ЗБОРНИК РАДОВА ЕКОНОМСКОГ ФАКУЛТЕТА У ИСТОЧНОМ САРАЈЕВУ

THE INCOME GAP BETWEEN ADVANCED, EMERGING, AND DEVELOPING ECONOMIES: EVIDENCE FROM PANEL DATA

Mikhail Gozhev — 2026-10-14

The sustainability of the global economic growth poses the grave challenge for policymakers, academia and business. The main objective of the study was evaluation of income differences across the country groups over 2001-2024 period. The results
point on statistically significant income differences between the country groups of GN and BRICS+ and GS, however not between the BRICS+ and GS. According to results the per capita income in GN countries are 3,3 times higher than in BRICS+ countries on average. In turn the GS countries are about 37% poorer than BRICS+ countries on average, however the result is not statistically
significant. Finally pointing on income-growth dynamics across the countries the uneven pattern between the country blocs emerges. The GN countries are characterized by high-low pattern (e..g. high income, low growth); whereas BRICS+ and GS
countries are characterized rather by low-moderately strong and low-strong pattern (e.g. low income; higher growth). Whereas the catch-up effect could not be ruled out, it depends about income and wealth redistribution policies in these countries.

GREEN TRANSITION AND REGIONAL INEQUALITIES: AN ANALYSIS OF THE VULNERABILITY OF URBAN AND RURAL REGIONS IN SERBIA

Žaklina Stojanović — 2026-10-14

The green transition, as a conceptual and strategic approach aimed at decarbonizing national economies, reducing social inequalities, and preserving natural capital, entails numerous economic and social effects in both developed and developing
countries. These impacts are particularly pronounced at lower territorial levels, meaning that regions characterized by energy- and carbon-intensive activities, as well as those with lower economic diversification and unfavourable demographic characteristics, face greater vulnerability to the structural changes associated with the green transition. Taking these considerations into account,
this paper examines regional inequalities in the context of the green transition in the Republic of Serbia. Its main objective is to assess whether differences in vulnerability exist between more and less developed regions, as well as between urban and rural areas, and to identify the potential drivers of such disparities. The analysis is based on the construction and application of
a composite Regional Green Transition Vulnerability Index for Serbia at the NUTS 3 level. The index is developed using Principal Component Analysis (PCA) and draws on sectoral indicators covering energy, housing, transport, mining, agriculture, and tourism for 2023. The findings reveal pronounced territorial disparities and underscore the need to design green transition policies in a way that best reflects identified regional specificities.

CLIMATE-RELATED PHYSICAL RISKS AND BANKING SECTOR RESILIENCE: A MACROPRUDENTIAL PERSPECTIVE

Nemanja Popović — 2026-10-14

This study analyses the impact of climate related physical risks, with a particular focus on floods, on the financial and macroeconomic stability of Montenegro. Using regression models and stress-test scenarios, the paper examines the relationship between climate shocks and key indicators such as the share of non-performing loans (NPLs), GDP growth, and banks’ capital adequacy ratio (CAR). The findings indicate that extreme climate events significantly increase credit risk, which is reflected in higher NPLs, lower CAR, and adverse effects on economic growth. The simulations suggest that a severe climate shock
could double the level of NPLs and substantially undermine banking-sector stability, with potentially broader implications for the fiscal sector and insurance companies. The results confirm that climate risks should be integrated into macroprudential policies,
supervisory frameworks, and risk-management strategies, particularly in small and open economies.

PUBLIC DEBT-UNEMPLOYMENT NEXUS IN SOUTHEAST EUROPE COUNTRIES

Amra Babajić — 2026-10-14

The examination of the relationship between public debt and unemployment is of crucial importance for understanding macroeconomic dynamics and for designing sustainable economic policies. In recent decades, the countries of Southeast Europe (SEE) have faced a dual challenge: persistently high unemployment rates and rising levels of public debt. This paper analyzes the causal relationship between public debt and unemployment in SEE countries over the period 2004–2023, employing correlation and panel regression analysis. The study utilizes annual data spanning 20 years and covering eight SEE countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, North Macedonia, Romania, and Serbia). Empirical findings indicate a significant positive association between the growth of public debt and unemployment, particularly in the aftermath of the global financial crisis. The results underscore the need for careful fiscal policy balancing in order to mitigate the adverse effects of high indebtedness on labor markets in developing economies.

AGROBIODIVERSITY AND RURAL RESILIENCE IN MOUNTAIN REGIONS: THE ROLE OF FARM CULTURE IN NORTHERN ALBANIA

Sead Baraku — 2026-10-14

The study examines the relationship between agrobiodiversity and rural resilience in mountain regions of Northern Albania within the broader Western Balkans context. Using longitudinal panel data from 82 households and 107 businesses across 11 villages during 2023–2025, the study applies econometric models to analyze ecological, cultural, and economic dimensions of rural development. The findings show that higher agrobiodiversity is associated with stronger economic performance, higher investment activity, and greater rural resilience. Farm culture and biodiversity communication partially mediate this relationship, while mountain rural heritage strengthens the resilience effects of agrobiodiversity. Tourism participation and higher resilience levels are also associated with lower migration intentions. The study contributes to the literature by integrating agrobiodiversity, cultural practices, and heritage within a single empirical framework. Overall, the findings support integrated rural development strategies linking biodiversity conservation, tourism diversification, and territorial sustainability in mountain economies.