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Digital transformation and economic cooperation: The case of Western Balkan countries

Author

Listed:
  • Tanja Broz

    (The Institute of Economics, Zagreb, Trg J. F. Kennedyja 7, 10 000 Zagreb, Croatia)

  • Goran Buturac

    (The Institute of Economics, Zagreb, Trg J. F. Kennedyja 7, 10 000 Zagreb, Croatia)

  • Miloš Parežanin

    (University of Belgrade, Faculty of Organizational Sciences, Jove Iliæa 154, Belgrade, Serbia)

Abstract

Digital transformation is increasingly affecting many aspects of the world economy. It is boosting economic growth, has an impact on foreign direct investments and increases international trade. Hence, the aim of the paper is to analyse digital transformation in relation with the economic cooperation between Western Balkan economies. In order to do so, we construct two indicators: the harmonised index of economic cooperation among Western Balkan economies and the indicator of digital transformation convergence. The results indicate a rising trend of economic cooperation amongst Western Balkan countries, with cooperation dominated by foreign trade. Even though Western Balkan countries have experienced an increased digital transformation convergence, they are still lagging behind the EU in the use of digital technologies. Hence, placing more emphasis on digital transformation could potentially boost the region’s GDP and thus economic cooperation among them.

Suggested Citation

  • Tanja Broz & Goran Buturac & Miloš Parežanin, 2020. "Digital transformation and economic cooperation: The case of Western Balkan countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 697-722.
    • Handle: RePEc:rfe:zbefri:v:38:y:2020:i:2:p:697-722
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    More about this item

    Keywords

    digital transformation; regional economic cooperation; Western Balkan countries;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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