1980-2012, with using the Feldstein–Horioka method.

Feldstein and Horioka (1980) regressed the investment ratio against a constant and the saving
ratio in a cross section of 16 industrialized countries, which are OECD members, over the
period 1960-1974 and found that the coefficient on saving was in the range of 0.85-0.95.
The basic conclusion of Feldstein and Horioka’s analysis is that an increase in domestic saving
has a substantial effect on the level of domestic investment. However, with perfect world capital
mobility, there is little or no relation between the domestic investment in a country and the
amount of savings generated in that country. This result is known in the literature as the
Feldstein-Horioka Puzzle. Feldstein and Horioka (1980) argued that the relationship between
domestic investment and domestic saving rates is related with the international capital mobility
and thus caused the rise of a puzzle in the economic literature.

Keywords: Feldstein–Horioka puzzle, Saving-investment, Capital mobility, European Union,


Panel

15
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Foreign Direct Investment in the Western Balkan Transition Economies: Future


Perspectives

Adisa Arapović-Omerbegović
Department of Economics
Sarajevo School of Science and Technology
Sarajevo, Bosnia and Herzegovina
adisa.omerbegovic@ssst.edu.ba

Eldin Dobardžić
Department of Economics
Sarajevo School of Science and Technology
Sarajevo, Bosnia and Herzegovina
eldin.dobardzic@ssst.edu.ba

Abstract: The importance of FDI for the economic development of a transition economy is
especially pronounced. However, it is necessary to say that the importance of FDI for the
Western Balkan countries have the crucial importance especially for the continuation and
completion of the initiated reforms. Continuation and completion of structural economic
reforms is also one of the key conditions for the accession of the Western Balkan countries to
the European Union. So, the central question is what are the key factors that determine the level
of FDI flows into the Western Balkan countries in the near future.
The notable FDI performance of Central Eastern European countries during their preparation
for the EU accession in the last decade and the experience of earlier EU enlargements
demonstrate that economic integration can increase FDI inflows. The Western Balkans follows
a specific process of economic integration. On the one hand, intra-regional integration aims at
normalizing the economic relations after the period of disintegration during the nineties and
helps to create a common market. On the other hand, the regions aspire to accede into the EU,
as it has been demonstrated by the EU membership application of Croatia. This paper aims to
analyze how political stability or instability may affect FDI inflows by creating an index of
performance on this variable for each Western Balkan country and relates it to a measure of
FDI performance for a particular country. Also, the paper analyzes the impact of the EU
accession process on the value of FDI inflows. The integration of the Western Balkan countries
with the aim of liberalizing interregional trade represents (such as a CEFTA agreement) a
chance for improving their mutual cooperation and it provides the basis for a more intensive
trade with the European Union countries. Based on the analysis of the current political
situation in the Western Balkans, as well as the current position in the negotiations with the EU,
paper indicates the factors which determine the likely direction of potential FDI flows into the
Western Balkan countries with the specific recommendations for the economic policy makers.

Keywords: Western Balkan transition economies, foreign direct investment, political volatility,
EU integration
16
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

European Union Integration: The Impact in Albanian Economy and Life

Urmat Ryskulov
Epoka University
Albania
uryskulov@epoka.edu.al

Riada Berhani
Epoka University
Albania
riadaberhani@gmail.com

Abstract: Most of the countries in South-East Europe have a political, economic and social goal
to access the European Union. The focus of this paper is the process of Albanian accession in
EU and its impacts on Albanian economy and life. Theoretical and empirical researches were
used to analyze these impacts. The theoretical research analyzes the economic advantages and
disadvantages of the increase of foreign direct investment which will result by the integration
into EU as well as the political and social impacts. Empirical analysis forecast the trends of
Gross Domestic Product and Foreign Direct Investment in Albania by using time series
forecasting methods according to two different scenarios. It predicts that GDP will increase by
16.60-23.92% and FDI level in Albania will increase by 29.22-32.12%.

Keywords: Albania, EU integration, FDI

17
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Human Security in Bosnia, Kosovo and Albania

Bekir Çinar
Epoka University
Albania
bcinar@epoka.edu.al

Abstract: It is clear that human security is one of the main concerns of every individual. This
paper is investigating human security issues in Bosnia, Albania and Kosovo in order to assess
possible threat to humans. Theoretically, paper is investigating ‘the idea of human security’
with focus on material and metaphysical sources that identifying the real foundation of
‘vulnerability or resilience in a population’.
Methodology of this paper is quantitative methods and quasi-experimental design is used. In
order to assess the human security secondary sources and available primary sources are used
for collecting the required data. The main question of this paper is whether these countries have
any concern of security and human security studies at their educational institutions which is
vital for future of human being in these countries.
The paper suggests that that there is a complex situation that could be best described by a
multi-cultural and multi- ethnic variation of human security.

Keywords: Human Security, Bosnia, Albanian, Threat

18
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

An Example of Regional Development in Bosnia during the Ottoman Period: A


Study on the Budgets of Gazi Husrev Bey Waqf’s between 1624-1629

Kadir Arslanboğa
Çanakkale Onsekiz Mart University
Turkey
karslanboga@comu.edu.tr

Abstract: In the Ottoman Empire, waqf’s (foundations) played a key role in regional
development. Waqf’s were fulfilling many activities related to social, cultural and economic life
in the settlements. Ghazi Husrev Bey established a waqf in 1537 and has built a complex of
buildings in Bosnia. This complex of buildings consists of mosque, madrasah, tomb, primary
school, lodge, guest house, soup kitchen, hospice, bath, caravanserai, bazaar and library.
These all institutions of the Ghazi Husrev Bey Waqf have played an important role in regional
economic development of Bosnia. Institutions that were established in the centre of city have
played active role for regional development for centuries. The waqf has had an impact on not
only economically, but socially, culturally and in the fields of public health in the development
of region.

In this study, Ghazi Husrev Bey Waqf’s budgets will be examined years of 1624-25, 1625-26,
1626-27, 1627-28, and 1628-29. Thus, after nearly half a century the waqf's income and
expense will be examined in detail through financial records.
Revenues of the waqf consist of the farm, caravanserai, bath, inns and shops for rent in the
bazaar and revenues of tax-farming. The expenses of the waqf consist of salaries of employees
in mosque and hospice, hospice’s needs for food and other needs of waqf’s institution. With
these establishments, waqf created employment in the area and by demanding goods and
services from the city and regional market made an economic liveliness in the regional
economy.
These five-year financial records show us waqf’s yearly income and outcome activities. Waqf’s
budgets were derived from the Ottoman Archives in Istanbul.

Keywords: Regional Economic Development, Ottoman, Bosnia, Ghazi Husrev Bey, Waqf.

19
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Discrimination in Higher Education is Source of Conflict: Albanian in


Macedonia

Emirjona Huti
Epoka University
Albania
ehuti10@epoka.edu.al

Bekir Cinar
Epoka University
Albania
bcinar@epoka.edu.al

Abstract: This paper is explaining discrimination of Albanian youth in higher education who
live in Macedonia. There are considerable amount of ethnic Albanians living in Macedonia. It
is known fact that ‘bitter disputes exist between the majority Orthodox Macedonians and
Muslim Albanians, who make up a quarter of Macedonia's population’. There are various
reasons why there are ‘bitter disputes’; one these disputes arise from discrimination in higher
education.

It is an empirical study which has employed qualitative as well as quantitative methods. Survey
and interviews are conducted in order to collect primary data. This data was analyzed and
discussed under the available official data and literature for reaching a credible conclusion.

This research is providing quite important information why this conflict is happening and what
are the root causes of the conflicts.
Despite the secondary sources, the research is based on the survey, which is addressed to the
students who can easily show and describe the problems that the students face due to
discrimination. The research indicates that the discrimination has great impact on the conflict
and without addressing this discrimination in higher education; it could be more difficult to find
a plausible solution to the problem for future of Macedonia.

Keywords: Discrimination, Higher Education, Youth, Conflict

20
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Fulfillment of the Maastricht criteria by Macedonia and Albania: a


Challenging Journey towards the EU

Rufi Osmani
South East European University
Macedonia
rufi.osmani@seeu.edu.mk

Jeton Mazllami
South East European University
Macedonia
j.mazllami@seeu.edu.mk

Abstract: The integration process of Macedonia and Albania in the European Union continues
to be a strategic priority of the country's political and economic goals, around which there is
full unity of political, economic and civil aspects in the countries that are the subject of this
analysis. This process in the current period of economic and political transition in countries
analyzed has gone through asymmetric trends recognized as a result of many factors which
partially addressed these national economic policy-making and asymmetric economic shocks
and political of internal and external factors.

The Maastricht Treaty on EU integration defined five basic criteria that countries must meet in
the claiming process of full integration into the EU. From the requirements there are three
criteria focus on monetary convergence and are associated with price stability, exchange rate
stability and convergence of long-term interest rate. The other two criteria address the real
convergence and fiscal deficit and public debt in relation to GDP.
The paper aims to provide answers to the question on which level are met the integration
criteria in monetary and fiscal sphere of the aspirant countries Macedonia and Albania.

Keywords: European Union, Macedonia and Albania – candidate countries, Maastricht


criteria, economic integration, monetary and fiscal convergence

21
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Assessing democracy in post-parliamentary elections 2013 in Albania

Alba Gerdeci
Epoka University
Albania
agerdeci@epoka.edu.al

Mirela Alhasani
Epoka University
Albania
malhasani@epoka.edu.al

Abstract: Recently, there has been a growing interest in the reforms being taken by the Socialist
Government in the Republic of Albania, in terms of deepening and promoting a ‘good
sustainable democracy’ in the country after two decades of rocky, challenging democratic
transition. This majority came in power after the overwhelming victory in the parliamentary
elections held in June 2013 being credited in compliance with the European standards in terms
of reliability, fairness and political honesty.

This paper will evaluate the effectiveness of this ‘successful political rotation’ towards
establishment of a governmental accountability tradition with regard to equal, respectful and
fair job chances to every official of the public administration sector, which has been the most
sensitive corrupt and over-trodden segment as highlighted by the Socialist electoral rhetoric.
The research analysis will demonstrate that despite the elections triumph results, the Socialist
Government is pursuing and even deepening the democratic deficit in respect of rule of law, and
in particular in compliance with the civil status of public administration officials that have to be
hired based on professional meritocracy instead of political affiliation be it right or left wing.

In order to achieve this analysis, we refer to social constructivism theoretical framework to


explore, identify and analyze the specific features of Albanian society, its cultural identity, and
its economic context; in addition, we refer to democratization literature on challenges of fragile
democracies. Finally, having drawn an objective picture of the current link between the newly
elected decision-makers and the social-economic circumstantial factors, we highlight the
democratic deficit and provide policy recommendations towards establishment of non-
politically biased public administration a very significant component for the integration process
of the country.

Keywords: Democracy consolidation, rule of law, public administration

22
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Child Trafficking for Organ Transplantation and Law Enforcement Failure in Albania

Mirela Alhasani (Dubali)


Epoka University
Albania
malhasani@epoka.edu.al

Alba Gerdeci
Epoka University
Albania
agerdeci@epoka.edu.al

Abstract: Trafficking in minors for sexual and labor exploitation, and, mostly for organs
transplantation has grown globally over the last few years. The profits of child trafficking
generate billions of dollars. Various researches have acknowledged child trafficking has a
human rights issue: the trafficked minors are deprived of their rights to life, equality in
education, dignity and security. Some governments have been coping with child trafficking as
an organized crime issue where children are kidnapped, ‘sold like market products’, coerced
and exploited to street begging, and definitely, the worst scenario of being ‘slaughtered’ for
organ transplantation criminal networks.

Unfortunately, Albania as a fragile non-consolidated democracy has become predominately a


country of origin of child trafficking for lucrative criminal targets. Our study will argue that
this growing phenomenon in Albania is directly related and accelerated by the ‘pure failure’ of
the justice system. It will demonstrate by comparison and contrast of the textual analysis of the
academic and empirical data that politics with its powerful network have captivated the police
system and paralyzed the judicial institutions. Drawing on the root causes that make children
prey of the non-functioning of the judicial system, and then assessing the investigative units’
incompetence to trace the victims and their perpetrators, this research will offer a
multidimensional picture of the Albanian child trafficking case noting its peculiarities in
connection with the political transition profile of the country itself.

Finally, we finalize with recommendations on improving the policing capacities to identify and
catch criminals, with judicial reform to clean up the corrupt judges and install the professional
judicial system built upon international standards. This will turn a contribution to policymakers
in Albania, to specialized units dealing with child trafficking, to non-governmental sectors, to
the institutional reforming attempts and challenges of the country to end up political transition
and consolidate the rule of law to its population and in particular to the most vulnerable group,
- the children.

Keywords: child trafficking, organ transplantation, failure of law


23
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Impact of Regulatory Reforms on the Banking System in Bosnia and


Herzegovina

Medina Prašović
International Burch University
Bosnia and Herzegovina
mismedina@yahoo.com

Abstract: In the last two decades, we have witnessed great changes and growth in the financial
sector worldwide. While some countries have experienced economic development, others
experienced banking crisis which sometimes lead to costly bank failures and overall disruption
in economic activity. The extent to which the financial system can support economic growth
depends mostly on the stability and efficiency of the banking sector due to the fact that banks
are still the main financial intermediaries.

This comparative study will be conducted by applying a discriminate analysis about the
implementation of set of common rules for regulating the banking system (Basel II) in Bosnia
and Herzegovina, Croatia, Serbia and Slovenia, as well as preparation of these countries for
implementation of Basel III. The main goal of the paper is to analyze how and why the new
global financial regulations in the banking sector are applied differently in different countries
and regions.

These questions are answered by analyzing the implementation of Basel II, results of appliance
of this rules as well as expectations from Basel III.

Keywords: Banking system, Economic development, Basel Committee on Banking Supervision,


Risk, Implementation, EU, Standards.

24
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Legal Perspectives on EU Integration Process of BIH: Analyses of the European


Commission Progress Report 2013 for BIH

Elvir Čolak
Social Science Research Center
Bosnia and Herzegovina
elvir.colak@ibu.edu.ba

Kemal Balihodžić
International Burch University
Bosnia and Herzegovina
kemal.balihodzic@ibu.edu.ba

Abstract: Bosnia and Herzegovina has gained a status of “potential candidate country” for the
accession to the European Union by the decision of the European Council in Thessaloniki in
2003, and has thus faced many obstacles in its integration process to the European Union.
According to the EU integration criterion that takes a form in the economic, political, social
and legal context, the authors of this paper raise the question on the legal context and issues
that BH has to overcome in order to come closer to the EU idea. In this regard, the paper
analyses the European commission 2013 progress report for BH as the main source as well as
other relevant secondary reports in order to outline the issues in hand. The paper aims to
elaborate the EU-BH integration process within the framework of legal obligations highlighting
the legal instruments, institutions, systems and structures that define the legal context in this
regards. Unfortunately, there are many legal challenges and the need to reform core
institutional structures within the state as well as developing a practical and theoretical
strategy for the BH-EU accession process that harmonizes the regulations within BH of that
within the EU. Without analyzing the political criteria and the role within foreign policy, BH
still has structural and institutional issues from the Dayton Peace Agreement (DPA) and lacks
sufficient legal requirements, and the insufficient acknowledgement for the rule of law.

Keywords: EU integration process, Rule of Law, legal criteria, EU accession, legal obligation,
integration strategy, EU progress report 2013 for BH, European commission

25
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Abandonment of the Poverty-Debt Circle by Dint of the Fiscal policy: the
Modest B&H Experience

Zehra Mahmutović
International Burch University
Bosnia and Herzegovina
zehra_mahmutovic@outlook.com

Ugur Ergun
International Burch University
Bosnia and Herzegovina
ugur.ergun@ibu.edu.ba

Abstract: The recent crisis that was taking the stage in the 2008/2009 pioneered in developed
countries (US and UK) after the failure and merging of numerous financial institutions, bailout
of banks, and downturns in stock markets, but soon occupied most countries around the globe.
As the consequence of the aforementioned experience many developing countries were caught
into a cycle of poverty and debt which impairs a long-term, stable and sustained economic
growth.

The story of developing nation’s wide indebtedness starts with the advice of the International
Monetary Fund (IMF) and World Bank to borrow the necessary capital to achieve the economic
recovery. So they were forced to borrow heavily in order to survive. There is generally ‘lack of
agreement’ about the effects fiscal policy may have during crisis and thus the recent economic
crisis stimulated various policy responses globally. But literature agrees that fiscal policy
growth support is significantly hampered by the high initial levels of public debt. Bosnia and
Herzegovina, a SEE developing country, are not an exception from this plague.

It was floating for long without any BH institution in the ‘driving seat’ since the local fiscal
coordination was in the hands of international community. In 2008, just prior to the Great
recession but as the response to the missing fiscal responsibility International organizations
advised the Fiscal Council of Bosnia and Herzegovina establishment. But the current situation
in Bosnia and Herzegovina is quite away from this idea of sustainability and continuous
economic development. In line with aforementioned statements, the objective of this study is to
evaluate the existing fiscal policy in the developing Bosnia and Herzegovina in lights of existing
relevant literature and to define modes that will perhaps brighten the crucial macroeconomic
indicators.

Keywords: Fiscal policy, debt, IMF, World Bank, unemployment, Central Bank, stand-by
arrangement, developing.
26
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Characteristics of New Albanian Nationalism and its Impact on Albania’s


Relation with Neighbors

Kriton Kuci
Mediterranean University of Albania,
Albania
kritonkuci@umsh.edu.al

Abstract: The Balkan region has experienced in the past a lot of tragedies caused by
nationalism. Beginning with the Greek revolution, in the first part of the 19th century and
onward all Balkan countries have experienced the rising of nationalism in the framework of the
nation building process. Albania did too. However in the last decade a new wave of nationalism
is rising in Albania. “New Albanian Nationalism” is different from the traditional Albanian
nationalism (mainly in form not in content). From 2008 until today, there have been three major
developments which have influenced decisively the increasing of the “New Albanian
nationalism”. First was the declaration of independence of Kosovo. The solution of the Kosovo
issue has always been one of the pillars of the traditional Albanian nationalism. Secondly,
signing of an agreement between Greece and Albania on the delimitation of the continental
shelf and the exclusive economic zone. The agreement was signed in 2009, was challenged by
the opposition and public opinion in Albania continues to have great publicity and be part of
the political dialogue and the Greek-Albanian relations. Thirdly, there was the official count of
the population, the CENSUS which took place in 2011. A process that was strongly contested
and was the impetus for establishing the Red and Black Alliance was known firstly as a social
movement (a radical nationalist one) and then as a political party with extreme nationalist
character.

This paper consists of a theoretical overview and critical analysis of the rising of nationalism in
Albania from 2008 till today. The first part of the paper will focus on the comparison between
traditional and new Albanian nationalism, on the content and the basic thesis of the “New
Albanian nationalism” (Anti-Hellenism, Anti-Serb, Pan Albanism common positions on
"national issues" in Albania, Kosovo and FYROM), and on the political parties, organizations
supporting Albanian nationalism. The second part will deal with the impact that the rising of
the Albanian nationalism will have on Albania’s relations with its neighbors.

Keywords: New Albanian nationalism, Pan Albanism, Balkans, Red and Black Alliance, radical
movement, extremism.

27
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Waste Disposal and Recycling in Albania: Case of Lezha Town

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Altin Bora
Epoka University
Albania
abora09@epoka.edu.al

Abstract: Albania as a developing country has many social and economic problems and waste
is one of them. In every corner of Albania there are waste thrown out on the street and lands.
This is mainly caused by the negligence of both people and the central and local governments.
Communism period has made people as such and they were not aware of protecting the
environment. The second reason for having a waste problem in Albania is that there is a lack of
infrastructure and equipment where to dispose or recycle the waste. As one of the main goals of
Albania is to join the EU there are criteria to fulfill. Therefore, the governments since 2002
have been adopting the EU legislation about recycling of the waste. Only after 2009 some
example of application have been seen and the governments are concerning more on this issue
because of the EU's strong advise for putting those legislation into practice. Currently there are
60 recycling companies operating and two new landfills are created to dispose of waste. In
Albania the waste can be managed only by landfill and recycling. Recently the government
passed a law to permit importing waste in Albania, but a referendum about this law will be held
as a final decision. The town of Lezha is the first successful example where the waste is
collected in different containers and recycled. In this paper Lezha example will be evaluated by
employing primary data taken from Lezha municipality, statistics of INSTAT of Albania and the
Ministry of Environment of Albania. The example of Lezha must be adopted by all other
municipalities in order to have a clean Albania. Recycling and successful waste management
are among the key indicators of advancement, and these two will contribute to development of
the economy and living standards in Albania.

Keywords: Waste management, Recycling, EU legislation, Landfill, Lezha, Albania

28
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Role of the Media in Shaping Political and Electoral Behavior of the Albanian
University Students

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Dea Dhima
Epoka University
Albania
d.dhima@yahoo.com

Abstract: It is commonly accepted that media plays a central role in the functioning of modern
democracies. As part of democratic system, media also plays a crucial role in shaping people’s
political opinion and behavior. No one can deny its predominant influence in voting behavior.
In order to understand its direct effect in voting choice the paper is going to look at Albanian
media and its deep involvement and attention to politics. The main objective of this empirical
research is to reveal the role of media in changing political behavior among university students
in Albania. The study critically analyses the direct impact of mainstream media of this target
group during June 2013 General Elections in Albania. The research is performed in survey
format. This is still an ongoing project; however a sample of 494 respondents was generated
from the contribution of both private and public university students belonging to different
departments. To make it clearer and at the same time to extend the analysis, among others,
three points will be taken into consideration.

Firstly, the study identifies the most popular and accessible mediums for political information
among Albanian university students. Secondly, it sheds a light on the influence of specific
mediums such as television, internet and radio in shaping political beliefs and preferences.
Thirdly, this quantitative research elaborates the credibility of mass media as one of the most
powerful transmitter of political events in Albania. The observation of voting behavior allows us
to realize whether citizens are influenced by family affiliation, personal predispositions or are
they guided by the impact of media. Overall, as expected, results explore that media plays a
significant role in voting choices among Albanian students. Similarly, in this age of technology,
internet and television are being found as the two predominant sources for obtaining political
information in Albania. However, it is quite evident that the persistent challenge for Albanian
media is the improvement of its image and reputation as a reliable and impartial medium for
providing political information.

Keywords: Political Behavior, Mass Media, Voting Behavior, Political Knowledge, University
Students, Albania
29
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Globalization and Albanian Civil Society during the Democratic Transition

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Gilda Hoxha
Epoka University
Albania
gildahoxha@gmail.com

Abstract: This paper is part of a research on Albanian society after 1990. This study will
attempt to explain and analyses the effect of globalization on the democratization process of
Albania. Within this framework this paper will focus mainly on to identify the role of civil
society on political behavior in Albanian case. To achieve this goal, the principal aims are to
examine how civil society in Albania is involved during the ‘democratic transition’ after the fall
of communism and the civil movements' influence on political behavior. In order to analyze the
relationship between the concept of “civil society” and “democratization process” in Albania,
it will be studied, among others, from two perspectives: a- in terms of national, political and
social context that formed the movement's goals and strategies in terms of becoming influential
on the decision-making process of government through the protests in Albania.

Secondly the features of Albanian civil society will be treated in this paper, based on the
debate: “How globalization has influenced the philosophy and organization of civil society?
This debate will compare with the cases in the neighboring countries in the Balkan region. In
theory, one of the main functions of civil society is to play an important and ‘tutoring’ role in
the process of building a democratic society. Analyzing civil society in Albania requires looking
at the way how civil society works and interacts with various financial, human and technical
factors.

This paper will be based on qualitative method. For analytic purposes, the discussion is
organized in two main parts. The first part, examines theoretical part and focusing on the key
issues that relate and link the government and NGOs in decision making process and political
behavior of Albanian civil society. The second part examines existing Albanian civil society and
its outcomes during the 'democratic transition' in reference with the first theoretical part. The
paper will conclude with predicting the future of civil society in Albania.

Keywords: Globalization, Civil Society, Protest, Political behavior, Albania.

30
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Impact of Public and Private Tourism Investments on Tourism Performance and
GDP: The Case of Balkan Countries

Kemal Kantarci
Akdeniz University
Turkey
kantarci@akdeniz.edu.tr

Mustafa Unver
Gumushane University
Turkey
mustunver@yahoo.com

Kazim Develioglu
Akdeniz University
Turkey
kdevelioglu@akdeniz.edu.tr

Abstract: Tourism is one of the most promising industries in the world and is expected to
contribute to economic development of countries. The sector also has positive role in balancing
national economies in terms of current account deficit and external debts. In this sense, the
impact of tourism industry can be measured directly and indirectly in national
economies. Because of the increasing importance of tourism industry for national economies, in
this study, we will investigate the relationship between investments in tourism industry and
tourism performance and contribution to gross domestic product (GDP) in Balkan countries.
More specifically, we would like to unravel, first, the impact of our independent variables,
which are, “government individual tourism and travel (T&T) spending” and “capital
investment”, on dependent variables, which are “tourist arrivals”, “tourism receipts”, “leisure
T&T spending”, and “business T&T spending”. Additionally, we used aforementioned
dependent variables as independent variables and investigated impact of them on Balkan
countries’ T&T direct contribution to GDP and T&T total contribution to DP. Variables and
model of the study are presented below.

In this study, we used World Travel and Tourism Council’s economic data for the years 1999-
2011 to test our model for Balkan countries. In order to test our model, we used correlation
analysis instead of using multiple regression analysis because of the limited number of years for
each Balkan country. Results of our analysis revealed that for almost all Balkan countries,
public and private investments in tourism industry have a positive impact on tourist arrivals and
tourism spending, which is made by tourists. Another main finding of this study is that tourism
spending has a positive relationship with T&T direct and total contribution to GDP in Balkan
countries.

Keywords: Balkan Countries, Tourism Performance, Gross Domestic Product, Government and
Private Investments

31
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Can there be an Islamic Democracy? Democratization in Turkey

Anjeza Bojaxhiu
Epoka University
Albania
anjeza27@yahoo.com

Abstract: Concern over the issue of compatibility between democracy and Islam has been the
focus of worldwide debate. After the fall of communist regimes worldwide, both democracy and
Islam began a revival and expansion period. Can these two modes of governance be reconciled
at all, or is it highly unlikely for them to reach a synthesis and instead clash as Huntington and
others have claimed?

This paper argues that Islam and democracy can be reconciled, since both are what Feldman
(2003) notably called mobile ideas in nature, ideas that spread across the world, appealing to
many people living in strikingly different countries and societies. Given that mobile ideas claim
to work always and everywhere, there can be a potential clash. Nevertheless, they also incline
towards flexibility in that they function in different ways all over the world and therefore are
capable of coming together in fascinating ways to produce unimagined, new configurations. In
order to encourage the spread of democratic values of liberty and equality requires arguing
that, to the contrary, certain readings of Islam not only accommodate but actually mandate
freedom and self-government. It won’t be a surprise if in a decade or two, the argument made
by some that the Muslim World cannot accommodate democracy, will come to seem just as
outdated as the now-defunct, once-popular arguments that Catholicism and Confucianism, each
in turn were incompatible with democracy. This will be illustrated by an analysis of the process
of democracy consolidation in the Republic of Turkey.

Keywords: Democracy, flexibility, Islam, mobility, Turkey

32
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Impact of Travel and Tourism Competitiveness Factors on Tourism and


Economic Performance of Balkan Countries

Kazim Develioglu
Akdeniz University
Turkey
kdevelioglu@akdeniz.edu.tr

Kemal Kantarci
Akdeniz University
Turkey
kantarci@akdeniz.edu.tr

Pasa Mustafa Ozyurt


Akdeniz University
Turkey
ozyurt@akdeniz.edu.tr

Abstract: This study aims to unravel causes that have the potential to explain variation in
performance of tourism industry and Balkan economies, in terms of GDP and employment
variables. Authors used Travel and Tourism Competitiveness pillars as potential causes of this
variation in tourism and country economic performance of Balkan countries. Tourism
performance and country economic performance has been measured by using World Travel and
Tourism Council’s (WTTC) data on tourism industry. In this study, we used the data of the
World Economic Forum’s (WEF) “The Travel and Tourism (T&T) Competitiveness Index
Factors (T&T regulatory framework, T&T business environment and infrastructure, and T&T
human, cultural and natural resources)” as independent variables for the years between 2008-
2013 (2010 is missing), which are the only available data published by WEF for tourism and
travel competitiveness. We also used World Travel and Tourism Council’s (WTTC) data for the
same years in order to form tourism arrivals, tourism receipts, T&T industry and economy
employment and GDP ad dependent variables. By using the secondary data, we aimed to
analyze, first, the relationship between T&T Competitiveness factors and tourism performance
as tourist arrivals and receipts. Second, we examined the impact of T&T competitiveness index
factors on T&T and economy employment and T&T and economy GDP. To analyze
aforementioned relationships we employed correlation analysis because of the lack of enough
data provided by WEF and WTTC to perform multivariate tests.

Analyses results postulated that T&T competitiveness factors, in most of the relationship, have
an impact on both tourism and economic performance of Balkan countries. The only exceptions
of these results can be reported are the lack of relationship between T&T regulatory framework
and T&T industry employment, T&T economy GDP, T&T economy employment, and tourist
arrivals.

Keywords: Travel and Tourism Competitiveness Factors, Gross Domestic Product, Tourism
Performance, Employment, Balkan Countries
33
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Challenges of Waste Management in the South East Albania, Korça Region

Marsela Salavaçi
Epoka University
Albania
msalavaci@epoka.edu.al

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Abstract: Waste management process is the collection, transportation and processing of waste
materials. Generally waste management is done by local government institutions and it needs
cooperation between these institutions and the entire population. Waste management is a
challenge for local governments due to increasing amount of waste, lack of the budget because
of the lower taxes collected from the local inhabitants for the service of waste management, and
lack of cooperation with the population. People are not yet aware of the damage they cause to
the environment, to their quality of life and to the next generations.

The aim of this paper is to analyze the current situation of waste management in the south east
of Albania in the Korça region. This region has 33 local government units (municipalities and
communes) of which 28 have jointly established a company called Korça Regional Waste
Management (KRWM). This cooperation between local governments is the first example of its
kind in Albania. The financial aid for this cooperation which includes the collection of waste,
transportation to the landfill, waste processing and building the landfill is financed by the
Kreditanstalt für Wiederaufbau (KfW) bank in Germany.

As a methodology this paper will analyze the primary data taken from this corporation. The
results of the questionnaire used by this corporation will demonstrate the waste management
methods done by each of these municipalities and communes until now and what are their
expectations for the future work need to be done by KRWM. Furthermore, an interview with the
administrator of this company is also planned. As a first successful pilot project in Korça
region, this new way of cooperation between local governments should also be followed by the
other regions of Albania.

Keywords: Waste management, Korca Region, KRWM, Albania, KfW

34
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Challenges of Economic Reforms in Ukrainian Society with Reference to Russia

Erind Elmazaj
Epoka University
Albania
eelmazaj@epoka.edu.al

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Abstract: This paper explores the economic reforms undertaken by Ukraine and their impact on
the Ukrainian civil society. How Ukraine managed its economy after the epochal change of the
USSR disintegration, the repercussions it had on society and what influence have EU on one
side and Russia on the other, in a big country always contended between West and East should
be very interesting questions to point out by taking as reference Russia. Quantitative research
will be applied in this work. Data will be collected through the related books, papers,
periodicals and different articles as well as statistical data from the official documents.
Furthermore, recent events and current political situation will also be evaluated using the most
recent sources of the newspapers and internet. The first part of the paper is devoted to a
description of the reforms towards the economic capitalist system of Ukraine, its legacies from
the centrally planned economy of USSR and the reforms in agriculture as a vital sector of
Ukraine’s economy. The second part portrays how society was reshaped with the advent of
capitalism, the increased economic inequalities, unemployment and the brain drain
phenomenon. The third part concerns Ukraine’s place in the global economy and its role and
engagement in the International Organizations. Finally, this paper endeavors to evaluate the
very delicate situation of Ukraine and its dilemma’s between strong supporters of European
Integration in the occidental part and those of further economic and political integration into
the East Bloc led by Russia in the oriental part.

Keywords: Ukraine, Economic Reforms, Society, Russia, EU Integration

35
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Effects of Personality and Character in Shaping Political Behavior of


University Students in Albania

Jon Ferunaj
Epoka University
Albania
jferunaj10@epoka.edu.al

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Abstract: Political perceptions and participation are central factors in understanding political
behavior. These perceptions and the partaking in a country’s political events such as voting or
acts of civil disobedience are considerably influenced by one’s personality and character. In
this paper the author tries to approach voting, protests, and political affiliation and candidate
preferences by putting an emphasis or accentuating the role of one’s personality in shaping
convictions and beliefs on the above-mentioned facets of political life. The measuring tool
through which data were accumulated regarding the matter at hand is a questionnaire filled by
Albanian university students. Approximately 500 respondents answered closed ended questions
and stated their level of agreeableness with a multifariousness of statements. The questionnaire
data is evaluated using SPSS program. The questionnaire’s results showed that in Albania
political affiliation is mostly determined by personal interest, demonstrations are usually
propelled by the wrong causes, disenchantment with political figures is more than present and
candidate preferences are affected more by his/her personality than by any other aspect, thus
making it easier for charismatic leaders rather than competent ones to take office. As a result it
can be said that Albania’s young generation views the pragmatic striving to achieve goals,
comprising personal interests, through politics as plausible. In addition it suffers from
disillusionment and alienation with the political life, caused by abusive politicians before
unresponsive crowds.

Keywords: Personality, Political behavior, Voting, Albania, University students,

36
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Features and Challenges of Democratization Process in the Balkans

Gloria Shkurti
Sakarya University
Turkey
gshkurti09@epoka.edu.al

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Abstract: This paper aims to analyze the consolidation of democracy in the Balkans, but mostly
demonstrated in the case of Albania. The process of democratization in the Balkans has
undergone a long path since the fall of the communist regime in the region. As a consequence
the analysis of the democratization in the Balkans has remained vague and difficult to be
framed. This research was conducted on bases of quantitative and qualitative researches. In
terms of the qualitative research there were conducted nine interviews with people that are
competent in this field (such as politicians, analysts, political scientist etc.). The interview
consisted of 6 open-ended and fully structured questions. Furthermore these interviews were
conducted via e-mail or face-to-face. Secondly, the quantitative study will be based on primary
data that is taken from the reports of Freedom House and the Economist Intelligence Unit.

On basis of this study the democratization process can be understood through two main
approaches: political and social approach. In terms of the political approach there should be
considered the history of the Balkans (conflicts, wars and communist regimes). On the other
hand there is the social approach related with the ill feelings transmitted from one generation
to another, which indirectly affects the consolidation of democracy. Moreover in this article the
process of democratization is analyzed also in terms of the external factors such as that EU or
USA. In addition there is done also a short comparison, between Balkan states and other ex-
communist states (such as: East European states, Czechoslovakia, Poland, etc.).

After assessing all the elements, the future of democratization process in the Balkans and
especially in Albania gives space for being optimistic and pessimistic at the same time. While
optimism is related with the fact that there is no other path to be followed except
democratization, pessimism on the other hand is related with the will of the political class.

Key words: democratization, consolidation of democracy, the Balkans, challenges, features.

37
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Political Ideologies and their Influence on the Political Behavior of the University
Students in Albania

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Arber Salihu
Epoka University
Albania
asalihu10@epoka.edu.al

Abstract: This research paper analyzes the effect of political ideology on political and voting
behavior. It is obvious that political believes and ideologies have an impact on voting behavior,
however the extension of its effects is open to discussion. This study is based mainly on primary
sources and the target group of the study is university students in Albania. The quantitative
method is employed in this research in the form of survey questionnaire conducted by the
students of higher education (universities) in Albania. The main aim of the study is to find out
how much political ideology has influence in political and voting behavior. In this survey
students are given an option to identify themselves in a given spectrum of 'extreme left' to
'extreme right'. In addition, the students are also asked for their affiliation with political
ideologies seeing themselves as socialist, social democrat, liberal, nationalist etc. In a country
where political party identification is quite evident and this identification is closely linked with
the political party leaders, political ideology can be considered as a major influence in voting
behavior. According to the data accumulated by the survey, almost half of the total respondent
students consider themselves as socialist or social democrats which make combination of the
two bigger than liberals, thus showing an obvious inclination towards leftist politics. This might
be interpreted as an indicator of the broad influence of the Socialist Party led left wing
coalition in power.

Keywords: Political ideology, Voting, Albania, University students, Political behavior.

38
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Progress of the Transition in the Southeast European Countries

Wioletta Nowak
Institute of Economic Sciences, University of Wroclaw
Poland
wnowak@prawo.uni.wroc.pl

Abstract: The aim of the paper is the analysis of the progress of the transition in nine Southeast
European countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia,
Montenegro, Serbia, Slovenia and Romania) in the years 1998-2012.
The Wroclaw taxonomy method is used to establish similarities and differences in the
evaluation of the progress of the transition achieved by the examined countries. The study is
based on six indexes used by EBRD (large scale privatization, small scale privatization,
governance and enterprise restructuring, price liberalization, trade and Forex system and
competition policy).

Montenegro, Serbia and Bosnia and Herzegovina experienced the greatest progress in the
evaluation of the transition in the years 1998-2012. The following pairs of countries: Slovenia-
Croatia, Bulgaria-Romania and Albania-FYR Macedonia showed the smallest differences in the
evaluation of the transition. In the case of such countries as: Bosnia and Herzegovina,
Montenegro and Serbia, patterns of the evaluation displayed similarities to the different
countries in the different years of the analyzed period.

Keywords: transition, Wroclaw taxonomy method, EBRD, Balkan region.

39
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Balkan Orphans

Havanur Şahin
Çanakkale Onsekiz Mart Üniversitesi
Turkey
akademi06@hotmail.com

Abstract: There are social consequences which changed of the structure of society as well as
political and economic consequences of 93 War, Balkan War and Great War when occurred in
the last period of the Ottoman Empire. Both refugee issue and accommodation of orphaned
children was on the agenda because of lost lands and over one million people were to be
martyr. Especially in Balkan War, the Empire lost %83 of land and %69 of population in
Europe and so important social events occurred. A wave of migration which could not control
by Ottoman Empire gave rise to the problem especially as accommodation of immigrants and
orphans. 75 thousand children orphaned at the end of the war only in Bulgaria. As a result of
this situation, it was established accommodation facilities called as Daruleytam in the last
period of Ottoman. The purpose of this institutions was accommodation, education and crafting
lessons to children of martyr’ and orphans.

Keywords: children orphans, Balkan War, education of orphans.

40
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Women Empowerment; Compression between Albania and Kosovo

Jona Hoxhaj
Epoka University
Albania
jhoxhaj10@epoka.edu.al

Elena Pici
Epoka University
Albania
epici10@epoka.edu.al

Abstract: This paper examines in details the increscent of woman empowerment in developing
countries by referring to two examples in Balkan states, which are states with low integration
and growth, Albania and Kosovo. These states are working toward elimination of gender
inequality and woman empowerment in state institutions, by putting targets of participation
percentage of women in parliament, governments and even in lower positions. Still women
continuously face difficulties and obstacles towards their full participation in public life in
developing countries.

Albania as a post communism country has a higher percentage of people with higher education
than Kosovo, which also indicates that women are also more integrated into society. But
Kosovo on the other side as a post war country with a very high presence of international
influence has put a very strict law and obligatory implementation of women participation in all
institutions and decision making bodies. Kosovo is striving hard to be the leader for this issue in
region, but individual success of some women in Kosovo does not mean that the culture of
equality is reflected in all population. Situation of women empowerment is widely spread in
both countries and is considered a big vision for these states toward improvement and further
development. Especially very careful analyses were done to put the light on the situation in
rural areas, where women are not aware of their rights and are not informed about the justice,
freedom and other essential human rights they possess and also what is being done to change
this situation those parts of the countries.
Lastly, after examination of each countries standing position for protection of the dignity by
women themselves, and empowerment in social life, a compression between them will be made
based on the current situation and women participation in key political, economical and social
positions in these countries.

Keywords: Women empowerment, Albania, Kosovo, Key positions, Education, Woman


Participation.

41
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

International Trade, Finance and Development; an Approach of Understanding


in what Fields is Albania the Right Country to Invest in.

Edlira Dede
Epoka University
Albania
edede12@epoka.edu.al

Ersejda Demirxhiu
Epoka University
Albania
edemirxhiu12@epoka.edu.al

Abstract: Our research consists of many approaches to present a wide, clear picture in
understanding how a South-Western Balkan’s country such as Albania offers many ways in
investments and development. What we will be further explaining are all the reasons that make
Albania different from the countries in the region. Also, we will be giving points of view in
where the investments from either national or international parties would not only be beneficial
for the country’s economy, but very profitable for the investors as well. Known for the many
opportunities it offers in this field, agriculture will be our focal point of attention. When Albania
was under the communist regime, nearly 80% of the country’s GDP was made due to
agricultural products. Taking into consideration the fact that technology, vehicles and farmers
have higher aims and are way better than 30 years ago, we are absolutely positive that with a
little bit of investment, this field will continue to remain priority.

The second field we, after checking the latest statistics, are sure that Albania is worth investing
is the tourism. Being the 4th in the 2014’s chart of places to visit is not enough. Acknowledging
the improvements in some parts of tourism, there’s still plenty of work to do. We will be
presenting the particular parts that still need support and also what will be the benefits to gain
from these investments. Another thing we will be stressing in our paper is the urge to bring back
the industrial factories and their processes. Before ‘90s, there were several towns in the country
that had particular factories, providing the citizens with their needs and even exporting a part
of the products. During this past decade, many discussions have led to this topic, yet never
coming up with an agreement in the end.

Lastly, we claim that technology is a very helping hand in the whole process of developing the
economy. It will definitely be useful in international trades and it will help having a network
available to all of those interested in investing in Albania. In our conclusion, we will be giving
all the details on how we think all this process will be a success and in which ways it will make
the country develop in surprisingly huge steps.

Keywords: EU, Balkans, agreements, Albanian economy, tourism, agriculture, industry,


technology, development.

42
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Hydro-energy Potential in Bosnia and Necessity for SIA Researches: A


Comparative Study with Turkey

Özgür Dirim Özkan


Virtua Research and Consultancy
Turkey
dirimozkan@gmail.com

Abstract: Energy sector in Bosnia and Herzegovina is one of the few which has got a prospect
for a potential of economic development in the country. Currently, electricity is one of the items
for export in the country which can be regarded as a strategic sector regarding the country’s
tiny economic structure. Almost half of the electricity is produced by hydroelectric power plants
(HEPP).

Currently total renewable water resources per capita in Bosnia are almost 9000 cubic meters,
which means the highest in Europe. Since country’s topography is dominated by Dinaric Alps, it
generates an advantage for hydroelectric potential. However, Bosnia and Herzegovina is using
only 38% of country’s hydroelectric potential and both government bodies and economists
agree that investing in HEPPs would one of the prescriptions for country’s poor economical
situation while the energy-lacking countries in the region are ready-customers. Federal
Ministry of Energy, Mining and Industry of Bosnia and Herzegovina projects that an investment
of 5963 million Euros is required to construct new HEPPs. The projects are envisioned not only
to make a considerable surplus to GDP of the country, but also would boom the economy of the
country which has a population of 4 million inhabitants.

On the other side, recently various outcomes of HEPP’s are being widely discussed referring to
political, environmental and social and cultural impacts of the projects, not only by NGO’s,
environmental activists and such, but also by national governments, international organizations
and by international finance institutions who give credit for large scale development projects.
In this respect, not only EIAs (Environmental Impact Assessments) but also SIAs (Social Impact
Assessments) are required for “correct” projects. This paper will discuss the necessity for SIAs
in B&H for HEPPs looking from the point of view that the country has a fragile and fragmented
political and social/cultural system. Relying on the experience on different SIA projects in
Turkey (namely; Pervari HEPP, İncir HEPP, Tirebolu HEPP, Simav JEPP, Kargı HEPP) the
paper will try to make a comparative analysis and figure out the dynamics and obstacles for
SIAs in B&H.

Keywords: Social Impact Assessment, Hydro-energy, Anthropology, Bosnia.

43
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Gender (in) equality in Political Participation in Bosnia and Herzegovina

Azra Bičo
International University of Sarajevo
Bosnia and Herzegovina
azrabico@hotmail.com

Nerkez Opčin
International University of Sarajevo
Bosnia and Herzegovina
nerkezopacin@gmail.com

Abstract: The focus of this paper is on the distribution of gender and their political
participation on a cantonal level of Bosnia and Herzegovina. Three leading parties in Canton
Sarajevo are going to be analyzed: the Party of Democratic Action (SDA), the Social
Democratic Party (SDP) and the Union for a Better Future of Bosnia and Herzegovina
(SBBBIH). The analysis in this study will first start with a comparison of the number of
candidates to be elected at the municipal and the cantonal level and their genders.
Furthermore, by using descriptive analysis we aim to show gender inequality in three leading
parties, according to the results of the local elections held in 2012. Also, by using descriptive
analysis we will compare the number of candidates who were nominated and the number of
candidates who were elected according to genders, to find the possible cause. Results show that
the problem lies in the overall low political participation of females on the political scene in
Bosnia and Herzegovina. In addition, we will analyze and discuss economic and social -
political reasons for such low political participation of females. Several suggestions are going
to be made through a positive example of a rather small political party in B&H, Naša Stranka.

Keywords: Gender Inequality, Political Participation, Bosnia and Herzegovina, Descriptive


Analysis, Political Parties, Canton Sarajevo

44
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Development of Environmental Taxes and Environmental Public


Expenditures in Turkey Comparing Member Countries of the European Union

İbrahim Akdoğan
Sakarya University
Turkey
iakdogan@sakarya.edu.tr

Tülin Akdoğan
Sakarya University
Turkey

Liridon Kryeziu
Sakarya University
Turkey

Ensar Selman Karagüzel


Sakarya University
Turkey
ekaraguzel@sakarya.edu.tr

Abstract: This study investigates the causes of the environmental pollution, such as gas
emission which causes the global warming. Then we examined the legal aspect of reducing
environmental pollution, especially the most comprehensive international agreement the Kyoto
Protocol. As a study case we examined the environmental expenditures, trends of the
environmental policies, the development of environmental policy instruments (trend), and the
structure of the environmental taxes for the years studied from year 2000 until 2011, then we
compared Turkey and European Union.

The purpose of the study was to investigate how the public environmental expenditures and
environmental taxes changed in Turkey and EU since 2000 until 2011. Another purpose of the
study was the relationship between the public environmental expenditures and environmental
taxes. In this study authors used secondary data in the large extent. The data collection for
environmental tax revenues and the environmental expenditures was derived from European
statistics agency.

According to our findings the environmental expenditures did not exceed the 1 % of GDP.
Despite the international agreements, the majority of countries have not increased the
environmental expenditures, and also the general trend of environmental tax ratios have not
increased significantly. The average of the environmental tax ratios are approximately 2.5% of
GDP. Even though those countries have applied environmental taxes, they did not spend for the
environmental protection. This means that those tax revenues are being used for public funding
purposes.

Keywords: Environmental Pollution, Climate Change, Environmental Tax Revenues,


Environmental Public Expenditure, International Environmental Agreements.
45
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Peoples Motives in Utilizing the Freedom of Movement within the EU: The Case
of Kosovo and Visa Liberalization with the EU

Alban Asllani
AAB University
Albania
alban.asllani@universitetiaab.com

Shkumbin Misini
Universum College
Albania
shkumbin.misini@gmail.com

Kujtim Bytyqi
Universum College
Albania
kujtim.bytyqi@gmail.com

Abstract: This study intends to identify the main motives for travel of citizens from Kosovo to
the EU Member States once the visa liberalization takes place. The authors of this paper take
into account demographic information from the surveys handed out to citizens of Kosovo, and
try to correlate them with their motives for travel to the EU Member states. The study argues
that visa liberalization for Kosovo is of imperative importance in preparing Kosovo for EU
membership. The study also argues that citizens of Kosovo benefit substantially by creating
networks with professionals in the areas of research, technology, and education. These
networks could potentially lead to local businesses gaining from outsourcing, which would
overtime increase economic development of the country. However, the study’s focal point is the
analysis of the survey of Kosovo’s on how they would utilize the EU visa liberalization regime,
using descriptive, correlation, and regression analysis. The descriptive statistics and simple
correlation analysis show a strong negative correlation between employment status, and work
and study as a reason for visiting the EU member states after visa liberalization, while there is
strong positive correlation between employment status and business, tourism and research as
reasons for visiting the EU. Similarly, strong correlations have been found between education
level of the respondents and their age group as demographics in one side, and work, study,
tourism, doing business, and conducting research as reasons for visiting EU after the visa
liberalization regime is granted to Kosovo. By conducting such analysis, the authors of this
study expect to give an overview of the current situation in terms of economic and socio-
political implications regarding the visa liberalization, and the motives of Kosovo’s in utilizing
the visa liberalization regime based on the responses received from the questionnaires.

Keywords: Demographics, Visa Liberalization, Mobility, Networking, people-to-people contact,


Motives for travel, Correlation analysis, reforms
46
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Fulfillment of the Maastricht criteria by Macedonia and Albania: a


challenging journey towards the EU

Rufi Osmani
South East European University
Macedonia
rufi.osmani@seeu.edu.mk

Jeton Mazllami
South East European University
Macedonia
j.mazllami@seeu.edu.mk

Abstract: The integration process of Macedonia and Albania in the European Union continues
to be a strategic priority of the country's political and economic priority, around which there is
full unity of political, economic and civil society in the countries that are the subject of this
analysis. This process in the current period of economic and political transition in countries
analyzed has gone through asymmetric trends recognized as a result of many factors which
partially addressed these national economic policymaking and asymmetric economic shocks
and political of internal and external factors.

The Maastricht Treaty on EU integration defined five basic criteria that countries must meet in
the claiming process of full integration into the EU. From the requirements laid down three
criteria focus on monetary convergence and are associated with price stability, exchange rate
stability and convergence of long-term interest rate. The other two criteria address the real
convergence and fiscal deficit and public debt in relation to GDP.
The paper aims to provide answers to the question on which level are met the integration
criteria in monetary and fiscal sphere of the aspirant countries Macedonia and Albania.

Keywords: European Union, Macedonia and Albania – candidate countries, Maastricht


criteria, economic integration, monetary and fiscal convergence

47
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Restructuring Turkey as a New Semi-periphery in the Age of Globalization

Muhammed Kürşad Özekin


University of Sussex
United Kingdom
kursad_ozekin@hotmail.com

Ayça Özekin
Balıkesir University
Turkey
aycaaysun@balikesir.edu.tr

Abstract: Associated with a number of structural shifts in global economic system, function and
characteristic of the semi-periphery has considerably changed in the last several decades.
However, having inherently been lodged with the ontological and the epistemological
limitedness of world system theory, the conventional theorization of semi-periphery tends to be
dismissive of the notion of globalization, and fails to analyze new functions and characteristics
of semi-peripheral countries under neo-liberal globalization. Taking globalization seriously,
this study aims to bring the term back to IPE literature with an up-to-date and analytically valid
conceptualization of semi-peripheriality under neo-liberal globalization. In order to do this, it
will first provide a comprehensive critique of the ontological and the epistemological
deficiencies commonly associated with the previous accounts. Particularly, structuralist,
cyclical systemic, state-bounded and holistic bias in world system theory will be critically
explored in order to inform the reader about the underlying theoretical limitedness in
understanding new dynamics of global economy. Mainly drawing on neo-Gramscian approach
and theory of global capitalism, this study wills later present a neo-Gramscian-inspired
articulation of new semi-periphery through giving special references to transnational’s
phenomenon and the role of transnational-oriented economic and social forces within and
above states. In so doing the matter of semi-periphery will be reconceptualised in the light of a
number of changes associated with the rise of neo-liberal globalization since the beginning of
the 1970`s. Building on this perspective, the study will lastly place the matter into an empirical
context by taking Turkey as a case study of export-oriented new semi-periphery. Particularly,
the transnationalization of Turkish economy and state structure will be analyzed as a
manifestation of new semi-peripheriality under dynamics of neo-liberal globalization. In this
context, a special emphasis will be placed on the transformative and agential role of
transnational capitalist classes, international financial institutions and transnational-oriented
economic and social forces within and above states.

Keywords: Semi-periphery, globalization, neo-Gramscian theory, transnationalization, global


capitalism, Turkey, social forces.

48
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Feldstein–Horioka Puzzle across EU Members: A Panel Approach

İbrahim Örnek
University of Kahramanmaras Sütcü Imam
Turkey
iornek@hotmail.com

Selen Utlu
University of Gaziantep
Turkey
selenu@gmail.com

Abstract: The degree of integration to the international capital markets is a crucial issue for the
economic policy implementations in developing countries. A major determinant of the degree of
international capital mobility is the saving-investment association.
One of the biggest problems of developing countries is the insufficiency of savings for financing
their investments that is crucial for economic growth. This gap is financed by foreign capital in
today’s global economies. It is generally believed that, the correlation between national savings
and domestic investments becomes weak when there is high capital mobility between countries.
The degree of capital mobility through the domestic saving-investment interaction is first
analyzed by Feldstein and Horioka (1980). Feldstein and Horioka (1980) used regression in the
investment ratio against a constant and the saving ratio in a cross section of 16 industrialized
countries, which are OECD members, over the period 1960-1974 and found that the coefficient
on saving was in the range of 0.85-0.95. They interpreted this finding as indicating that 85-95
% of national savings was invested in the country of origin, which implied a rejection of perfect
capital mobility. The basic conclusion of Feldstein and Horioka’s analysis is that an increase in
domestic saving has a substantial effect on the level of domestic investment. However, with
perfect world capital mobility, there is little or no relation between the domestic investment in a
country and the amount of savings generated in that country. This result was known in the
literature as the Feldstein-Horioka Puzzle. Feldstein and Horioka (1980) argued that the
relationship between domestic investment and domestic saving rates is related with the
international capital mobility and thus caused the rise of a puzzle in the economic literature.
The purpose of this paper is to investigate the level of capital mobility in European Union
members using the Feldstein–Horioka puzzle proposed by Feldstein and Horioka (1980) in
order to investigate relations between saving and investment flows.

Keywords: Feldstein–Horioka puzzle, Saving-investment, Capital mobility, European Union,


Panel

49
Economics

24-25 April, 2014


Sarajevo, Bosnia and Herzegovina
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Foreign Direct Investment as a Factor of Economic Empowerment of the


European Union

Amra Nuhanović
University of Tuzla
Bosnia and Herzegovina
amra.nuhanovic@untz.ba

Hidajet Klapić
University of Tuzla
Bosnia and Herzegovina
hidajet.klapic@yahoo.com

Abstract: At the end of the 20th and beginning of the 21st century, the role of the European
Union in foreign direct investment flows has increased, but also the growing role of
transnational companies from EU countries in the world economy is noticeable. Cross-border
corporate takeover has become the dominant form of movements in foreign direct investments.
The main role in this process had the European Union countries, such as suppliers, as well as
recipients of foreign direct investment. Excluding flows within the European Union, this
regional integration refers to approximately 40 % of all outbound foreign direct investment in
the last decade.

The undisputable fact is also, that the global financial crisis has affected, among other things,
reduction of foreign direct investment in the European Union, but also increase of regional
disparities, at the global and lowers regional level.
This fact committed authors of this paper to ask a question – is there any inconsistency or gap
in the distribution (or allocation) of foreign direct investment in EU countries, taking into
consideration that there is a significant gap in the inflows and outflows of foreign investment
between industrialized countries and developing countries?

In order to answer the question, the paper provides an overview of trends in foreign direct
investment in the European Union, stating data and rating in terms of impact of FDI on the
economic growth in general, and in the countries of the European Union in particular.

Keywords: Foreign direct investment (FDI), inflows, outflows, EU.

53
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Importance of Public Investments in Regional Development: An Example of


Gap in Turkey

Sadettin Paksoy
Kilis 7 Aralık University
Turkey
spaksoy@kilis.edu.tr

Erdal Alancioglu
Harran University
Turkey
ealancioglu@harran.edu.tr

Abstract: Developed countries can perform better growth with their economic possibilities and
they can minimize the imbalances among regions. However, this is not applied to developing
and least developed countries. The most important problem of developing countries such as
Turkey is insufficiency of sustainable development. Thus, this has led to imbalanced
development between regions.

Today, one of the major problems of Turkey is inter-regional inequalities in developments.


These inequalities also bring social, political and cultural problems with them. South-eastern
Anatolia Project (GAP) aimed a multi-sector, integrated and sustainable and regional
development. It is aimed to raise the income levels and living standards of people in the region
with the help of GAP, and as a result to abolish the inequalities between this region and other
regions. Development program of the project covers irrigation, hydropower, energy,
agriculture, rural and urban infrastructure, forestry, and education and health sectors. GAP is
funded by public investments and its total cost is 32 billion U.S. dollars.

In this study, the effect of public investment on regional development will be discussed by the
light of Turkey South-eastern Anatolia Project (GAP). The analysis of macroeconomic data
(economic growth, unemployment, export etc.) will help us to observe the contribution of the
GAP to the reconstruction of this region and the economy of Turkey in this context.

Keywords: Public Investment, Regional Development, South-eastern Anatolia Project (GAP)

54
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Harnessing Private Sector Growth for Inclusive Development

Mohamed Zulkhibri
Islamic Development Bank
Saudi Arabia
khibri1974@yahoo.com

Abstract: The study examines the role of private sector for inclusive development based on
descriptive qualitative analysis using secondary data and various key economic indicators for
private sector with respect to inclusive development, among others are poverty, inclusive
growth, investment, job creations, education, and infrastructure. By simple definition, private
sector constitutes a broader term covering all private actors engaged in economic activity, from
the small market seller and farmer to large domestic and foreign corporations. The private
sector consists of more than formal businesses or corporation, even though many discussions
have tempted to concentrate on the role of multinational corporations (MNCs) or large
corporations.

The study argues that private firms can play a vital role in enhancing inclusive growth
prospects as investors, employers and creators of new and upgraded productive potential.
Private sector activity matters for growth as well as its quality, sustainability and inclusiveness.
In most countries, the private sector is the major component of national income and the major
employer and creator of jobs. The pace of job growth and the quality of employment in the
private sector are thus central to development. A vibrant private sector also contributes to
higher wages. The financial sector is seen as playing a crucial role in economic growth by
mobilizing savings, facilitating payments and trade of goods and services and promoting
efficient allocation of resources.

The qualitative analysis suggests that private firms can play a vital role in enhancing inclusive
growth prospects given their ability to create new and higher value productive capacity. The
capability of firms to launch new export products and raise product quality generates higher
profitability and productive potential with spill over benefits to other firms and industries.
However, private sector activity per se does not automatically result in equality of opportunity
across individuals and firms. It has been very thoughtful to many of countries towards
‘Inclusive Business Models’. This includes facilitating these various actors to come together in
public-private collaboration to build “inclusive markets” and sector-specific strategies.

Keywords: private sector; inclusive development; poverty reduction

55
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Driving Forces behind Albania’s Growth

Güngör Turan
Epoka University
Albania
gturan@epoka.edu.al

Çeljeta Sherifi
Epoka University
Albania
celjetasherifi@gmail.com

Abstract: This paper examines the determinants of the Albanian economic growth that occurred
from 2002-2012. We have explored, first, the time series properties of the growth rates of gross
domestic product and labor productivity with an extended battery of unit-root tests. Then, in a
multivariate setting, we use the VAR model methodology to provide evidence that physical and
human capital accumulation, R&D expenditure, openness and competitiveness are the main
drivers of output, labor productivity and total factor productivity growth in the long run.

Keywords: growth, Solow model, VAR methodology, Albania.

56
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Financial Markets Development and Macroeconomic Stability in Sub-Sahara


Africa: Issues and Policy Options

Uyi Kizito Ehigiamusoe


National Institute for Legislative Studies
Nigeria
ehiuyikizexcel@yahoo.com

Abstract: The paper examines the link between financial markets development and
macroeconomic stability in Sub-Sahara Africa. The major objective of the paper is to examine
the impact of financial markets development on economic growth using secondary data
covering the period 1980-2012. It also examines the relationship between financial markets
indicators (such as the ratios of broad money supply to GDP, private sector credit to GDP,
total bank credit to GDP and market capitalization to GDP) and macroeconomic variables
(such as the growth rates of inflation, employment, and poverty and real interest rate) in the
region. The paper adopts both analytical and econometric techniques such as ordinary least
squares method, granger causality analysis, Johansson’s co-integration techniques and vector
error correction model to investigate the relationship. Evidence from the study reveals that a
long-run relationship exists between financial markets indicators and macroeconomic
variables. It was also discovered that financial markets indicators have positive and significant
impact on economic growth in countries with largely developed financial markets, while
financial markets indicators have insignificant impact on economic growth in countries with
minimally developed financial markets. It was also revealed that causality runs from financial
markets indicators to macroeconomic variables (inflation, employment, poverty and real
interest rates).

The ratios of domestic private sector credit and bank credit were found to have negative impact
on economic growth but changes in these variables cause changes in inflation, employment and
poverty rates. Furthermore, the ratio of market capitalization also has significant impact on
economic growth. If policymakers want to promote economic growth and stabilize
macroeconomic variables, they have to focus attention on long-run policies that will accelerate
the development of the financial markets through innovations and effective supervision. Also,
the governments should take it as a policy options to create the enabling environment for the
growth and development of financial markets with a view to use them to achieve
macroeconomic stability in Sub-Sahara Africa.

Keywords: Financial Markets Development, Macroeconomic Stability, Economic Growth,


Inflation Rate, Real Interest Rate, Poverty Rate, Employment Rate

57
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Analysis of Internally Generated Revenue and its Implications on Fiscal Viability


of State Governments in Nigeria

Asimiyu G. Abiola
National Institute for Legislative Studies
Nigeria

Uyi Kizito Ehigiamusoe


National Institute for Legislative Studies
Nigeria
ehiuyikizexcel@yahoo.com

Abstract: State governments in Nigeria are financed by funds from statutory allocations from
the federal government and Internally Generated Revenue (IGR) from each state. But most state
governments depend on the federal government due to the poor level of internally generated
revenue in their states. Therefore, the paper examines the growth rate of state governments’
internally generated revenue in Nigeria between 1999 and 2011. The main objective of this
paper is to examine the relationship between internally generated revenue and state
governments’ expenditures. It also seeks to compare the growth rate of internally generated
revenue in urban and rural states. The paper adopts analytical and descriptive approaches to
examine the relationship between internally generated revenue and government expenditures.
The results of the paper revealed a direct relationship between the growth rates of internally
generated revenue and capital expenditures. On the overall, the growth rate of state
governments IGR was 20.1 per cent, compared to 30.0 per cent and 34.2 per cent for recurrent
and total expenditures, respectively. Although, the growth rate of IGR is higher in rural states
than in urban states but the growth rates in expenditures are higher than the growth rate of
IGR. It was further discovered that the internally generated revenue of urban states financed a
greater proportion of their recurrent and total expenditures than the IGR of rural states. The
paper therefore recommended that more revenue should be given to rural states to finance
capital projects to enable them grow their internally generated revenue, so as to promote
economic development.

Keywords: Internally Generated Revenue (IGR), Expenditures, Urban states, rural states,
Federation Account.

58
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Nexus between Electricity Generation/Supply and Manufacturing Sector


Performance in Nigeria (1975-2011).

Anthony Osobase
University of Lagos
Nigeria
osobaseanthony@gmail.com

Abstract: This paper investigates the relationship between electricity generation/supply and
manufacturing sector performance in Nigeria using time series data from 1975-2011. The
variables utilized to test this relationship are index of manufacturing production, electricity
generation, government capital expenditure, inflation rate, exchange rate and capacity
utilization. By employing series of tests such as correlation techniques, the result obtained infer
that, there exist a positive nexus between index of manufacturing production and electricity
generation, government capital expenditure, inflation rate, exchange rate but negative
relationship between capacity utilization. The Granger causality test shows unidirectional
causal relationship that runs from capacity utilization to index of manufacturing production.
Similarly, there is unidirectional causal nexus that occurs from electricity generation to index of
manufacturing production. For government capital expenditure and index of manufacturing
production it was observed that, unidirectional relationship runs from index of manufacturing
production to government capital expenditure without feedback effect. The Johansen co-
integration test shows three co-integration equations at five percent level for the trace statistics
but no co-integration at five and one percent level for the Max-Eigen test. The implication of
this study is that, electricity supply is a key determinant of output growth in the manufacturing
sector; therefore the power sector should be given more attention for the growth of the nation
economy.

Keywords: electricity generation, manufacturing performance, Nigeria.

59
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Determinants of Tourist Arrivals at NUTSIII Level in Turkey

Burcu Türkcan
Ege University
Turkey
burcu.turkcan@ege.edu.tr

Abstract: Tourism is one of the key sectors in the regional economic growth and development.
Especially countries, which have coastal areas, historical places and famous cultural events -
like Olympics, Carnivals, Film Festivals etc.- experience high tourism turnovers and hence
some other macroeconomic benefits. Particularly, the typical kinds of these macroeconomic
benefits that governments can expect from tourism include; earning foreign currency and
making a positive contribution to the balance of payments; developing the services sector and
contributing to the gross domestic product; attracting inward investment and income multiplier
effects; and employment creation. Consequently, tourism has a key importance in both national
and regional economies. By taking into account these macroeconomic impacts of tourism
sector, the main aims of this study are to analyze the determinants of tourist arrivals at NUTSIII
level in Turkey and to make policy recommendations for regional authorities in order to
enhance tourism sector in their regions.

In this respect, in the first section of this study, the role and importance of tourism sector in
regional economic growth and development are explained and some key statistics about the
issue are given. In the second section, a spatial panel data analysis is conducted for the period
of 2000 - 2010 and the empirical results are interpreted. Lastly, in the third section, by
following the empirical results, some policy recommendations for the regional administrations
are made. This study makes some contributions to the related literature because of the fact that,
to the best of our knowledge, this is the first study examining the determinants of tourist arrivals
at NUTSIII level in Turkey by using spatial econometric methods.

Keywords: Tourism, regional economics, spatial econometrics, Turkey

60
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Foreign Direct Investment in the Western Balkan Transition Economies: Future


Perspectives

Adisa Arapović-Omerbegović
Sarajevo School of Science and Technology
Bosnia and Herzegovina
adisa.omerbegovic@ssst.edu.ba

Eldin Dobardžić
Sarajevo School of Science and Technology
Bosnia and Herzegovina,
eldin.dobardzic@ssst.edu.ba

Abstract: The importance of FDI for the economic development of a transition economy is
especially pronounced. However, it is necessary to say that the importance of FDI for the
Western Balkan countries have the crucial importance especially for the continuation and
completion of the initiated reforms. Continuation and completion of structural economic
reforms is also one of the key conditions for the accession of the Western Balkan countries to
the European Union. So, the central question is related to the key factors that determine the
level of FDI flows into the Western Balkan countries in the near future. The notable FDI
performance of Central Eastern European countries during their preparation for the EU
accession in the last decade and the experience of earlier EU enlargements demonstrate that
economic integration can increase FDI inflows. The Western Balkans follows a specific process
of economic integration. On the one hand, intra-regional integration aims at normalizing the
economic relations after the period of disintegration during the nineties and helps to create a
common market. On the other hand, the regions aspire to accede into the EU, as it has been
demonstrated by the EU membership application of Croatia. This paper aims to analyze how
political stability or instability may affect FDI inflows by creating an index of performance on
this variable for each Western Balkan country and relates it to a measure of FDI performance
for a particular country. Also, the paper analyzes the impact of the EU accession process on the
value of FDI inflows. The integration of the Western Balkan countries with the aim of
liberalizing interregional trade represents (such as a CEFTA agreement) a chance for
improving their mutual cooperation and it provides the basis for a more intensive trade with the
European Union countries. Based on the analysis of the current political situation in the
Western Balkans, as well as the current position in the negotiations with the EU, paper
indicates the factors which determine the likely direction of potential FDI flows into the
Western Balkan countries with the specific recommendations for the economic policy makers.

Key words: Western Balkan transition economies, foreign direct investment, political volatility,
EU integration
61
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Are Islamic Banks More Effective than Conventional Banks for Turkey’s
Development?

Gönül Çifçi
Adiyaman University
Turkey
cifcigonul@gmail.com

Saadettin Paksoy
Kilis 7 Aralik University
Turkey
spaksoy@kilis.edu.tr

Abstract: Islamic banks are so popular nowadays, while many people had preferred to stay far
in the past. Even to World’s first and foremost conventional banks have new departments
related to Islamic banking. Essentially, Islamic banking is similar to conventional banking in
many areas but all rules about transactions, services but interest is pivot of conventional
banking. That is why some Muslims had hesitation to make investments in banking systems. In
that perspective, Islamic banking fulfilled many people’s investment desire.

Are Islamic banks more effective than conventional banks for development with Islamic bank’s
remarkable performance and ability to generate high volume in Islam countries like Indonesia
and Malaysia? Or that success is just a coincidence? We will seek that questions’ answer by
examining Islamic and conventional banks in Turkey.

Key Words: Islamic Banking, Conventional Banking, Turkey, Development.

62
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

European Union Integration: The Impact in Albanian Economy and Life

Urmat Ryskulov
Epoka University
Albania
uryskulov@epoka.edu.al

Riada Berhani
Epoka University
Albania
riadaberhani@gmail.com

Abstract: Most of the countries in South Eastern Europe have as a political, economic and
social goal the European Union integration. The focus of this paper is the Albanian integration
in EU and its impacts in Albanian economy and life. To analyze these impacts are conduct a
theoretical and an empirical analysis. The theoretical analysis analyzed the economic
advantages and disadvantages of the increase of foreign direct investment which will result by
the integration intro EU as well as the political and social impacts. Empirical analysis forecast
the trends of Gross Domestic Product and Foreign Direct Investment in Albania by using time
series forecasting methods according to two different scenarios. It predicts that GDP will
increase by 16.60-23.92% and FDI level in Albania will increase by 29.22-32.12%.

Keywords: Albania, EU integration, FDI

63
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Macroeconomic Determinants of Nonperforming Loans in Albanian Banking


System

Urmat Ryskulov
Epoka University
Albania
uryskulov@epoka.edu.al

Riada Berhani
Epoka University
Albania
riadaberhani@gmail.com

Abstract: The aim of this paper is to study the impact of macroeconomic factors in the amount
of nonperforming loans in Albanian banking sectors by using multi regression analysis model
from 2003 to 2012. This paper studies the relationship between the amount of non-performing
loans and six important macroeconomic factors which are: Gross Domestic Product (GDP)
growth rate, inflation rate, money supply (M2) annual growth rate, interest rate, unemployment
rate and exchange rate. The multi regression analysis suggests that all variables have a
negative impact in the non-performing loan level except inflation and exchanges rates.
Moreover the time forecasting analysis predicts an increase in NPL level in Albanian Banking
System.

Keywords: Albania, Banking System, Macroeconomics, NPL, Credit risk.

64
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Casual Effect of Education Level on Wages: Albanian Case

Jerina Podo
Epoka University
Albania
jpodo@epoka.edu.al

Abstract: Education is a very important investment decision motivated by the fact that it will
yield ongoing long term income. This income otherwise is called wage, which refers to regular
payment gained by working. There are a lot of factors that define the wage level such as: job
position, employment policies of the country etc., but does the education level have significant
impact on the wage or wage growth?

This paper makes a methodological, qualitative analyze by using the empirical results
generated by the survey “The effect of education level on wages: Albanian case”, provided to a
random sample of employed people in Albania. By observing the data on the education level
and the job satisfaction with regard to wage level, this survey aims to show if the overall wage
growth changes proportionally as the education level changes and also if the more educated
people have higher working opportunities.

The results of the survey reflect that the education level has a significant effect on the job
position, especially in the specific working areas, so the working experience and the wage level
grow monotonically with the education level.

Keywords: education level, wage growth, working experience, specific working areas, welfare.

65
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

An Example of Regional Development in Bosnia during the Ottoman Period: A


Study on the Budgets of Gazi Husrev Bey’s Waqf between 1624-1629

Kadir Arslanboğa
Çanakkale Onsekiz Mart Üniversitesi
Turkey
karslanboga@comu.edu.tr

Abstract: In the Ottoman Empire, waqf’s (foundations) played a key role in regional
development. Waqfs were fulfilling many activities related to social, cultural and economic life
in the settlements. Ghazi Husrev Bey established a waqf in 1537 and has built a complex of
buildings in Bosnia. This complex of buildings consists of mosque, madrasah, tomb, primary
school, lodge, guest house, soup kitchen, hospice, bath, caravanserai, bazaar and library. These
all institutions of the Ghazi Husrev Bey Waqf have played an important role in regional
economic development of Bosnia. Institutions that were established in the centre of city have
played active role for regional development for centuries. The waqf has had an impact on not
only economically, but socially, culturally and in the fields of public health in the development
of region.

In this study, Ghazi Husrev Bey Waqf’s budgets will be examined years of 1624-25, 1625-26,
1626-27, 1627-28 and 1628-29. Thus, after nearly half a century the waqf's income and expense
will be examined in detail through financial records.

Revenues of the waqf consist of the farm, caravanserai, bath, inns and shops for rent in the
bazaar and revenues of tax-farming. The expenses of the waqf consist of salaries of employees
in mosque and hospice, hospice’s needs for food and other needs of waqf’s institution. With
these establishments, waqf created employment in the area and by demanding goods and
services from the city and regional market made an economic liveliness in the regional
economy. These five-year financial records show us waqf’s yearly income and outcome
activities. Waqf’s budgets were derived from the Ottoman Archives in Istanbul.

Keywords: Regional Economic Development, Ottoman, Bosnia, Ghazi Husrev Bey, Waqf.

66
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Relationship between Growth and Tax Revenues in Croatia

Hakan Arslaner
Adnan Menderes University
Turkey
hakanarslaner@yahoo.com

Sevinç Yaraşır Tülümce


Pamukkale University
Turkey
sevinç.yarasir@gmail.com

Abstract: In all countries, the main purpose of taxes is to finance public spending. However,
according to Keynesian school, governments apply for the taxes not only for public funding, but
also for achieving the objectives of fiscal policy. Recently, politicians have used the taxes as a
tool to ensure the economic stability, equality in income distribution and economic growth.
Among these objectives, economic growth refers to the net increase in national income.
Traditional growth theories have failed to explain the growth using capital accumulation and
labor. But, new endogenous growth theory investigates also the impact on growth of the public
policy. Different taxes have different effects in the economy. If taxes examine as direct and
indirect taxes, the first effect of indirect taxes on economy is related to resource allocation
through the price mechanism. The first effect of direct taxes such as income and corporate tax is
on saving and investment decisions of individuals. The rates on these taxes should be lower for
decisions of economic agents. The high taxation of this earning has led to the badly affected of
labor, capital and technology located among growth factors. As a result, entrepreneurship can
be reduced; saving and investment decisions can be influenced negatively. On the other hand,
the taxation of capital may also lead to balance of payment problems in country by leaving the
country of capital. Investment and saving are the main tools of growth. Therefore, the use of
taxes for providing economic growth is extremely important. The relationship between
economic growth and taxes is discussed in many studies.

The share of total tax revenues to GDP in Croatia is 14.8% in 1991, 22.97% in 1996, 22.4% in
2000 and 18.6% in 2011. GDP growth rate is 5.2% in 1996, 3.75% in 2000 and -0.92% in 2011
respectively. In this study, the relationship between growth and tax revenues is analyzed by
using Johansen Cointegration and Causality tests in Croatia between 1991-2011 periods.
Johansen Cointegration test results reveal the existence of a positive and significant relation
between growth and tax revenues. In the long term, the impact of taxes on growth is significant
and positive. Granger causality test findings indicate that there is causality from growth to tax
revenues in the 10% significance level.

Keywords: Tax Revenues, Growth, Croatia, Granger Causality Test, Johansen Cointegration
67
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Impact of Regulatory Reforms on the Banking System in Bosnia and


Herzegovina

Medina Prašović
International Burch University
Bosnia and Herzegovina
mismedina@yahoo.com

Abstract: In the last two decades, we have witnessed great changes and growth in the financial
sector worldwide. While some countries have experienced economic development, others
experienced banking crisis which sometimes lead to costly bank failures and overall disruption
in economic activity. The extent to which the financial system can support economic growth
depends mostly on the stability and efficiency of the banking sector due to the fact that banks
are still the main financial intermediaries. This comparative study will be conducted by
applying a discriminated analysis about the implementation of set of common rules for
regulating the banking system (Basel II) in Bosnia and Herzegovina, Croatia, Serbia and
Slovenia, as well as preparation of these countries for implementation of Basel III. The main
goal of the paper is to analyze how and why the new global financial regulations in the banking
sector are applied differently in different countries and regions. These questions are answered
by analyzing the implementation of Basel II, results of appliance of this rules as well as
expectations from Basel III.

Keywords: Banking system, Economic development, Basel Committee on Banking Supervision,


Risk, Implementation, EU, Standards

68
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Effect of Tax Incentives on Regional Economic Development

Mine Biniş
Balıkesir University
Turkey
mbinis@balikesir.edu.tr

Elif Ayşe Şahin İpek


İzmir Katip Çelebi University
Turkey
elifa.sahin.ipek@ikc.edu.tr

Abstract: Tax incentives are exceptional applications which are used to encourage in a
specified activity for a certain period. Today most of the countries have created tax incentive
programs for many reasons but especially to attract regional economic development. Tax
incentives can be used as a tax exemption or as a financial incentive. One of the significant
outcomes of the tax incentives is that they reduce firm’s costs. Tax incentive programs are
focused on the expectations of welfare gains such as the region’s level of employment and
income. Another point of these expectations in terms of the state tax incentive programs can
result from the loss of tax revenue and inefficient allocation of public goods. Although tax
incentives have been used over the world since the 1980s, its utility in practice is a
controversial issue in the academic literature. While some studies find an impact on economic
development, some studies especially focusing on long term, find the opposite.

The aim of this paper is to investigate the effects of tax incentives as a device for providing
regional economic development. Tax incentives have been undertaken as an economic
development strategy in developing and developed countries over the past years. Based upon
countries’ regional economic development experiences, particularly Turkey’s strategy about
regional economic development has been evaluated. Although in the 1980s several attempts
have been made about tax incentives, from the 1990s strategies which consist of using it as a
tool of regional economic development, come into prominence. In 1 January 1999 Turkey has
provided investment allowances which depend on location and type of investment, but its
application results have not been as expected. To eliminate these failures and set up regional
economic development through tax incentives, a new tax incentive program has been introduced
in 4 June 2009. This paper particularly takes into account the effects of new investment
incentive plan which effectuated in 1 January 2012 in Turkey. One of the main results of the
study is that the use of tax incentives could be limited to the reinforcing of regional economic
development.

Keywords: Regional development, Fiscal Instruments, Tax incentives, Incentives, Turkey.


69
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Study of Economic Capital Effects on Lifestyle (The Case Study of Pistachio
Farmers in Two Villages of Kerman City in Iran)

Shima Safa
Soil conservation and watershed management research Institute
Iran
shima.safa@gmail.com

Abstract: As the social world changes, we need new concepts to understand it. The most
important change in recent centuries has been the historical increase of consumption. Lifestyle
and basic cultural values have changed in Iranian villages in the past half century. In fact, in
Iranian villages, some sort of "Iranian rural modernity" has emerged. This paper has attempted
to review the terms of lifestyle and indicators. And then it pays to examine the effect of pistachio
orchards spread over the rural lifestyle both quantitative and qualitative methods. In this study,
theories of sociologists Bourdieu and Giddensare used to study lifestyle, and Ronald Inglehart
and other sociologists’ to analyze generational replacement. In qualitative research method, we
have used rapid rural assessment, participatory approach, and semi-structured interviews.
Interviews transcend walk, and group discussion were among the techniques used in this study.
In quantitative part, 440 people from three generations living in the villages were sampled at
random Research findings show that consistent with Bourdieu's “distinction theory” economic
capitalist associated with lifestyle as the main hypothesis of the research. But the greatest
impact is related to generation. As Bourdieu's theory, economic status does not determine the
lifestyle changes.

Keywords: economic capital - lifestyle – generational changes – pistachio cultivation – Kerman

70
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Middlemen in Economy: are they Redundant or Important?

Serkan Dilek
Kastamonu University
Turkey
serkan.dilek@gmail.com

Abstract: In economic theory producers (firms) compete to satisfy the needs of consumers and
on this way try to get maximum amount of profits. Consumers generally try to choose the
cheapest and the one with highest quality to maximize their utility. In addition to this, producers
try to sell their goods with highest price to maximize their profits. In perfect competitive
markets it is assumed that both producers and consumers have perfect information about prices.
However, in daily life they cannot have all information without searching and suffering from
transaction costs. Also sometimes consumers cannot find firms that produce the goods they
need. They need help to find firms that sell goods for them. Middlemen are agents who help
consumers and also producers to meet each other. For instance, real estate managers, dating
clubs, travel agencies are that kind of agents. These are thought to be agents who reduce
transaction costs and by this way help providing equilibrium of markets. But, middlemen have
not enough space in economy books and there is so little search in literature. If they have
important place in economic life why there is so little search about them in literature? If they
are redundant why most of consumers go to real estate’s to find appropriate flats, lands, offices
etc for them?

In this study the place and importance of middlemen in economic life is discussed. First
economic literature about middlemen and their roles in market are reviewed. Then, it is tried to
reveal their role in reducing transaction costs and providing economic equilibrium. To this aim
a model consists of firm, consumer and middlemen is constructed. By the help of this model we
can answer (or at least discuss) if intermediaries are redundant or important factor in economic
life. This study can help for future researches about the role of middlemen in economic life and
by this way middlemen will gain rightful place in economic theory and literature.

Keywords: Intermediaries, Imperfect Information, Transaction Costs, Information, Middlemen.

71
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Energy Challenges and Regional Electricity Markets: Opportunities, Barriers


and Prospects for Bosnia and Herzegovina

Mirza Šarić
JP EP B&H -did. Sarajevo
Bosnia and Herzegovina
msaric@yahoo.com

Abstract: Electricity networks have traditionally been built and managed by government owned,
vertically integrated companies. Modern systems are undergoing significant organizational,
structural and technological changes. These changes are driven by two processes. The first
process is market liberalization which requires reorganization of state owned monopolies,
unbundling, establishment of independent system and market operator and regulatory authority.
The second process is the energy transition from conventional energy sources to renewable
energy. These two processes present a new energy paradigm. The process of market
liberalization is mature in European Union while its practical initiation is still expected in
Bosnia and Herzegovina. Important step for Bosnia and Herzegovina is integration in
Southeastern Europe Regional Electricity Market. European Union policy goal is creation of a
single Internal Electricity Market. This implies that electricity future of Bosnia and
Herzegovina lies within the large European Electricity Market.

This paper investigates Bosnia and Herzegovina's sector and market specific policy priorities,
challenges and opportunities with respect to electricity market liberalization and integration
process. Main objective of this paper is to present current situation of electricity market in
Bosnia and Herzegovina, identify steps required to achieve full market liberalization and assess
the regulatory framework required to face challenges of a new energy paradigm. This research
seeks to determine what are the opportunities and challenges of electricity market liberalization
in Bosnia and Herzegovina and how do the regional integration help in overcoming current and
future energy challenges. Research is undertaken by collecting and analyzing relevant
electricity consumption and production data and relating them to specific market and structural
policies within national and regional framework. It was determined that sector specific
priorities are unbundling, restructuring and reorganization. Market specific issues such as
demand and supply side imperfections can only be partially solved within national framework.
Regional regulatory issues, interconnection management and global investment policy cannot
be adequately managed from the national perspective and need to include adequate regional
coordination mechanisms.

Key words: regional electricity market, deregulation, liberalization.

72
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Local Authority in Tourism Development in Vlora

Landsite Mukluk
Epoka University
Albania
linditamukli@gmail.com

Abstract: Economic and social opening of Albania after 1991, gave a new momentum to the
country's tourism development particularly the one to the coastal areas, using individual
private investment, which structured small-scale tourism, coupled with cleavage to extreme
local landscape. Governments after 1991, rightly considered tourism development as a big
opportunity on developing the country in a short term. Local authorities have many direct and
indirect mechanisms at their responsibility and disposal to influence the development of tourism
as they are providers of public goods and services, supervisory bodies of economic activities,
builders of public infrastructure, responsible for economic development and accountable for the
natural environment. The local authorities have focused on the distinctive challenges of
governance for sustainable developments.

This article discusses the development of the tourism industry in Albania and Vlora. It calls for
both local and national agencies, and respective stakeholders to support the idea where tourism
is an important sector in the process of economic development. The study is based on a
structured survey which was developed in Vlora. The questionnaires were structured in such a
way that it contains the information needed to answer a hypothesis: “The Local Authority play
an important part on tourism development in Vlora”. For processing questionnaires, SPSS
software (descriptive Statistics, Frequencies, Compare Means, and Independent Samples T-test)
and Mega Stat (Hypothesis Test, Compare Two independents Groups) were used. In Vlora,
tourism is one of the many driving forces promoting the directions and opportunities for local
developments. The research question of this article is whether tourism can be sustainable. The
true proof of “sustainable tourism” will be the sustainable development of local communities
which are tourist destinations as the time is right for more focus on this challenge.

Keywords: Vlora, Albania, tourism, sustainable tourism, local authorities, local developments,
policy making.

73
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Trade Agreements of Albania and their Impact on Agriculture, Imports and


Exports

Risilda Djala
Epoka University
Albania
rdjala11@epoka.edu.al

Mergleda Hodo
Epoka University
Albania
mhodo@epoka.edu.al

Abstract: This paper examines the impact that the free trade agreements of Albania have had
on the overall economy in general and in agriculture sector, exports and imports in particular,
turning out to be increased in significant amounts. These trade agreements have provided the
Albanian economy with a competitive advantage and economic space. The long journey of
integration for Albania has started with its association in the World Trade Organization
(WTO), a great step towards international competitiveness, followed by being part of Central
European Free Trade Area (CEFTA). Albania has also free trade agreements with nine
countries of the region, including Bosnia & Herzegovina, Kosovo, Macedonia, Moldova,
Croatia, Yugoslavia and Turkey, Romania and Bulgaria, which are the latest EU members, and
by January 2009, the process of ratification from the members of European Union countries
finished. This means free exchange of goods and services between these countries by exploiting
better their competitive advantages. The possibility of the development of agro-industrial
industries continues to be high for Albania, because many products can be exported customs
duty zero, facilitating the burden of tariffs and taxes. All analyses done about the impact of the
FTA on trade facilitation, price reduction and the volume of imports and exports results that
generally in 2008 and especially since 2010, there has been seen a positive trend in the increase
of the volume of trade, indicating the positive effect of these agreements in the mentioned
sectors. Furthermore, there is a need for deep structural changes, including changing the size
of the farm, further development of the land market, increased competitiveness, more domestic
production, and an increase the level of public and private investments in the future.

Keywords: Agriculture, exports, imports, tariffs, customs duty, impact.

74
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Albanian Trade and Income Inequality

Mergleda Hodo
Epoka University
Albania
mhodo@epoka.edu.al

Abstract: Briefly, this research paper will demonstrate if the forecasts of Heckscher-Ohlin
theory, that inequality increases in wealthy countries and decrease in developing countries, like
Albania, as a result of increased trade, is true for our case.

This paper uses theoretical and empirical research with the intention of showing how trade and
trade liberalization influence income distribution and income inequality. Trade liberalization
enhances overall welfare; most of the time gains from trade are considerable but are not
distributed equally. The focus of this research paper is finding out how this affects Albania in
particular. These effects of trade are evaluated essentially through price changes, keeping
under spotlight the possible changes in relative demand for domestic factors of production,
especially the demand for skilled compared to unskilled labor.

The regression model is used to find the correlation between trade and income inequality in
Albania for years 2000-2011. Albanian trade parameters are taken from the Albanian
Institution of Statistics and World Bank and are compared to the measures of inequalities in the
country to extrapolate a conclusion in regards the impact of trade openness on income
inequalities. Greater sincerity to world markets can affect income distribution between and
within countries. So the increase in growth due to trade openness has a pejorative effect on the
poor and causes unequal distribution of income. Based on the findings, trade liberalization is
found to be related to income inequality. Does inequality increases in capital and land
abundant countries while decreases in labor abundant countries when they experience trade
liberalization?

Keywords: Trade liberalization, income inequality, Heckscher-Ohlin theory, capital.

75
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Study of Consumers View on the Appearance of Packaging by Producers:


Meggle, Milkos and Zim Using Descriptive Analysis and Student’s T-Distribution

Ibrahim Obhodas
University “VITEZ” Travnik
Bosnia And Herzegovina
ibrahim.obhodjas@unvi.edu.ba

Slobodan Vujić
VB Leasing BH
Bosnia And Herzegovina
slobodan.vujic@vbleasing.ba

Saša Vujić
University “VITEZ” Travnik
Bosnia And Herzegovina
vujic.sasa1@gmail.com

Aida Abduzaimović
University “Vitez” Travnik
Bosnia And Herzegovina
aida.abduzaimovic@unvi.edu.ba

Abstract: The paper is aimed at analyzing the design of long-life milk packaging in order to
learn how packaging affects the market share. The marketing aspect analysis will be conducted
on the product packaging design on the example of three dairies doing business in the BH
market. It will attempt to answer the questions as to which packaging elements consumers focus
on, which parts of packaging they consider to be important. In this context, the paper tests the
hypothesis that product packaging significantly affects the market share.
The analysis will deal with the functional aspect of packaging, its operational aspect, durability,
reliability, aesthetic appearance and product attractiveness.

Primary data were collected using survey questionnaires filled in by consumers of the actual
products that were the objects of research. The questionnaires will be sent to consumers via e-
mail. The survey questionnaire includes six criteria, and the obtained data will be analyzed
using statistical methods (descriptive analysis, correlation, paired sample t-test). Besides the
described primary data, the analysis will use secondary data of international and local
organizations involved in market analysis. The primary research will provide an insight into
what influences consumers, and how packaging affects the market share.

Keywords: packaging, consumers’ views, services, differentiation strategy, marketing.


76
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

International Trade and Foreign Direct Investments: Albanian Case

Lorela Manjani
Epoka University
Albania
lmanjani11@epoka.edu.al

Mergleda Hodo
Epoka University
Albania
mhodo@epoka.edu.al

Abstract: This paper observes the effects of international trade in Albania and related with it
focuses more on the explanation of foreign direct investments and creation of outsources and
franchises in Albania. Many theories have been adopted to explain the reasons why some
countries agree to invest abroad and others to receive FDIs like; law of perfect markets, law of
imperfect markets and other theories. According to INSTAT Albania started to recover with
money transfers coming from immigrants which grew from US$324 million in 1999 to US$531
million in 2000. Investments in physical capital such as in ports, roads, transportation
infrastructure have effected in Albanian International trade. Also investments in banking sector
have affected economy in latest years. Portfolio investment and bank relationships between
countries can increase the bilateral trade. Examples in Albania are Raiffeisen Bank that makes
the relations between the German states and Albania which holds 19 “NOSTRO” accounts with
15 banks in all the world and helps in “creation of money”. Also NBG bank holds 8
“NOSTRO” accounts with all countries and makes most of the transactions between Greece
and Albania. Also National Commercial Bank makes mostly the relations in transactions with
Turkey, which is in Balkan region and nearest partner treading with Albania.

Government intervention has also effected in attracting FDI with its decisions in economical
and political aspects which are: Albania ”1 Euro” which can attract new investments since low
prices occur; Low on concession and public procurement; “Law of foreign investments” ;
Reduction of Corporate tax from 20 percentage (%) to 10 percentage (%). Some analyzes are
done to determine the rate of effectiveness in international trade and licensing of foreign
enterprises and businesses that operate in Albania. Negative and positive effects of foreign
investments, according to trade balance, are mentioned to end up in a conclusion. Most of the
dates are taken from Bank of Albania and INSTAT for 2000-2013 period and other reliable
sources.

Keywords: International trade, FDI, markets, businesses, tax.


77
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Institutions in Transition Economics: a Deeper Look on the


Relationship between Privatization and Economic Growth in Bosnia and
Herzegovina

Suad Krcić
International Burch University
Bosnia and Herzegovina
suad.krcic@gmail.com

Erkan Ilguen
International Burch University
Bosnia and Herzegovina
erkan.ilgun@ibu.edu.ba

Abstract: The field of Institutional Economics is about the theoretical and empirical findings
that have a major role in today’s understanding of institutions. The relationship between the
institutions and Economic growth is confirmed by the literature. This paper begins with the
principles and explanations of the theoretical aspects of old and new institutional economics,
and its role in transition economics like in Bosnia and Herzegovina. Descriptive statistic is
analyzed according to the sets of variables. The author expects a positive relationship between
Institutions and Economic Growth.

Keywords: institutional economic, economic growth, new economy, new institutions,


privatization, transition economics, Bosnia and Herzegovina.

78
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Behavioral Economics in B&H; Does Remittances and Foreign Aid
Have Adverse Effect on Economic Development?

Aida Soko
University of Sarajevo
Bosnia and Herzegovina
aidasba@hotmail.com

Abstracts: Although the behavioral economics is subject of interest for over 50 years, it
becomes fashionable again, as result of global crisis, to reassess the influence of irrational
factors to economic development. B&H is exposed to constant crisis regardless to global one
and it is hard to find rational explanations for many developments. At the same time there is no
enough empirical findings and researches that would offer quantification of irrationality as well
as intensity and correlation between some „usual suspects“ among variables that may have
impact on economic development path. Generally speaking, B&H is not the only country that
has complex administrative set up, even in regional terms. There are number of more developed
countries that made such decisions on pure political basis still being very efficient in economic
sense. B&H is also not only transition country that has to pass through structural reforms and
make full turnover from economy reliance on big socialist companies to market economy based
on smaller scale private ownership.

There are rational rules of economic models, there are experiences of transition countries,
there are lessons learnt on how the political issues can be solved on still economically efficient
way, so why the Bosnian case is so specific? Are there rational reasons or we shall seek for
other type of explanations? Behavioral economics as a combination of psychology and economy
aiming to find answers on market functioning in conditions where market players are exposed
to limited human resources and there are specific complications in place. Well, this is precise
and effective description of B&H market: the lack of entrepreneurial tradition combined with
complex transition process and relatively low level of foreign direct investments that may be a
shortcut in knowledge transfer. In identifying specifics aspects of behavioral economics and its
impact on economic development in BiH qualitative and quantitative analysis of different
aspects of the research problem has been done. It includes desk analysis of relevant literature,
articles and papers, a comparative analysis of selected (comparable) developing and transition
countries, analysis of interrelations between remittances and donor funds as dependent variable
and economic indicators (GDP per capita, FDI inflows per capita) as independent variables.
Theories used include Prospect theory, Disruptive Theory and Leapfrogging concept, while
correlation and regression analysis of remittances / grants and economic development
indicators are used in data analysis. Specifically, among developing and transition countries,
those having major investors in private sector among domestic or neighboring countries have
slower economic growth. In particular case of B&H, private sector development is in addition
restricted by public sector dominance. The research therefore confirmed reverse relationship
between grant funds and remittances and economic development, giving a valuable input in BiH
context and need of public sector reform as a tool to boost private sector development.

Keywords: Behavioral economics, B&H, Public sector, Private sector, Economic development.
79
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Albanian Performance in Target Achievements toward 2020 Growth Strategy

Eglantina Hysa
Epoka University
Albania
ehysa@epoka.edu.al

Abstract: Albania being part of South East Europe is trying to meet the standards of European
Union by stating a clear vision for 2020 growth strategy, which is similar to European Union’s
“Europe 2020 Growth Strategy”. This strategy consists of economic reforms implementation
according to five growth pillars: 1- Integrated growth; 2- Smart growth; 3- Sustainable growth;
4- Inclusive growth; and 5- Governance for growth. Albania strives to achieve the EU
standards in order to be considered for a further inclusion to EU, but from the other side it has
to cooperate with SEE countries in order benefit from a win-win situation.

The first aim of this study is the analysis of the Albanian economic conditions comparing to the
other SEE countries. Albania is generally founded below the SEE averages in the growth pillar
achievements. Meanwhile there are some components of these pillars where Albania shows a
better performance but still too far from the European Union countries. This list includes
indicators such as: estimated software piracy rates related to smart growth, entrepreneurship
related to sustainable growth, employment (15+) related to Inclusive growth.

The second aim is the comparison of the present and the future of Albania taking into the
consideration the reforms to meet the 2020 growth targets. Although the time left, less than six
year, is very limited to meet the above mentioned strategy, Albania has its capacities to fulfill
all the tasks. Lastly, this study draws some specific recommendations and conclusions for the
Albanian case based on the above figures and on the new reforms of the last elected government
in Albania.

Keywords: Economic Growth, European Union, SEE Countries, Albania.

80
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Small and Medium-Sized Enterprises for Regional Development: the
Case of Gaziantep

Hasan Memiş
Kilis 7 Aralık University
Turkey
hasanmemis@kilis.edu.tr

Sadettin Paksoy
Kilis 7 Aralık University
Turkey
spaksoy@kilis.edu.tr

Hüseyin Çelik
Kahramanmaraş Sütçü İmam University
Turkey
huseyincelik@kilis.edu.tr

Abstract: All of the countries whether developed or developing have the problem of regional
imbalance. Landforms and distribution of national resources vary in terms of regions.
Establishing infrastructures which provide an assessment of industrial potential is difficult in
the regions where geographical conditions are not appropriate. Thus, investments head towards
areas where infrastructures are ready. Therefore, the inter-regional imbalances arise.

One of the most important functions of small and medium-sized enterprises (SMEs) is its
contribution to regional development. Unlike large-scale enterprises which are usually located
around major cities, these businesses are located in all geographical areas of a country.
Therefore, they contribute to a balanced allocation of economic activities between the country's
regions. On the other hand, due to their labor-intensive structure, they provide increasing
regional employment.

In this study, we aimed to introduce the role of SMEs for regional development by using
secondary data. First of all we will explain the definition and importance of regional
development on the one hand, and the definition and importance of SMEs on the other hand.
After that, we determine the situation and importance of Gaziantep in Turkey’s economy, the
course of SMEs in Gaziantep, the development of SMEs’ export in Gaziantep and the
contribution of SMEs to employment in Gaziantep. We will use tables to reveal them. Afterward,
we will try to demonstrate the role of SMEs for regional development.

Keywords: Development, Regional Development, Gaziantep, Small and Medium-Sized


Enterprises (SMEs).
81
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Correlation Analysis of Banking Risks, Level of NPLS and Capital Adequacy in


Bosnia and Herzegovina Banking Sector

Kemal Kozarić
School of Economics and Business
Bosnia and Herzegovina
kemal.kozaric@efsa.unsa.ba

Emina Žunić
School of Economics and Business
Bosnia and Herzegovina
zunic.emina@gmail.com

Abstract: This paper analyzes the relationship between risks to which banks are exposed, rate
of non-performing loans as well as capital adequacy. Analysis was conducted on banking sector
of Bosnia and Herzegovina. For the purpose of analysis, data of the International Monetary
Fund - Core Financial Indicators for the period 2008 - 2013 years were used. To analyze and
evaluate the model correlation and regression analysis were used. Basic methods used include:
mathematical method that is application of various types of statistical analysis, the method of
analysis and compilation as well as direct method using incomplete induction that will make
some general conclusions-based the measurement results. The paper points to those aspects
which deserve further attention in order to better and more efficiently manage them. Results
indicate that the increase in risk-weighted assets and rising rates of non-performing loans as
one of the component assets. At the same time the growth rate of non-performing loans leads to
growth in risk-weighted assets and therefore the bank exposes major risks. Better return on
assets, as an indicator of business performance and management resources and profitability,
leading to improved capital adequacy. A strong correlation between the rate of capital
adequacy and non-performing loans require further investigation. Results indicate that better
control liquidity leads to a reduction in the rate of non-performing loans and consequently
better liquidity position of the banks, and thus reduce the risk of liquidity. During the analysis it
was found that a large proportion of non-performing loans to total loans leads to a worse
financial result which is further reflected in the banks' capital. When we talk about capital
adequacy we came to the conclusion that the banking system in Bosnia and Herzegovina,
despite all the shortcomings and problems, adequately capitalized.

Keywords: Non-performing loans, bank, risk, capital adequacy, correlation, regression, model,
dependence.

82
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Historical Process of the Human Development Performance of Turkey

Orhan Kandemir
Kastamonu University
Turkey
okandemir@kastamonu.edu.tr

Abstract: Human development indices of the world’s countries are published through the
UNDP. We observe that Turkey's human development index has risen during the history like
other countries of the world when these indices are examined. However, the most realistic way
to determine whether such rise is sufficient or not is to compare foregoing with that of the other
countries. In this study, we shall evaluate primarily human development indices of Turkey and
the main determinants of human development (income, education, health) performance between
the years of 1980 and 2012 comparing same with the averages of the world and OECD
countries. Subsequently, comparisons will be made within the framework of the "inequality-
adjusted human development index" data indicating whether or not the human development has
a fair distribution among different segments of the society. This is because development of
policies that will ensure the evenly distribution of this development in the society is also as
important as the rapid rise in human development in a country.

Keywords: Human development, inequality-adjusted human development index, human


development performance.

83
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Rise in Non-performing Loans: Determinants and Repercussions

Amir Salkanović
International University of Sarajevo
Bosnia and Herzegovina
salkanovic@yahoo.com

Abstract: Ever since 2008 as the global financial crisis came about, we witness quite major
increase in non-performing loans in Bosnia and Herzegovina but also elsewhere in Eastern and
Southern Europe and around the world. Non-performing loans can be viewed as realization of
credit risk and indicator of financial health of the banking sector but also as an indicator of
liquidity in real sector. The paper investigates determinants of non-performing loans and
concludes that both macroeconomic and bank level determinants play a major role in
determining level of non-performing loans in a country. The paper also discusses the feedback
effect of rising level of non-performing loans back to the economy and finds that there is effect
and repercussion on short term to medium term on macroeconomic climate. The paper also
shortly addresses the banking regulation that regulates management of credit risk.

Keywords: Non-performing loans, macroeconomic and bank level determinants, feedback


effect, banking regulation.

84
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Macroeconomic Variables on the Yield Curve Model: Case of


Albania

Besjana Laçi
Epoka University
Albania
blaci10@epoka.edu.al

Urmat Ryskulov
Epoka University
Albania
uryskulov@epoka.edu.al

Abstract: Albania is a country which has passed through a difficult transition period and surely
this period has lead to some inevitable effects on the Albanian economy. The high inflation and
the rapid decline of the economy contributed to the crisis which happened in 1997. After 1998
the economic progress and the inflation reduction were enabled by the fiscal and monetary
policy strengthening. Much progress is made and this is seen in the continuous increase of
gross domestic product growth rate.

This research paper will analyze the relationship between term structure of interest rate and the
two key variables which are inflation rate and GDP growth rate. The challenging correlation of
these variables has been discussed by many economists. Some of the authors could introduce
their yield curve model without the intervention of macroeconomic variables, while some others
considered macroeconomic factors such as inflation rate and GDP growth rate in explaining
the model.

The focus of this paper is how the two key variables affected the interest rate. From the
regression analysis, it is found that the macroeconomic variables explain about 16.3 % of the
variation in the interest rate which is not a high percentage. These variables are not statistically
significant and they can be drop out of the regression line.

Keywords: interest rate, inflation rate, GDP growth rate, level, slope, curvature.

85
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Exchange Rate in Albania and its Connection with Import-Export

Alba Cani
Epoka University
Albania
acani10@epoka.edu.al

Abstract: Recently, trade agreements among different countries are becoming more and more
important. Exchange rate and its volatility are important elements taken into consideration
when these trade agreement and exchanges are done. The history of Albania has had crucial
developments in different periods. These changes and developments have had an impact not
only in policy making process but also in the way how economic policies are compiled. Among
the most important economic actions undertaken in the transition period is the adoption of
flexible exchange rate. This paper is an attempt to explain the relationship that exists through
the exchange rate and import-export as this is one of the traditional methods for long-term
analysis taken into consideration in studying this connection. The aim of this research paper is
to analyze the way how these variables are connected to each-other and to explain which
factors have influenced in the volatility of exchange rate in these years in Albania. This study
examines the effect of exchange rate volatility in imports and exports by using multiple
regression analysis with exchange rate as dependent variable and trade balance, remittances,
government spending as independent variables. Thus, an empirical method is used in order to
prove whether there is a relationship between the exchange rate and its variables and import-
export. Moreover, a detailed analysis of exchange rate volatility on trade balance connection is
included. All the data are taken by Bank of Albania, Instat and World Bank and all the values of
variables are in million Albanian Leke. The analysis is based on respective values of above
mentioned variables for the period from 1996-2010 for Leke-Dollar exchange rate and from
1999-2010 for Leke-Euro exchange rate. The findings of this study conclude with the result that
exchange rate volatility does not have significant impact on import because some of the
products that Albania imports are basic products regarding the inelastic demand of these
products. On the other hand, exchange rate volatility affects exports as exports are directly
related with exchange rate volatility.

Keywords: Exchange Rate, Volatility, Import, Export, Regression Analysis, Trade Balance,
Government Spending.

86
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

What Are the Measures for the Best Fiscal Policy in Albania?

Besjana Laçi
Epoka University
Albania
blaci10@epoka.edu.al

Eglantina Hysa
Epoka University
Albania
ehysa@epoka.edu.al

Abstract: Albania is a country in transition and after the communism period it has been in a
difficult path for overcoming many social, political and economic difficulties. This paper
emphasizes the importance of fiscal policy such as government spending and tax collection to
foster and promote economic growth and to reduce the poverty. This research paper will be
focused on the effectiveness of fiscal policy and the taxation system of this developing country.
Albania is currently using a flat tax system where this tax is 20% for consumption and 10% for
income.

The aim of this paper is to examine the relationship between fiscal policy and economic growth
which is measured by GDP per capita. Through the regression analysis, it will be defined which
policy, government spending or tax collection, has a better and stronger effect on the economy.

The main points of this study are related to the analysis of what are the effects of government
activities on the economic growth? What is the fiscal policy in Albania during the last decade?
Is the tax system effective and profitable? Can Albania be a potential place for investment and
doing business?

Keywords: Government spending, tax system, economic growth, investment, business.

87
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Econometric Analysis of Natural Disasters’ Macro-economic Impacts

İsmail Şahin
Çanakkale Onsekiz Mart Universty
Turkey
ismails@comu.edu.tr

Ömer Yavuz
Çanakkale Onsekiz Mart Universty
Turkey
omeryavuz@comu.edu.tr

Abstract: Recently the frequently occurring disasters have caused many deaths and injuries. In
addition, in parallel with the size of the devastation of disaster, the economy of countries has
disrupted and prosperity and development which have been gained through years of economic
policies has suffered. Natural disasters affect the economy in three ways: directly, indirectly
and macro-economically. In this paper, the macro-economic impacts of the disasters occurring
in the 10 countries which were selected as OECD in a period of 2005 - 2014 were examined. As
macroeconomic indicators, the data such as population, GDP, growth, public expenditures and
schooling over 15 were employed. Moreover, this paper consists of two parts. Firstly, the
macroeconomic impacts of natural disasters have been viewed in the literature. Finally, the
impacts of the natural disasters on certain macro-economic indicators which compose the base
of work were analyzed econometrically.

Keywords: Macro-economy, Natural Disaster, OECD.

88
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Capitalism system, actuality and problematic

Ejona Duçi
Albanian University
Albania
jonaduci@yahoo.com

Abstract: Since 1989, the year of the fall of the Berlin wall, ended the division of the world into
two camps and at the same time marked the end of the communist system and the onset of
capitalism. The word “capitalism” is often heard in modern time and serves to describe the
current system in which we live .The aim of this paper is to examine the Capitalism System, its
actuality and problematic. Secondary data were used from different sources and the data were
analyzed to get conclusions and recommendations related to the topic.

The study found out that in this system there are three main elements; profit, competition and
rationality. The most important quality of capitalism is the idea of a free profit, snotty and
without conditions. But on the other hand, this paper argued that: We cannot have capitalism
without capitalists". This system therefore, has the idea of living in permanent benefit and
provides over profit by a moving mechanism from new material production, new ways of
transportation and new types of industrial organization, all of these are created by capitalist
enterprises.

Also it was discovered that there are four types of capitalism system for different countries in
the world and after all there is a new economic model to improve Albanian economy, because
the basis of this system is not man, but economic and political development and such material
things that these provide. Orientation is toward mass production and the focus is to increase
productivity.

The study concluded that the present form of capitalism system in Albania had a lot of
advantages but also many disadvantages and problematic that is of interest to be resolved.
Some useful recommendations were made on how to improve this system in Albania.

Keywords: capitalism, advantages, disadvantages, profit, competition and market.

89
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Role of SME in the Albania Economy Development

Rizhana Mancellari
Epoka University
Albania
rmancellari@epoka.edu.al

Abstract: This paper aims to discuss the role of small and medium sized enterprises in the
economic development of Albania in the last decade, increasing the employment rate and
reduce the poverty of our society. More specifically the impact of increased number of SME on
the GDP growth will be carefully analyzed and interpreted, and the analysis of this paper will
take into consideration the effects of SME-s in terms of innovation and economic growth. In the
last years Small and medium sized enterprises have played a crucial role in the economic
development of Albania. SME-s is the main source of increased employment, innovation and
productivity growth. Consequently, in this context an important element where the Albanian
economy relies upon for development is due to the increased number of SME.

The aim of the research is to investigate and examine the impact of SME-s to the economic
growth of Albania by influencing changes in the economic indicators such as: GDP,
employment rate, export-import activities, entrepreneurial skills etc. This will be a research
paper which consists on the demonstrating of the relationship between number of SME-s
operating in the Albanian business environment including here their number in total & turnover
and their impact to the GDP of economy. The impact of small-medium sized enterprises in
economic development of Albania is relatively high. There is lots of SME-s which are operating
in the urban areas as well as rural areas. They are burgeon of changes, central to local private
sector development. Albanian government has supported the promotion of SME development
because it gives rise to entrepreneurship which is the heart of economic development.
Entrepreneurship is the key point for development not only in Albania but everywhere in the
world. Also statistical data about the number of SME-s operating in Albania and their
respective turnover will be included.

Keywords: SMEs, Economic Growth, Employment, GDP, Albania.

90
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Challenges of Economic Reforms in Ukrainian Society with Reference to Russia

Erind Elmazaj
Epoka University
Albania
eelmazaj@epoka.edu.al

Salih Ozcan
Epoka University
Albania
sozcan@epoka.edu.al

Abstract: This paper explores the economic reforms undertaken by Ukraine and their impact on
the Ukrainian civil society. How Ukraine managed its economy after the epochal change of the
USSR disintegration, the repercussions it had on society and what influence have EU on one
side and Russia on the other, in a big country always contended between West and East should
be very interesting questions to point out by taking as reference Russia. Quantitative research
will be applied in this work. Data will be collected through the related books, papers,
periodicals and different articles as well as statistical data from the official documents.
Furthermore, recent events and current political situation will also be evaluated using the most
recent sources of the newspapers and internet. The first part of the paper is devoted to a
description of the reforms towards the economic capitalist system of Ukraine, its legacies from
the centrally planned economy of USSR and the reforms in agriculture as a vital sector of
Ukraine’s economy. The second part portrays how society was reshaped with the advent of
capitalism, the increased economic inequalities, unemployment and the brain drain
phenomenon. The third part concerns Ukraine’s place in the global economy and its role and
engagement in the International Organizations. Finally, this paper endeavors to evaluate the
very delicate situation of Ukraine and its dilemma’s between strong supporters of European
Integration in the occidental part and those of further economic and political integration into
the East Bloc led by Russia in the oriental part.

Keywords: Ukraine, Economic Reforms, Society, Russia, EU Integration.

91
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

A View to the Short and Long Run Dynamic Relationship between Crude Oil and
the Major Asset Classes

Ibrahim Turhan
Borsa Istanbul
Turkey

Erk Hacihasanoglu
Borsa Istanbul
Turkey
erk.hacihasanoglu@borsaistanbul.com

Ahmet Sensoy
Borsa Istanbul
Turkey

Kevser Ozturk
Borsa Istanbul
Turkey

Abstract: Using DCC-MIDAS model, we analyze the time-varying correlations between crude
oil and the major asset classes by taking into account both long and short term components.
Next, the structural changes in the long term correlation components are determined by a novel
methodology of penalized contrast functions, and the robustness of the results is checked with
Markov switching regressions. We reveal that there is a strong positive (negative) secular trend
toward higher correlation magnitudes across crude oil and gold (dollar index) over our sample
time period. On the other hand, the increase toward higher positive correlation levels between
crude oil-stock market and crude oil-bond market occur in a near-instantaneous fashion after
the 2008 global financial crisis. In particular, the structural changes in the long term
correlations are observed around April-May 2009. Following Fed's tapering signals in 2013,
we observe a significant rise in crude oil-dollar index correlation for both short and long run
components. Such a situation might indicate the reversion of the relationship between these two
markets to pre-crisis status.

Keywords: DCC-MIDAS; crude oil; interest rate; exchange rate; stock market; gold.

92
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Variety of Capitalism in Turkey: A Comparative Institutional Analysis

Bahar Baysal
Uludağ University
Turkey
bhrbysl@gmail.com

Mikail Kar
Uludağ University
Turkey

Abstract: With the collapse of communism, the question why national capitalist countries have
different economic performance has stimulated the emergence of the new comparative political
economy. This approach focuses on economic, social and political institutions and
organizations that account for this capitalist diversity. Political power which drives institutional
change is critical importance for understanding the formation of these institutions and their
consequences for wealth or income in parallel with public choice theory. This paper emphasizes
two assertions. First, even though advocates of neo-liberalism claim that all nations
convergence to a single development path, capitalism is a complex socio-economic order that
has developed at different places and times, so, secondly, apart from varieties of capitalism
which focus on advanced capitalist nations, there are rich variety of new forms of capitalism
which shaped by domestic and international structural forces in emerging market economies.
From this perspective, it is a comparative institutional approach.

In this context it aims to explain how Turkish capitalism has evolved from state capitalism to a
hybrid variety of capitalism in the neoliberal era. This clearly implies that there is a high
degree of continuity between the different policy phases. The coexistence of this continuity and
change points out the importance of institutional path dependency in development process.

Keywords: varieties of capitalism, comparative political economy, institutions.

93
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Impact of Import and Export on Total Factor Productivity in Albania

Emirgena Nikolli
Epoka University
Albania
emirgenanikolli@hotmail.com

Mergleda Hodo
Epoka University
Albania
mhodo@epoka.edu.al

Abstract: The import, according to the board of Albania, isn’t high but also the trade out of
country is increasing day by day so both these kind of trade have a large effect on economy of
Albania. Total factor of productivity which is one of most effecting elements in GDP, is shown
by the technology, capital and labor, or all of the other factors that have large impact on the
total factor productivity which is directly related to the situation of the overall economy in
Albania taking in consideration years after ‘90s when the transition ended. This paper examines
the impact of international trade on the total factor productivity in Albania. According to the
results found by the analysis,it is shown that the trade is important for the improvements of
economy. Trade must be followed by politics that support the balance of imports and exports. In
the case of Albania, trade is becoming main component for the welfare of the economy. Also, it
observes how trade in Albania effects the economic growth, focusing on the relation of the
exports and productivity and also on the relation between imports and productivity. To
conclude, the impact on total factor of production is positive which supports more the exports
as an important factor in the increasing of the productivity and the imports that help increasing
the innovation and improve the technology, effecting the economic growth also.

Keywords: Import, Export, Productivity, Economic Growth, Trade.

94
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Effects of Government Incentives in the Tourism Industry and the Case of


Turkey

Yusuf Tugrul Karaaslan


Dumlupinar University,
Turkey
yusufkaraaslan@gmail.com

Ismail Sahin
Canakkale Onsekiz Mart University,
Turkey
akademi06@hotmail.com

Abstract: According to World Tourism Organization (UNWTO) Turkey is currently the 6th most
attractive tourism destination in the world. In year 2014 Turkey is expecting 38 million tourists
and about $ 35 billion of revenue. Objective for 2023 is 50 million tourists and $ 50 billion of
revenue. But the country is facing challenges in acquiring same success in terms of the receipts
per arrival. To maximize the revenue per arrival government is planning to boost the sector by
diversifying with innovative branches just as agro-tourism, geo-tourism, culinary, cultural,
extreme, heritage, medical, wellness nautical, religion, slum, wildlife tourism.

Government incentives and support provided to tourism industry has an important contribution
in development of tourism sector. Turkish government reveals abundant incentives for the
industry that can be seen by evaluating the world statistics throughout the global outlooks.
Government incentives for the tourism sector are becoming increasingly important and urgent
in the context of globalization. The reason of this importance comes from the power of the
sector’s contribution on the balance of payments. Main objective of this article is to emphasize;
the changing structure of the sector in the last thirty years and the need for the government
incentives in the tourism industry development.

Keywords: Tourism, intervals, government incentives, tourism promotion, tourism investments,


world tourism, tourism statistics.

95
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The System Dynamics Model of Turkish Incentives in Cattle Livestock

Cihan AYIZ
Fatih University
Turkey
cihanayiz@yahoo.com

Nizamettin Bayyurt
Fatih University
Turkey
bayyurt@fatih.edu.tr

Abstract: The system dynamics of recent Turkish Incentives policy in cattle livestock is analyzed
and defined. These dynamics are useful to find a system’s stable and equilibrium situations. In
Turkish Incentive system, because of blow off the dynamics of Cattle Livestock there is still no
sustainable and stable policies. Turkish incentive system that is urgently needs to be redesign
and the optimum points through government livestock policies urgently needs to be redefine is
investigated. We methodologically used System Dynamics Modeling as a tool which is widely
used to define and simulate and analyze the systems to find the dynamics those effects and are
parts of the systems.

Keywords: cattle livestock, incentive, system dynamics.

96
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Business in Society

Jusuf Brkić
Sarajevo College
Bosnia and Herzegovina
brkicjusuf@hotmail.com

Abstract: The purpose of this study is to, explore and develop the role and responsibilities of the
business toward society, and the role of individuals as a key factor in a creating relations
between business and society with the main focus on the ethically behavior, moral responsibility
by increasing awareness of the role of the business in society. Through theoretical knowledge,
science acts and research findings, analysis of using experience and good business practice of
developed European countries, this paper aims to stimulates relations between business and
society. This will be conducted with the responsibility that means the obligations to undertake
some activities that will contribute to improving the wellbeing of the whole society. It implies
that all done activities are executed in the company, with respect to economic, legal and ethical
principles. The future of society depends almost on the business relations in creating values to
community which reflects to individuals respecting the main source of social norms, behaviors,
habits and tradition that are somehow disarranged by changes. Those changes are affected by a
lot of modern trends in today’s lifestyle, technology, science, educations.

The conclusion of paper outlined here is that business needs the extremely high level of
responsibility and continuous procedures together with the social responsibility of managers.
Thos emanagers should seek ethical and responsible behavior, invest in its relationship with
society in order to foster and promote social values that foster a certain society.

Keywords: business, the role, the responsibility, society, relations.

97
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Influence of Environment on Business Performance

Sead Ahmić
Business Association PRO-IN
Bosnia and Herzegovina
sead.ahmic@pro-in.ba

Abstract: Entrepreneurial spirit of the people in Bosnia and Herzegovina has been on the rise
over the last nineteen years, since we witnessed significant emergence of many new business
start-ups. During Yugoslavian period most businesses were state-owned enterprises. Different
branches were deployed at different business areas. In Bosnia and Herzegovina, there were
certain parts of the country where certain industry sectors were highly developed such as textile
industry, food industry, metal, wood and other industries.

Purpose of this study is to explore influence of business environment on business performance.


Both qualitative and quantitative research will be conducted. For the qualitative part of study
data will be collected through in depth interviews with several entrepreneurs in Federation of
Bosnia and Herzegovina. And for the quantitative part, data will be collected through
questionnaires that will be delivered to entrepreneurs in four municipalities in Federation of
Bosnia and Herzegovina. The results of the study indicated that people in the regions where
state business were not present are more likely to open and run their own private business than
the people in the regions were state businesses operate.

Keywords: Entrepreneurs, Business Performance, Business Environment, Industry.

98
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Tourism and GDP Growth Linkage: Evidence from Developed and


Developing Countries

Oguz Ocal
Nevsehir Haci Bektas Veli University
Turkey
oguz_ocal@yahoo.com

Alper Aslan
Nevsehir Haci Bektas Veli University
Turkey
alperaslan@nevsehir.edu.tr

Abstract: Tourism is still the world’s huge industry and one of the fastest growing sectors. The
importance of the contribution of tourism to an economy is a vital subject for policy makers.
According to the World Tourism Organization (WTO), international tourism receipts generate
approximately 6-7% of worldwide exports. Also it cannot be calculated true that the social
benefits of tourism. For developed and developing countries Tourism is an important industry in
terms of export earnings and employment. International tourism movements hold its righteous
place in that they fix balance of payments, provide the necessary financial tools for the
technological equipment used in the manufacturing process, increasing the employment and
leading to economic growth (Arslanturk and Atan, 2012).

International tourism receipts are major source of foreign exchange, especially for less-
developed countries confronted by foreign exchange constraints. Therefore, promoting tourism
industry in those countries has become a primary development strategy because tourism
receipts together with export revenues that well ameliorate current account deficits (Oh, 2005
and Savas et al, 2010). It is possible that the increase (decrease) in tourism may or may not
increase (decrease) the economic growth. Following the literature, three hypotheses can be
categorized: first reciprocal causal hypothesis means that there is bidirectional causality
between economic growth and tourism relationship. Second tourism-led economic growth
hypothesis supported a unidirectional causality from tourism to economic growth. And the last
economic-driven tourism growth hypothesis accepted if there is a unidirectional causal
relationship from economic growth to tourism (Oh, 2005). Also it can be found that there is no
causality between tourism and economic growth. In this paper we aim to investigate the nexus
between tourism expenditure and real gross domestic product on developing and developed
countries as a panel.

Keywords: Tourism, GDP, economy, developed countries.

99
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Tourism Expenditure and Economic Growth

Alper Aslan
Nevsehir Haci Bektas Veli University
Turkey
alperaslan@nevsehir.edu.tr

Abstract: This paper empirically examines the impact of tourism expenditure on the long-run
economic growth of Turkey by using Autoregressive Distributed Lag (ARDL) approach and the
Hatemi Causality test to investigate causality for 2003:1 to 2012:1. The paper uses new data set
tourism expenditure in line with educational level- that has not previously been used to estimate
tourism expenditure on economic growth. The results of the bounds test show that there is a
stable long-run relationship between each of the tourism expenditure and economic growth. The
results of the causality test, on the other hand, show that there is bidirectional causality
between university graduate tourists’ expenditure and economic growth and a causal flow from
high school tourism expenditure to GDP growth which is verified growth-led tourism
hypothesis. Results reveal that university and post graduate degree with tourists' expenditure is
more successful on explaining the long-run relationship between tourism expenditure and
economic growth in Turkey. This result implies a policy that, although Turkey need to focus
more on tourism development for all level of education to reach higher real income levels;
policy makers should concentrate on attracting the attention of university graduate tourist to
gain more from tourism industry.

Keywords: Tourism expenditure, GDP growth, Educational level, Turkey.

100
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Evaluation of E-Learning and LMS Usage at IBU

Ferid Hadzic
International Burch University
Bosnia and Herzegovina
ferid.hadzic@gmail.com

Abstract: Advances in the domain of information and communication systems have enabled new
methods for transfer and acquisition of knowledge to emerge and become popular. E-learning
has become an area with substantial investments, both in financial terms and research efforts
directed towards optimization of existing education methods and discovery of novel ways to
disseminate knowledge through usage of modern technologies. The emphasis is upon the
importance of integrated learning paths that vary according to the student, the subject material,
the level of competence, and corporate or student preferences. Successful implementation of e-
learning requires the same management commitment as other mission-critical organization-
wide initiatives. Most of all e-learning needs to be compelling to the audience it targets,
offering the learner a resource that is seen as appealing, valuable and productive to their goals
and aspirations. A learning management system (LMS) is a software application for the
administration, documentation, tracking, reporting and delivery of e-learning education courses
or training programs. This project describes the process used to analyze needs and select a
LMS. Readers will be provided with information about choosing and evaluating a LMS, and
also evaluation of LMS usage at The International Burch University and how it is implemented,
lessons learned, and tips for organizations seeking to purchase a LMS in the future.

Keywords: E-learning, Learning Management System (LMS), Technology,


International Burch University (IBU), Implementation, Evaluation.

101
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Towards Establishing Financial and Budget Indicators for Municipalities: A


Literature Review

Mirjana Sejdini
Epoka University
Albania
msejdini@epoka.edu.al

Abstract: Currently, one of the main problems that municipalities and other stakeholders face is
having some objective indicators related to the finances and particularly the budget of
municipalities in the Republic of Macedonia. Considering the nature of local government
finances and consulting various previous studies carried in similar countries like Macedonia, it
is possible to generate some representative financial or budget indicators that could apply to
municipalities in the country. These indicators would serve as the basis on which municipalities
could be ranked within a year or through various years. It would depend on the availability of
the data aiming at analyzing their relative performance and positioning. This paper aims at
consulting the literature about generating these indicators and analyzing their applicability in
the case of municipalities in Macedonia. The output of this study is a set of financial or budget
indicators related to revenues and expenditures in municipalities of Macedonia.

Definitely, this is a pioneering study for the country and the region. It would contribute to the
existing research about evaluating the financial relative performance and financial conditions
of municipalities not only in Macedonia, but also in the region.

Keywords: Financial Indicators, Budget Indicators, Municipalities.

102
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Informal Economy in Albania

Rexhep Dokja
Epoka University
Albania
rdokja@epoka.edu.al

Abstract: There have been made many studies about informal economy, and different reasons
and causes have been related with it. Many activities are considered as shadow or informal, but
for some of them have been excluded by some researcher. A clear definition of informal
economy is not found. This paper studies what is informal economy, what is included and
excluded from it, reasons and causes that make it happen, its effects in the economy in general
and to the society. Then the informal economy in Albania is studied. What have been the factors
of a so developed informal economy in Albania, what are its effects to the Albanian economy
and society, estimates of shadow economy are given in relation to the GDP for Albania and
some other Balkan countries. Recommendations of what must be done in Albania to decrease
the informal economy are given.

Keywords: Informal economy, Albania, corruption, taxes.

103
Finance and Accounting

24-25 April, 2014


Sarajevo, Bosnia and Herzegovina
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

What Determines the Firm’s Net Trade credit? Evidence from Macedonian
Listed Firms

Fitim Deari
South East European University
Macedonia
f.deari@seeu.edu.mk

Abstract: This paper analyzes the net trade credit and its determinants for a sample of 23 non-
financial firms for the year 2011. The sample is derived from Macedonian Stock Exchange. The
net trade credit is the dependent variable. Dependent variable is defined as the difference
between trade receivables and liabilities, and then this difference is divided by total assets.
Maturity structure of assets, size, profitability, inventory investment, and cash to assets ratio,
long-term financing, total debt financing, and converting sales into cash are the independent
variables. Both types of variables, dependent and independent are quantitative variables. Both
are expressed on their book values.

Variables are transformed and necessary post-selection adjustments will be done. Data and
results are checked using Shapiro-Wilk W test for normality, Kernel density estimation,
Cameron & Trivedi’s decomposition of IM-test and Breusch-Pagan / Cook-Weisberg test for
heteroscedasticity, Variance Inflation Factor for multicollinearity, the model specification link
test for single-equation models, and the regression specification error test for omitted variables.
Relevant conclusions are drawn based on Spearman and regression analysis. Obtained results
show that firms with more net trade credit are more profitable. Firms with higher portion of
current assets are bigger firms and invest more in inventory than counterparties. Bigger firms
have more inventory than smaller firms. Firms with higher leverage ratios are less able to
convert sales into cash. Net trade credit is negatively significant associated with inventory to
assets ratio, leverage ratio, and net cash flows from operating activities to sales. Net trade
credit is positively significant associated with current assets to total assets ratio. Profitability is
found statistically significant determinant, but with beta and standard error equal zero. Results
show that net trade credit ratio on average is slightly small, but positive. A positive net trade
credit indicates that on average trade receivables are higher than trade payables. With other
words, analyzed firms for the analyzed period have sell more than have bought on credit.

Keywords: net trade credit, accounts receivable, accounts payable, financial ratios, regression.

107
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Financial Decisions, Tax Effect and Investment Performance

Yasemin Coşkun Kaderli


Adnan Menderes University
Turkey
yascoskunk@hotmail.com

Selim Bekçioğlu
Adnan Menderes University
Turkey
sbekcioglu@adu.edu.tr

Abstract: The aim of the study is to measure influence of taxation while making financial
decisions and predict it with the general application in Turkey. Except for equity returns of
financial and negative capital institutions registered in Bursa Istanbul between 2000 and 2012,
those of all other businesses were calculated. In order to measure cost of capital, Capital Assets
Pricing Model (CAPM) was employed. Businesses were divided into four regions as stated in
Tax Incentive Law according to the study. As stated in Tax Incentive Law, the businesses whose
costs of capital were divided into six regions where statistical analysis was made to determine
whether taxation influenced financial decisions of the related businesses based on Tax Incentive
Law or not. Assessment of the findings within the study determined that businesses in 1st, 2nd
and 3rd regions were affected by taxation 5,69, 2,75 and 1,39 as means between 2007 and
2012, respectively. Accordingly taxation load of businesses in 1st region provinces was found to
be heavier than those of businesses in other regions. Considering the Tax Incentive Law, it was
found to be statistically important that taxation load of the related region should be taken into
account in making any financial decisions. In this respect, there is an impact of tax when one
makes financial decisions. However, other relevant factors should also be considered.

Keywords: Financial Decision, the Kinds of Financial Decisions, Tax, Tax Incentive Law,
Bursa Istanbul.

108
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Comparing the Financial Performances of Different Trading Strategies Using


BIST100 Index

Mehmet Özçalici
Kilis 7 Aralik University
Turkey
mozcalici@gmail.com

H. Mustafa Paksoy
Kilis 7 Aralik University
Turkey
hmpaksoy@yahoo.com

Sadettin Paksoy
Kilis 7 Aralik University
Turkey
spaksoy@kilis.edu.tr

Abstract: In an efficient market, prices of stocks reflect all relevant information. Efficient
Market Hypothesis states that it is impossible to find overvalued or undervalued stocks to obtain
abnormal profits. In another words the best trading strategy is “buy and hold strategy”. If
efficient market hypothesis is true and if BIST is an efficient market then it won’t be possible to
obtain abnormal profits by trading with technical analysis rules. In this study three different
models are created to compare the profitability of trading rules. First model includes trading
rules which are based on moving averages. The second model is buy and hold model. In this
model stocks are bought from first day and sold at the end of the test period and return is
calculated from that transaction. In the third model random forecasts are used as buy and sell
signs. The profits obtained from transactions which are directed by the result of these three
models are calculated and compared. Dataset consists from closing prices of BIST100 index
between the period 30/11/2011 and 01/07/2013. The period is divided to 10 sequential sub-
periods. Overall results indicate that trading rules produced greater return when compared
with random forecasts and buy and hold strategy.

Keywords: Technical analysis, efficient market hypothesis, random walk model, BIST 100
index, trading algorithm.

109
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Futures Market and Derivatives

Yusuf Demir
Cumhuriyet University
Turkey
ydemirce@yahoo.com

Merve Öz
Selçuk University
Turkey
merveoz589@gmail.com

Abstract: The derivatives markets provide an opportunity to investors, farmers, industrialists


and other interested groups in their trade transactions to evaluate the formation of prices on
future by considering not just past prices but also future prices by eliminating price uncertainty.
Derivatives traded in these markets mainly fulfills the transfer function of economic risks and
also with these considered derivatives, it is possible to use future instruments, to increase profit
while realizing investment, to optimize the structure of portfolio, reaching stabilization for some
derivatives markets’ participants’ financial situation, to soften large and reverse fluctuations
and to determine the next development trend of spot markets.

In today’s international financial system in which financial markets are getting integrated day
by day and there are extreme and unpredictable fluctuations in exchange rates and interest
rates, the most important element in terms of capital suppliers is achieving the most suitable
investment environment to get highest profit with minimum risk. The main aim of international
and institutional investors in terms of their portfolios is getting the highest return within the
shortest time. And when we define this investment environment as securities market we face two
main subsets: Spot or cash markets in which securities are traded directly and derivatives
markets in which futures issued over securities or commodities are traded. With Hull’s own
words, we are on the stage for anyone interested in finance to understand how constantly
growing derivative instruments works, how they are used and are priced.

In this paper it is aimed to evaluate the importance of derivative markets, its historical
development and functioning principles of derivative markets within the framework of risk
management. And also informing individuals, institutions and enterprises interested in
instruments traded in derivative markets about the reason why these instruments are the subject
of these transactions and quantification of these instruments and establishing the required
dynamics in the need of derivatives and derivative markets in order to estimate easily exchange
rates, interest rates and commodity prices which can be reveal in the future while these
considered interested groups are making investment decision.

Keywords: futures market, derivatives, financial instruments.

110
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Solvency II - A Need or an Obligation?

Armanda Keqi
Epoka University
Albania
akeqi@epoka.edu.al

Urmat Ryskulov
Epoka University
Albania
uryskulov@epoka.edu.al

Abstract: The role of the insurance sector has grown tremendously in the last twenty years, thus
increasing the need for unification of rules for supervising the activities of insurance
companies. In response to the increasing complexity of the financial services market, the
European Commission drafted the Solvency II project, which will be implemented on 1 January
2016. For all the advantages that brings to insurance companies, for the insurance sector and
the economy in general, the implementation of Solvency II is binding unless necessary. This
paper summarizes the factors that make the necessary amendment of the directive Solvency I
and a brief description of the most important elements of Solvency II directive: structure with
three pillars of Solvency II and economic methods for calculating risk-based capital required. A
program of Solvency II managed and delegated properly, will provide real competitive
advantage for insurance companies.

Keywords: Solvency II, insurance sector, economic methods, advantages.

111
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Comparison of Financial Performance of Intermediary Firms Traded On


Istanbul Stock Exchange by Using Topsis Method

Ersin Kurnaz
Atatürk University
Turkey
ekurnaz@atauni.edu.tr

Reşat Karcıoğlu
Atatürk University
Turkey
rkarci@atauni.edu.tr

İhsan Yıldıztekin
Atatürk University
Turkey
ihsan@atauni.edu.tr

Abstract: Intermediary firms are authorized by the Board of Capital Markets to do capital
market operations on the behalf of the investors in the capital markets. Brokerage firms provide
services to the investors and are joint-stock companies. These institutions undertake the
intermediary position between investors and capital market and also inform the investors about
the capital market movements. The shifting of the boundaries of the capital markets, economic
globalization and increasing institutionalization has increased the importance of these
institutions. In this study by using the financial statements of the five intermediary firms which
are traded on the Istanbul Stock Exchange and classified as 'Intermediaries Institutions' under
the Public Disclosure Platform, the financial performance of these companies will be analyzed
with the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method.
Firstly financial ratios will be determined and then ratio analysis will be used in the financial
performance measurement. Financial ratios will be calculated separately for each firm. These
calculated ratios will be converted to a single score which shows the overall company
performance by using the TOPSIS method. Finally, according to the scores show company
performance the performance of companies will be ranked. In the study, for the period of 2009 -
2012 financial performance which comprises the four period’s comparisons will be done
between the results obtained.

Keywords: Brokerage Firms, Performance Analysis, Financial Ratios, TOPSIS Method.

112
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Measures of Customer Satisfaction in the Usage of Accounting Software


Programs

İhsan Yıldıztekin
Atatürk University
Turkey
ihsan@atauni.edu.tr

Reşat Karcıoğlu
Atatürk University
Turkey
rkarci@atauni.edu.tr

Ersin Kurnaz
Atatürk University
Turkey
ekurnaz@atauni.edu.tr

Abstract: Businesses can obtain their operational results more accurate and faster with the
rapid changes and development in information technology. The Accounting Office Software
Programs which are used by the accounting department of corporations and private accounting
offices are also information technology products. Users’ access more accurate information
more easily by the help of these computer assisted programs. Thus, obtained financial reports
and other outputs will help business managers to take better decision.

The purpose of this study is to determine whether professional accountants are satisfied with the
accounting software they use in regular basis. For this purpose, a questionnaire was applied to
Accountants and Financial Advisors registered in Erzurum Chamber of Certified Public
Accountants in the province of Erzurum. The data obtained from the questionnaire was
analyzed using the Statistical Package for Social Science for Windows (SPSS 20.0) program. In
conclusion, professional accountants generally satisfied with the accounting software they use,
except a few issues.

Keywords: Information, Information Technology, Accounting Package Programs, Customer


Satisfaction, Accounting Information Systems.

113
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Overview and Development Perspectives of SME Banking, With a Focus on


Bosnia And Herzegovina

Emira Kozarević
University of Tuzla
Bosnia and Herzegovina
emira.kozarevic@untz.ba

Meldina Kokorović Jukan


University of Tuzla
Bosnia and Herzegovina
meldina.kokorovic@untz.ba

Amra Softić
University of Tuzla
Bosnia and Herzegovina
amra.softic@ymail.com

Abstract: Small and midsized enterprises (SMEs) represent the primary moving mechanism of
new jobs creation and increase of gross domestic product. They are the foundation of European
economy and their contribution for achieving the European Union strategies for sustainable
growth. Fostering development and growth of SMEs is a priority among the goals of national
economies for developed countries of the world as well as for countries in transition. Financial
system plays important role for achieving these goals with a main purpose of preserving the
stability of national economy. For the last few years, the main focus of the financial system
towards real sectors is expanding. From the market observed as to complex for risk
management, SME sector became strategic goal for financial institutions worldwide. Due to the
information technologies development, banking sector is increasing its support for development
and growth of SMEs through the increase of financial support and also through the consulting
services as a response to the challenges faced by this sector.

This paper has two main objectives. The first one is point out the importance of SME banking,
as the important contributor to bank profitability, in developed part of the world(focusing on
the USA and EU) and in some countries of Western Balkans. The second objective is to
investigate the level of SME banking development in Bosnia and Herzegovina. Using a
structured questionnaire, in this paper authors will discuss perceptions of banking sector in
B&H towards their orientation to SME sector and futures plans for their support as well as
managing credit risk associated with financing SME sector.

Keywords: financial system, small and medium enterprises (SMEs), SME banking, comparative
experiences, Bosnia and Herzegovina.

114
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Impact of volatility and performance of major stock markets on Sarajevo Stock


Exchange in 2008 – 2012 periods

Enis Dzanić
University in Bihać
Bosnia and Herzegovina
enis.dzanic@bih.net.ba

Sead Omerbegović
American University in Bosnia and Herzegovina
Bosnia and Herzegovina
enis.dzanic@bih.net.ba

Abstract: Previous research indicates that performance and volatility of small and regional
stock markets can be influenced by the performance of major world exchanges such as New
York, Frankfurt or Tokyo stock exchange. This research analyses weekly composite index data
for SASE (Sarajevo Stock Exchange), NYSE, NIKKEI, and DAX indices, for the period from
2008 until the end of 2012. This time period contains significant events in the US and the rest of
the world, including the housing bubble, and a great recession which followed after. Significant
volatility of SASE was noted in 2007 while later periods suggest lesser volatility after a
significant drop in index value in middle of 2007. The data was analyzed in a side by side
comparison, by the method of regression in order to establish a correlation of NYSE, NIKKEI
and DAX indexes with Sarajevo Stock Exchange index. Furthermore the performance was
visually represented, segmented into several dynamic and steady periods, whose regressions
were separately calculated, in order to see the difference in steady and dynamic periods.
Previous research suggests strong correlation between regional and major stock market indices
at times of crisis, a so-called spillover effect, while low correlation at times of low volatility.
With these results, we will be able to understand the impact of major world indices on volatility
and performance movements of Sarajevo Stock Exchange in the long and short run, as well as
at times of low and high volatility. The results of research suggest that when there is less
dynamics in major world indices, the SASE market becomes less affected by their results and by
the global market trends, thus its performance is then dictated to a higher degree by regional or
country specific financial, economic and to some degree political factors. One such case this
paper analyzed is evident in the ‘dynamic period’ of some 18 months, ranging from 01.01.2008-
16.06.2009, where the impact of global recession on major world indexes spilled over to
smaller regional exchanges; correlation between SASE and NYSE in that period is 0,92.

Keywords: stock price volatility, fundamental analysis, Sarajevo Stock Exchange, regression
analysis, correlation analysis.

115
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

WHAT Is XBRL (Extensible Business Reporting Language)? Use of XBRL in


Balkan Countries and Turkey

Ensar Ağirman
Ataturk University
Turkey
ensaragirman@gmail.com

Murat Serçemeli
Ataturk University
Turkey
muratsercemeli@gmail.com

Muhammet Özcan
Ataturk University
Turkey
mhmmtozcan@gmail.com

Abstract: XBRL (extensible Business Reporting Language) is a freely available, digital data
encoding language and global standard for exchanging business information electronically
between financial data producers and users. The purpose of XBRL is to standardize the
automation of business intelligence (BI). Therefore, organizations, companies, firms,
government agencies etc., could prepare and exchange their financial statements via XBRL
instead of using pdf, html, doc, xls which might create some problems and consumes more and
more time.

In this study, there was given an overview, historical development of XBRL, benefits and uses of
XBRL. Also it is exemplified the usage of XBRL in the World, with special focus on Balkan
countries and Turkey. At the end, some suggestions about XBRL usage are made for Balkan
countries and Turkey.

Keywords: XBRL, Electronic Financial Reporting, XML.

116
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Credit Card Frauds in Banking

Tuğba Eyceyurt Batır


Ataturk University
Turkey
t.eyceyurt@hotmail.com

Abstract: This paper explores the credit card fraud and methods of it, and gives information
about what to do in case of encountering credit card fraud by chargeback topic. In light of this
information, the purpose of this paper is to enlighten credit card users and create awareness of
using a credit card. Some relevant and required data from some authorized organizations and
public enterprises are obtained, like: Association of Certified Fraud Examiners “ACFE”, The
Union of Credit Cards, Interbank Card Canter, Department of Anti-Smuggling and Organized
Crime and some special banks. By this data, it is given theoretical knowledge dealing with
fraud types and occurrence rates. Since the economic necessities of people increase, there are
more requirements to new meaning and tools of payment and nowadays credit cards are the
most important instrument of payment meeting this requirement. Increasing of banks’ kind of
services with developing technology not only brings benefits to people but also brings some
risks. There are some frauds that try to earn illegal money by using developing technology. But
the technology not only benefits fraud but also benefits to people who examine the fraud and it
is very easy to find out them with a careful examination.

In this paper it is studied on the types of credit card fraud such as, application fraud, lost –
stolen cards, account takeover, fake and counterfeit cards. Also it includes parts of gaining
information by taking reports and data from different and safe official sources. Besides that,
paper investigated about how often the occurrence of these methods. Nowadays, due to the fact
that frequency of using credit cards and online shopping is increased substantially, the cost of
frauds accrues. So, banks are more attentive and more careful as improving their struggle
methods. Banks’ auditing on time, the care of customer and contracted merchant will be useful
considerably while struggling against fraud.

Keywords: Banking, Credit card, Fraud, Chargeback.

117
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Relationship between Corporate Governance Performance and Stock


Return

Bener Güngör
Ataturk University
Turkey
bgungor@atauni.edu.tr

Abdulkadir Kaya
Ataturk University
Turkey
akadirkaya@atauni.edu.tr

Tuğba Eyceyurt Batir


Ataturk University
Turkey
t.eyceyurt@hotmail.com

Ünal Gülhan
Ataturk University
Turkey
unalhan@atauni.edu.tr

Abstract: The effect of the application of corporate governance principles by companies on


shareholders have been an attractive topic in finance literature. There are several studies about
this topic that have couple of different conclusions. The aim of this study is to determine if the
prices of stock exchange securities increase or decrease after attending to corporate
governance index. Twelve companies, members of CGI whose stocks are traded in ISE are
considered. By this aim it has been done co-integration test between Istanbul Stock Exchange
CGI and Istanbul Stock Exchange 100 Index. It is found a relationship between two variables in
the long term. Then we considered 12 companies which have CGI rating between the year
2007-2013 and we explored if they have abnormal return 5 days before and after CGI rating is
declared. Results of the analysis show that most of the companies have abnormal returns before
and after 5 days from declaration date. So, it is concluded that shareholder prices CGI ratings
in addition to other information about corporations.

Keywords: Corporate governance, corporate governance index, Stock return, abnormal return.

118
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Effect of Directors’ Index on Firm Performance: Evidence from BIST100


Firms

Nida Abdioglu
Balikesir University
Turkey
nidaabdioglu@balikesir.edu.tr

Recep Kilic
Balikesir University
Turkey
krecep@balikesir.edu.tr

Abstract: Following corporate scandals including those effecting Enron, Tyco, and WorldCom,
the implications of corporate governance principles have played a critical role in determining
the success of the companies around the world. Turkish Capital Market Board also issued
corporate governance principles with the aim of enhancing the corporate governance
regulations in July 2003. This study shed lights on the relation between corporate governance
quality and firm performance of firms listed in Borsa İstanbul 100 indexes (BIST100). With
accepting corporate governance as a mechanism to reduce the agency conflicts between
managers and shareholders, we assume that this reduction results with increased firm
performance. We differentiate this study from the existing literature by accepting directors’
index (DINDEX) as a proxy for corporate governance quality for the companies existed in
Bist100. We follow Bushee et al. (2010) to create DINDEX. This index examines the strength of
board characteristics for a particular firm and includes five different dimensions: CEO-
chairman duality, the presence of board interlocks, attendance of board meetings, board size
and the percentage of independent directors.

We examine the relation between corporate governance quality and firm performance for the
firms listed in BIST100 1999-2013. We have 328 observations of firms per year in our Panel-
data set. ‘Return on Assets’ is our proxy for firm performance. We use following specific
characteristics of firms: total firm assets, operating expenses, liquidity, leverage, firm age and
research and development expenditures. We use ‘Fixed Effect Panel Regressions’ in our
analysis so that we account for time-invariant firm-level omitted variables that could bias our
results. Our findings indicate that DINDEX does not have any effect on corporate performance
of BIST100 firms. As a second step, we examine the relation between firm performance and
DINDEX for each industry in our dataset. We find that among the firms in electricity industry,
those that have high level of corporate governance quality also have high level of firm
performance. We explain this result with the quick adjustments of these firms to the changes in
corporate governance.

Keywords: Firm Performance, DINDEX, Corporate Governance Quality, BIST100, Panel Data.

119
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Causal Relationship between Trading Volume and Security Returns: A Case of


the South Eastern European Region

Jasmina Okicic
University of Tuzla
Bosnia and Herzegovina
jasmina.okicic@untz.ba

Abstract: The paper discusses the dynamic relationship between trading volume and security
returns across the selected stock markets from the South Eastern European (SEE) region. The
research on the issue of return-volume relationship stresses out a common belief that there is a
positive relationship between returns and trading volume in the stock markets. Therefore, this
paper seeks to ascertain the impact of information about trading volume on security returns in
the SEE region. As a representative of this region, we use securities included in the South-
Eastern Europe Traded Index (SETX) which is a tradable benchmark for the SEE region. To
test whether trading volume precedes stock returns, or vice versa, we will use vector
autoregressive model (VAR) and Granger causality test. By examining and analyzing this
relationship we expect to shed some light on important issues such as market structure and
information arrival, market efficiency, empirical distribution of asset prices and alternative
types of asset behavior obtainable from the joint dynamics of price and trading volume.

Keywords: trading volume, security return, causality.

120
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Measurement of Capital Adequacy for Operational Risk: A Case Study in a


Bank Operating in Turkey

Kemal Nalçın
Selçuk University
Turkey
kemalnalcin@selcuk.edu.tr

Mustafa İyibildiren
Selçuk University
Turkey
iyibildiren@selcuk.edu.tr

Abstract: During the recent years, restrictions and obstacles of the finance sector are declining;
on the other hand the volume of financial activity is increasing. Banking sector is also affected
from this alternation; day by day sector’s risks are changing and growing. Banks in competition
are increasing the variety of products and this variation results in that banks are subjected to
the risks of different products and activities. The purpose of the risk management is not only
preventing losses but also changing the risks and opportunities. Banks are developing different
studies and applications about the control and management of the risk. Although risk
measurement is known as a very old and important subject, with the growing importance after
multi-dimensional operational losses occurred in recent years, the measurement of operational
risks is still a new and developing field. The structure of the Operational Risk has a wide risk
area which brings about serious losses in the bank. The Basel Committee who makes different
arrangements and gives different advices about this area defines the Operational Risk as “the
risk of loss resulting from inadequate or failed internal processes, people and systems or from
external events”. The methods of observing Operational Risk differs according to the risk
sensibility. This difference affects the results of capital needs which are calculated by the banks.
Banking sector must take precautions and be ready for the situation with risk that can occur at
any moment.

This study deals with risks in banking sector, banking crises caused by operational risk, and the
methods that can be used for measuring capital adequacy and operational risk management. In
this context, risk measurement methods proposed by the Basel II committee are discussed. It has
been attempted to measure the operational risk of a bank that operates in the Turkish banking
sector with the methods of basic indicator approach, standard approach and alternative
standard approach by using data of the bank and also, it has been analyzed differences in
capital adequacy that calculates as a result of the different measurement approaches with
tables.

Keywords: Risk Management, Operational Risk, Capital Adequacy, Basel II Committee, Basic
Indicator Approach, Standard Approach, Alternative Standard Approach.

121
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Latest Developments on the International Standards on Auditing (ISAS); Use on


Auditing Financial Statements in the Public Sector. The Case of Albania

Greta Angjeli
Mediterranean University of Albania
Albania
gretaangjeli@umsh.edu.al

Kriton Kuci
Mediterranean University of Albania
Albania
kritonkuci@umsh.edu.al

Abstract: International Standards on Auditing have changed quite a lot over the last decade.
These standards are today not only more clarified, and more understandable, but also more
helpful and more useful by both the auditors and users of financial statements. Their wider use
has increased considerably the trust and confidence to International Federation of Accountants
(IFAC), where its’ independent boards, follow carefully latest developments and draft those
standards that contribute directly to the improvement of the audit quality, thus contributing
directly to improving the quality of the financial reporting. In all auditing standards, guidelines
and directives of practices are issued by the IAASB, regardless the fact that their orientation is
mainly for financial reporting in the private sector. There are always given considerations and
developed approaches on how to use them for public sector. International organizations,
national and local governments, and also public sector entities in all levels, today tend to use
similar standards of reporting. This tendency is seen from the modifications they are
implementing from cash basis to the cash modified bases of accounting targeting the full use of
accrual basis of accounting. Experiences in this regard vary quite a lot. The more progress in
this process is made by some international organizations, as well as governments in countries
such as Australia, New Zealand, but also France, Germany, etc. The main purpose of this paper
is to try to analyze the latest developments in the field of international auditing standards, to
briefly present the main developments, and especially to emphasize the need for drafting
appropriate procedures and tools to be applicable for the public sector as well. The second part
of the paper will deal with the specific model of practices regarding Albania and will try to
point out the specifics of this model, and will compare it to the international standards in order
to give adequate recommendations.

Keywords: International Standards on Auditing, ISAS, financial statements, public sector,


Albania.

122
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

International Transmission of Stock Market Movements for Turkey, U.S.,


England, Germany, Japan

Abdulkadir Kaya
Erzurum Technical University
Turkey
akadirkaya@erzurum.edu.tr

Ömer Binici
Erzurum Technical University
Turkey
omerbinici@erzurum.edu.tr

Fatih Ömür Binici


Bitlis Eren Üniversitesi
Turkey
fobinici@beu.edu.tr

Abstract: The degree of integration of financial markets around the world increased
significantly during the late 1980s and 1990s. While international financial markets have
become progressively interdependent, international spillover effects have broadly been
considered around the world recently. This paper investigates international transmission stock
market movements by co-integration testing, Granger causality testing and Vector auto
regression (VAR) system. We examine international spillover effects between the major
developed markets (U.S., England, Germany, and Japan) and the emerging markets (Turkey).
Consequently, we find co-integration in almost all of the cases under %1 confidence interval.
On the one hand, according to the results of the Granger causality tests, there are causality
from Turkey stock market to US, Germany and Japan stock markets, from US. Stock market,
from England stock market to US, Germany and Japan stock markets. There isn’t causality from
Japan stock market to others stock markets. By the result of VAR analysis, all markets affected
mostly their own shocks. On the other hand, US Stock market explains with the highest ratio of
16.50% England stock market with the forecast error variances at the end of the 3-day period
and Germany stock market explains with the high ratio of 3.27% England stock market with the
forecast error variances at the end of the 18-day period. Finally, there is low interaction
between all other stock markets included in analysis.

Keywords: Stock markets, Co-integration testing, Granger causality testing, Vector auto
regression (VAR) system.

123
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Fiscal Evasion and Corruption in Albania

Risilda Djaka
Epoka University
Albania
rdjala11@epoka.edu.al

Armanda Keqi
Epoka University
Albania
akeqi@epoka.edu.al

Abstract: Corruption is an area of vulnerability in the international arena, which is clearly


shown in several reports. People of Albania agree with this, because the corruption issue in
Albania is the second most problematic one after unemployment. It affects the daily lives of
ordinary people and it also has a huge impact on the public administration. Despite corruption,
fiscal evasion, or as called tax evasion is among the categories of delicate issues that need
attention. Tax evasion in Albania is attributed to institutions that are not able to collect
adequate tax; also auditing level is very low. Distinction according to the development level of
a country is crucial in order to understand better tax evasion, especially in Albania, that is a
country in transition. Secondly, studying the matter of tax evasion gives the opportunity of
studying the process of decision making that is related to the informal sector at an individual
level. Albania was among the countries that were the most isolated, and the last country that
entered democratic and economic reforms in the Eastern Europe, that’s why it may go through
many obstacles. Also corruption keeps being one of the most problematic issues for every single
country in the world. Social and cultural norms, economic development, institutional setting,
political setting, are all matters that can be shaped in various ways, but corruption is an issue
from which no country can be exempt. For the western Balkans countries, including here
Albania, it is considered to be an area of vulnerability.

Keywords: Corruption, tax, fiscal, evasion, impact, bribe, Albania.

124
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Rise in Non-performing Loans: Determinants and Repercussions

Amir Salkanović
International University of Sarajevo
Bosnia and Herzegovina
salkanovic@yahoo.com

Abstract: Ever since 2008 as the global financial crisis came about, we witness quite major
increase in non-performing loans in Bosnia and Herzegovina but also elsewhere in Eastern and
Southern Europe and around the world. Non-performing loans can be viewed as realization of
credit risk and indicator of financial health of the banking sector but also as an indicator of
liquidity in real sector. The paper investigates determinants of non-performing loans and
concludes that both macroeconomic and bank level determinants play a major role in
determining level of non-performing loans in a country. The paper also discusses the feedback
effect of rising level of non-performing loans back to the economy and finds that there is effect
and repercussion on short term to medium term on macroeconomic climate. The paper also
shortly addresses the banking regulation that regulates management of credit risk.

Keywords: non-performing loans, macroeconomic and bank level determinants, feedback effect,
banking regulation.

125
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Foreign Direct Investments in Bosnia and Herzegovina

Mirhat Kolašinac
International Burch University
Bosnia and Herzegovina
mirhat.kolasinac@yahoo.com

Uğur Ergün
International Burch University
Bosnia and Herzegovina
ugur.ergun@ibu.edu.ba

Abstract: Foreign direct investment (FDI) is a capital investment in a particular company


abroad that acquire ownership control over the enterprise. The main objective of the study is to
explore the problems of foreign direct investments in B&H and to explore the reasons why
foreign investors should invest in B&H. This research gives better insight current and historical
trend of FDI in Bosnia and Herzegovina. Foreign direct investments are of great importance
for economic growth and development of developing countries and countries in transition like
Bosnia and Herzegovina. Benefit from foreign direct investments has all the investors and the
country in which he invested. This paper presents the role and importance of foreign direct
investment in Bosnia and Herzegovina. According to data, investments in Bosnia and
Herzegovina are increasing every year. It positively affects the economic situation in our
country. For purpose of the study author will give detail explanation of foreign direct
investment. Research questions will be based on foreign company and investors which invest in
B&H, and in which sector are they investing. The next question is how the policies can attract
foreign direct investments and which countries are the most investors in Bosnia and
Herzegovina. What are the problems faced by foreign investors and how policy can address
these issues in order to facilitate them and attract more foreign investment. Based on the
collected data and financial statements there will be show the current situation in Bosnia and
Herzegovina related with foreign investment. In the research there will be compared B&H with
countries in the region. Whether Bosnia and Herzegovina has advantages compared to Serbia
and Croatia. Which of these countries has the most foreign investment? As a conclusion of this
paper, analysis will show how are important foreign investment for economic development of
Bosnia and Herzegovina, and what is necessary for B&H to change in order to attract a large
number of foreign investments.

Keywords: Foreign direct investment (FDI), transition, Bosnia and Herzegovina, economic
growth, policy.

126
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Cost Efficiency and Risk Analysis in Bosnia and Herzegovina Banking compared
to other countries after and during the Economic Crisis

Belma Kevro
International Burch University
Bosnia and Herzegovina
belmiic@hotmail.com

Ali Goksu
International Burch University
Bosnia and Herzegovina
ali.goksu@ibu.edu.ba

Abstract: This research aims to give better insight in efficiency and risk analysis in the banking
sector of Bosnia and Herzegovina. The type of struggles the banking sector faces during an
economic recession is introduced. Relations between risk and business models are analyzed for
periods of financial crisis, which are the 2007-2008 years. Business models are an important
part of an organization, it is the way an organizations creates, delivers and captures value. In
the banking sector this might not be the case. We will discuss if the business model of a bank
has a huge impact on cost efficiency and risk. The primary aim is to provide proof that BM has
non-linear effect on banks with higher risk. Comparison and contrasts between Ziraat Bank in
Bosnia and Herzegovina and Ziraat Bank in Turkey is stated in the study. For the purposes of
this study, author takes in account statistical information and annual reports of both banks as
well as BM of each bank. Financial statements of the recession years help analyze which bank
was detected with more struggles during these crisis years and whose business model had effect
(if any) on helping overcome these struggles. Comparison of deposits to loans figures is done in
several structural aspects. It provides an answer whether "Do business models matter?” The
proof that institutions with higher risk exposure have less capital, larger size, greater reliance
on short-term market funding, and aggressive credit growth is interpreted in the study. Using
the model - regression analysis, which is a statistical process for estimating the relationships
among variables shows that the impact of business models is highly non-linear. The level of risk
the bank faces is more dependent to loan growth, customer deposits and market funding than to
BM. A stronger customer deposit base is more effective in reducing danger for the riskier banks
compared to the less risky banks.

Keywords: efficiency, risk analysis, economic recession, regression analysis, business models
(BM).

127
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Financial Stability: Albanian Case

Jonada Tafa
Epoka University
Albania
jtafa11@epoka.edu.al

Ditmir Sufaj
Epoka University
Albania
ditmir1993@hotmail.it

Jonida Balliu
Epoka University
Albania
nidaballiu@hotmail.com

Rebani Balliu
Epoka University
Albania
rebani16@hotmail.com

Urmat Ryskulov
Epoka University
Albania
uryskulov@epoka.edu.al

Abstract: Defining financial stability is very difficult, and it is even harder to measure it.
Generally speaking, a financial system can be characterized as stable in the absence of
excessive volatility, stress or crises. This paper tries to give a clearer definition of financial
stability and its importance in the economy of a country. An efficient and stable financial system
is very important, as it is one of the main factors that promote economic development and
growth. It also focuses on financial stability progress in which Albania has undergone during
the last two years (2012-2013). All statistical data and information are collected from both
national and international sources, including Central Bank of Albania, Ministry of Finance, as
well as IMF and World Bank. In order to measure and understand the financial state of
Albania, it was necessary to make an analysis of the real sector (GDP growth), behavior of
financial markets, performance of banking sector and corporate sector’s riskiness. Banks play
an important role in the global financial system and have become more important during
liberalization and technological progress. This phenomenon is quite obvious even in Albania.
Empirical studies show that banking sector should be more careful with non-performing loans,
even though lending procedures have been tightened. The ratio of non-performing loans to total
loans reached up to 24.2% in June 2013. Credit risk remains the main threat of Albanian
banking sector, due to low economic growth and political instability. Based on the collected
data we may conclude that the performance of financial system and banking sector in Albania
has been quite stable.

Keywords: financial Stability; Banks; Monetary Policy.


128
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Qualifications of Accounting Profession in the Prevention and


Detection of Accounting Frauds in Companies in Bosnia And Herzegovina

Ševala Isaković-Kaplan
University of Sarajevo
Bosnia and Herzegovina
sevala.isakovic-kaplan@efsa.unsa.ba

Abstract: The meaning and purpose of preparing and presenting financial statements of legal
entities is collecting true and fair information from different users of financial statements who
are on financial positions, which results in cash flows of the legal entity during a determined
period. Unfortunately, the practice of financial reporting in the world, and here, largely
weighed down by using illegal accounting techniques aimed showing financial position and
success in accordance with the interests of the accountant / manager / owner of the company.
The public expects auditors to detect all frauds in an entity committed by employees and
managers. Unfortunately, the expectation that the auditor detects all accounting fraud
committed in an entity is only a utopia for those who do not know the role and task of the audit.
Hope for more efficient detection of accounting fraud today is a new discipline of accounting -
forensic accounting and a new accounting professional title - forensic
accountant. Unfortunately, in Bosnia and Herzegovina’s higher education institutions there is
no systematic and scientific study of the discipline of forensic accounting, or an aim to
implement the training and certification program for forensic accountant. The consequences of
this situation are extremely negative for the whole economy, whereas business scams in the
financial statements are followed, detected and prevented by the supervisory authorities and
external auditors in accordance with their domain of activity, but research and practice around
the world has shown that this is still an insufficient type of prevention.

The purpose of this paper is to provide a comparative overview of the roles of various
qualifications of accounting profession in the active prevention and detection of accounting
frauds in the companies, while the final aim of this paper is the presentation of relevant
characteristics of forensic accounting as a relatively young scientific discipline, as well as
highlighting the role of forensic accountant as a new accounting professional qualification in
the fight against accounting frauds.

Keywords: accounting fraud, certified accounting technician, certified accountant, external


auditor, forensic accountant.

129
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Management Information System (MIS), Operational Risk and Concept of


Economic Capital

Nađa Dreca
International University of Sarajevo
Bosnia And Herzegovina
nadja_n88@hotmail.com

Abstract: The aim of this paper is to explain management information system and its
relationship with operational risk and level of economic capital. Today, use of the information
technology represents one of the most important ways to achieve organizational success.
Effective use of the information technology would lead to the improvement in operational
efficiency and greater business management. It would be explained through the application of
management information system in banking sector. We will discuss the use as well as the risk
that bank is exposed to by using these operations. Information systems have very significant
role in banks. Application of information technology affects efficiency of banking operations.
With the expansion of e-banking and other electronic banking products and service, banks
become more exposed to risk in their daily operations, with the increase possibility of
operational risk and different forms of frauds. This is descriptive and theoretical research,
mostly based on literature review and findings from different sources. The aim of study is to
clarify concept of Management Information Systems (MIS) and show influence of MIS in
banking. It plays an important role in decision making process, mostly about protection against
potential losses and serves as good management tool. This paper contributes to theoretical
literature about Management Information Systems in banking, operational risk, and explanation
of Basel Standards and better understanding of Concept of Economic Capital. Economic capital
represents amount that serves as coverage for operational risk, with the aim to protect bank
from unexpected operational losses.

Keywords: Management Information System, Banking, Operational Risk, Basel Accords,


Economic Capital.

130
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Forced Tax Collection: Bank Accounts` Blockage and Its Impact on Taxpayers`
Fiscal Behavior in Albania

Avenir Lleshanaku
Epoka University
Albania
avenirlleshanaku@gmail.com

Abstract: One of the big reforms in Albania regarding Tax issues was the abrogation of Law
no. 8560, of 22 December 22, 1999 “For Tax Procedure in the Republic of Albania'' and the
approval of new Law no. 9920, of May 19, 2008 with the same name and the Instruction no.24,
date 02.09.2008 on “Tax Procedure in the Republic of Albania'' which both have the purpose to
reduce informal economy and to improve the business climate in the country.

By way of providing details on some issues, we will focus on the part of how this law determines
the procedure of constringent precautions for a forced tax collection and mainly that of
taxpayers` bank accounts blockage. The paper aims to shed light on if this procedure of
constringent precautions help the purpose of this Law to reduce informal economy and to
improve the business climate in the country or not. As a methodology we are going to give the
evaluation of Albanian appication of the above mentioned Law and Instruction, being in
incompliance with other parts of regulations and blocking orders themselves.

Keywords: tax procedures, bank accounts` blockage, constringent precautions.

131
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Assessing In the Credibility of the Company for Loan Application

Belma Peskić
International Burch University
Bosnia and Herzegovina
belma_ibu@hotmail.com

Ali Goksu
International Burch University
Bosnia and Herzegovina
ali.goksu@ibu.edu.ba

Abstract: The banks are financial institutions that provide loans not only for physical persons
but also to the legal entities or companies. The credit analysis of the company as borrower of
the loan must determine the credibility of the company in order to establish the level of credit
risk. The credit analysis includes character, capacity, capital, collateral and conditions of the
company, in this case the borrower. The purpose of this thesis is to develop appropriate model
which will raise a focus on the financial and non-financial criteria crucial for assessing in the
credibility of the company for the loan application. There are varieties of reasons why
companies take out bank loans: to purchase equipment, real estate or inventory, to expand their
operations, to increase their working capital, to reinvest, or to repay existing debts, etc. The
bank loans can be expensive and risky for a certain company, thus many companies take that
risk when it comes to financing their business operations. I will try to show which criteria,
including both financial and non-financial, is crucial in assessing in the credibility of the
company. I will also attempt to empirically verify my model, using Analytic Network Process in
combination with scoring model, in order to improve the decision-making regarding the
approval of bank loan for a certain company. The bankers must respond to the demands of their
clients who seek for the loans and in the same time discover the factors which must be taken in
to account during the whole assessment of the loan application. Before any actual analysis of
loan application, the banker must have answers to the following questions: the quality of the
borrower and of the given information; the purpose of the loan; the amount to be approved; and
the source of the repayment of the loan.

The data which will be used in this thesis is information and data collected from books, websites
and journals. The data which will be used is company’s three-year-period financial statements
as well as non-financial data such as credit history, the character and the structure of the
company, the resources and circular-flow of activities. For evaluating this data, it will be used
Scoring model, which represents a multidimensional instrument for evaluating alternative
actions. An essential advantage of scoring model is to assist in decision-making in a systematic
procedure to solve the problem, so it significantly contributes to the rational decision-making
process. As a comparison to this model, it will use Analytical network process (ANP), which is
used in multi-criteria decision analysis.

Keywords: Credibility of the company, Loan application, ANP, Scoring model, Decision-
making

132
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Microfinance Tale: Bright and Dark Side of the Narrative

Zehra Mahmutović
International Burch University
Bosnia and Herzegovina
zehra_mahmutovic@outlook.com

Ali Coskun
Fatih University
Turkey
alicoskun@fatih.edu.tr

Abstract: In the years following the ‘Great Recession’ the microfinance institutions gained
great attention and earned various attributes summed up as being a very “attractive” root of
financing developing nations’ wide. According to the saying that arriving at an end forces as
inevitably to think about the beginning, imposes also the rewind of the ‘Microfinance tale’. The
story traces back to the deepest convictions of Muhammad Yunus, a Bangladeshi banker, that
the right to get a loan should be classified as one of the basic human rights, and his
contribution to the poverty reduction challenge through the establishment of Grameen bank (the
bank for poor) in 1976. Today, when we all are witnesses that his idea was pretty sustainable
and are tirelessly discussing about the greatest innovation of the last century, there is a
necessity to draw a parallel in between the initial idea and its realization, and inspect to what
extent are they consistent, and whether they match at all?

The microcredit as a modest but in comparison to bank loans relatively fast way of obtaining
financial support in order to fill the “gaps in your budget” in short-terms, or to start your own
small enterprise as a more permanent solution to ample unemployment, flourished in Bosnia
and Herzegovina very fast. It seems that Bosnia and Herzegovina was a very fertile ground for
implementation of the microfinance project, since it flourished relatively fast and MFIs in
Bosnia and Herzegovina in relatively short period of time became quite financially sustainable.
Relatively scarce is the list of fields that emphasize simultaneously economic and social
performance intensively as the microfinance sector does (Tulchin, 2003); the social
performance of a MFI is nothing else than the ‘truth in advertising’ (Hashemi, 2007). As things
look nowadays, most of the MFIs ‘turned back’ from their original mission of providing
financial support for small entrepreneurs, thus profit goals have overcame the social
considerably. This article attempts to draw a parallel and define the reasons why the initial idea
of fighting the poverty through providing microcredit brought dark reality of making the poor
even poorer.

Keywords: MFIs/MCOs, microcredit, poverty-debt, developing, SMEs, Bosnia and Herzegovina

*This proceeding is part of an ongoing research supported by Fatih University, Istanbul,


Turkey.

133
Information Systems

24-25 April, 2014


Sarajevo, Bosnia and Herzegovina
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Utilization of Social Media in Business Advertising in Central Bosnia Canton

Nafija Filipović
International Burch University
Bosnia and Herzegovina
filipovic_nafija@hotmail.com

Meliha Handžić
International Burch University
Bosnia and Herzegovina
meliha.handzic@ibu.edu.ba

Abstract: The purpose of this study is to investigate the utilization of social media in the context
of business advertising in Central Bosnia Canton. Typically, companies in Bosnia and
Herzegovina employ traditional advertising, but more recently these companies are starting to
use social media for alternative advertising and consequently becoming more satisfied. Most of
the companies are already developing efficient ways of promoting their goods and services
through social media. The remaining ones are getting in touch with such technologies. This
study used a survey method (online and via telephone) as the main research tool to examine 50
randomly chosen companies on their advertising strategies. The research model proposed for
the study consisted of the following variables: perceptions, usage and effects of social media on
business performance. The study found out that customer behavior, awareness of the potential
of social media, positioning and building the brand of the company, all play an important role
in the process of utilization of social media. On the basis of these study findings it can be
concluded that social media has a substantial influence on people and businesses. It is taking a
major role in advertising in Bosnia and Herzegovina. This developing trend provides a plenty of
opportunities for future research.

Keywords: Social media, advertising, perceptions, effects and usage of social media.

137
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Perception of Parents from the Area of the Northern Sandžak about the
Child's Addiction to the Internet

Suada Aljković Kadrić


International University
Bosnia and Herzegovina
suada.a.kadric@hotmail.com

Tarik Obralić
University of Travnik
Bosnia and Herzegovina
obralict@hotmail.com

Abstract: The crisis of social values has resulted in the crisis of education which is directly
related to the use of Internet as a modern addiction. The crisis of education is recognized in
terms of an identity crisis at personal and national level. The responsibility for the failure of the
education among children equally depends on many factors within the educational process of a
child. Those factors vary starting from parents to the educational institution. The main cause of
the educational crisis can be identified through a deficit of self-esteem. In most of the cases,
failures occur due to the wrong time arrangement and neglecting of the basic needs of
individuals, in another word the Internet. The internet users are constantly searching for new
information – in the means of communication. The internet addiction provides a short-term
satisfaction, and the consequences are very unpleasant.

Keywords: educational crisis, addiction, leisure time.

138
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Usage and the Problems of E-Banking System - A Case Study: Bosnia and
Herzegovina

Mirza Dedić
International Burch University
Bosnia and Herzegovina
mirza_dedic_1989@yahoo.com

Uğur Ergun
International Burch University
Bosnia and Herzegovina
uergun@ibu.edu.ba

Abstract: Financial institutions in Bosnia and Herzegovina are increasingly finding themselves
facing rapid increases in turbulence and complexity, leading to increased competition. As the
wind of change started blowing, most banks (if not all) adopted the use of electronic banking (e-
banking) for transaction, which is becoming the rule rather than exception. One of the reasons
for this dynamic change in banking environment is the reliability and accuracy of this
information if accurate data are inputted. Another reason is inherent benefit of e-banking to
save time and magnificent efficiency in the speed in the transaction of banking activities and
consequently enhancing the performance of banks.

This paper is designed to find out the usage and problems of electronic banking on banks. The
structure of the study is mainly exploratory and partly casual since it is also testing some
hypothesis. Data collection method employed in this study is secondary, which comprises of
electronic banking guidelines, financial summary of the bank over the years, journals and
magazines of e-banking, computer data base accessed through the internet. The analysis tool
used to test the hypotheses is simple linear regression and the student’s t-test. Theoretical
contributions and practical implications of the findings are discussed and suggestions for future
research are presented.

Keywords: E-banking, Secondary Data, Linear Regression, Student’s T-Test.

139
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Information Technologies and Education of Economists

Dražena Gašpar
University of Mostar
Bosnia and Herzegovina
drazena.gaspar@sve-mo.ba

Mirela Mabić
University of Mostar
Bosnia and Herzegovina
mirela.mabic@sve-mo.ba

Abstract: The aim of the paper is to present how usage of different software tools in solving
business problems could help students of economy to better integrate theoretical knowledge
from different economics subjects and to enhance their technological skills. Namely, IT plays
crucial role during the problem-based learning process, serving as a critical tool for
information searching, organizing and analyzing data, and presenting solutions. The paper
presents the way of use of information technology in education of economists, particularly at
Faculty of Economics Mostar and course named Business Intelligence (BI). It is obliged course
for students of Management and Business Informatics majors. At the beginning of BI course we
interviewed students and discussed their expectations related to proposed learning methods. At
the end of the BI course we also interviewed students and discussed fulfilment of their
expectations. Namely, BI course implements problem-based learning process through
combination of the theoretical knowledge and practical problem solving by using different IT
tools. Students focus attention on theoretical knowledge as well as peculiarities of solving
problems. They are concentrating on operational context of the practical problem, trying to
conceptualize it and deduce solutions acceptable in the project. Every student creates her/his
knowledge and structure, makes sense of theories and parts of their reality in her/his own way.
Applying information technology as a tool for learning in curriculum areas enables students to
develop the knowledge, skills and capacity to use IT in specific field and to be more successful
in achieving curriculum outcomes. Through analysis of students expectations/fulfilment related
to course learning methods, paper presents how IT could reshape the educational landscape by
transforming the content and modes of acquisition of learning as well as how the
implementation of IT is inseparable from the process of curriculum development and
implementation of problem-based learning.

Keywords: Information technology, Higher education, Problem-based learning, Curriculum


development, Knowledge acquisition.

140
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

What User Thinks About Privacy on Social Networks: An Empirical Study

Ahmet Murat Özkan


Cumhuriyet University
Turkey
ahmetmozkan@hotmail.com

Abstract: Practically billions of users are using a wide selection of so called "social networks"
which serve as a meeting point for individuals, groups etc. Recently, more and more people join
multiple social networks on World Wide Web, such as Facebook, Linkedin, Twitter, Google
Plus etc. to share information and updates of their lives and at the same time to monitor or
participate in different activities. Social networking has become one of the most popular
activities on the web, with the top sites boasting hundreds of millions of users, and social
networking sites representing an important portion of world’s 100 most-visited web sites.

On social networks, service providers (i.e. facebook, twitter, google plus) have the chance to
create unique products or services for each customer where the information provided by users
are actually an essential part of the service. For example, we all have a different profile page
(and network) based on our information, location etc. and provided by social networking
company (service provider). Very sensitive personal data are uploaded to user profiles
including but limited to, personal identity, date of birth, photos, job/education information, and
location. Scholarship on social networking on World Wide Web is flourishing and privacy
issues can be considered as a popular topic on these studies.

In this paper, based on a questionnaire, we try to understand what users think of regarding
their private information on social networks. Questionnaire is based on the scale “information
privacy: measuring individuals' concerns about organizational practices” developed by Smith,
Milberg and Burke (1996). We argue that, if providers can come up with a secure
infrastructure, transparent data usage policy and rich privacy options for users to opt-in and
out, people will engage in more social networking activities and providers can make more
profit.

Keywords: privacy, user, social network, knowledge, management.

141
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Evaluation of e-Business in Turkey

Furkan Ozbek
International Burch University
Turkey
furkan_skater@hotmail.com

Abstract: The internet and technologies have produced an amazing impact on the way
enterprises carry out organization in Turkey and worldwide. Turkey enterprises are similar to
their own global counterparts and have put in heavily to help leveraging the internet and
transform their own classic businesses directly into e-businesses in the last 10 years. E-business
purchases are generally professing sizeable share of overall IT budgets in many enterprises
whether they are generally modest, channel as well as huge. On the other hand, professionals
are generally underneath continuous stress to help justify e-business charges along with to
ensure most of these purchases keep reducing. Previous investigation on e-business in Turkey
dealt with problems on the price connected with e-business uptake along with the usage of the
internet to help particular organization functions. Research discussed in this paper is primary
and tries to evaluate the worthiness connected with e-business. It is dependent on data
compiled, collated along with analyzed from the reactions received from it along with e-
business professionals from all over Turkey.

Keywords: e-business evaluation, e-business drivers, e-business financial success.

142
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

A Case Study of Information Systems Implementation in Bosnia and


Herzegovina

Mihret Sarač
International Burch University
Bosnia And Herzegovina
mihretsarac@gmail.com

Abstract: In today's world of highly competitive economy with frequent and rapid changes,
business managers are faced with an increasing need to make right decisions at the right time.
Right information is one of the key resources for high quality business decisions and subsequent
business success. Relevant, accurate and timely information is valuable because it can affect
behavior, a decision, and an outcome. Thus, business managers need to have access to all the
required internal and external up to date information. This access is enabled by modern
business information systems. These are ICT based systems that collect; store, preserve, process
and deliver needed information to organizational management in order to support their
operational, tactical and strategic decision making. They also help organizations to connect
with their customers, suppliers and partners involved in their business processes. In short, these
systems have become essential when it comes to day-to-day operation, as well as strategic
planning and decision making. Given the high importance of information systems in
organizations, this study will analyze a case of one system implementation in a real-world
company from Bosnia and Herzegovina. In particular, a descriptive method will be applied to
examine the characteristics of the company's system and the value of information it provides to
its management.

Keywords: business information system, implementation, impact, case study.

143
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

E-Tutor: Creating, Deploying and Supporting e-Learning Environment

Muamer Mirvić
JU Peta gimnazija, Sarajevo
Bosnia and Herzegovina
muamer.mirvic@gmail.com

Abstract: Modern world relies heavily on technology to achieve necessary improvements in


quality of life for all members of society. The rise of usage of technology can also be seen in all
sectors of education systems and education processes. By utilizing the technology, education
systems are able to accommodate growing number of participants of an education processes
thereby expanding student capacity of a school or university. This expansion can be seen in
form of electronic learning or e-learning where students are able to attend classes and obtain
degrees over the internet. This form of distance learning allows education institutions to
migrate from ordinary classroom teaching to computer-based environment where students’ and
teachers’ geographical location is irrelevant, meaning students are able to attend classes from
any part of the world over the Internet. This form of online environment supports typically
supports learner-centralized and self-paced education.

Main component of any e-learning system is an online tutor, also known as e-tutor, an educator
who will be able to create and manage e-learning environment while at the same time using that
environment to teach classes and lectures to students who are attending them via the Internet.
This e-tutoring system is created using only freeware components and services which are
available over the Internet. Currently, researchers' opinions on quality and advantages of this
form of education are divided. Some believe technology-mediated learning environments will
improve students’ attitude toward learning and their evaluation of learning experience, while
others are warning that this form of education may lead to feeling of isolation and anxiety in
student population. Objective of this study is to create simple and effective e-tutoring system to
be used for online education and to examine the issue of its usage in context of high school
education.

Knowledge Management framework was used as theoretical model to create e-learning space
for high school students. The model was tested among students enrolled in Computer science
classes. The participants were interviewed about their experiences. The results provided
interesting insight into the potential and limitation of the e-tutoring system.

Keywords: online learning, e-tutor, knowledge management, interviews, paper.

144
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Web Presence of Hotels in Canton Sarajevo

Armin Spahić
International Burch University
Bosnia and Herzegovina
spaha_1@hotmail.com

Abstract: Making a website has become a necessity for any modern hotel operating nowadays.
Creating an effective website for a business, such as a hotel, can contribute to its success. It
changes the way of presenting particular services in a way that is available to anyone from
anywhere around the globe. A person who is sitting in his or her chair in front of a computer
can access all the information and services that a particular hotel is providing. In general, e-
commerce is an efficient way of conducting business that replaces more effortful traditional way
involving physical contact. However, to be successful, the website needs to be well designed and
built in order to be adopted by the customers. The key criteria for good website design
suggested by the literature include: functionality (e.g. information, instruction), usability (e.g.
simplicity, ease of use) and appeal (e.g. color, graphics). Every customer wants to be able to get
the required information from the website in the simplest and easiest way possible. In the case
of hotels, visual presentation of hotel amenities is equally significant. It can stand out as a
point-of-difference for targeted customers. A single hotel can also benefit from joining global
websites that connect many hotels in one place. Higher ratings can be obtained based on the
quality of provided information and presentation because these ratings are based on actual
human perceptions and experiences. Given all of the above said, this research study will
examine how important is web presence for ratings and business success of selected hotels in
Canton Sarajevo. A survey-based method will be employed to collect customer satisfaction data.

Keywords: E-commerce. E-business, web presence, user satisfaction, hotel.

145
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Application of project management tools and techniques in an IT company in


Bosnia and Herzegovina

Emil Klapija
International Burch University
Bosnia and Herzegovina
emil.klapija@gmail.com

Abstract: In a modern business environment, work is often segmented into activities having a
well-defined objective and a limited duration period. These activities are referred to as projects.
Projects are categorized in several ways and according to various disciplines. This paper will
introduce a notion of projects and project management in a developing area of information
systems. Even though the basis remains the same, IS projects differ in many ways when
compared to the so called “standard” projects due to a swift change in technology and the fact
that a vast majority of products are intangible. Therefore, to manage such projects becomes a
complex task. There are various tools and techniques that are being applied to IS projects in
order to keep track of a changing environment.

This paper will cover numerous facets of IS project management and how they are being
applied in IS projects. Although project management cannot guarantee success, it most
certainly aids managers as well as developers, analysts and technical staff completes their tasks
in time. It also facilitates quality checks and employee tracking for further task monitoring and
baseline planning. To assure a quality analysis, this paper will cover relevant literature such as
the one approved by the Project Management Institute and the Association for Project
Management to scrutinize tools and techniques used worldwide in IS project management and
review how they apply to a specific IT company in Bosnia and Herzegovina. Finally, based on a
thorough, objective evaluation a conclusion will be drawn to reflect the implementation of
suggested tools and techniques.

Keywords: project management, tools, techniques, manager.

146
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Impact of the Information Technology on Business Processes

Artir Maliqi
Epoka University
Albania
maliqiartir@yahoo.com

Abstract: This research project describes the impact of the information technology on business
processes which are increasing rapidly during the last years. This is happening due to a high
level of innovations in the field technology used in very efficient way toward economical
development. So it is important to analyze its effects because it is directly related to the
development and good organization of the financial markets.

The methods that are used while making this research are based on questionnaires conducted
by many successful business firms, professionals at the field of business administration and /or
at the field of information technology, books and magazines, resources from internet and also
from the opinions of public society.

The final results obtained though these methods clarify that the impact of technology is directly
influencing on the efficiency and well functioning of the business processes.

Keywords: Business firms, Technology, Researches

147
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

IT function in the Higher Educational Institution; the Role of IT Center on


International Burch University

Edis Bulić
International Burch University
Bosnia and Herzegovina
edis.bulic@ibu.edu.ba

Abstract: This paper aims to examine the importance of IT center’s role in supporting
administrative and academic staff at International Burch University. IT Center exists as part of
the administrative infrastructure International Burch University. The main activity of this
subdivision is building a network of communication based on latest computer technology and
complete customer support. The primary goal of IT Center is a constant improvement of the
system units, monitoring and implementation of modern information technology with the idea of
quality and automated customer support.

The research is theoretical. We will do the comparison between definition of the IT Function
and actual implementation in practice on International Burch University, also applied
managerial models.

The results of the study can be the useful resource for future research and help better practical
implementation of IT center support at International Burch University.

Keywords: higher educational institution, IT center, administrative and academic staff.

148
Management and Organizations

24-25 April, 2014


Sarajevo, Bosnia and Herzegovina
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Global Water Issues and Changes in Water Resources Management Policies

Ömer Faruk Bilbay


Mustafa Kemal University
Turkey
bilbay1987@hotmail.com

Veysel Eren
Mustafa Kemal University
Turkey
bilbay1987@hotmail.com

Yakup Bulut
Mustafa Kemal University
Turkey
bilbay1987@hotmail.com

Abstract: Water is a very important natural resource for both sustain of universe and whole live
life. Water has maintained its importance throughout history and it had played effective role on
emerging and developing of many civilizations. Today, such a fast growing world population,
global warming, decreasing of water resources, high cost of alternative fresh water,
unconsciously and primitive farming irrigation, wasting urbanization which out of order, water
pollution because of industry waste and another problems has been emerged. This situation has
made water resources management as an international discussion both aspect of politic and
economic.

Deficiencies in the amount and quality of water have been considered to be a threat both people
and live species. . Therefore, nowadays the basis of the sustainability of water resources has
become more important and necessity. In addition to national and international actors non-
governmental organizations take on an important role in this regard the importance of the
future path of the water with carrying out the support of the financial incentive, conferences,
decisions, projects and they have demonstrated that how fresh resources water will be very
important for the future of life. In this study we will examine reason of global water problems,
sustainable water resources management, the transformations and changes in water resources
policies and give advices about solution.

Keywords: Water Resources, Water Politics, Water Problems, Sustainability, Water


Management, Global Warming.

151
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Importance of Vocational Education in Employment: A Study on the


Students of Food and Beverage Management

Emel Memis Kocaman


Gaziosmanpaşa University
Turkey
ememis4@hotmail.com

Mehmet Kocaman
Gaziosmanpaşa University
Turkey
mehmet.kocaman@gop.edu.tr

Abstract: The service sector is made up of industries that requite vigorous efforts. Therefore a
labor force that is equipped with theoretical knowledge and application skills makes great
contributions to the quality of businesses, since individuals’ attaining professional competence
is greatly contributed to by the education which they received in school and are strengthened by
the practices at work. Food and beverage management departments have given undergraduate
education since 2005 in Turkey in order to meet the demands for qualified managers in food
and beverage businesses in the service sector. This study aims to determine the working
conditions of the students of food and beverage management in the sector throughout their
education. The study included 145 undergraduate students. The number of students working in
bars increases with grade and the students who had education in the kitchen department of
vocational high schools had the highest number of students working in the kitchen in the sector.
The working period of men were determined to be higher and the students who did not receive
vocational education in high school were determined to have shorter working periods. The
study concluded that the students had working experiences in different departments of sector
throughout their education and businesses are inclined to employ individuals with educational
backgrounds in this field.

Keywords: Service sector, tourism, employment, vocational education.

152
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Affecting Factors of Call Center Employees’ Job Satisfaction and Impact of Job
Satisfaction on Performance

Devran Deniz
Balikesir University
Turkey
devrandeniz@balikesir.edu.tr

Çağrı İzci
Balikesir University
Turkey
cagriizci@balikesir.edu.tr

Abstract: The aim of this study is to examine factors which influence job satisfaction of call
center employees and investigate impact of job satisfaction on job performance for call center
employees. Research data were collected from a public bank (n=101). In this context; result of
the research literature, questionnaire forms which are used 5-point Likert scale was enforced
reliability analysis. Cronbach alpha values of study were measured high level. After the
obtaining data were analyzed, some solutions were offered to researchers. 6 fundamental
factors which are thought to affect job satisfaction were planned as wage policy, promotion
policy, attitudes of team leader, work friends, working conditions and job security. Job security,
promotion policy and work friends were determined explaining factors of job satisfaction from
these 6 factors. Correspondingly, it was detected that some linear relationships in the same
direction between job satisfaction and job performance in this study. Although it is not a
primary object of this study, it was examined whether the relationship has been between
demographic information and job satisfaction. To be obtained the conclusions of this study, it
was utilized from independent samples t tests, simple-multiple regression and correlation
analysis.

Keywords: Job Satisfaction, Job Performance, Call Center.

153
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

External Environment Analysis: A Focus on SME’s in the Republic of


Macedonia

Izet Zeqiri
South East European University
Macedonia
i.zeqiri@seeu.edu.mk

Brikend Aziri
South East European University
Macedonia
b.aziri@seeu.edu.mk

Abstract: External environment analysis during the last couple of decades has become one of
the main issues in contemporary business organizations. The main objective of this paper is not
to simply address the widely spread and accepted body of knowledge in the field of external
environment analysis, but rather to provide a description insights regarding the implementation
of the widely known techniques for external environment analysis by SME’s in the Republic of
Macedonia, more particularly in the Pollog region . The paper is based on a practical
questionnaire analysis of SME managers in the Republic of Macedonia and strives to provide
insides regarding the degree to which external analysis is conducted by the companies and
determine the main barriers influencing their implementation.

Keywords: external environment, techniques, SME, Macedonia.

154
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

How The Level Of Emotional Intelligence Affects Opportunity Identification?

Seda Tüysüz
Erzurum Atatürk University
Turkey
sedatuysuz@hotmail.com

Ülke Hilal Ağırman


Erzurum Atatürk University
Turkey
ulkecelik@hotmail.com

Ömer Faruk İşcan


Erzurum Atatürk University
Turkey
oiscan@atauni.edu.tr

Abstract: Opportunity identification is emerging as a critical component of the entrepreneurial


process representing the ‘most distinctive and fundamental entrepreneurial behavior’ (Hayton
et. al. 2011; 15). Opportunity recognition has long been accepted as a key aspect of the
entrepreneurial process (Ozgenve Baron, 2007:174). The issue why some individuals take
advantage of opportunities and some cannot is usually studied. While some studies found that
personality traits, psychological variables and demographic factors may affect on
entrepreneurial activity, other researchers have looked to the importance of social capital and
network ties to new venture creation.

In this study, we focus on the effects of emotional intelligence on opportunity identification. We


attempt to explain these effects by creating a theoretical framework that considers the
interaction between emotional intelligence levels and opportunity identification. To test
research hypotheses, data will be gathered from students at the Business Program of The
Faculty of Economics and Administrative Sciences in a university in Turkey. The resulting data
will be analyzed by appropriate statistical methods. In accordance with this analysis, it will be
determined whether individuals' emotional intelligence level has an impact on opportunity
identification skills.

Keywords: Opportunity identification, emotional intelligence, entrepreneurial process.

155
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Effect of Emotional Intelligence on Self Efficacy and Entrepreneurial


Intentions: An Application of Business Students

Ülke Hilal Ağırman


Erzurum Atatürk University
Turkey
ulkecelik@hotmail.com

Seda Tüysüz
Erzurum Atatürk University
Turkey
sedatuysuz@hotmail.com

Atılhan Naktiyok
Erzurum Atatürk University
Turkey
anakti@atauni.edu.tr

Abstract: Entrepreneurship is linked with value creation and, as such, is thought to have a
significant impact on economic growth, continuous business renewal, and employment (Tang
and Koveos, 2004). Therefore, entrepreneurship has a great importance in today's economic
system and is considered as the main driving force of economic development. It is essential for
individuals to have entrepreneurial self efficacy and intentions of entrepreneurship to identify
the opportunities in their environment and create value from these opportunities. Self-efficacy is
an individual’s cognitive estimate of his or her ‘‘capabilities to mobilize the motivation,
cognitive resources, and courses of action needed to exercise control over events in their lives’’
(Wood and Bandura, 1989). Entrepreneurial self efficacy reflects an individual's capability to
successfully fulfill his/her tasks of entrepreneurship (Chan et al., 1998:301). An entrepreneurial
intention is defined as the conscious state of mind that directs personal attention, experience,
and behavior toward planned entrepreneurial behavior (Bird, 1988).

This study focuses on the emotional intelligence factor which is thought to affect individuals'
entrepreneurial self efficacy and intention of entrepreneurship. Emotional intelligence which is
the ability of people in coping and adapting with life events depends on cooperation of
intellectual and emotional capacities (Salovey and Mayer, 1993) so it is an important construct
of entrepreneurship’s development. To test research hypotheses, data will be gathered from
students at the Business Program of Faculty of Economics and Administrative Sciences in a
university in Turkey. The data obtained will be analyzed using appropriate statistical methods
and in accordance with this analysis it will be determined whether level of individuals'
emotional intelligence affects self efficacy and entrepreneurial intentions.

Keywords: Entrepreneurship, entrepreneurial self efficacy, intention of entrepreneurship,


emotional intelligence.

156
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Holland's Theory of Careers and Vocational Choice

Orhan Adigüzel
Süleyman Demirel University
Turkey
orhanadiguzel@gmail.com

Hikmet Zeynep Batur


Süleyman Demirel University
Turkey
hzeynepbatur@gmail.com

Döndü Sönmez Özkan


Süleyman Demirel University
Turkey
sumeyyeozkan81@gmail.com

Adeviye Erdoğan
Süleyman Demirel University
Turkey
adeviyester@gmail.com

Nisa Ekşili
Akdeniz University
Turkey

Abstract: The career development of individuals is a long and complex process. In this process,
an individual may be affected by many factors. An individual's social environment, psycho-
physical dynamics, and factors such as the economic and cultural structure of the environment
may shape (direct) the career choices and professions of the people. For this reason, the basis
on which we decide and build our career path and profession, which may affect our entire life,
is significant. Many theorists in this field have attempted to bring quite complex solutions to the
question that on which basis and according to what criterion do we decide our career path.
Among the most efficient theories comes John Holland's Theory of Career Choice.

The present study aims to examine Holland's Theory of Career Choice in all aspects and
determine its impact on career choice. In this respect, the personality types and individual-
environment interaction have been analyzed. The code map of the data related to the
personality types and characteristics present in Holland's Occupational Personality Types has
been created using MAXQDA 11. The significance of the study lays in that it puts forwards
other studies, results and findings from these studies and it also contributes to the employees
and researchers.

Keywords: Career, Career Selection, Holland's Theory of Careers and Vocational Choice,
Personality Types.
157
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Gamification Apps in the Business Life and the Research of Business Firm’s
Opinion towards Games Application

Orhan Adigüzel
Süleyman Demirel University
Turkey
orhanadiguzel@gmail.com

Adeviye Erdoğan
Süleyman Demirel University
Turkey
adeviyester@gmail.com

Döndü Sönmez Özkan


Süleyman Demirel University
Turkey
sumeyyeozkan81@gmail.com

Hikmet Zeynep Batur


Süleyman Demirel University
Turkey
hzeynepbatur@gmail.com

Nisa Ekşili
Akdeniz University
Turkey

Abstract: Except the area of the production of the game, gamification refers that basic elements
and concepts are used in the process of game design and development. Business processes,
which may sound boring, may become more enjoyable by the help of gamification. Moreover,
feedbacks collected from individuals may accelerate thanks to such an approach. The purpose
of gamification method is applying such approaches to business processes and improving the
process quality and human interactions. This study also aim what priorities can be awarded,
what type of behavior expected from individuals and most importantly what type of options can
offer the connection between individuals and targeted systems to sustain health. This study
targets to evaluate how the gamification apps influence the performance of personnels. The
research method used in this study is action research approach. This method consists of two
stages. At first, the performance level of individuals in firm can be fixed with the help of a
survey. Then gamification apps were carried out for two months. After that time, the same
survey was repeated. In the light of the findings, this study tries to fix how gamification impacts
individuals and their performance. This study can be thought very helpful because of lack of
research in the literature area in this context, and this study will also help the interested
researchers in this area and managers who want to improve the performance of employees.

Keywords: Gamification, game design, design patterns, business, performance.

158
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Competition in the Albanian market

Sonila Gruda
Epoka University
Albania
sgruda@epoka.edu.al

Abstract: It is a fact that Albania was the last country in Eastern Europe, which began the
implementation of the free market principles after 90s. So, at the beginning of the transition,
competition was an inevitable phenomenon of the new market even the actions that flow from it
were new to the Albanians. In the economic terms, the competition received comprehensive
treatment in social life, as the previous system, generally, excluded the market from the spheres
of competitiveness because Albanian market had a leading role played by the state. As the other
countries of the Western Balkans region, involved in the process of European integration, the
culture of competition remains a challenge for Albania. In general, the structures for the
protection of competition in developing countries are at similar stages to the creation or
strengthening of national competition authorities and the legal framework that applies in this
area, there is a high level approach to European legislation. Precisely these problems pose
major challenges for solutions in the way of integration of Albania into the European Union.
Implementation of the legal framework for competition, deepening the independence and
accountability of the institution of the Competition Authority, the awareness of market
participants with the principle that competition means economic prosperity, supported by the
strong inter-agency cooperation and a greater transparency public, are the main pillars of
national policy document on competition. Based on the problems noticed for the absence of the
legal actors on the market this project proposal analyses the necessary competition policies,
economic conditions in which it is developed the actual competition law and competition policy
in Albania. The main questions raised will be: what are the direct and indirect influences of the
unfair competition? Which sectors face significant problems to compete in the market and why?
What is the innovation level and how it helps the business to become successful in Albania?
Basically the research is based on the annual reports and significant studies of Ministry of
Finance and many researches made by NGO’s for the region.

Keywords: Economic indicators, innovation, competition analysis, sector analysis.

159
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Influence of Family Tradition and Gender Differences on Entrepreneurial


Intentions: Perception of Business Students at Public University in Turkey

Göknur Ersarı
Atatürk University
Turkey
goknur_3686@hotmail.com

Ömer Faruk İşcan


Atatürk University
Turkey
oiscan@atauni.edu.tr

Atılhan Naktiyok
Atatürk University
Turkey
anakti@atauni.edu.tr

Abstract: It seems possible to increase the development levels of societies through increasing
the number of entrepreneurs. It is important to determine the entrepreneurship intentions of
university students and to encourage them towards entrepreneurship to increase the number of
entrepreneurs. Based on its importance the aim of this study is to determine the influence of
family tradition and gender differences in entrepreneurial intentions of university students in
Turkey. To achieve that a survey has been performed to the students at the faculty of and
administrative sciences in Public Universities in Turkey and their entrepreneurship intention
has been comparatively determined. The obtained data will be analyzed using SPSS Version20.

Keywords: Entrepreneur, Entrepreneurship, Entrepreneurial Intentions.

160
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Analyzing Entrepreneurial Orientation of SMEs: Evidence from Albania

Alba Kruja (Demneri)


Epoka University
Albania
akruja@epoka.edu.al

Abstract: Entrepreneurship and its role on the growth of the country was one of the main
discussed topics during the first half 20th century. The discussion during the second half of the
century shifted to the analysis of the entrepreneurial orientation and factors affecting
entrepreneurial behavior of the firms. The research conducted on many developed countries
revealed that there is a positive relationship between entrepreneurial orientation and firm
performance.

Albania is a developing country which has only a twenty year period of open market economy.
This paper analyses the role of entrepreneurial orientation and its components on the growth
orientation of Albanian SMEs. The entrepreneurial orientation components included in this
study are: innovation, risk-taking, proactiveness, and autonomy. The data used in the study are
primary data collected during September-December 2013 through the questionnaire distributed
to 60 Albanian SMEs operating in its capital city of Tirana. The methodology used for the
analysis of the data is multiple regression analysis. The analysis revealed that higher level of
entrepreneurial orientation resulted in higher level of SMEs growth orientation and
performance. In further studies a new dimension of the entrepreneurial orientation proposed to
be investigated whether it has or not a positive impact on SMEs performance is collaborative
orientation between SMEs, research institutions and government.

Keywords: Entrepreneurial Orientation, SME-s, Growth Orientation, Albania, Regression


Analysis.

161
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Creating Value for Leasing Service Customers on the Example of VB Leasing In


the Market of Bosnia And Herzegovina

Slobodan Vujić
VB Leasing BH
Bosnia And Herzegovina
slobodan.vujic@vbleasing.ba

Saša Vujić
University “VITEZ” Travnik
Bosnia And Herzegovina
vujic.sasa1@gmail.com

Aida Abduzaimović
University “Vitez” Travnik
Bosnia And Herzegovina
aida.abduzaimovic@unvi.edu.ba

Ibrahim Obhodas
University “VITEZ” Travnik
Bosnia And Herzegovina
ibrahim.obhodjas@unvi.edu.ba

Abstract: The paper is aimed at analyzing the process of creating the customer value added in the
area of leasing services, as well as at determining what the value added implies for leasing product
customers. The leasing company's goal is to develop and maintain its client relations through
creating the leasing service customer value added, and thus achieve increased business efficiency and
an increase in its market share. The paper will analyze advantages and disadvantages of the leasing
package, both from economic and from financial aspect of leasing. Leasing package development is
based on the mutual economic interest of both lessor and lessee. The financial basis of leasing is
financing, i.e. acquisition of given goods without engaging one's own capital and without entering a
classic loan-based relationship. The paper will also discuss types of leasing that are the most
frequent in Bosnia and Herzegovina market. In order to determine what represents the total value for
the leasing service customer, for the paper purposes, we will conduct primary research pertaining to
the importance of individual elements in dealing with a leasing company, and study the present
customer satisfaction in dealing with leasing companies. Data will be collected through survey
questionnaires with close ended questions based on the Likert scale from one to five. Survey
questionnaire will comprise two parts: the importance of individual elements dealing with a leasing
company and the present customer satisfactions in dealing with a leasing company. Each part will
comprise five elements. The respondents will be requested to rank each element according to
importance in dealing with a leasing company. The questionnaire surveys will be distributed among
leasing customers, legal and private persons in Bosnia and Herzegovina. 500 questionnaire surveys
will be distributed. Besides the described primary data, the analysis will also use the secondary data
of international and local organizations involved in analyzing the leasing market. The research will
provide an insight into what affects the creation of the leasing service customer value added, and how
it is reflected on the company's market share.

Keywords: operational leasing, financial leasing, service, customer value added, marketing.

162
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

A Field Research about Oppression Incurred Upon Woman Entrepreneurs in


Patriarchal Societies

Metin Uluköy
Balıkesir University
Turkey
mulukoy@hotmail.com

Yavuz Akçi
Adıyaman University
Turkey
yavuzakci@gmail.com

Abstract: In societies where men are dominant, women generally live under the domination of
men. In these societies; women do not think, produce and express an opinion. According to
man; woman does household chores, take care of children and provide fundamental
requirements of man. Women have recently started to involve more in societies because of
development of information, technology and education system and raising economic level of
societies. This situation made the effect of man domination decrease significantly. It is
especially seen that women recently trust themselves more and start entrepreneurship activities
to gain economic independence. Technological advancements, increase in education levels and
government policies aimed at women caused this situation. How was seen entrance of women
into business life by man and which type of pressures were implemented to women
entrepreneurs were needed to be as research topic, so this study was done. For this purpose, a
survey which consists of 13 questions was prepared by making literature review. The
questionnaire included both entrepreneurship qualities and difficulties which were faced by
woman entrepreneurs. The questionnaire was conducted to those women who constructed a
business in Adiyaman and Balikesir. It was reached 84 woman entrepreneurs who met the
requirements and face to face questionnaires were conducted. Analyses were done by entering
data to SPSS 20.0 program data file. Reliability of measurement (Cronbach’s Alpha) was seen
as 0,818 in these analyses. It was seen that being innovative and having high self confidence are
becoming prominent characteristics in question which is related to the qualities which must
entrepreneurs have. It was also seen that they used mainly equity in establishment of their
businesses. Also, KOSGEB and Micro credit possibilities were utilized by them. In addition, it
was seen that woman entrepreneurs did not suffer oppression in establishment and operation of
their businesses. It was seen that there is not significant differences between various
demographic attributes with entrepreneur skills and oppression with initiative barriers of
woman entrepreneurs. The result of this study is expected to promote and encourage woman
entrepreneur candidates.

Keywords: Entrepreneurship, Entrepreneurial Characteristics, Women Entrepreneurs,


Entrepreneurship suppression, Entrepreneurship Education.

163
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Factors Affecting Sustainable Competitive Advantage in the Wood industry in


B&H

Jasminka Ahmetasević
International Burch University
Bosnia And Herzegovina
sppajalica@yahoo.com

Erkan Ilgun
International Burch University
Bosnia and Herzegovina
erkan.ilguen@gmail.com

Abstract: This paper examines fundamental elements of competitive advantage in the wood
industry. The purpose of this thesis is to investigate core factors that affect the sustainable
competitive advantage in the wood industry in Bosnia and Herzegovina.
In the first phase of this research study, an importance-performance analysis was performed
based on components of the sustainable competitive advantage. In the second phase, the
relationships between competitive strategy, innovation, leadership and sources of competitive
advantage for sustainable competitive advantage in the market were determined. What makes
the profitability of the company and success? How these variables interact with each other?
Their interaction was determined in the study. Additionally, in the third phase of our master's
thesis, based on the above factors, we showed what makes profitability of the company. It means
how a company could be successful and profitable in the long- term.

Keywords: wood industry, competitive advantage, innovation, competitive strategy, success,


sustainability, sources of competitive advantage, leadership, advertising, profitability.

164
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Entrepreneurship: Analysis of the Literature

Dino Arnaut
International Burch University
Bosnia and Herzegovina
arnaut.dino@gmail.com

Uğur Ergün
International Burch University
Bosnia and Herzegovina
ugur.ergun@ibu.edu.ba

Abstract: Throughout the world, shifts in population demographics, technological modification,


fluctuating economies and alternative dynamic forces have transformed societies as never
before, bringing new challenges in addition to opportunities to the forefront. Among the
responses to those everyday shifting forces is an actual increase in stress on entrepreneurship
by governments, organizations and the general public. Entrepreneurship cannot be a panacea
for it all, but it can surely be part of the answer. Entrepreneurship is a very popular topic for
the researchers in almost every part of the world. This paper seeks to create a roadmap for the
entrepreneurship literature. This task is not easy since entrepreneurship itself is a multifarious
and complex social and economic phenomenon. This roadmap’s sole purpose is to highlight
aspects of entrepreneurship that can act as a guideline for policy makers to help them
understand the most important questions and issues, and to understand better the distinctions of
entrepreneurship in emerging markets from that in developed countries. This is critical in order
to develop private sector in developing countries. This paper examines recent empirical
evidence that systematically and collectively supports the claim that entrepreneurship cause
important economic benefits, such as economic development and growth.

Keywords: entrepreneurship, literature review, roadmap, self-employment, economic


development, economic growth.

165
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Supports and Critiques on Porter's Competitive Strategy and Competitive


Advantage

Ensar Mekić
International Burch University
Bosnia and Herzegovina
ensar.mekic@ibu.edu.ba

Emina Mekić
International Burch University
Bosnia and Herzegovina
emina.mekic@ibu.edu.ba

Abstract: The main purpose of this article is to qualitatively scrutinize work of Michael Porter
from the ground of two main theories proposed by him; competitive advantage and competitive
strategy. Therefore this article is written with the aim to question applicability and durability of
Michael Porter’s strategies in modern business world. The main methodology used is literature
review of secondary sources and data. Authors mainly relied on sources of high quality
material such as books of Michael Porter, articles published in well-known journals as well as
opinion of experts in the field such as Joan Magretta, Jack Welch and others. Furthermore
books entitled in the same way as theories that are point of interest were used as main
theoretical framework. Finally findings induced that Michael Porter’s model of five forces and
his understanding of competitiveness still have merit in the modern business world, however
one cannot solely rely on it when forming a business strategy and examining business
environment.

Keywords: Michael Porter, Competitive Advantage, Competitive Strategy.

166
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Balanced Scorecard as a Performance Measurement Tool in Terms of


Strategic Management

Mustafa İyibildiren
Selçuk University
Turkey
iyibildiren@selcuk.edu.tr

Kemal Nalçın
Selçuk University
Turkey
kemalnalcin@selcuk.edu.tr

Abstract: An efficient performance appraisal system has great importance for the enterprises
challenging in complex environments to achieve success. Performance indicators are used to
evaluate, control and develop the processes for the enterprises to achieve their aims and
objectives. Additionally, performance indicators are also used to compare the performances of
the enterprises, factories, departments, teams and individuals. For appraising performance of
the enterprises, financial indicators focused conventional performance appraisal techniques,
have been commonly used. However, the performance appraisals dealing with only financial
indicators are not considered adequate to evaluate the performance of enterprises, currently.
Recognizing the weak points of the financial indicator focused performance appraisals,
researchers have started to study multi-dimensioned performance approaches. In this regard, it
will be an appropriate solution to take, not only financial dimension but also other dimensions,
into consideration, when the aim is to design a performance appraisal system for enterprises.

The balanced scorecard, which is one of the multi-dimensioned appraisal techniques, to


evaluate organizational performance, is a strategic planning and management system that
translates an organization’s mission and strategy into a balanced set of integrated performance
measures. A broad range of performance measures and business goals can be incorporated in
the scorecard. The balanced scorecard is used extensively in business, industry, government,
and nonprofit organizations worldwide, to align business activities to the vision and strategy of
the organization, improve internal and external communications, and monitor organization
performance in terms of strategic goals.

In this study, the concept of performance will be explained, balanced scorecard method, which
is one of the multi-dimensional performance measurement methods, will be discussed in detail.
Finally, the application of balanced scorecard analysis will be realized in a medium-sized
industrial enterprise.

Keywords: Strategic management, performance measurement, balanced scorecard.

167
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of School Management in Human Resources Management

Farzeta Gutić
University of Travnik
Bosnia and Herzegovina
farzetagutic71@gmail.com

Hanifa Obralić
University of Travnik
Bosnia and Herzegovina
obralich@hotmail.com

Abstract: Quality education in all studies, in numerous international conferences is recognized


as the only response to the new complex challenges of the twenty-first century.
The purpose of the reform is to modernize education at all levels of the education system, their
mutual alignment with internationally recognized standards and labor market needs. The focus
of attention is the modernization of the curriculum, assessment and certification of students and
teachers, with the proper equipment for schools. In addition it is necessary to improve the
quality of management education, to ensure the management, control and organization of
schools in a modern, democratic and inclusive manner. Management theory and practice as
well, capturing the attention of both the scientific and professional community. At the present
time, management is defined as the systematic way of directing individuals, groups, activities
and operations with the aim of achieving organizational goals with the resources that the
organization has at its disposal.

Modern managers (executives) are performing tasks through routing (control) operations and
the organization, people and operations within the framework of products and services.
The most important issues related to management, refer to the social relationships that due to
the nature of the pedagogical process, significantly impacting the educational results. When we
talk about leadership, the dominant professional problems are related to the elements of
communication among personnel in the school, the way we motivate staff for the successful
achievement of the objectives, the styles that apply to the conduct of employees, conflict and
resolution, teamwork and cooperation, working climate and other.

Keywords: Governance, management, human resources, education, school

168
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Student Perception of Bologna System of Education in B&H – Private University


Case Study

Minela Hadžić
International Burch University
Bosnia and Herzegovina
minela220@hotmail.com

Nataša Tandir
International Burch University
Bosnia and Herzegovina
natasa.tandir@ibu.edu.ba

Abstract: Greater mobility of students, better conditions for studying, more practice,
competition in the domestic and European market - these are characteristics of Bologna system
which are partially achieved in B&H, according to previous researches. Students are more
likely to say: “Each professor has its own Bologna system’’. The purpose of this study is to see
real situation on one private University in B&H from students’ perspective. Questionnaire is
designed and used to survey randomly selected students from University. Data were analyzed by
using descriptive statistics, Chi-square, regression and correlation. Findings show that
knowledge about Bologna system of education is low and the main reason is low University role
in informing students about current educational system. Likewise, students perceive poor
engagement of professors as a worst thing about Bologna, but, despite all disadvantages and
advantages, they think Bologna system of education is better than traditional system.

Keywords: Bologna system, education, student perception, B&H.

169
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Factors of E-Business Success: Comparative Analysis of Pik.Ba and Market.Ba

Tarik Prušćanović
International Burch University
Bosnia and Herzegovina
pruscanovic@hotmail.com

Meliha Handžić
International Burch University
Bosnia and Herzegovina
meliha.handzic@ibu.edu.ba

Abstract: This study aims to provide a comparative analysis of two e-businesses operating in
sales and marketing sector in Bosnia and Herzegovina: pik.ba and market.ba. The first one is
highly successful and the other one is struggling to stay in business. The present study will try to
determine key differentiating factors that contributed to the current status of these two e-
businesses. A survey of customers’ perceptions and attitudes towards these e-businesses, as well
as their purchasing behaviors will be examined in order to detect any potential differences and
reasons behind those differences. It is expected that an improved understanding of the identified
e-business success factors will help to improve e-business design functionality, usability and
aesthetics. This should lead to the enhanced customer satisfaction and the ultimate business
success.

Keywords: e-business, e-commerce, sales, marketing, purchasing behavior.

170
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Albanian Management Consulting Industry

Elena Pici
Epoka University
Albania
epici10@epoka.edu.al

Jona Hoxhaj
Epoka University
Albania
jhoxhaj11@epoka.edu.al

Abstract: This paper analyzes the last decade evolution of the Management Consulting Industry
in Albania. Consulting firms need to stay competitive through providing their expertise world-
wide that is why many international firms have expanded in Albania, including the BIG FOUR.
On the other hand, the profitability of this industry has attracted also the start-up of national
consulting firms. This paper focuses on making a comparison between international vs.
domestic consulting firms. The paper investigates the business entry strategy of both type of
companies and compares the services and the core competences that enable them to maintain a
competitive advantage. These companies mostly perform accounting and auditing services,
which are also a requirement from both mother-company (if applicable) and the state. For
other services such as: business strategy consultancy, human resources and organizational
development consultancy, management control consultancy there is a lack of understanding,
consequently a lower demand for such services. The paper finds that international consulting
firms enjoy generally higher customer loyalty because of their brand reputation, but domestic
first compete with offering lower prices for the same services. Taking in consideration that
consultancy has become global, Albanian consulting firms are expanding in the region, with a
special focus on Kosovo, Macedonia and Montenegro market.

Lastly, the paper analyzes the Albanian consulting market based on the five forces of Porter.
There are no legal barriers to enter this industry, but the market size is relatively still small and
the BIG FOUR (mostly Deloitte and KPMG) dominate 80% of the market and there is also a
lack of quality of suppliers and human capital. In the long-term, the expected increasing
number of national and international firms operating in Albania enables a growing opportunity
for the consultancy industry.

Keywords: management consulting industry, international consulting firms, domestic consulting


firms, business strategy, 5 forces of Porter.

171
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

An Evaluation of Municipality Services in Sivas, Turkey through the lens of CSS


scope

Hasan Tağraf
Cumhuriyet University
Turkey
hasan157@hotmail.com

Ahmet Murat Özkan


Cumhuriyet University
Turkey
ahmetmozkan@hotmail.com

Görkem Nemutlu
Cumhuriyet University
Turkey
gorkemnemutlu@gmail.com

Abstract: For quite a long time, municipalities in Turkey are offering a wide array of
exceptional services such as art courses, dining & drinking, health & elderly care, cultural
services etc. In this paper, through public administration and Turkish law, we take a look at
basic missions of municipalities and then, move on for an evaluation of these exceptional
services through corporate social responsibility perspective. Our work tries to answer the
question whether these municipality actions can be considered as socially responsible
management or not. Authors argue that, due to increased competition among political parties,
municipalities are expanding their services beyond their mission stated in Turkish law.

We also visit the concept of corporate social responsibility in this paper and provide brief
descriptions from existing literature. In the last section of the paper, we conduct a quantitative
survey with the residents of Sivas city. By using this survey, we aim to understand how residents
of Sivas evaluate –beyond mission- services of their municipality. Our survey includes questions
and/or factors from European Union CSR initiative. We hope that results of this paper can open
directions for further CSR and public administration research. With an emphasis on mission,
responsibility and evaluation concepts, municipalities can review their stance and researchers
can expand these empiric results for further knowledge creation.

Keywords: public, administration, municipality, corporate, social, responsibility.

172
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

A Comprehensive Look at Generation Z and Their Expectations from Public


Administration

Hasan Tağraf
Cumhuriyet University
Turkey
hasan157@hotmail.com

Görkem Nemutlu
Cumhuriyet University
Turkey
gorkemnemutlu@gmail.com

Ahmet Murat Özkan


Cumhuriyet University
Turkey
ahmetmozkan@hotmail.com

Abstract: One can argue that there is vast amount of difference in behavior and expectation of
generations. In this paper, we try to bring together some insights about generation z and their
role in today's world. Firstly, we take a brief look at the phenomenon and review basic
descriptions. We try to demonstrate basic differentiation of this new generation. We have seen
some revolts and riots throughout the world, mostly led by generation z, against governments.
Based on these definitions and actions, secondly, we try to develop empirical knowledge of
generation z's main expectations from public administration, using a questionnaire conducted
on a limited number of generation z members.

Authors are using a quantitative research methodology on this paper, with the aim of
understanding how expectations of generation z differ from previous ones. Based on some
factors from existing literature, we argue that they demand more transparency, accountability,
social welfare and fair administration. Current study can be expanded as; comparative studies
based on similar questionnaire with members of other generations. Some limitations of the
study should be noted as well. Sample group is selected on a narrow geographical location and
in limited numbers. Time and budget constraints prevented researchers from reaching a wider
sample group. In summary, this paper tries to focus on generation z and their expectations from
public administration.

Keywords: generation z, public administration.

173
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Necessity of Establishing Helicopter Emergency Medical Service (Hems) in


Bosnia And Herzegovina

Alem Kaplan
Ministry of Defense of B&H
Bosnia and Herzegovina
alem.kaplan@js.mod.gov.ba

Haris Varupa
Ministry of Defense of B&H
Bosnia and Herzegovina
nadrealisti1@yahoo.com

Abstract: Once someone is seriously injured in incident site or need emergency transportation
from one to another adequate medical facility for further treatment often the hope of those
persons is a Helicopter Emergency Medical Service (HEMS). In medicine term “golden hour”
is always a question of life or death. Every saved minute for ill/injured patient within “golden
hour” is often crucial for saving patients live and increases his/her chance to survive and to
reduce other effects to minimum. This has importance when we consider the relief of Bosnia and
Herzegovina (B&H) whose land is very hilly with an average altitude of 500 m which slows
down the quick response, and also due to high number of deaths in road accidents during last
year’s, necessity for transportation organs, blood, etc. The doctor and paramedic (medical
technician) as crew members of aerial asset can quickly work to stabilize condition of injured
person from inaccessible areas, landmines areas, or any incident/accident site. Because of
mentioned reasons it’s necessary to conduct research that will show need for development of
HEMS (Helicopter Emergency Medical Service) that play a significant part in modern
Emergency Medical Systems (EMS) in many countries.

Thus, the primary objective of an article is to examine the current status and organization of the
HEMS in B&H, evaluate the progress in the organization of HEMS over the last years, and
make literature review and comparison to some other EU countries regarding HEMS missions.
This comparison will show big differences in HEMS available assets and difference in
completed missions in EU countries in comparison to B&H. Finally, as an expected result
many patients throughout world owe their life to the availability of rapid and effective medical
services that is crucial in most emergency situations and that’s reason why is necessary to
develop more efficient and effective HEMS in B&H.

Keywords: Helicopter Emergency Medical Service (HEMS), golden hour, emergency


management, ill/injured patients.

174
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Impact on Specialization of the Effect of Business Department and Business


Enrichment: Mediterranean Region Agencies in Turkey

Merve Inel
Mehmet Akif Ersoy Üniversitesi
Turkey
minel@mehmetakif.edu.tr

Hüseyin Çiçek
Mehmet Akif Ersoy Üniversitesi
Turkey
hcicek@mehmetakif.edu.tr

Abstract: Businesses organize according to environmental conditions and they are structuring
according to their country, sector and culture. There are some differences between the sectors
like segmentation of jobs, determination of powers, creation of business teams and management
levels to design. Therefore, each management organizes with its special structure. According to
managements, the most efficient and effective working area is that structure allows to specialize
their personals. The structure which, is both compatible with the environment and allowing for
development of employees, consolidates position of enterprises in the sector. It is important that
compliance with environmental, environmental innovations, transfer to their business processes
and specialization of employees in the business unit, adopting innovations and learning study
for supremacy in the sector of their business. Businesses must focus on business section for a
structure that allows to the specialization of employees. Business structure is divided into two
business segmentation for specialization of employees in the literature. When targeting
specialization, employees of the business units are divided into very small units, according to
some academics, combining of business and specialization of employees aims in the businesses.
Simplification of business units as small and narrow or combining of jobs, enrichment of jobs,
improving of jobs relate structuring of business. The mechanics of the business structure
depends on business units subdivide and detailed descriptions. All these mean that business
units show elastic defines organically. For this reason, the possibility of specialization depends
on settlement within the business.

This study connects specialization and business units. “How does specialization ensure?”
“Should business-unit area be large or not?” “Is there any optimum point for the business is of
specialization?” “Is there any impact of the business structure on the specialization?” The
study seeks answer to the above mentioned questions. This research is done on business in the
Mediterranean region of Turkey.

Keywords: business department, business enrichment, specialization, organizational structure,


mechanic organization, organic organization.
175
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Impact of the Action Centered Leader on the Business Motivation:


Mediterranean Instutions in Turkey

Nihal Cantürk
Mehmet Akif Ersoy University
Turkey
ncanturk@mehmetakif.edu.tr

Hüseyin Çiçek
Mehmet Akif Ersoy University
Turkey
hcicek@mehmetakif.edu.tr

Abstract: This study has tried to answer whether the action-oriented leader positively impacts
on members' motivation or not. It has also examined relations between the people who focused
on the target and leader support them. It is projected to build a connection between basic
reasons underlying behavior of members- Maslow's hierarchy - and institutional goals. This
research has been directed to a field research on organization located in the Mediterranean
region. In this study, Maslow's Hierarchy of Needs is dependent variable and action-oriented
leader is the independent variable.

Action centered leader who leads individual and team in harmony for the common aim has an
innovative essence. It is expected that action oriented leader helps to boost employee’s
motivation. The leader motivates members for a confident aim. Meanwhile, the members have
been questioning why they have been trying for the aim of organization or have been running
all these works. The members know why they have been trying and why they have been working
and focus on the target and have been motivated. As a motivation tool, Maslow's hierarchy of
needs (1943) has been engaged. And also, Porter's model (1961) which has been based is
safety, social, esteem, autonomy and self-actualization was measured in five stages.

Keywords: action centered leadership, leader – member interaction, motivation, hierarchy of


needs, Mediterranean region.

176
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Small and Medium Enterprises (SME’s) in the Region of Prizren

Dren Bllaca
Epoka University
Albania
dbllaca10@epoka.edu.al

Abstract: The objective of this study is to analyze the financial investment of small and medium
enterprises in Republic of Kosovo, respectively in the region of Prizren. The development of
private sector is one of the main objectives of the development of Kosovo society. Establishment
and development of the SMEs sector is dependent on the development of the system of financing
the investments in these companies. Commercial banks and micro-financing institutions have
financed investments of SMEs through various loans and micro-credits. Therefore the main
objectives of this paper are: Identification of the financing situation of SMEs in the region of
Prizren, research and reflection of the activities of commercial banks and micro-financing
institutions in the region of Prizren, research forms and conditions for financing SMEs and
proposals for the improvement of the institutional environment and avoidance of financing
problems for SMEs investments.

Keywords: SME, Investments, Financing, Economy, Envelopment.

177
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Impact of Supply Chain Management Practices on Competitive Advantage


and Organizational Performance;
Case: Companies in Bosnia and Herzegovina

Adnan Halilović
International Burch University
Bosnia and Herzegovina
ahllvc@gmail.com

Erkan Ilgün
International Burch University
Bosnia and Herzegovina
erkan.ilgun@ibu.edu.ba

Abstract: Over the past decade, the traditional purchasing and logistics functions have evolved
into a broader strategic approach to materials and distribution management known as supply
chain management (SCM). Effective SCM has become a potentially valuable way of securing
competitive advantage and improving organizational performance since competition is no
longer between organizations, but among supply chains. Facing uncertain environments, firms
have strived to achieve greater supply chain collaboration to leverage the resources and
knowledge of their suppliers and customers. This research conceptualizes and develops five
dimensions of SCM practice and tests the relationships between SCM practices, competitive
advantage, and organizational performance in Bosnia and Herzegovina. Research will be
conducted via questionnaire and the target groups are the companies in Bosnia and
Herzegovina with developed supply chain management. According to the previous researches
the results should indicate that higher levels of SCM practice can lead to enhanced competitive
advantage and improved organizational performance. Also, competitive advantage can have a
direct, positive impact on organizational performance.

Keywords: Supply chain management; Competitive advantage; Organizational performance;


Structural equation modeling.

178
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Executive Issues in Service Businesses

Zehra Gül
Kahramanmaras University
Turkey
z.gul@ksu.edu.tr

Abdullah Soysal
Kahramanmaras University
Turkey
asoysal2005@hotmail.com

Abstract: This study aims to contribute to the academic literature by investigating the
perceptions of senior hotel managers on the managerial problems in their businesses in South
and Southeast regions of Turkey, which are important for Turkish tourism industry. Survey
technique was utilized in the study for data collection. And, the questionnaire was applied to the
study population that consists of managers of five-star hotels in South and Southeast region of
Turkey. The resulting data were analyzed and interpreted using SPSS 12.0 software, and the
results of the study were presented in accordance with this analysis. In the study, the
independent variables were limited to the managerial issues. On the other hand, the gender,
education level, management training status, promotions and term of offices of the managers
were analyzed within the scope of dependent variables.

Keywords: Service Business, Managerial Problems, Tourism Sector.

179
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Public and Private Universities in Bosnia and Herzegovina

Muhammet Sait Dinc


International Burch University
Bosnia and Herzegovina
sdinc@ibu.edu.ba

Abstract: Universities are educational institutions where students get knowledge, training and
improve their talents before starting professional life. The increase in unemployment rate in
especially developing countries has made the quality of education at the universities an agenda.
While public universities which has proven itself in the quality education with experienced
academicians were adequate for students in last decade, today, private universities with better
infrastructures and education opportunities have been established. Bosnia and Herzegovina
(B&H) is one of the developing and transitional countries in Eastern Europe. Before ethnic and
political tensions of 1990s, the number of public universities was eight. After Dayton agreement
in 1995, 34 private universities have been founded following the conflict years. Demographical
differences in public and private universities after the conflict years and the impact of these
differences on their performance have attracted curiosity. In this regard, the purpose of the
study is to make an exploratory analysis at public and the private universities in B&H. 515
surveys were collected from academics and administrative staff at these universities in B&H.
Descriptive analysis was used to give demographic information about public and private
universities in B&H.

Keywords: the public universities, the private universities, Bosnia and Herzegovina.

180
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Social Work Perspective of Civil Society Organizations in Turkey

Hüseyin Gül
Adnan Menderes University
Turkey
huseyingul@adu.edu.tr

Ahmet Pekcan
Adnan Menderes University
Turkey
apekcan@adu.edu.tr

Abstract: Civil Society Organizations (CSOs) [i.e. Non-Governmental Organizations (NGOs)]


come out to be important entities due to the recent changes in the traditional perception about
the state and the restriction of the power of the government. CSOs are known to play key roles
in the determination of the political, cultural, economic and social boundaries of state and the
political identities that are at the core of the liberal democratic system, and in forming of the
social policies. The controversies and debates over the non-governmental or civil society issues
seem to focus to a great extent on the relation between these organizations and state. Non-
governmental or civil society refers to "apolitical society". This does not refer to a society that
is aloof from politics rather envisions a society that has spaces that government cannot
intervene. Moreover, this type of society is in a position to influence political authority, shape
and articulate its existence and demands that are often social in nature independent of the
political authority.

CSOs that attained an important status in the liberal democratic system contribute to the
development of the society; help the solutions of problems in a wide variety of areas ranging
from economic development to struggling poverty, from environment protection to animal
rights, from education to collaboration in the social cultural areas. In this study, CSOs that
vary with respect to the functions they perform in social life are viewed from a social work
perspective. To this end, the study begins with a brief mention of the historical course and legal
foundations of civil society in Turkey. Subsequently, focusing on a sample of CSOs that deal
with primarily charity work in Turkey in terms of their goals, operations and organizational
structure the study attempts to develop a perspective regarding the current status and activities
of these organizations in Turkey.

Keywords: Civil Society, Civil Society Organizations, Social Work, Social Activity, Charity,
Collaboration.

181
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

A National Quality Infrastructure

Alma Aganović
Institute of metrology of Bosnia and Herzegovina
Bosnia And Herzegovina
alma.aganovic@hotmail.com

Abstract: Quality is the result of the integration and coordination of a series of activities in
several interrelated subjects: metrology, standardization, testing, accreditation, and
certification. The state is obliged to regulate aspects related to the valid system of measures,
regulations and standards related to certain aspects of the environment, health and safety, as
well as the responsibility of government authorities and private organizations on these issues.
States with effective public structures within which are included many institutions dealing with
infrastructure quality are in a better position to express the interests of their populations in
terms of global policy and implementation of international regulations.

Keywords: quality infrastructure, accreditation, standardization, certification, metrology.

182
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Management Students’ Perceptions of the Ethical Values of Managers: the


Comparison Study of Turkey and Bosnia and Herzegovina

Salih Faruk Cibiz


Yalova University
Turkey
salihfarukcibiz@hotmail.com

Abstract: The aim of this paper is to determine whether there were differences in management
students’ perceptions of the ethical values of managers in Turkey and Bosnia and Herzegovina.
Design/methodology/approach: The study adopted a field survey as the most appropriate
research design for the investigation of the issues of interest. The survey study was conducted
among students from 17 to 25, male and female 130 undergraduate students from the
management departments of a private university in Bosnia and Herzegovina and 130
undergraduate students of a public university in Turkey, also the students from the management
department. Students who are participants of this study are likely to be the prospective
managers and professional practitioners of their fields in the future. The form was designed to
collect the respondents’ basic information age, sex, field and nationality; ethical perceptions on
five moral construct: justice, relativism, utilitarianism, deontology and egoism. In answering
the questions, the respondents were asked to rate each given statement on a 5-point scale from
– definitely believe that it is unethical (1) to definitely believe that this is ethical (5) on a 5-point
Likert scale. The study limitations consisted in terms of specific context, limited number of
sample, thus limiting the generalisability of the results to the wider student population. Further
research is recommended to overcome these limitations by repeating the study in other contexts,
subjects and methods and to expand current research to other issues. The results of the study
can be the useful resource for future research and lead the higher educational institutions to
increase courses related to the ethics in the teaching programs and curriculums.

Keywords: ethic values, students, university, managers

183
Marketing

24-25 April, 2014


Sarajevo, Bosnia and Herzegovina
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Importance and Place of Information Technology in the Changing


Marketing Concept

Hacı Mustafa Paksoy


Kilis 7 Aralik University
Turkey
hmpaksoy@yahoo.com

Belkıs Dilek Özbezek


Kilis 7 Aralik University
Turkey
dilekozbezek@gmail.com

Erhan Kilinç
Kilis 7 Aralik University
Turkey
erhankilinc@kilis.edu.tr

Abstract: Today, information is a strategic competitive tool for marketing and management,
thus marketing decisions should be supported from various sources provided accurate, current
and reliable information. Many concepts such as definition, scope and role of marketing have
been changed in this transitional process. These developments, consisting of complex and
closely related processes have exposed the necessity that societies should live on by thinking of
global world. Although the literature covers a short period of practice, with a history dating
back to the history of mankind has comprise the process of marketing disciplines examining the
theoretical foundations of information technology is shaped by the changing role of marketing
helps us to understand. Nowadays, the internet that is one of the major information technology
tools use in the field of change, distribution and communication has radically affect all of the
marketing mix variables. This change was needed to see such a study.

The aim of this article which based on literature research is to put forth a new marketing
perspective that shaped with information technologies in the context of innovations that
constituted in marketing activities and function of information technologies. For this purpose
the research literature were examined in depth, and we have tried to explain information
technology under the new marketing perspective. After brief summary the study will examined
within, the definition of globalization and development of information and communication
technologies and the spread of the internet. Then the changing role of marketing by establishing
parallel connections with developments in information and communication technologies defined
in detail. At the conclusion part the role and importance of information technology in changing
marketing approach evaluated.

Keywords: Globalization, Internet, Marketing History, Marketing Thought, Information


Technologies.

187
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Impact of Job Satisfaction in Academic Job Advertisements in Turkish State


Funded Universities, the Case of Ege University

Ahmet Salih İkiz


Muğla Sıtkı Koçman University
Turkey
ahmet@mu.edu.tr

Abstract: Academic recruitment is one of the main element works of University Boards. This
policy matches the departmental academic staff needs. And also increases internationality
recognition of universities with qualified staff. The academic position calls plays a vital role in
this process. Advertisement process monitored and organized by University Rectors in State
Universities in Turkey. That enables candidates to apply proper positions in Faculties. That in
turn improves their job satisfaction in organization. Ege University is one of the biggest and
oldest Universities in Turkey located in Izmir. In this study we first explain the academic staff
advertisement process in Ege University than explain job satisfaction of applicants according to
the findings of our survey. We applied a questionnaire to randomly chosen recently appointed
assistant professors in short interviews in order to evaluate their satisfaction after the
recruitment as academician in Ege University. The main aim was to see and observe how much
they satisfied in post appointment process in their academic life. The main findings ensured that
significant number of the sample group has satisfied with academic environment after the
recruitment. In this study findings of those questionnaires are clearly explained. That gave us
insights about academic staff advertisements and appointments impact on job satisfaction after
the recruitment.

Keywords: Academic staff advertisement, Ege University.

188
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Brand Management: The Analysis of Corporate Slogans among the Banks in


Southeastern Europe

Aleksandar Dejanović
Modern Business School - MBS, Belgrade
Serbia
aleksandar.dejanovic@mbs.edu.rs

Slavka Nikolić
Faculty of Technical Sciences, University of Novi Sad
Serbia
slavica11@sbb.rs

Jelena Stanković
Faculty of technical Sciences, University of Novi Sad
Serbia
stankovicj@uns.ac.rs

Abstract: Corporate image formation is regulated by the corporate personality which consists
of conscious behavioral identity cues, such as customer service, then products or services which
will satisfy customer’s needs and of course visual cues, such as the corporate name, logo, and
slogan. Today, almost anything goes branded. Brand strategy involves occupying a high
position in the minds of consumers and its positive perception. Branding services takes the same
basic rules of branding, but due to the specifics of providing services, brand strategy of banks
becomes more delicate. The aim of this paper is to discuss the potential merits of
communicating brand image through corporate slogan. On the assumption that a primary goal
of brand strategy in financial sector should be to create a vivid image of the brand in
consumers' minds, a relevant literature review is provided, as well as the results of the content
analysis. This paper analyzes the practice of banks to utilize their corporate slogans in the area
of South Eastern Europe (in the former Yugoslav republics, except Slovenia). The results
obtained indicate that most banks in this region do not have a corporate slogan, so it can be
concluded that they minimize the role and significance of this element of the brand. Conversely,
the banks that use corporate slogans typically rely on typical messages which do not generate
enough energy in communication. Thus banks fail to develop their own brand by a plausible
and well-designed corporate slogan. The ongoing financial crisis clearly indicates how
important the strength of the brand is in preserving the consumer’s trust. Therefore, research
results suggest the necessity of banks to change their view on their brands, i.e. to draw up new
brand strategies within which the corporate slogan will get the place it deserves.

Keywords: brand, image, corporate slogan, banks, content analysis.


189
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Consumer Trust in Internet Shopping: A Comparative Study in


Turkey and Bosnia and Herzegovina

Merjem Rovčanin
International Burch University
Bosnia And Herzegovina
merjem.rovcanin@hotmail.com

Teoman Duman
International Burch University
Bosnia And Herzegovina
teoman.duman@ibu.edu.ba

Kenan Aydın
Yıldız Technical University
Turkey
kenanaydin@gmail.com

Meral Uzunöz
Yıldız Technical University
Turkey
muzunoz@yildiz.edu.tr

Abstract: Customer trust is becoming more important in today’s business environments


especially in electronic commerce. However, the role of customer trust in internet shopping is
not very well known in different marketing environments. The purpose of this study is to
compare Bosnian and Turkish customers on factors related to customer trust in electronic
commerce such as e-commerce knowledge, perceived reputation, perceived risk, perceived ease
of use, loyalty and switching behavior. The study will analyze the role of customer trust in two
economies, one of which, Turkey, as a fast growing market whereas the other one, Bosnia and
Herzegovina as a volatile transition market. The results of the study will provide implications
for those companies that do e-business in markets like Turkey and Bosnia and Herzegovina.

Keywords: electronic commerce, online purchases, e-business, internet shopping, customer


trust, switching behavior, loyalty, perceived reputation, perceived risk, perceived ease of use,
risk perception.

190
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Competition in the Albanian Market

Sonila Gruda
Epoka University
Albania
sgruda@epoka.edu.al

Abstract: It is a fact that Albania was the last country in Eastern Europe, which began the
implementation of the free market principles after 90s. So, at the beginning of the transition, the
so named competition was an inevitable phenomenon of the new market even the actions that
flow from it, were new to the Albanians. In the economic terms, the competition received
comprehensive treatment in social life, as the previous system, generally, excluded the market
from the spheres of competitiveness because Albanian market had a leading role played by the
state. As the other countries of the Western Balkans region, involved in the process of European
integration, the culture of competition remains a challenge for Albania. In general, the
structures for the protection of competition in developing countries are at similar stages to the
creation or strengthening of national competition authorities and the legal framework that
applies in this area, there is a high level approach to European legislation. Little experience in
the early stages, insufficient knowledge of the legal framework of market players, lack of
education with the concepts of competition, difficulties of consolidating national competition
authorities and incomplete enforcement of the law, remain common problems of competition
authorities for developing countries. Precisely these problems pose major challenges for
solutions in the way of integration of Albania into the European Union.

Implementation of the legal framework for competition, deepening the independence and
accountability of the institution of the Competition Authority, the awareness of market
participants with the principle that competition means economic prosperity, supported by the
strong inter-agency cooperation and a greater transparency public, are the main pillars of
national policy document on competition. Based on the problems noticed for the absence of the
legal actors on the market this project proposal analyses the necessary competition policies,
economic conditions in which it is developed the actual competition law and competition policy
in Albania. The main questions raised will be: what are the direct and indirect influences of the
unfair competition? Which sectors face significant problems to compete the market and why?
What is the innovation level and how it helps the business to become successful in Albania?
Basically the research is based on the annual reports and significant studies of Ministry of
Finance and many researched made by NGO’s for the region.

Keywords: Economic indicators, innovation, competition analysis, sector analysis.

191
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Role of Social Media on Corporate Reputation in the Smartphone Market: A


Student Perspective

Hilal Asil
Fatih University
Turkey
hilalasil@fatih.edu.tr

Derya Okumuş
Fatih University
Turkey
okumusderya@gmail.com

Yasemin Torun
Marmara University
Turkey
yasemintorun34@gmail.com

Abstract: Shamma (2012) noted that “Corporate reputation is more important than ever”. The
highly turbulent business environment aroused different stakeholder groups’ expectations
leading to pressure that contributed to the generation of a behavior focusing on examining and
managing a company’s reputation. There is an increasing belief among companies in corporate
reputation which is an intangible asset. However, this is not only dependent upon the
managerial efforts within the newly developing world of social media. As Jones (2009)
emphasized in blogs, social Networks, wikis, podcasts, mail groups, news groups, forums and
chat rooms, the corporate reputation can easily be either enhanced or permanently damaged.
Although management researchers have more interest in social media, there are no sufficient
empirical researches that reveal the relationship between social media and corporate
reputation. Smartphone which is not much addressed in the literature is one of the fastest
growing and developing industries. Because of the target audience of smart phone producer's
and sellers are the young people who are at the sometime follow social media and technological
advances more closely, university students have been selected as a sample.

The aim of this study is to examine the impact of social media on corporate reputation and how
this is perceived by the university students. In the study, after reviews the literature of corporate
reputation and social media a survey is set out to analyze how the university students who are
smart phone users have perceived the relationship between corporate reputation and social
media. Two leading companies in smart phone market and the impacts of their social media
activities on corporate reputation are examined comparatively. It is empirical evidence that the
company which is using social media more actively and effectively has a high perception of
corporate reputation. This result indicates the significance of the use of social media to manage
the corporate reputation which is regarded as most invaluable asset for the company. The
finding might hopefully fill the gap in the literature and prepare the ground for further future
research in the field.

Keywords: Corporate Reputation, Social Media, Smart phones.


192
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Research of the Psychological Factors That Have Influence on Consumer


Behavior

Sandra Soče Kraljević


Sveučilište u Mostaru, Ekonomski fakultet
Bosnia And Herzegovina
sandra.soce-kraljevic@sve-mo.ba

Marija Brekalo
Bosnia And Herzegovina
maja.brekalooo@gmail.com

Abstract: Psychological factors are an interesting area of research because they are "hidden",
they cannot be seen, and so we do not know how they act on consumers. This research was
necessary to determine whether psychological factors (motivation, perception, learning, beliefs
and attitudes) have influence on the behavior of consumers when they choose retail trade or on
creation of satisfied and loyal customers. For each of the psychological factors have created a
different claims that relate on the most common factors based on which consumers make
decisions about the choice of retail stores. As a key factor that affects the choice of retailing and
the consumer satisfaction singled out the kindness and helpfulness of the sales staff inside the
retail trade.

It is surprising that prices are only fourth of the factors based on which consumers choose
retail. In recent years, it was a lot of talk about the global crisis, unemployment, and one would
expect that the price be in the first place. But that just shows that the quality of service is
necessary to considered as the source of competitive advantage. Aim of the owners should be
building a relationship of trust with consumers. Their interests should be viewed as interests of
partners in achieving success. Research has shown that consumer satisfaction results in their
return again to retail and sharing positive experiences on family, friends, and acquaintances.
Satisfied consumers are generally becoming loyal consumers and the retail trades with them
have no fear that they will cross the competition.

Keywords: psychological factors, consumer behavior, satisfaction, loyalty, retail.

193
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Barriers of Entry to Foreign Markets for Firms in Bosnia and Herzegovina

Adela Mujčinović
International Burch University
Bosnia And Herzegovina
adela_0101_m@hotmail.com

Teoman Duman
International Burch University
Bosnia And Herzegovina
teoman.duman@ibu.edu.ba

Abstract: Today exports are one of the most important factors for the development of global
and national economies. The main objective of the study is to identify difficulties experienced by
Bosnian companies when they enter into different global markets. Exports to foreign countries
involve numerous problems and present a high risk strategy. The company on which I will be
based in this study is "Alfe-Mi" company that specializes in selling products on the domestic
and foreign markets. Formulating a market entry strategy means that management must decide
which option or options to use in pursuing opportunities outside of the home country. Export is
one of the fastest ways of entering foreign markets. The field of export marketing covers all
those marketing activities involved when a firm markets its products outside its main base of
operation and when products are physically shipped from one market of country or another.
Difficulties faced by companies when entering the foreign market are: religion, language, taxes,
bureaucracy, political instability etc. The major challenges of export marketing are the
selection of appropriate markets or countries through marketing research, the determination of
appropriate product modification to meet the demand requirements of export markets and the
development of export channels through which the company can market its products abroad.
Primary data use in this study is direct interview with managers and employers in Alfe-Mi
Company. Secondary data use in this study is information and data were collected from books
and various websites to help me understand and analyze barriers when company exiting on
foreign markets. Other secondary data sources that were utilized are literature review from the
company brochure and textbooks. Results will show the main motive for „Alfe-Mi“to go
international is the level of demand for Alfe-Mi's products in foreign markets. When the
company entered the foreign market, it faces the barriers and finding a solution for the
difficulties. In order for the company to be able to adopt on the foreign market they have to
have unique product with flexible prices.

Keywords: Exporting, Foreign markets, Difficulties, International, Strategy.

194
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

A Group of Travel Agents Relationship Marketing Practices

Gul Nihan Guven Yesildag


Beykent University
Turkey
gnihan_guven@windowslive.com

Abstract: Enterprises that are in the goods and services industry have yielded to relationship
marketing in order to gain new but loyal customers in an environment which is getting more
and more rivalry, resemblance is more widespread, and in which the demands and the
expectancy of the customers change very rapidly. It is understood that the loyal customers can
be obtained through relationship marketing.

The purpose of this study, especially in recent years, the importance of the concept of
relationship marketing is to describe the scope and applications. In this context literature and
the data obtained from study are presented in sections. In this context, group travel agency
located in Istanbul, one of 100 managers were interviewed and subjected to analysis of the data
obtained results have been achieved.

Keywords: Relationship Marketing, Strategic Customer Management, Travel Agency.

195
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Consumer Attitude Toward Mobile Marketing in BH

Irma Jasarspahic
International Burch University
Bosnia And Herzegovina
irmica-j@hotmail.com

Teoman Duman
International Burch University
Bosnia And Herzegovina
teoman.duman@ibu.edu.ba

Abstract: Driven by the ongoing evolution in mobile technologies and the increasing popularity
of the internet, the use of the mobile medium for marketing purposes is becoming more and
more popular to marketers whose aim is definitely to promote their goods and services to the
consumer, regardless on which way. There is no other marketing channel that is as personal, as
pervasive and provides the opportunity for proximity to connect with consumers in the right
place and time-that’s the power of mobile. Since many people are still unaware of the potential
of marketing via mobile devices this research aimed to examine factors based on content of
mobile marketing (information, entertainment, credibility, irritation, utility) and personalization
factor that are affecting the formation of attitude toward mobile marketing targeting BH
consumers, and also will try bring to light the response behavior of consumers attitude toward
mobile marketing practices and how consumers perceive mobile marketing in BH.

The research approach for this study is descriptive and the data will be collected by online
surveys from young population of Bosnia and Herzegovina (BH). The focus of survey content
will be different variables that affect consumer attitude toward mobile marketing and the
findings will show which variables have positive effect and which have negative effect on
consumers’ attitude.

Keywords: Marketing Channel, Mobile marketing, Survey, Consumer Attitude.

196
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Understanding Integrated Marketing Communication: Theory and Application

Adnan Murad
International Burch University
Bosnia And Herzegovina
adnan.murad@live.com

Abstract: Integrated marketing communication (IMC) emerged as a concept in the late


twentieth century and its significance has been mounting ever since. Nowadays, companies are
necessitated by the intensity of competition to use integrated marketing communication
components in order to be effective. The primary purpose of this study is to understand the
modern dynamics of integrated marketing communication and craft a marketing communication
strategy for a small-sized beverage producing company Sok d.o.o. in Bosnia and Herzegovina.
The study focuses on defining what kind of communication activities the company in the case
requires in order to nurture its interaction with customers and increase brand awareness. The
application will be based on Schultz and Kitchen Model of integrated marketing
communication. The first part of research is primarily based on a qualitative study of relevant
marketing literature that delineates a comparison amid traditional and modern marketing
techniques. Subsequently, analyses of the company in case, product, segment and marketing
environment were carried out in order to augment the understanding of marketing
communication activities that could be used for Sok d.o.o. Customer feedback is also gathered
in order to illustrate the basic needs and requirements of consumers. The second part of the
research focuses on developing an integrated marketing communication plan based on
literature review, consumer feedback, interview with company personnel, and promotional
objectives. The findings of this study will help Sok d.o.o. to scrutinize current consumer needs,
potential consumer expectations, and present product position. This research will also provide
Sok d.o.o. with highly valuable tips and techniques to put into practice integrated marketing
communication campaign. On the whole, this research will open doors for future research in
the segment of integrated marketing communications in Bosnia and Herzegovina with respect to
small-sized firms.

Keywords: Integrated marketing communication, segment analysis, customer feedback,


consumer needs.

197
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Building the University Brand in Bosnia and Herzegovina

Damir Topalović
International Burch University
Bosnia And Herzegovina
damirto@hotmail.com

Abstract: This paper revolves around the current brand identity of 5 existing higher education
institutions in Sarajevo Canton, Bosnia and Herzegovina, and the fact that insufficient attention
is paid to the issue. It reviews the existing actions of these academic institutions on branding
and positioning in the society/market. The accent is on the actual need for branding, due to the
high competition that has grown in the past 6 years, and the fact that education in Bosnia and
Herzegovina has become more commercial than ever.

Data gathered through questionnaires, structured interviews with pupils and students, and
direct contact to these 5 higher education institutions was analyzed. Research results explain
how the public image of institution contributes to the students’ selection of the university.
With comparison to branding standards and initiatives of successful universities in the World,
paper proposes practical actions for building the brand identity of university in Bosnia and
Herzegovina.

Keywords: Branding, Corporate Image, University, Higher Education, Institutional Branding,


Sarajevo, Positioning.

198
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Angry Customers: A Reflection on Apparel Retailers in Turkey

Elif Akagün Ergin


Cankaya University
Turkey
elifrutgers@yahoo.com

Cankaya University Handan Özdemir Akbay

Turkey
handan.ozdemir@gmail.com

Bülent Özsacmaci
Cankaya University
Turkey
bozsacmaci@yahoo.com

Abstract: Different consumers can have different emotional reactions to the same event depending on
their expectations and personality situations. The amount of research on consumer anger is growing
rapidly. The aim of this particular study is two-fold. First, the study attempts to discover the
circumstances where consumers reveal an anger emotion toward the apparel retail stores. Second,
the research explores how this anger situation impacts consumers’ purchasing decisions and
attitudes toward the apparel retail stores. This study was conducted on 450 consumers from the 3
major shopping malls in different districts of Istanbul. Researchers, in order to reach diverse group
of consumers, toured all the clothing stores in the shopping malls without any brand distinction.
Convenience sampling method was used to select consumers who were included in the study. Surveys
were conducted face-to-face to as consumers exited the stores. This particular research is made up of
two phases. In the first phase, a preliminary study was applied to 135 consumers in order to identify
the major causes of anger. Participants were asked open-ended questions to reveal situations where
they felt anger emotions during their shopping encounters in the apparel stores. Based on the findings
from phase 1, the scale for the study was developed. Poor attitude towards customers, incompetent
employees, failure / insufficiency of after-sale services, lack of product variety and problems with
store atmosphere were identified as the top five prominent causes of anger among consumers.

In the second phase of the study, it was tested to see whether these five sources of anger had an
influence on consumers’ attitudes toward apparel retailers as well as their purchasing intentions.
Results revealed that the five causes of anger do indeed influence consumers in a negative manner.
Consumers become dissatisfied with the retailers and their purchasing intentions are also negatively
affected. In addition, it was determined that the most influential factor that causes an anger
emotion/reaction had to do with the store employees. It was also determined that causes of anger
differentiate according to consumers’ demographic factors such as gender, age and education.

Keywords: consumer anger, purchasing decision, consumer behavior, attitudes, emotions, consumer
satisfaction.

199
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Decision Making Process of Customers in Accordance to Imported and


Domestic Products – Case of Bosnia and Herzegovina

Teoman Duman
International Burch University
Bosnia and Herzegovina
teoman.duman@ibu.edu.ba

Ammar Vatrić
International Burch University
Bosnia and Herzegovina
ammar.vatric@gmail.com

Abstract: The purpose of this research is to conduct whether people in Bosnia and Herzegovina
prefer domestic or imported goods and what is the main factor what influences their buying
decision. Different behaviors in the purchasing decision process will be identified in the study
by conducting significant differences in the buying process of man and woman in Bosnia and
Herzegovina. The data for the analysis was collected through surveys and interviews in
different cities in Bosnia and Herzegovina. In order to be more objective than subjective, beside
highly educated people, the survey was conducted with people of different ages and from
different social levels. Out of 150 questionnaires, 76 were correctly fulfilled and could be used
as a reliable primary data source. Out of these 76 people, 38 were male and 38 female
correspondents. The T-test analysis and the ANOVA analysis were conducted in order to
determine what the main buying behavior of man and woman is, according to imported and
domestic products in Bosnia and Herzegovina. In accordance to the result, it can be concluded
that the buying behavior are very different for man and woman, that the domestic products are
healthier but more expensive and that the price is the main factor which determines if the
product will be sold or not. Research results will help the domestic producers to identify that, in
the era of globalization the main focus of customers is on the price of the products and not on
the quality, and in accordance to that they need to make changes in the production process and
to reduce the costs and with that the prices of their products.

Keywords: Domestic goods, Imported goods, Economic development, Decision making process,
Customers choice, Profitability

200
Social Science

24-25 April, 2014


Sarajevo, Bosnia and Herzegovina
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Education as a Tool for (Re) producing the Idea of Nation: The Case of Turkey

Begüm Burak
Fatih University
Turkey
bgmbrk@hotmail.com

Abstract: The questions of “How does education affect nation-building process?”, “What kind
of role did education play in Turkish nation-building process?” and “What is the relationship
between education and state ideology?” are the central research questions of this paper. In this
regard, the prospective study is an attempt to analyze the role of education in nation-building
process in general and in Turkish nation-building in particular with a special emphasis on the
use of state schooling as an ideological tool in instilling the myth of a homogeneous nation-
state upon the minds of the citizens. Compulsory education has been one of the major
instruments in nation-building process through disseminating the official ideology and
contributing to homogenization policies. Thus, Turkish nation-builders, i.e. Kemalist elites have
used state schooling with the aim of reproducing the idea of nation and promoting a particular
national identity and proper citizenship regime: LAHASÜMÜT in Baskın Oran’s words and
LAST in Yılmaz’s words. The definition of the proper citizenship regime for the Republican
elites can be encapsulated by the acronym LAST. LAST stands for Laïcist, Atatürkist, Sunni
Muslim, and Turk (Yılmaz, 2012, p.44). In parallel to that, Baskın Oran (2007, p.43) defines the
‘proper citizens’ in Turkey with the acronym LAHASÜMÜT. Here, LA stands for laic, HA
stands for HanafiMuslimness, SÜ stands for Sunnism while MÜ stands for Muslim and T stands
for Turkish identities.

Compulsory education serves as an ideological instrument of indoctrination and social


engineering in order to shape the identity of the masses. Through national education, the
masses not only learn about “self” and their national identity but they also learn about the
“others” whom they are supposed to be different from. This paper will adopt a qualitative
method employing Foucault’s notion of “disciplinary power” and Althusser’s “Ideological
State Apparatuses” as the theoretical basis of the study. The nation-state formation in Turkey
will be under scrutiny with a special reference to education policies.

Keywords: education, nation-building, national identity, state ideology, disciplinary power,


ideological state apparatuses.

203
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Effects of Brain- Improvers on Learning and Learners' Attitude

Ahmet Özalp
Seljuk University -Sociolgy- Phd Candidate
Turkey
ozalpahmet1988@gmail.com

Abstract: In order to remember the information without any missing parts, it should be coded
and symbolized in a correct way. If the information, which is wanted to be stored in the brain, is
symbolized with the brain-improving methods and coded, keeping it in the long term memory
and bringing it back will be much easier. The bridge between the neural ties causes the
oblivion. The education system of this era uses the traditional education methods and by this
they cannot have the persistency of the information. In addition to this, coding and the process
of the recalling is getting easier by using the brain-improving methods, and so it is easier for
learners and the teachers, because the brain-improvers are neither a teaching approach nor a
curriculum developing technique. Brain-improvers are cognitive strategies which can be used
for many classes, in which simple expression and lesson books are used enforcing the memory
to keep the information. Via using these techniques terminal behaviors can be obtained. With
the bounds created by using brain-improvers we will have the information (BE-HAVE-IOR) and
alter it in a way that we want and create new schemas.

Keywords: Effects of Brain- Improvers on Learning and Learners' Attitude.

204
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

A Research Towards to the Determination the Factors Affecting the Consumer


Behaviors’ and Trends (Bingol University Sample)

Kasim Tatlilioğlu
Bingol University
Turkey
kasimtatlili@hotmail.com

Abstract: In this study, it has been aimed to the determination of the factors affecting consumer
behaviors and trends. This research was made on the undergraduate students who continue
their education in different faculties and departments in Bingol University in the academic year
2013-2014. Consisting of open-ended and closed-ended a total of 10 question survey study
prepared by the researcher was administered to the students. 72 female and 88 male the total
160 students participated in this study. The students who participated in the study, was selected
by random sampling method. Subtracting the frequency of the data obtained, the articles were
interpreted separately. In this study, the consumption tendency of the students is affected by
which factors more? Could the effect of these factors be changed according to their gender,
department, age, grade level, the place where they grew up etc.? What is the cause of these
differences and what are the results? It has been sought the answers such questions. Human
psychology and economics are two different disciplines which are intertwined each other. As
the main actors in the economy, the behavior of individuals, attitudes, expectations, emotions
and feelings, preferences and decisions are important in terms of economics. Part of studies on
the relation between psychology and economics focus on consumer psychology and consumer
behaviors’. In this context, has emerged consumer psychology.

Keywords: Undergraduate students, consumer tendencies, consumer behaviors’, consumer


psychology, consumer arbitration committee.

205
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Turkey’s Left-Wing Problem

Odul Celep
Isik University
Turkey
odulce2@gmail.com

Abstract: The Erdoğan-led authoritarian directions of the Justice and Development Party’s
(AKP) in public policy have become more apparent with the most recent Gezi Park protests,
corruption charges against the AKP ministers and the internal strife (AKP-Gülen conflict)
within the conservative right. The AKP’s predominant reign since 2002 is reinforced by the
absence of an equally powerful and electorally efficient left-wing opposition in Turkey. In terms
of the left as a social democratic or libertarian socialist alternative, the two major
parliamentary groups are an ideologically fatigued Republican People’s Party (CHP) and a
controversial Kurdish left-wing Peace and Democracy Party (BDP) together with its newborn
brother Democratic Party of the Peoples (HDP). Even though both CHP and BDP have shown
resistance and dissent, it has been quite difficult for any opposition actor to avert the AKP’s
authoritative legislation and PM Erdoğan’s major rule in recent years. In explaining Turkey’s
long-standing problem of left-wing inefficiency in its politics, this study employs a comparative-
historical methodological framework. The historical approach is used for contextualizing this
left-wing problem with regard to the origins and political evolution of two strands of the
mainstream left in Turkey, namely the ‘Kemalist Republican left’ (center left) and the ‘Kurdish
left’ (radical protest left). Even though both CHP and BDP represent some form of left-wing
politics, their relations with the state establishment have been quite opposite, which led their
‘leftism’s to diverge largely from one another. As a result of the left-wing electoral inefficiency
the right-wing conservative dominance in Turkey has been evolving towards risky directions of
a democratic dictatorship by Erdoğan and his close clique. The current authoritarianism makes
the counter-balancing effects of the left against a hegemonic conservative right essential for the
future democratization in Turkey.

Keywords: Turkish left; Kurdish left; CHP; BDP; HDP; AKP.

206
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Bringing Geospatial Analysis to the Social Studies: an Assessment of the City


Sprawl in China

Polina Lemenkova
Charles University in Prague
Czech Republic
pauline.lemenkova@gmail.com

Abstract: In the past decades, the process of urbanization has become more notable in the East
Asia. Since past decades, Taipei city (Taiwan) has undergone serious urban changes, as
residential structure of the vacant land areas is developing and requires modifications. The
development of urban landscapes in Taipei has unique feature; that is, the Taiwan's exceptional
economic and industrial growth since 1980s, which is often referred as "industrial wonder of
Taiwan". Recently, the country quickly transformed from an agriculture-based traditional
economy into a highly industrialized society. As a result, Taiwan has now a new face of high-
technology oriented, economically restructured economy, which is a part of the global network
of economies and capitals, playing important role both in the Asia–Pacific region and in the
global production chains. Necessarily, this caused notable changes in the face of the country,
modifying both its social and natural landscape patterns. Thus, Taiwan is nowadays a highly
urbanized country with almost 80% of the total population of Taiwan living in urban areas.
However, intensive urbanization necessarily creates new conditions for human-nature co-
existence, since rapidly growing city and high urbanization rate affect biodiversity and
ecosystems sustainability. The process of urbanization includes transformation of natural
landscapes: natural land cover types, typical for the given area are being transformed into
human-affected artificial surfaces and the area of city enlarges. Anthropogenic pressure
increased rapidly due to the expansion of Taipei metropolitan area. Rapid urbanization affects
complex interrelations of natural and urban ecosystems, changes their structure, size and
shape, which gradually became a serious environmental problem. At the same time, Taiwan
Island has unique natural landscapes with high environmental value, outstanding natural
beauty, rare and extinct species. In view of this, environmental monitoring should be considered
for effective city management and nature conservation on the island. This paper contributes to
the urban monitoring of the city of Taipei during the 15-year period of 1990-2005. In this
research the analysis of changes in landscapes has been done using tools of geospatial analysis.
Namely, two satellite images Landsat TM have been processed and classified using ENVI GIS
software. As a result of classification, the areas occupied by different landscape types have been
calculated and analyzed. Moreover, it has been detected that different parts of the city of Taipei
were developing with different rate and intensity. Three (3) different residential types of the city
were recognized and mapped. The results demonstrated following outcomes: 1) intensive urban
development of the city of Taipei; 2) decline of green areas and natural spaces and, on the
contrary, increase in anthropogenic urban spaces; 3) application of the geospatial tools for
social studies.

Keywords: City Sprawl, Urban Landscapes, Metropolitan Area, Sustainability, GIS, Geospatial
Analysis, China.

207
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Importance of Cultural and Gastronomic Tourism in Local Economic


Development: Zile Sample

Mehmet Kocaman
Gaziosmanpaşa University
Turkey
mehmet.kocaman@gop.edu.tr

Emel Memis Kocaman


Gaziosmanpaşa University
Turkey
ememis4@hotmail.com

Abstract: More rational source distribution in Turkey recently has brought forward the
principles of optimality in investment planning. Therefore, many rural areas have been
negatively affected from this state. Accordingly, alternative tourism provides important
opportunities for rural regions. People living in these regions have become to give importance
to local tangible and intangible cultural assets, which are present around their environment and
gastronomic products consisting of regional tastes. As a branch of tourism consisting of local
foods and beverages distinctive to each region, gastronomy positively contributes to local
development. Foods with authentic geographical origins strengthen the image of region and
enable branding and the development of rural tourism.

Zile District, Tokat Province, could not receive sufficient share from state investments due to its
location and therefore could not complete its economic development. Recently, cultural tourism
practices in Zile District have accelerated; in this frame, old Zile houses have been restored
and opened as boutique hotels and the number of businesses making and selling local foods has
increased. In addition, cultural activities have started to be planned as a tool for economic
development in Zile District. These activities include Zile Cherry Festival, Ramadan Activities,
The Celebrations of Ahi-Order Week, Centuries-Old Fair of Zile, The Activities of Muharram
Month, Asırlık Kırk Hatim (A centuries-old tradition to read the whole of Koran in forty days),
and the festivals conducted in villages. This study expresses the elements regarding cultural and
gastronomic tourism in Zile District and their contributions to regional economic development
and indicates what should be done to get more effective benefits and to increase its positive
contributions.

Keywords: Local development, gastronomy, cultural tourism.

208
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Relations between Overall Diet Quality and Attitudes and Behaviors Regarding
Sustainable Food Practices among High School Students

Hüseyin Çiçek
Mehmet Akif Ersoy University
Turkey
hcicek@mehmetakif.edu.tr

Ali Can
Mehmet Akif Ersoy University
Turkey
alican15@yahoo.com

Hilmi Atalıç
M.E.B.
Turkey
h.atalic@hotmail.com

Abstract: Objective: This study has been examined the relations between overall diet quality
and attitudes and behaviors regarding sustainable food practices among high school students.
Additionally, the roles of gender in attitudes and behaviors on the topic of sustainable food
practices have been examined.

Methods: A survey has been directed to 145 girls and 145 boys. The survey has been completed
to consider the relationships between dietary intake and attitudes toward local and genetically
modified foods. Results: The study has indicated that high school students have a tendency to
poor eating habits, such as consuming less fruits and vegetables and high intakes of high-fat
and high-calorie foods on a daily diet. The girls and boys have positive attitudes toward local
food, and they have negative attitudes toward genetically modified food. Conclusions: There is
no a significant difference between males and females in attitudes toward genetically modified
food. However, female students incline to avoid certain foods out of concern for health, weight,
or other thoughts.

The research has tried to clear why during the course of the past two decades the rate of obesity
among Turkish people has increased dramatically. With this study, it has also been aimed to
create self-conscious eating healthy food and sustainable food on high school students.

Keywords: sustainable food practices, high school students, gender, diet quality.

209
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Trust Climate and Trust Elements in Public Institutions: A Field Study

Yasin Taşpinar
Selçuk Üniversitesi
Turkey
yasintaspinar@selcuk.edu.tr

Ali Şahin
Selçuk Üniversitesi
Turkey
alisahin@selcuk.edu.tr

Abstract: The aim of this study is to put forward trust climate in public institutions and its
elements. In the study; concepts of trust climate and trust in the organization, trust in
colleagues and trust in the leader, and also factors of trust propensity and trust in government
will be discussed through the literature. The field study part will take place after a short
discussion about trust climate, its sub-factors: trust in the organization, trust in colleagues and
trust in the leader and the concepts of trust propensity and trust in government, which are
thought to be effective on the trust of the public employees in their institutions.

The data to be used in the field study part will be derived through a questionnaire to be
conducted in public institutions. Questionnaire will be composed of two parts. The first part will
include demographical information about the participants, and the second part will include
questions about trust climate, trust propensity and trust in government, which are prepared
according to 5 point Likert Scale. The data to be achieved through the questionnaire will be
evaluated using SPSS program. The study and the data to be obtained through the sample are
expected to shed light on trust climate, which is an important factor in the operating processes
of the public institutions in Turkey and Afro-Asia geography, and helpful for administrative
actions.

Keywords: Trust climate in public institutions, trust propensity, and trust in government, field
study.

210
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Loyalty to National Identity: the Case of Albania

Reina Shehi
Epoka University
Albania
rzenelaj@epoka.edu.al

Griselda Lici
Epoka University
Albania
glici10@epoka.edu.al

Abstract: This paper looks at national identification and categorization process in Albania in
order to find out how attachment and loyalty to a particular identity is created and developed.
Its special focus is to analyze the role of language, ethnic and religious criteria in constructing
national identification as important categorical belonging that makes sense to the people
involved in the Albanian society. The study employs a comparative research methodology where
the last two largest census findings, 1989 and 2011 respectively are compared to each other in
order to measure the loyalty to these categories. Survey questions were carried out by the
Institute of the Statistics of the Republic of Albania (INSTAT). Findings show that only 83.2
percent of Albanians declared their Albanian ethnic identity in 2011 compared to 98 percent of
Albanians that mentioned it in the census of 1989. Similarly, there is a decline in affiliation with
Orthodox Christian, Catholic and Muslim identities as well. Additionally 14 percent of the
population did not answer the religious and ethnicity questions as they perceived it as a threat
to their national identity. The main factors that impacted the census responses were the political
discourses and especially the calls of Albanian nationalists led by Red and Black Alliance
Political party to refuse answering questions of religion and ethnicity as that would be
politically benefiting the Greek state. However, interestingly, in the census of 2011, while only
83.2 percent of the respondents declared they were ethnic Albanian, 99 percent of the Albanians
declared that Albanian is their mother tongue. Therefore, the comparative research tells us that
there is a shift in national identity criteria selection as more Albanians prefer to define their
national identity based on the language characteristic rather than the ethnic or religious
attributes. In order to be able to conclude on the change in criteria selection, the same survey
questions of INSTAT will be delivered in March 2014 to 100 participants from different city,
group age, ethnic and religious backgrounds. Data will show whether a new criteria has been
selected or not in a time in which there is no political and social pressure regarding national
identification. The study will affirm or review the literature which states that identities are not
fixed but they are incorporated in a close relationship between social processes and personal
identities. Thus, it will be seen whether the political and social environment in Albania twenty
years after communism has brought a shift into national identification and categorization
process.

Keywords: Albania, identity, nationality, ethnicity, religion, language.

211
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Rebuilding an Existing Foundation: How Architecture Shapes Behavior

Kaltrinë Kabashi
Epoka University
Albania
kaltrinek@gmail.com

Shukran Qazimi
Epoka University
Albania
sh.qazimi@gmail.com

Mergleda Hodo
Epoka University
Albania
mhodo@epoka.edu.al

Abstract: This study seeks to analyze the environmental psychology between humans and
surroundings. The comparison between the two shows the importance of architecture in the
development of our lives: How architecture affects people? How people experience different
‘pictures’ of a place? Architecture is the art, which above all others, combines expression,
technology, and the satisfaction of human needs. Its purpose is to make places where people
feel more human, more alive, and more full-filled. A building can easily influence people’s
moods, lifestyle and attitudes. As one stand capital, it describes unlike styles of architecture
within a territory and how this change creates a change within a being. For instance, our study
is focused on the buildings in Durrës, a northern Albanian city, where constructions are built
closer to each other and people have fast pace of life and feel under great pressure. To make
them feel more relaxed, study and work at a slower pace, we, as builders of the country, need to
design a better way of thinking and adaptation.

The main aim is to elaborate on how does a building complex, with narrow streets, lack of
circulation, trash and pollution, control human brain in that area? Considering Durres as a
touristic city, what would be the side effects on dissatisfaction of the current situation? Where
do they get the compassion to visit the place again, with a condition to observe it as a different
image? These questions are the catalysts to conceptualize the effect of the human behavior and
it changes throughout several stages of living. This paper concludes that psychology is directly
linked to what people perceive and experience and what consequences do they meet through
their journey. With this said, the awareness of construction should be the focal point to walk
through it. The city should have its readability; readability means total control plus total
design. The main points: chaos and order, a combination that expresses the true search for
continuous present.

Keywords: environmental psychology, one stand capital, styles of architecture, thinking and
adaptation, dissatisfaction, catalysts, readability.

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International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Impact on 21st Century Alliances on Countries like B&H BRICS Case: Mission
Impossible or Back to Retro Values?

Aida Soko
University of Sarajevo
Bosnia and Herzegovina
aidasba@hotmail.com

Abstract: Nowadays, almost every country belongs to some alliance. Military-political alliances
are “old fashion” and modern alliances are referred to be based on economic reasons. But, is it
a real case? Does BRICS made a change? Could the growth of middle class, as predicted by
Goldman Sachs, change the world economic order or we just close the historical cycle of
having 5,000 old civilizations back at the throne? The research aims to confirm that: There is
no structural and systematic change in terms of modern alliances grounds, but opposite - there
is always an economic leader within alliance strengthening its position over the time (H1);
Economic reasons are not prevailing in aspiration to join alliance, as it is case with B&H, there
are other determinants that lead this process and provide prosperity of certain country (H2).

The change of approach in forming alliances has been analyzed through case study of BRICS,
complemented by analysis of the power distribution and benefits of being part of alliance. For
that part, compilation of economic indicators for members of 30 alliances along four timelines:
1992, 2002, 2012 and 2018, have been gathered and analyzed. Determinants of aspirations to
join the alliance are analyzed through the case of B&H's accession to EU. BRICS seems to be
well-known story, not different from other alliances; China’s dominant role is obvious and is
only going to increase over the time. Regardless individual financial health and potential of
alliance members, leaders remain at this position and make the most of the benefits. Big
numbers rule, population growth, strong nations and strong tradition are determinants that
secure leading position. B&H’s aspirations to join EU, which is losing its power in new world
economic order, is not economically rational. But that is anyway rarely leading determinant in
alliance joining. Countries like B&H, without big numbers, strong nation and strong tradition,
by joining alliance, are trying to address their needs for security and integration which will give
them a chance for economic prosperity.

Keywords: Alliances, B&H, BRICS, Economic development, (New) World Economic Order.

213
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Does The European Union Have a Unique Foreign Policy On The Accession of
New Member States? Cases of Bosnia And Herzegovina and Turkey

Aida Čengić
International University of Sarajevo
Bosnia and Herzegovina
aida.cengic1509@gmail.com

Abstract: The European Union is a union of twenty eight European states. However, many
states in Europe are still waiting to become members of the European Union. In particular
Turkey is facing with many challenges on its way to EU membership. Turkey’s first application
for membership in the European Economic Community (today's European Union) was in 1959.
But the following years relations between the EU and Turkey have had their ups and downs. In
1987 Turkey applied for the formal membership and officially started negotiations in 2004, and
negotiations are still ongoing. However the fact that remains is that Turkey still has a long way
to go before it makes its way to an EU membership. For sake of comparison Croatia formally
applied for the membership in 2003, officially began negotiations in 2004, and since July 1,
2013 is a member of the European Union. On the other hand Bosnia and Herzegovina is from
the 2003 recognized as a potential candidate for the accession to European Union. The greatest
success was made in 2010 when visa-free travel was introduced to Bosnian citizens. However
Bosnia and Herzegovina is still not ready to become formal candidate negotiator. The path of
Bosnia and Herzegovina towards the European Union is further slowed down due to the fact
that the main political parties in Bosnia are failing to find a compromise regarding the issue in
the case Sejdić-Finci as well regarding the other requirements set by European Union. The
purpose of this paper is to analyze why the path of Bosnia and Herzegovina and Turkey is
inefficient and long lasting in comparison to all other countries that have already become
members of the European Union. In this research paper I want to raise the question: why
European Union fears regarding the membership of Turkey and of Bosnia and Herzegovina in
this union?! The main question that will be answered is: does the European Union have an
unique foreign policy on the accession of new member states? Whether the policy of the
European Union regarding accession of new member states will eventually influence the
decision of these states to withdraw the application for membership?

Keywords: foreign, policy, accession, membership, union, integration, relations.

214
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Early Identification of Children's Talents

Mediha Riđić
University of Travnik
Bosnia and Herzegovina
mediha.ridjic@hotmail.com

Senada Cucak
University of Travnik
Bosnia and Herzegovina
senadacucak@gmail.com

Selma Graca
University of Travnik
Bosnia and Herzegovina
selma graca87@hotmail.com

Abstract: During primary school there is a problem of neglecting talented pupils, not giving
proper attention to their gift and not giving adequate support by teachers. These are main
reasons because we are doing this research. Problem of talented pupils is treated by theory and
also by empiric. Theory is consisted of notions: talent, creativity, talent, school, teacher and
pupil, meaning and identification of talented children, meaning of teacher in the classroom, and
also teachers and family in development of talent.

The aim of the research is to determine the teachers’ (teachers’, professors’) perception and
talent of developmental appropriateness in working with talented children in the classroom and
specialized teaching. This research is based on opinions of 142 teachers who teach kids from 6-
10 years and also 67 teachers of mathematics which are working in primary schools of our
canton. The results gave us very important answers. There was a statistically significant
difference between elementary school teachers and mathematics teachers about the importance
of timely recognition of children's talent.

Keywords: Talent, creativity, mathematics talent, school, pupil, teacher.

215
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Positive Implications of Intimate Family Relationships and School on a Child


Development

Nusreta Omerdić
University of Travnik
Bosnia and Herzegovina
nusi.o@hotmail.com

Zehra Hasanović
University of Travnik
Bosnia and Herzegovina
zehra.hasanovic@live.com

Abstract: A partnership of family and school, respectively parents and teachers in our schools
have a major significance in a child’s development. This research aims to examine the attitudes
of teachers and parents on the issue of family and school partnership. This is an empirical
research. The aim of the study was to examine the needs, expectations and experience of both,
teachers and parents, in terms of partnership. It answers to questions whether there is a
statistically important difference in perception of parents and teachers on parental cooperation
with school. Moreover, it suggests methods of improvement. The research was conducted
among 48 participants/teachers from the area of Municipality of Travnik, as well as 125
parents of pupils of I, II, III, IV and V grades of elementary school. The findings may be used as
practical contribution in overcoming of existing problems and establishment of partnership
relations between parents and teachers.

Keywords: family, school, parents, teachers.

216
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Sports in the Balkans- Ordinary Game or a Political Tool?

Mak Muranović
International University of Sarajevo
Bosnia and Herzegovina
makmuranovic@yahoo.com

Abstract: Sports connect different ethnicities and social groups. It may unite all of them, but
may also influence their further division and produce certain political struggles. Balkan region
is a multi-ethnic and multi-religious zone, where politics and sports seem to be closely
interconnected. This paper will examine four case studies done on topic of football matches,
where politics played a significant role. These cases review different doctrines such as on
racism, fascism, ethnic diversity and current international tensions. The paper seeks to answer
some of the related questions, such as why many professional athletes become politicians; can
hooliganism be stopped or does it serve as a tool that hides more serious political struggles?
These case studies are used to show interconnectedness of politics over football.

The first case study portrays regional tensions before the fall of Yugoslavia in 1990s, indicating
how Yugoslav political tensions were diffused over the stadium crowd. The second case study
refers to rise of inter-ethnic tensions, due to murder of one of the fans with different ethnical
affiliation, which happened before the start of the match in 2009. Next case study from 2012
explores international tensions being transmitted on sports events, with clear evidence that
regional disputes can become international as well. Finally, the case in 2013 indicates that
athletes, as well as fans are being vulnerable in terms of political influence expressed in fascist
form. At the end, the results show that politics influence sport events in different ways, targeting
not only fans of it, but athletes as well. What is important to note is that sometimes there is
overlap in a way that some politicians or persons representing public institutions are also fans.
This can result in scandalous statements, such as fascist quote from spokesman of Ministry of
Tourism and Environment that give rise to further development of conflict. Furthermore, it can
be seen that sports are occasionally used for coverage of political flaws.

Keywords: Balkans; sports; politics; racism; fascism; inter-ethnic conflicts; international


conflicts.

217
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Are There True Secular States?

Dajana Bogdanović
International University of Sarajevo
Bosnia and Herzegovina
dajana.bogdanovic@gmail.com

Abstract: In recent past, being secular has become a trend, where majority of states practice
rather secularism than non-secularism. However, the upcoming question is: how much they are
successful in this or simply, are there true secular states nowadays? The paper examines basic
principles of how state separates religion from politics. The paper will consider three case
studies, which are: euthanasia, abortion and gay marriages; which can be used as parameters
of secularism. Furthermore, one of the research bases is in depth analysis of Universal
Declaration of Human Rights. The research compares western developed states and states of
Balkan Peninsula, while focusing on standpoints of prominent scholars of international
relations theories.

The aim of this paper is to determine true secular states, and linking them with more increasing
secularization development of regional states. Furthermore, the paper attempts to answer some
of the current questions related to religion and state. Some of them include how much religion
can be involved in state decision-making, and vice versa. Hence, one of the interesting
questions is to what extent a state can be recognized as secular in international arena,
especially if most of its population is religious? The results of paper include the results of
referendum in Croatia, in which majority of population voted against gay marriages; in
Albania, the process of euthanasia has been legalized and legitimate, while for years abortion is
legal and easily accessible among regional states. The main findings show that there are true
secular states, mainly attached to developed states. Furthermore, secular development of
regional states may be seen in contrast to previous years. At the end, it can be concluded that
there are many prejudices held against these case studies, which are going to be clearly
elaborated in the paper.

Keywords: secularism; religion; Balkans; euthanasia; abortion; gay marriage.

218
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Transitivity in Turkish TV Series or Modern Cinderella Stories

Özlem Özgür
Anadolu University
Turkey
ozlemozgur03@hotmail.com

Abstract: Television is the most effective mass medium of our days and therefore has a
particular place among mass media. Certainly television has become inseparable part of life
through appealing our visual and auditory senses. So, television accompanies the daily lives of
the audience by fictionalizing the reality in life relevantly to its format of broadcasting. In this
way, alongside being a mass medium, television also has the feature of being an effective means
of telling stories. The most commonly used format for telling stories by television is series.
The series broadcasted on Turkish televisions address the viewer from all sections of the society
at certain hours of the week. Although these series have shown development in terms of
narration, spatial variety, and visual composition and at a certain extent character setup, the
stories narrated cannot completely create a bond with the social reality. Through the
performances they present, the series in question instill the idea that the people can change
their misfortunes despite all the negative conditions and the social class status they have is not
permanent and can change in an instant.

In the present study, four most viewed series on Turkish televisions in 2014 will be analyzed
through document analysis, which is a qualitative research design. The primary aim of the
present study is to put forth the representations through which social classes and the changes in
social status are presented to the audience on Turkish televisions. In this way, it will be
discovered through which ways practices peculiar to classes and mobility between social
classes are maintained in the series.

Key words: Television, television series, social class.

219
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Main Policies and Challenges of the European Union:


“Is Bosnian Society Ready”

Hamidullah Bayram
International Burch University
Bosnia and Herzegovina
hamidullah.bayram@ibu.edu.ba

Ali Goksu
International Burch University
Bosnia and Herzegovina
ali.goksu@ibu.edu.ba

Abstract: The purpose of this research is to identify the reality of the European Union (EU)
focusing on most controversial issues. It will set light on understanding about which policies of
the EU means what. It will be examined what kind of problems are in EU mentioning Russia
case, and differences between local governments and central structure of the EU such as some
that are based on regional and linguistic criteria. Those controversial issues are consisted of
main policies and debates as challenges within the EU. Policies are mainly about sui generis
structure of the EU, competition and cohesion policy, National and Central Parliament,
common values in the EU. The major challenges are mostly democratic and knowledge deficit
within EU, unexpected crises and its effects on the enlargement process, confusion between low
and high politics, and relations with Russia. We also used questionnaire to clarify EU issues for
Bosnian society as well as to measure the knowledge about EU within Bosnian society. This
paper will provide valuable information regarding the main policies and challenges of the EU
and address the role of being coherent for the prospective membership to the EU. The research
will allow greater understanding of EU by Bosnian people and may direct future research on
Bosnian society as moving toward EU.

Key words: European Union, policies, challenges, Bosnia, controversial.

220
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Power and Politeness in Kuwaiti Faculty Meetings: A Critical Discourse Analysis Study

Khadija Alrashidi
Kuwait University
Kuwait
lovely-islam-11@hotmail.com

Athari Alguwaidi
Kuwait University
Kuwait
athari_alq@yahoo.com

Suad Almutairi
Kuwait University
Kuwait
suad-kh@hotmail.com

Abdulmuhsen Alqahtani
Kuwait University
Kuwait
amalqa@hotmail.com

Abstract: There are many researches done on power and politeness in communication among
different domains and cultures. Yet, only few studies have been done, with focus on power and
politeness expressions used in school staff meetings. This study aims to review and describe the
most used Kuwaiti expressions of power and politeness in faculty meetings, using Brown and
Levinson's (B&L) theory of politeness. According to B & L's theory, we focus particularly on
the positive and negative politeness strategies applied in a hierarchical situation where power
is dominant. We used a qualitative design for the study. The study uses the Critical Discourse
Analysis (CDA) method as a basis to analyze the collected data. The CDA usually helps
educators to spot the relationship between language and society. It investigates the relationship
between text and context as well as the use of language in specific settings (Handerson, 2005).
We adopted Brown and Levinson's (1987) theory of politeness for only the negative and positive
strategies they assigned to redress power. But we reject their assumption that negative and
positive strategies cannot be present in discourse simultaneously. Harris (2001) and Mills
(2002) "critique Brown and Levinson's for viewing politeness as occurring only in single
utterances'' (as cited in Mullany, 2004, p.16 ). That is why we decided to address the critical
discourse analysis (CDA) method as an attempt to give a clear and valid analysis. Holmes
(1999) suggests that Brown and Levinson's theory can give a valuable analysis once it is
accompanied by discourse analysis methods as cited by Pateman (1980) and Fairclough (1989,
1995).The study is depending primarily on naturally occurring discourse, recorded from two
school faculty meetings in Kuwait (Al-Asema Educational Area). We consider a staff meeting as
a hierarchical situation that reveals the exercise of power. Our goal is to gain an in-depth
understanding of the Kuwaiti expressions of power and politeness in school communication.
This understanding may help to direct recommendations for future studies.

Keywords: Power, politeness, Kuwaiti expressions, school communication, Faculty meeting,


discourse analysis.
221
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Lifelong Learning - The Challenges of Modern Concept of Education in Bosnia


And Herzegovina

Alman Kasumović
University of Travnik
Bosnia and Herzegovina
kasumovic.pdseft@live.com

Tarik Obralić
University of Travnik
Bosnia and Herzegovina
obralict@hotmail.com

Abstract: The aim of the work is focused on the big challenges and influence of the modern
concept lifelong learning on the education in general and the complex educational system in
Bosnia and Herzegovina, through the application of formal , non-formal and informal
education .A definition of an essential lifelong education is the learning activity throughout life
with the aim to improve knowledge, skills and ability to perform everyday activities. The idea of
lifelong learning stems from the assumption that a man, as a human being, is the greatest
treasure of the society, and for that reason it needs to invest. The significance of this modern
concept of education is reflected in the fact that in Europe lifelong learning is interpreted as a
policy in response to economic problems and increased unemployment rate. Teaching which is
institutionalized and formally defined finally can find an improvement in education that takes
place throughout the whole life, from childhood to old ages. As mentioned earlier lifelong
learning means having a certain competences towards European and wider labor market of
work preventing higher unemployment rates. Finally, it means to enhance the knowledge and
skills that will enable easy adaptation to the individual in the modern knowledge society, then
greater competitiveness in the labor market and possible permanent employment.

It is argued that lifelong learning in real life shows the number of examples that demonstrate
and confirm the concept of lifelong learning with significant influence on creativity, culture,
training, development, human relations and economical progress, as the special request and
challenge for the educational system and the social relations generally in Bosnia and
Herzegovina. This material will try to give certain opinions and answers to the requests about
concept of lifelong learning within complex educational systems in Bosnia and Herzegovina and
wider community.

Keywords: andragogy, lifelong education, lifelong learning, knowledge society, interaction


communication, upbringing, education, learning, knowledge.

222
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Factors Development of Social Competence of Students in Boarding


Madrasah in BiH

Nejra Muratović
Univerzitet u Travniku
Bosnia and Herzegovina
nejra_adisa@yahoo.com

Hanifa Obralić
Univerzitet u Travniku
Bosnia and Herzegovina
obralich@hotmail.com

Abstract: Socially competent person can be defined as a person who is capable of being social,
and which is addressed in society and have a sense of community. Social competence includes
social skills, social awareness and self-confidence. These include empathy, communication
skills, tolerance, cooperation and mutual assistance, cooperation, responsibility to self and
others, perseverance in carrying out tasks, controlling violent behavior, showing a sense of
values and positive self-image. All these are essential presumptions to establish successful
communication. Social competence is a complex construct that refers to the effective
functioning of the individual in a social context, while successfully achieving personal goals. In
contemporary society the importance of successful interactions with others and establishing
quality professional and personal relationships is increasingly coming to the fore.

A significant part of his/her life a man spends in school, an institution for which we can safely
say that in the process of developing social competence has a decisive role. It prepares the
individual for future gains experience through relationships with others; accept the general
education standards and acts in accordance with them. The development of social competence
of students have great significance and contribution to the overall development of students'
personality, that are under the influence of many factors and with great importance that is given
to the family, peer groups, schools and school environment, which includes and student
dormitories, as well as educational institutions that

Keywords: social competence students, families, peer groups, school, boarding

223
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Roma Children’s and Parents’ Perspective of Education in Croatia – Insights


from a Qualitative Study

Tihana Štojs
Institute of Social Sciences Ivo Pilar
Croatia
tihana.stojs@pilar.hr

Marica Marinović Golubić


Institute of Social Sciences Ivo Pilar
Croatia
marica.marinovic-golubic@pilar.hr

Abstract: Despite the efforts of international organizations and local governments to improve
education for Roma children, about 50 percent of Roma children in Europe fail to complete
primary education (UNESCO, Council of Europe, 2007). In order to examine the social and
educational inclusion of Roma children in Croatia, research was carried out in five Roma
settlements across the country. The main aim was to build a comprehensive and detailed picture
of the extent of early childhood provision and services available to Romani families. The
research employed various methods including questionnaires, in-depth interviews and focus
groups. In our poster presentation we would like to present an analysis of in-depth interviews
with Roma parents (N=35) and their children (N=35) regarding: a) Roma children’s
perception of kindergarten/school and b) Roma parents’ perspective of their children's
education, its importance as well as challenges and problems they encounter. Although children
in most cases described their schools as fun, comfortable and secure places where they can
acquire new skills and knowledge and learn important life lessons, they also stressed how they
often face discrimination from teachers as well as other children. This is a topic that parents
particularly emphasized. In addition to discrimination, parents cite socio-economic and
institutional barriers as the main problems.

In conclusion, we discuss how a high unemployment rate among parents, generally poor
economic status and specific cultural practices negatively affect the full integration of children
and limit their educational opportunities, especially to secondary education. In addition, there
is a strong gender component present in interview narratives since some parents consider their
daughters’ education less important than the education of their sons. Although the majority of
parents stressed the importance of education as a mean of gaining higher social and symbolic
status, in everyday life they are often divided between the aspiration for their children to get a
proper education and concern over whether this investment makes sense. Generally, due to the
economic crisis in Croatia but largely because of prejudice against Roma parents frequently
say – “no one will hire our children anyway!”

Keywords: Roma; education; qualitative study; children's perspective; parents' perspective.

224
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Creativity and Innovation in A Continuous Process of University Teachers' and


Associates' Improvement In Accordance With the Bologna Principles

Melida Župljanin
International University of Novi Pazar
Serbia
meli_haki@hotmail.com

Abstract: In education, we don't perceive the process of transition as a political tool but as a
process of transforming the industrial era into the informational and communicational era. This
is interpreted as a shift into the learning society, therefore, the knowledge society. The road to a
learning society, or a society of knowledge, implies a path to employment, which
unconditionally requires multiple pathways of learning. Institutions of higher education have a
big responsibility because there are university teachers and associates as active participants in
the creation of educational production.

Their competencies are particularly important, and the path to their acquisition is in a
continuous process of improvement. In the process, what should come into the fore are their
creativity, innovation, productivity and competitiveness, which along with their underlying
factors: knowledge, skills, competencies, motivation and satisfaction, are the generator of
motivation, pleasure in the workplace and finally, of the work quality. That is unquestionably
required from us according to the fundamental principles of Bologna.

Keywords: innovation, creativity, productivity, competitiveness.

225
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Communication within the Family as a Factor of Child Development

Faruk Mehmedinović
Bosnia and Herzegovina
farukmehmedinovic@yahoo.com

Tarik Obralić
University of Travnik
Bosnia and Herzegovina
obralict@hotmail.com

Abstract: The purpose of our research paper is to examine and determine which types and
modes of communication are built in a family by parents with their children and among
themselves and how much communication in a family contributes to normal development and
education of children. The sample of examinees included 216 secondary school students in
Tuzla municipality (Behram-bey madrasa in Tuzla and Secondary nursing school Tuzla) and
156 students’ parents, thus the total number of examinees was 372. In our paper authors used a
method of theoretical analysis and a research survey method, while the instruments used were:
a questionnaire about communication in a family for parents and a questionnaire about
communication in a family for students. The instruments were made on our own for needs of
this scientific research.

The results we achieved have shown the following: 1) most parents communicate with their
children in a democratic way, verbally, directly, every day, respecting their personality,
whereby our first initial hypothesis was confirmed, 2) among spouses, i.e. among students’
parents the communication is successful, which contributes to more successful communication
between parents and their children and among children themselves, 3) intergeneration and
intergeneration communication in families is different, 4) most parents in a family successfully
communicate with community and are integrated in social community, 5) parents pay attention
to children’s education regarding communication skills, which is very important, 6) emphatic
communication is lead among the examines (parents and students), which is very important for
positive socio-emotional environment and regular development of child personality, 7) the best
communication in a family is built by students who accomplish excellent achievement at school,
then those with very good achievement, while the worst communication is built by those
students who accomplish good achievement. All above mentioned indicates need and
importance of development of successful (democratic) communication in a family and teaching
children communication skills in a family.

Keywords: communication, family, personality development.

226
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Concept of Hate Crimes, Scope of Evaluation within the Turkey's Laws

Öznur Yaşar
Süleyman Demirel Üniversitesi
Turkey
oznrysr@gmail.com

Emine Yılmaztürk
Süleyman Demirel Üniversitesi
Turkey
emine_ylmztrk_kmy@hotmail.com

Abstract: Wanting one’s unhappiness and evil is often referred as to hate. This feeling is a part
of human nature. This word is also defined as the opposite of affection. In that case IT means to
be humiliated by a group in society because of prejudices.

As a beginning, we will consider the ideological dimensions of this concept. When people are
members of social groups, ideologies are transformed into actions. In this action, we are faced
with the opposite poles. Men over women, young people over seniors, rich over the poor, whites
over black are trying establishing superiority. As a matter of fact; some groups are
discriminated, which is legally not allowed. If we look from a historical perspective the first
measures were taken in the U.S, especially attempts were initiated in order to protect on the
Jews and black people. The term was used in 1986 for the first time in the media. Hate speech
has been widely used in the following events; white students carried out a racist attack over a
black student in New York. In addition to, hate crimes are still ongoing in many different
groups. The main victims are rich, poor, drinkers, homosexuals, AIDS patients, rockers and
many other groups.

Finally, in this case, we will evaluate terms of Turkish legislation, scope of the hate crimes
which were carried throughout following arrangements; Article 216 of the Turkish Penal Code:
Hatred and hostility or contempt, Article 3: Justice and equality before the law. Article 122:
discrimination. Article 106: threat. Article 125: insult. Article 10 of the Constitution of the
Republic of Turkey: Equality before the law and recent changes made under democratic
packages. In our study we will examine in detail these articles, and additionally will evaluate
the context of international regulations.

Keywords: Hate, Hate Speech, Community, Humiliate, Turkish Legal Statute.

227
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Economic Diplomacy within the Frame of the United Nations; the Role of the
Economic Diplomacy for a Global and Regional Economic Development

Emilio Çika
Mediterranean University of Albania
Albania
emiliocika@gmail.com

Abstract: United Nations Organization was established in 1945 within a political climate in
which the need for stability, peace and security was necessary. After the failure of the League of
Nations it was a necessity to create a powerful international organization, with a
comprehensive balancing role and broad powers in solving international problems.
The importance as it was expected was given to the political activity of the organization. In
section 1 of the Charter of the United Nations, there are clearly described three categories of
objectives: 1) to maintain peace and security .2) to develop friendly relations among nations
based on the principle of equal rights and self-determination of peoples. 3) To promote
international cooperation for solving problems of economic nature, social, cultural and human
development and respect of human rights and fundamental freedoms for all peoples regardless
of race, gender, language and religion. It is quite obvious that the main goal of the pioneers of
the UN was to achieve a political balance in international relations.

Thus, for a better understanding of this part it is necessary to separate the study into three sub-
themes: the first will focus on analyzing the period from the end of WW II until the collapse of
the socialist bloc, the second period is from the end of the Cold War until the end of the
Millennium. These events affected in a decisive way the transformation of economic diplomacy
of the UN. The third subtheme fulfills the mosaic of the activity of the UN development policies
based on the needs of the time. In the second part of the study a special emphasis is put on the
economic diplomacy of the UN as a tool for global and regional economic development. UN is
operating in the field of economic diplomacy based on specific bodies. For organizational
reasons this second part of the study is divided in two parts: the first part analyzes the UN
programs for development policies (UNCTD, UNPD), the second part analyzes the specialized
agencies. The scopes of these agencies are not the development policies, but they are part of the
economic policies of the UN (ILO, UNFAO, and UNUOID). The above organizations are
selected because they have direct impact on global and regional economic development. And
finally the paper follows a brief critic about the positive and negative impacts on the global and
regional economic development.

Keywords: United Nations Diplomacy, Economic Diplomacy, Economic Development,


Development Policies, International Cooperation.

228
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Multicultural Education Needed for Health Care and Pedagogy Students

Wita Szulc
The Witelon University of Applied Sciences
Poland
wszulc@amu.edu.pl

Abstract: In this paper the author presents and analyzes multicultural education program of
training course addressed to students of Health Sciences and Pedagogy executed on the one
University of Medical Sciences and on several universities- (Faculty of Pedagogy) in Poland.
Curriculum includes elements of arts therapy as a medium on problems of people living in
global world.

Keywords: multicultural education; arts therapy, academic education.

229
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Self-perception of Competence of Teachers Working with Children with


Attention Deficit Hyperactivity Disorder in Bilingual Schools in the Sarajevo
Canton

Lejla Dučić
Bilingual Schools Al Amel, Sarajevo
Bosnia and Herzegovina
terziclejla@hotmail.com

Tarik Obralić
University of Travnik
Bosnia And Herzegovina
obralict@hotmail.com

Abstract: Attention deficit hyperactivity disorder - ADHD is one of the most common disorders
in child psychiatry and is treated as a separate condition of children which is defined as a high
level of motor skill that is most easily recognized by equally high activity of the mind. According
to many experts (especially doctors) attention deficit hyperactivity disorder is treated as a
deficit, however, in its essence it is not. Diagnosing ADHD is not easy and most common among
children of school age for the simple reason that the child is introduced in advance with the
tasks, the rules of behavior and expectations. Research on the topic of self-perception of
competence among teachers who work with children with the attention deficit hyperactivity
disorder was conducted among teachers in bilingual schools in the Canton of Sarajevo. The aim
of the study was to investigate the willingness of teachers to face the challenges in terms of
children who are hyperactive. The research was done among teachers in schools where
educational communication takes place in Arabic, Turkish, French and Bosnian. Dichotomous
and Likert five-point scale assessment was used in the research, and the obtained results are
presented in the full paper.

Keywords: self-perception, hyperactivity, attention deficit.

230
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Protection of Vulnerable Children in Albania

Eglantina Farruku
Epoka University
Albania
egla_farruku@hotmail.com

Abstract: Children constitute more than a third of the Albanian population, with a number of
1,048,702 out of the 3,194,417 inhabitants of Albania. The political transition in Albania gave
rise to new phenomena caused by many reasons. Today, children are subjected of violence,
sexual abuse, exploitation, maltreatment, trafficking, discrimination, neglect, poverty and social
exclusion. Poverty is the key factor which has increased the number of the children who live, eat
and sleep in the streets. Traditional Albanian families are in a period of crisis. The divorce rate
has increased considerably. The number of children living in incomplete families has risen as
well. The unemployment causes the lack of the necessities for families, who as a result, engage
children in work in pursuit of earning profit by forcing them by psychological pressure to
ensure their compliance. Violence is another indicator against children at home, schools and
institutions in Albania. Family considers the use of violence on children as having positive
effects on a child’s education and development, considering it as a part of the Albanian
traditional education.

Taking into consideration all these reasons, the society require the attention of government
bodies as well as NGOs and especially better coordination among their activities. The
Government in cooperation with civil society organizations has implemented number of
programs, legal initiatives to address the phenomenon and protect children from dangerous
situations, but despite the entire legal framework children are still cruelly violated and not
protected. In brief, this paper will address the challenges, problems and provide
recommendations for the protection of children in Albania from vulnerable groups in
particular. This issue must become a priority for the political agendas and the public opinion.
Nelson Mandela states: “We owe our children, the most vulnerable citizens in any society, a life
free from violence and fear.”

Keywords: Children, Vulnerable, Government, Civil Society.

231
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Modern Pedagogical Views through the Prism of Islam

Mustafa Fetić
International University of Novi Pazar
Serbia
mustafafetic@gmail.com

Abstract: The area of religious, especially Islamic pedagogy is still considered not to be
sufficiently tested and explored as a field of scientific research. The few studies and articles that
delve into this area, are only fragmentary attempts aimed to support all those who want to
seriously address this issue. There are two main reasons for this; The first one is that almost no
one has tried to take advantage of abundant heritage of Islamic pedagogy in the development of
general pedagogical thought, and the other is that the complete Arab pedagogy relies on the
practices from the thirties of the last century and the streams and thoughts of Western
Pedagogy in almost all educational trends. The contribution of pedagogy to contemporary
society shows its’ real significance, importance and role in the creation of the society itself and
its recent rapid changes. As a modern respectable scientific discipline, pedagogy today is a field
studied by thousands of scientists and researchers worldwide. Unlike the West, where the
scientific results and developments are linked to the period of Humanism and the Renaissance,
Muslims, under the auspices of Islamic pedagogy, derive knowledge from the very first words of
Qur’an revelation: "Proclaim! (Or Read!) In the name of thy Lord and Cherisher... "(Qur’an)

Education and upbringing are, undoubtedly, the key terms in science which are still
differentiated in a number of departments and specialization. Upbringing and education are as
old as the phenomena of manhood itself. Modern concepts of education have an important role
in the process of humanization, which is preceded by long and varied efforts that, in the given
historical conditions and in accordance with the achieved level of knowledge, attempt to explain
these social phenomena. Therefore, it is quite understandable that the Islamic pedagogy returns
to these efforts, critically reviewing its origins, seeking its beginnings of development and
revealing the formation of pedagogical concepts, principles of legality and explains the
differences in modern flows of pedagogical theory and practice .

Keywords: Islamic pedagogy, upbringing, education, religion, humanism.

232
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Economic Diplomacy and Embassies: Change and Continuity

Sabit Subašić
Ministry of Foreign Affairs
Bosnia and Herzegovina
sabit.subasic@gmail.com

Kemal Balihodžić
International Burch University
Bosnia and Herzegovina
kemal.balihodzic@ibu.edu.ba

Abstract: In recent decades the international business environment has undergone major
changes, with the result that international trade and diplomatic relations have achieved a new
dimension. Governments are recognizing the growing importance of commercial diplomatic
activities. Economic diplomacy is a topic that changes slowly in the spotlight of scientific
research. The current researches are focused on the perspective of historical development and
the increasing need for economic diplomacy in the encroaching globalization era. At the end,
understanding the necessity for embassies as state representatives, how they developed
throughout the ages, as well as their functions. As well as analyzing all the significant factors in
the development of economic ties such as globalization, international trade, financial crises etc.
The paper reaches a conclusion that the embassies are generally not researched adequately,
although they are the receptors of a significant amount of state finances and are the official
representatives of the states. In addition, economic diplomacy has changed the diplomatic
landscape from a traditional state to state political and military approach to a more
multilateral economic approach where states strive for economic interest and interdependence.
In which embassies play a crucial role.

Keywords: Embassies, economic diplomacy, multilateral approach.

233
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

The Importance of a Proper Emotional Development for the Development of a


Healthy Personality

Irmela Mujkić
University of Travnik,
Bosnia and Herzegovina
irmela_mujkic@hotmail.com

Hanifa Obralić
University of Travnik,
Bosnia and Herzegovina
obralich@hotmail.com

Abstract: During our development, emotions are those that move us and help us to act to
various changes caused by the process of learning. People are not exclusively rational beings
who act on the basis of their behaviour and acting. Most of our acts are undoubtedly affecting
our emotions that lead us during our growing and development. Emotions are part of our being
that expresses our attitude to the objective reality. These are not produced arbitrarily, but
rather are caused by something. They are manifested through emotional experience (e.g. fear,
happiness, anger etc.), emotional behaviour and physiological changes to which our body is
exposed during our emotional expressions (e.g. sweating, gasping, blush etc.). The main aim of
this work is to describe the importance of a proper emotional development for the development
of a healthy personality. For a proper emotional development the personal experience is
necessary. This requires certain period of time, growth, development and maturity. That means
that controlling, governing and shaping one's own emotions during one's development
according to the requirements of objective reality is a pre-condition of a proper emotional
development of every personality.

Key words: emotions, development, personality, health

234
International Conference on Economic and Social Studies, April 24-25, 2014, Sarajevo

Lifelong Education for Sustainable Development

Dautović Muharem
Elči Ibrahim pašina medresa u Travniku
Bosnia and Herzegovina
muharemdautovic@yahoo.com

Abstract: There is a need to look for the lifelong education within the concept of the lifelong
learning, which has emerged as a result of the increasing demands for a greater amount of
knowledge, because the existing knowledge becomes insufficient or outdated. It is based on a
continuous approach to teaching and learning in terms of acquiring new knowledge which is
needed in new social conditions, for new position at work, for the society of knowledge, and
participation in society. Therefore, in the context of this statement, the subject matter of the
research is situated in the investigative, analytical and dominantly presentational dimension of
the lifelong education as a factor of sustainable development.

The scientific objective of this research is lifelong education as a factor of sustainable


development and social goal is the development of lifelong education, i.e. sustainable
development. In this research the following methods were used to collect data: surveys, scaling
and content analysis. The obtained results show that lifelong education as a factor of
development is not compatible with European programs of lifelong education for sustainable
development.

Keywords: lifelong learning, lifelong education, sustainable development

235
Table of Contents
European and Balkan Studies

The Motives of People in Utilizing the Freedom of Movement within the EU: The Case
of Kosovo and Visa Liberalization with the EU 7
Alban Asllani, Shkumbin Misini, Kujtim Bytyqi

23 Years after the fall of Communism the Challenges of Albania in the Political System 8
Marsela Fejzaj, Jonida Dhroso

Importance of the European Union Regional Development Fund: The Case of Turkey 9
Onur Durukal, Recep Tekeli

The Compatibility of Dayton System for Bosnia and Herzegovina’s EU Accession 10


Yigit Anil Guzelipek

Crisis of the European Union and its Effects on the EU Enlargement Policy:
Case of Western Balkans 11
Hatice Yazgan

The Challenges of Western Balkans towards the European Union 12


Loren Senja

The Informal Economy in Albania: Concepts, Approaches and Policy Considerations 13


Erinda Imeraj, Julinda Keci

Female worker in European Union Labor Law and Turkish Labor Law 14
Kübra Öz

The Feldstein–Horioka Puzzle among EU Members: A Panel Approach 15


İbrahim Örnek, Selen Utlu

Foreign Direct Investment in the Western Balkan Transition Economies:


Future Perspectives 16
Adisa Arapović-Omerbegović, Eldin Dobardžić

European Union Integration: The Impact in Albanian Economy and Life 17


Urmat Ryskulov, Riada Berhani

Human Security in Bosnia, Kosovo and Albania 18


Bekir Çinar

An Example of Regional Development in Bosnia during the Ottoman Period: A Study on


the Budgets of Gazi Husrev Bey Waqf’s between 1624-1629 19
Kadir Arslanboğa
Discrimination in Higher Education is Source of Conflict: Albanian in Macedonia 20
Emirjona Huti, Bekir Cinar

The Fulfillment of the Maastricht criteria by Macedonia and Albania: a Challenging


Journey towards the EU 21
Rufi Osmani, Jeton Mazllami

Assessing democracy in post-parliamentary elections 2013 in Albania 22


Alba Gerdeci, Mirela Alhasani

Child Trafficking for Organ Transplantation and Law Enforcement Failure in Albania 23
Mirela Alhasani (Dubali), Alba Gerdeci

Impact of Regulatory Reforms on the Banking System in Bosnia and Herzegovina 24


Medina Prašović

Legal Perspectives on EU Integration Process of BIH: Analyses of the European


Commission Progress Report 2013 for BIH 25
Elvir Čolak, Kemal Balihodžić

The Abandonment of the Poverty-Debt Circle by Dint of the Fiscal policy: the Modest
B&H Experience 26
Zehra Mahmutović, Ugur Ergun

The Characteristics of New Albanian Nationalism and its Impact on Albania’s Relation
with Neighbors 27
Kriton Kuci

Waste Disposal and Recycling in Albania: Case of Lezha Town 28


Salih Ozcan, Altin Bora

Role of the Media in Shaping Political and Electoral Behavior


of the Albanian University Students 29
Salih Ozcan, Dea Dhima

Globalization and Albanian Civil Society during the Democratic Transition 30


Salih Ozcan, Gilda Hoxha

The Impact of Public and Private Tourism Investments on Tourism Performance and
GDP: The Case of Balkan Countries 31
Kemal Kantarci, Mustafa Unver, Kazim Develioglu

Can there be an Islamic Democracy? Democratization in Turkey 32


Anjeza Bojaxhiu

The Impact of Travel and Tourism Competitiveness Factors on Tourism and Economic
Performance of Balkan Countries 33
Kazim Develioglu, Kemal Kantarci, Pasa Mustafa Ozyurt
Challenges of Waste Management in the South East Albania, Korça Region 34
Marsela Salavaçi, Salih Ozcan

Challenges of Economic Reforms in Ukrainian Society with Reference to Russia 35


Erind Elmazaj, Salih Ozcan

The Effects of Personality and Character in Shaping Political Behavior of University


Students in Albania 36
Jon Ferunaj, Salih Ozcan

The Features and Challenges of Democratization Process in the Balkans 37


Gloria Shkurti, Salih Ozcan

Political Ideologies and their Influence on the Political Behavior of the University
Students in Albania 38
Salih Ozcan, Arber Salihu

Progress of the Transition in the Southeast European Countries 39


Wioletta Nowak

Balkan Orphans 40
Havanur Şahin

Women Empowerment; Compression between Albania and Kosovo 41


Jona Hoxhaj, Elena Pici

International Trade, Finance and Development; an Approach of Understanding in what


Fields is Albania the Right Country to Invest in 42
Edlira Dede, Ersejda Demirxhiu

The Hydro-energy Potential in Bosnia and Necessity for SIA Researches: A Comparative
Study with Turkey 43
Özgür Dirim Özkan

Gender (in) equality in Political Participation in Bosnia and Herzegovina 44


Azra Bičo, Nerkez Opčin

The Development of Environmental Taxes and Environmental Public Expenditures in


Turkey Comparing Member Countries of the European Union 45
İbrahim Akdoğan, Tülin Akdoğan, Liridon Kryeziu, Ensar Selman Karagüzel

Peoples Motives in Utilizing the Freedom of Movement within the EU: The Case of
Kosovo and Visa Liberalization with the EU 46
Alban Asllani, Shkumbin Misini, Kujtim Bytyqi

The Fulfillment of the Maastricht criteria by Macedonia and Albania: a challenging


journey towards the EU 47
Rufi Osmani, Jeton Mazllami
Restructuring Turkey as a New Semi-periphery in the Age of Globalization 48
Muhammed Kürşad Özekin, Ayça Özekin

The Feldstein–Horioka Puzzle across EU Members: A Panel Approach 49


İbrahim Örnek, Selen Utlu

Economics

Foreign Direct Investment as a Factor of Economic Empowerment


of the European Union 53
Amra Nuhanović, Hidajet Klapić

The Importance of Public Investments in Regional Development: An Example of Gap in


Turkey 54
Sadettin Paksoy, Erdal Alancioglu

Harnessing Private Sector Growth for Inclusive Development 55


Mohamed Zulkhibri

The Driving Forces behind Albania’s Growth 56


Güngör Turan, Çeljeta Sherifi

Financial Markets Development and Macroeconomic Stability in Sub-Sahara Africa:


Issues and Policy Options 57
Uyi Kizito Ehigiamusoe

Analysis of Internally Generated Revenue and its Implications on Fiscal Viability of


State Governments in Nigeria 58
Asimiyu G. Abiola, Uyi Kizito Ehigiamusoe

The Nexus between Electricity Generation/Supply and Manufacturing Sector Perfor-


mance in Nigeria (1975-2011). 59
Anthony Osobase

The Determinants of Tourist Arrivals at NUTSIII Level in Turkey 60


Burcu Türkcan

Foreign Direct Investment in the Western Balkan Transition Economies:


Future Perspectives 61
Adisa Arapović-Omerbegović, Eldin Dobardžić

Are Islamic Banks More Effective than Conventional Banks for Turkey’s Development? 62
Gönül Çifçi, Saadettin Paksoy

European Union Integration: The Impact in Albanian Economy and Life 63


Urmat Ryskulov, Riada Berhani
Macroeconomic Determinants of Nonperforming Loans in Albanian Banking System 64
Urmat Ryskulov, Riada Berhani

The Casual Effect of Education Level on Wages: Albanian Case 65


Jerina Podo

An Example of Regional Development in Bosnia during the Ottoman Period: A Study on


the Budgets of Gazi Husrev Bey’s Waqf between 1624-1629 66
Kadir Arslanboğa

The Relationship between Growth and Tax Revenues in Croatia 67


Hakan Arslaner, Sevinç Yaraşır Tülümce

Impact of Regulatory Reforms on the Banking System in Bosnia and Herzegovina 68


Medina Prašović

The Effect of Tax Incentives on Regional Economic Development 69


Mine Biniş, Elif Ayşe Şahin İpek

The Study of Economic Capital Effects on Lifestyle (The Case Study of Pistachio
Farmers in Two Villages of Kerman City in Iran) 70
Shima Safa

The Role of Middlemen in Economy: are they Redundant or Important? 71


Serkan Dilek

Energy Challenges and Regional Electricity Markets: Opportunities, Barriers and


Prospects for Bosnia and Herzegovina 72
Mirza Šarić

The Role of Local Authority in Tourism Development in Vlora 73


Landsite Mukluk

Trade Agreements of Albania and their Impact on Agriculture, Imports and Exports 74
Risilda Djala, Mergleda Hodo

Albanian Trade and Income Inequality 75


Mergleda Hodo

Study of Consumers View on the Appearance of Packaging by Producers: Meggle,


Milkos and Zim Using Descriptive Analysis and Student’s T-Distribution 76
Ibrahim Obhodas, Slobodan Vujić, Saša Vujić, Aida Abduzaimović

International Trade and Foreign Direct Investments: Albanian Case 77


Lorela Manjani, Mergleda Hodo

The Role of Institutions in Transition Economics: a Deeper Look on the Relationship


between Privatization and Economic Growth in Bosnia and Herzegovina 78
Suad Krcić, Erkan Ilguen
The Role of Behavioral Economics in B&H; Does Remittances and Foreign Aid Have
Adverse Effect on Economic Development? 79
Aida Soko

Albanian Performance in Target Achievements toward 2020 Growth Strategy 80


Eglantina Hysa

The Role of Small and Medium-Sized Enterprises for Regional Development: the Case
of Gaziantep 81
Hasan Memiş, Sadettin Paksoy, Hüseyin Çelik

Correlation Analysis of Banking Risks, Level of NPLS and Capital Adequacy in Bosnia
and Herzegovina Banking Sector 82
Kemal Kozarić, Emina Žunić

Historical Process of the Human Development Performance of Turkey 83


Orhan Kandemir

Rise in Non-performing Loans: Determinants and Repercussions 84


Amir Salkanović

The Role of Macroeconomic Variables on the Yield Curve Model: Case of Albania 85
Besjana Laçi, Urmat Ryskulov

The Exchange Rate in Albania and its Connection with Import-Export 86


Alba Cani

What Are the Measures for the Best Fiscal Policy in Albania? 87
Besjana Laçi, Eglantina Hysa

Econometric Analysis of Natural Disasters’ Macro-economic Impacts 88


İsmail Şahin, Ömer Yavuz

Capitalism system, actuality and problematic 89


Ejona Duçi

Role of SME in the Albania Economy Development 90


Rizhana Mancellari

Challenges of Economic Reforms in Ukrainian Society with Reference to Russia 91


Erind Elmazaj, Salih Ozcan

A View to the Short and Long Run Dynamic Relationship between Crude Oil and the
Major Asset Classes 92
Ibrahim Turhan, Erk Hacihasanoglu, Ahmet Sensoy, Kevser Ozturk

Variety of Capitalism in Turkey: A Comparative Institutional Analysis 93


Bahar Baysal, Mikail Kar
The Impact of Import and Export on Total Factor Productivity in Albania 94
Emirgena Nikolli, Mergleda Hodo

Effects of Government Incentives in the Tourism Industry and the Case of Turkey 95
Yusuf Tugrul Karaaslan, Ismail Sahin

The System Dynamics Model of Turkish Incentives in Cattle Livestock 96


Cihan AYIZ, Nizamettin Bayyurt

The Role of Business in Society 97


Jusuf Brkić

Influence of Environment on Business Performance 98


Sead Ahmić

Tourism and GDP Growth Linkage: Evidence from Developed and Developing
Countries 99
Oguz Ocal, Alper Aslan

Tourism Expenditure and Economic Growth 100


Alper Aslan

Evaluation of E-Learning and LMS Usage at IBU 101


Ferid Hadzic

Towards Establishing Financial and Budget Indicators for Municipalities:


A Literature Review 102
Mirjana Sejdini

Informal Economy in Albania 103


Rexhep Dokja

Finance and Accounting

What Determines the Firm’s Net Trade credit? Evidence from Macedonian Listed Firms 107
Fitim Deari

Financial Decisions, Tax Effect and Investment Performance 108


Yasemin Coşkun Kaderli, Selim Bekçioğlu

Comparing the Financial Performances of Different Trading


Strategies Using BIST100 Index 109
Mehmet Özçalici, H. Mustafa Paksoy, Sadettin Paksoy
Futures Market and Derivatives 110
Yusuf Demir, Merve Öz

Solvency II - A Need or an Obligation? 111


Armanda Keqi, Urmat Ryskulov

The Comparison of Financial Performance of Intermediary Firms Traded On Istanbul


Stock Exchange by Using Topsis Method 112
Ersin Kurnaz, Reşat Karcıoğlu, İhsan Yıldıztekin

Measures of Customer Satisfaction in the Usage of Accounting Software Programs 113


İhsan Yıldıztekin, Reşat Karcıoğlu, Ersin Kurnaz

Overview and Development Perspectives of SME Banking, With a Focus on Bosnia And
Herzegovina 114
Emira Kozarević, Meldina Kokorović Jukan, Amra Softić

Impact of volatility and performance of major stock markets on Sarajevo Stock


Exchange in 2008 – 2012 periods 115
Enis Dzanić, Sead Omerbegović

WHAT Is XBRL (Extensible Business Reporting Language)? Use of XBRL in Balkan


Countries and Turkey 116
Ensar Ağirman, Murat Serçemeli, Muhammet Özcan

Credit Card Frauds in Banking 117


Tuğba Eyceyurt Batır

The Relationship between Corporate Governance Performance and Stock Return 118
Bener Güngör, Abdulkadir Kaya, Tuğba Eyceyurt Batir, Ünal Gülhan

The Effect of Directors’ Index on Firm Performance: Evidence from BIST100 Firms 119
Nida Abdioglu, Recep Kilic

Causal Relationship between Trading Volume and Security Returns: A Case of the South
Eastern European Region 120
Jasmina Okicic

Measurement of Capital Adequacy for Operational Risk: A Case Study in a Bank


Operating in Turkey 121
Kemal Nalçın, Mustafa İyibildiren

Latest Developments on the International Standards on Auditing (ISAS); Use on


Auditing Financial Statements in the Public Sector. The Case of Albania 122
Greta Angjeli, Kriton Kuci

International Transmission of Stock Market Movements for Turkey, U.S., England,


Germany, Japan 123
Abdulkadir Kaya, Ömer Binici, Fatih Ömür Binici
Fiscal Evasion and Corruption in Albania 124
Risilda Djaka, Armanda Keqi

Rise in Non-performing Loans: Determinants and Repercussions 125


Amir Salkanović

Foreign Direct Investments in Bosnia and Herzegovina 126


Mirhat Kolašinac, Uğur Ergün

Cost Efficiency and Risk Analysis in Bosnia and Herzegovina Banking compared to
other countries after and during the Economic Crisis 127
Belma Kevro, Ali Goksu

Financial Stability: Albanian Case 128


Jonada Tafa, Ditmir Sufaj, Jonida Balliu, Rebani Balliu, Urmat Ryskulov

The Role of Qualifications of Accounting Profession in the Prevention and Detection of


Accounting Frauds in Companies in Bosnia And Herzegovina 129
Ševala Isaković-Kaplan

Management Information System (MIS), Operational Risk


and Concept of Economic Capital 130
Nađa Dreca

Forced Tax Collection: Bank Accounts` Blockage and Its Impact on Taxpayers` Fiscal
Behavior in Albania 131
Avenir Lleshanaku

Assessing In the Credibility of the Company for Loan Application 132


Belma Peskić, Ali Goksu

The Microfinance Tale: Bright and Dark Side of the Narrative 133
Zehra Mahmutović, Ali Coskun

Information Systems

Utilization of Social Media in Business Advertising in Central Bosnia Canton 137


Nafija Filipović, Meliha Handžić

The Perception of Parents from the Area of the Northern Sandžak about the Child's
Addiction to the Internet 138
Suada Aljković Kadrić, Tarik Obralić

Usage and the Problems of E-Banking System - A Case Study: Bosnia and Herzegovina 139
Mirza Dedić, Uğur Ergun
Information Technologies and Education of Economists 140
Dražena Gašpar, Mirela Mabić

What User Thinks About Privacy on Social Networks: An Empirical Study 141
Ahmet Murat Özkan

Evaluation of e-Business in Turkey 142


Furkan Ozbek

A Case Study of Information Systems Implementation in Bosnia and Herzegovina 143


Mihret Sarač

E-Tutor: Creating, Deploying and Supporting e-Learning Environment 144


Muamer Mirvić

Web Presence of Hotels in Canton Sarajevo 145


Armin Spahić

Application of project management tools and techniques in an IT company


in Bosnia and Herzegovina 146
Emil Klapija

Impact of the Information Technology on Business Processes 147


Artir Maliqi

IT function in the Higher Educational Institution; the Role of IT Center on International


Burch University 148
Edis Bulić

Management and Organizations

Global Water Issues and Changes in Water Resources Management Policies 151
Ömer Faruk Bilbay, Veysel Eren, Yakup Bulut

The Importance of Vocational Education in Employment: A Study on the Students of


Food and Beverage Management 152
Emel Memis Kocaman, Mehmet Kocaman

Affecting Factors of Call Center Employees’ Job Satisfaction and Impact of Job
Satisfaction on Performance 153
Devran Deniz, Çağrı İzci

External Environment Analysis: A Focus on SME’s in the Republic of Macedonia 154


Izet Zeqiri, Brikend Aziri
How The Level Of Emotional Intelligence Affects Opportunity Identification? 155
Seda Tüysüz, Ülke Hilal Ağırman, Ömer Faruk İşcan

The Effect of Emotional Intelligence on Self Efficacy and Entrepreneurial Intentions: An


Application of Business Students 156
Ülke Hilal Ağırman, Seda Tüysüz, Atılhan Naktiyok

Holland's Theory of Careers and Vocational Choice 157


Orhan Adigüzel, Hikmet Zeynep Batur, Döndü Sönmez Özkan, Adeviye Erdoğan,
Nisa Ekşili

Gamification Apps in the Business Life and the Research of Business Firm’s Opinion
towards Games Application 158
Orhan Adigüzel, Adeviye Erdoğan, Döndü Sönmez Özkan, Hikmet Zeynep Batur,
Nisa Ekşili

Competition in the Albanian market 159


Sonila Gruda

The Influence of Family Tradition and Gender Differences on Entrepreneurial


Intentions: Perception of Business Students at Public University in Turkey 160
Göknur Ersarı, Ömer Faruk İşcan, Atılhan Naktiyok

Analyzing Entrepreneurial Orientation of SMEs: Evidence from Albania 161


Alba Kruja (Demneri)

Creating Value for Leasing Service Customers on the Example of VB Leasing In the
Market of Bosnia And Herzegovina 162
Slobodan Vujić, Saša Vujić, Aida Abduzaimović, Ibrahim Obhodas

A Field Research about Oppression Incurred Upon Woman Entrepreneurs in Patriarchal


Societies 163
Metin Uluköy, Yavuz Akçi

Factors Affecting Sustainable Competitive Advantage in the Wood industry in B&H 164
Jasminka Ahmetasević, Erkan Ilgun

Entrepreneurship: Analysis of the Literature 165


Dino Arnaut, Uğur Ergün

Supports and Critiques on Porter's Competitive Strategy and Competitive Advantage 166
Ensar Mekić, Emina Mekić

The Balanced Scorecard as a Performance Measurement Tool


in Terms of Strategic Management 167
Mustafa İyibildiren, Kemal Nalçın
The Role of School Management in Human Resources Management 168
Farzeta Gutić, Hanifa Obralić

Student Perception of Bologna System of Education in B&H – Private University Case


Study 169
Minela Hadžić, Nataša Tandir

Factors of E-Business Success: Comparative Analysis of Pik.Ba and Market.Ba 170


Tarik Prušćanović, Meliha Handžić

Albanian Management Consulting Industry 171


Elena Pici, Jona Hoxhaj

An Evaluation of Municipality Services in Sivas, Turkey through the lens of CSS scope 172
Hasan Tağraf, Ahmet Murat Özkan, Görkem Nemutlu

A Comprehensive Look at Generation Z and Their Expectations


from Public Administration 173
Hasan Tağraf, Görkem Nemutlu, Ahmet Murat Özkan

The Necessity of Establishing Helicopter Emergency Medical Service (Hems) in Bosnia


And Herzegovina 174
Alem Kaplan, Haris Varupa

The Impact on Specialization of the Effect of Business Department and Business


Enrichment: Mediterranean Region Agencies in Turkey 175
Merve Inel, Hüseyin Çiçek

The Impact of the Action Centered Leader on the Business Motivation: Mediterranean
Instutions in Turkey 176
Nihal Cantürk, Hüseyin Çiçek

Small and Medium Enterprises (SME’s) in the Region of Prizren 177


Dren Bllaca

The Impact of Supply Chain Management Practices on Competitive Advantage and


Organizational Performance; Case: Companies in Bosnia and Herzegovina 178
Adnan Halilović, Erkan Ilgün

Executive Issues in Service Businesses 179


Zehra Gül, Abdullah Soysal

Public and Private Universities in Bosnia and Herzegovina 180


Muhammet Sait Dinc

The Social Work Perspective of Civil Society Organizations in Turkey 181


Hüseyin Gül, Ahmet Pekcan
A National Quality Infrastructure 182
Alma Aganović

Management Students’ Perceptions of the Ethical Values of Managers: the Comparison


Study of Turkey and Bosnia and Herzegovina 183
Salih Faruk Cibiz

Marketing

The Importance and Place of Information Technology in the Changing Marketing


Concept 187
Hacı Mustafa Paksoy, Belkıs Dilek Özbezek, Erhan Kilinç

The Impact of Job Satisfaction in Academic Job Advertisements in Turkish State Funded
Universities, the Case of Ege University 188
Ahmet Salih İkiz

Brand Management: The Analysis of Corporate Slogans among


the Banks in Southeastern Europe 189
Aleksandar Dejanović, Slavka Nikolić, Jelena Stanković

The Role of Consumer Trust in Internet Shopping: A Comparative Study in Turkey and
Bosnia and Herzegovina 190
Merjem Rovčanin, Teoman Duman, Kenan Aydın, Meral Uzunöz

Competition in the Albanian Market 191


Sonila Gruda

The Role of Social Media on Corporate Reputation in the Smartphone Market: A Student
Perspective 192
Hilal Asil, Derya Okumuş, Yasemin Torun

Research of the Psychological Factors That Have Influence on Consumer Behavior 193
Sandra Soče Kraljević, Marija Brekalo

Barriers of Entry to Foreign Markets for Firms in Bosnia and Herzegovina 194
Adela Mujčinović, Teoman Duman

A Group of Travel Agents Relationship Marketing Practices 195


Gul Nihan Guven Yesildag

Consumer Attitude Toward Mobile Marketing in BH 196


Irma Jasarspahic, Teoman Duman

Understanding Integrated Marketing Communication: Theory and Application 197


Adnan Murad
Building the University Brand in Bosnia and Herzegovina 198
Damir Topalović

The Angry Customers: A Reflection on Apparel Retailers in Turkey 199


Elif Akagün Ergin, Handan Özdemir Akbay, Bülent Özsacmaci

The Decision Making Process of Customers in Accordance to Imported and Domestic


Products – Case of Bosnia and Herzegovina 200
Teoman Duman, Ammar Vatrić

Social Studies

Education as a Tool for (Re) producing the Idea of Nation: The Case of Turkey 203
Begüm Burak

Effects of Brain- Improvers on Learning and Learners' Attitude 204


Ahmet Özalp

A Research Towards to the Determination the Factors Affecting


the Consumer Behaviors’ and Trends (Bingol University Sample) 205
Kasim Tatlilioğlu

Turkey’s Left-Wing Problem 206


Odul Celep

Bringing Geospatial Analysis to the Social Studies: an Assessment


of the City Sprawl in China 207
Polina Lemenkova

The Importance of Cultural and Gastronomic Tourism in Local Economic Development:


Zile Sample 208
Mehmet Kocaman, Emel Memis Kocaman

Relations between Overall Diet Quality and Attitudes and Behaviors Regarding
Sustainable Food Practices among High School Students 209
Hüseyin Çiçek, Ali Can, Hilmi Atalıç

Trust Climate and Trust Elements in Public Institutions: A Field Study 210
Yasin Taşpinar, Ali Şahin

Loyalty to National Identity: the Case of Albania 211


Reina Shehi, Griselda Lici

Rebuilding an Existing Foundation: How Architecture Shapes Behavior 212


Kaltrinë Kabashi, Shukran Qazimi, Mergleda Hodo
Impact on 21st Century Alliances on Countries like B&H BRICS Case: Mission
Impossible or Back to Retro Values? 213
Aida Soko

Does The European Union Have a Unique Foreign Policy On The Accession of New
Member States? Cases of Bosnia And Herzegovina and Turkey 214
Aida Čengić

Early Identification of Children's Talents 215


Mediha Riđić, Senada Cucak, Selma Graca

Positive Implications of Intimate Family Relationships


and School on a Child Development 216
Nusreta Omerdić, Zehra Hasanović

Sports in the Balkans- Ordinary Game or a Political Tool? 217


Mak Muranović

Are There True Secular States? 218


Dajana Bogdanović

Transitivity in Turkish TV Series or Modern Cinderella Stories 219


Özlem Özgür

Main Policies and Challenges of the European Union: “Is Bosnian Society Ready” 220
Hamidullah Bayram, Ali Goksu

Power and Politeness in Kuwaiti Faculty Meetings: A Critical Discourse Analysis Study 221
Khadija Alrashidi, Athari Alguwaidi, Suad Almutairi, Abdulmuhsen Alqahtani

Lifelong Learning - The Challenges of Modern Concept of Education


in Bosnia And Herzegovina 222
Alman Kasumović, Tarik Obralić

The Factors Development of Social Competence of Students in Boarding Madrasah in


BiH 223
Nejra Muratović, Hanifa Obralić

Roma Children’s and Parents’ Perspective of Education in Croatia – Insights from a


Qualitative Study 224
Tihana Štojs, Marica Marinović Golubić

Creativity and Innovation in A Continuous Process of University Teachers' and Associ-


ates' Improvement In Accordance With the Bologna Principles 225
Melida Župljanin

Communication within the Family as a Factor of Child Development 226


Faruk Mehmedinović, Tarik Obralić
The Concept of Hate Crimes, Scope of Evaluation within the Turkey's Laws 227
Öznur Yaşar, Emine Yılmaztürk

The Economic Diplomacy within the Frame of the United Nations; the Role of the
Economic Diplomacy for a Global and Regional Economic Development 228
Emilio Çika

Multicultural Education Needed for Health Care and Pedagogy Students 229
Wita Szulc

Self-perception of Competence of Teachers Working with Children with Attention


Deficit Hyperactivity Disorder in Bilingual Schools in the Sarajevo Canton 230
Lejla Dučić, Tarik Obralić

Protection of Vulnerable Children in Albania 231


Eglantina Farruku

Modern Pedagogical Views through the Prism of Islam 232


Mustafa Fetić

Economic Diplomacy and Embassies: Change and Continuity 233


Sabit Subašić, Kemal Balihodžić

The Importance of a Proper Emotional Development for the


Development of a Healthy Personality 234
Irmela Mujkić, Hanifa Obralić

Lifelong Education for Sustainable Development 235


Dautović Muharem

Table of Contents 236

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