Journal of Contemporary Economics

The Dynamics of International Trade Concentration: A Lorenz Curve and Gini Coefficient Analysis of Algeria-EU Trade (2018-2023)

2025-11-22T10:53:31-05:00

This comprehensive study examines the structure and evolution of trade relations between Algeria and the European Union from 2018 to 2023 through the lens of inequality measurement tools. Using Lorenz curves and Gini coefficients, we analyze the concentration patterns of both imports and exports across EU member states. Our findings reveal persistently high levels of trade concentration, with extreme inequality in export distribution (Gini coefficients: 0.863-0.896) and very high inequality in import distribution (Gini coefficients: 0.752-0.862). The research identifies significant structural shifts in 2022-2023, particularly the emergence of Bulgaria as a major import partner for Algeria. The study contributes to the understanding of trade concentration dynamics in North African-European relations and offers policy implications for trade diversification strategies.

Digital Trends in Financial Institutions: Challenges and Strategic Responses for Management

2025-12-29T05:20:59-05:00

This paper analyzes the digital transformation of the financial sector, including banking, insurance, investment funds, and microcredit organizations (MCOs). It identifies key digital trends such as FinTech, Artificial Intelligence (AI), and Blockchain, and examines their effects on business performance and regulatory requirements. The study highlights management challenges, especially the need for skilled staff and ongoing investment in technology. Its main objective is to present strategic solutions for overcoming digitalization challenges, with a focus on Bosnia and Herzegovina, and to outline future directions for performance improvement. The research finds that partnering with FinTech companies is the most effective strategy and offers a new analytical framework for addressing digital challenges in transition economies.

Painting the whole picture: Connecting new business formation, innovative entrepreneurship, and entrepreneurial ecosystems with unemployment

2025-12-18T06:26:12-05:00

The connection between business formation and unemployment has been a topic of discussion in the scientific literature for decades. As time progressed, new insights emerged from the increased utilization of methodological complexities. Nonetheless, a gap remains in how innovative entrepreneurs respond to changes in unemployment and vice versa. Similarly, there is scarce evidence of the relationship between entrepreneurial ecosystems and unemployment. To resolve these gaps, data is collected on a regional level of analysis, based on which the results of three panel vector autoregression models reveal no reverse causality between new business formation, innovative entrepreneurship, and entrepreneurial ecosystems on the one hand and unemployment on the other. They do, however, support two direct relations. One, new business formation negatively impacts unemployment. Second, unemployment is a negative antecedent of innovative entrepreneurship. Unexpectedly, the entrepreneurial ecosystem’s autoregressive coefficient is negative. These findings are situated within robust explanatory frameworks. Accordingly, the outcomes of this study can be utilized by a broad and diverse set of regional policymakers in devising their strategies to achieve regional development.

International entrepreneurial orientation: the analysis of reliability and validity of the scale in the context of small and medium-sized enterprises of Bosnia and Herzegovina

2026-04-02T04:30:04-04:00

The focus of this research is on the operationalization of the concept of international entrepreneurial orientation (IEO) as the most common construction used for evaluating the determinants of entrepreneurial behavior of the organizations that intend or are already included in international business. Starting from the theoretical basis of the concept and the current empirically verified measurement scales, a modified measurement instrument has been developed, which is adjusted to the specific context of the research: a small and open post-transition country of upper middle income – Bosnia and Herzegovina (BiH). The aim is to determine whether and to what extent the modified instrument IEO is reliable and valid for small and medium-sized enterprises (SMEs) from post-transition countries which strive to realize entrepreneurial internationalization in the conditions of institutional discontinuity. In order to determine constructive reliability of the innovated scale of IEO, Cronbach’s alfa coefficient, with its accompanying indicators was used, while the technique of Principal Components Analysis (PCA) with Promax rotation was applied to check the validity. Empirical research was realized on a sample of 81 export-oriented Bosnia and Herzegovina SMEs. The research results show that modified IEO scale has good internal consistency, as well as subscales, that is, its dimensions: international innovativeness (5 items), international proactiveness (3 items) and international risk-taking (3 items). The rotated solution of PCA for IEO scale uncovered the existence of a simple structure as all three components (international innovativeness, international proactiveness and international risk-taking) have a lot of large factor loadings and all items provide big loadings only per one component. In accordance with the results, the modified IEO scale has a potential to contribute to the research of international entrepreneurship in developing countries, creating the basis for more intensive empirical research, with facilitating collecting, measuring, analyzing and interpreting data for a pragmatic purposes.

Challenges and Opportunities of Managing Small and Medium-Sized Enterprises in Developing Countries in the Era of Industry 4.0

2026-04-17T02:42:57-04:00

Industry 4.0 represents a transformational movement that brings significant changes to production through smart technologies, automation, and data-driven decision-making. This paper examines the challenges and opportunities faced by small and medium-sized enterprises (SMEs) in the context of Industry 4.0. SMEs can achieve substantial benefits through the integration of the Internet of Things (IoT), data analytics, and other digital tools, enabling the optimization of supply chains, cost reduction, and improved inventory management. Digitalization provides SMEs with access to global markets, enhances innovation and productivity, and improves customer satisfaction.

This study conducts a systematic literature review with the aim of identifying the main challenges and opportunities that Industry 4.0 brings to SMEs, as well as synthesizing existing research on the topic in order to provide guidance for future studies and practical recommendations for SMEs.

However, the implementation of Industry 4.0 also involves challenges such as high investment costs, the need for workforce training, and cybersecurity risks. Governments and financial institutions can play a key role in supporting SMEs through accessible financing options and infrastructure development. Accordingly, this paper provides recommendations for governments and financial institutions on how to better shape the business environment for SMEs. Further research is recommended, particularly focusing on the development of theoretical frameworks, the collection of reliable data, and the implementation of comparative studies to identify best practices and key challenges in the adoption of Industry 4.0.

Financial Stability Indicators in the Banking Sector of the Republic of Srpska: A Descriptive Assessment of Restructuring Signals

2026-07-19T12:34:39-04:00

restructuring indicators in the banking sector of the Republic of Srp ska for the period 2020–2024, utilizing aggregate year-end supervi sory data published by the Banking Agency of the Republic of Srpska. In accordance with domestic banking-resolution regulations and in ternational standards, financial restructuring is defined as a set of ex traordinary measures designed to preserve critical functions and maintain financial stability when standard supervisory and recovery actions prove inadequate. The study employs descriptive and compar ative analyses, including both horizontal and vertical approaches, to evaluate trends in capital adequacy, profitability, efficiency, asset quality, liquidity, and growth, referencing relevant regulatory and an alytical benchmarks. The findings demonstrate high capital adequacy, stable liquidity, improved profitability and efficiency, and a reduction in the non-performing loan ratio from 5.2% in 2020 to 3.7% in 2024. However, declining coverage of non-performing loans, a slight increase in non-performing loans in 2024, and a substantial propor tion of short-term financial liabilities signal the need for ongoing su pervisory vigilance. Aggregate data do not suggest immediate, widespread distress in the banking sector at the end of 2024. Nonetheless, given increased macro-financial uncertainty, ongoing monitoring and prompt preventive measures are essential to address vulnerabilities before recovery or restructuring interventions are re quired. This study provides a transparent, context-specific evaluation of recent supervisory data within a small, bank-centered financial sys tem. As the analysis is based on aggregate sector-level data, the results do not preclude vulnerabilities at individual banks or confirm re silience under adverse stress conditions.

Digitalization and Leadership: Leadership Challenges and Change in the Era of Digital Transformation

2026-09-01T07:02:21-04:00

Digitalization has become a pervasive driver of organizational change, altering technologies, business models, coordination mechanisms, and the everyday experience of work. It fundamentally reshapes leadership by weakening the effectiveness of rigid hierarchies and increasing the need for leaders who can operate in fluid networks, guide project-based collaboration, and sustain trust in virtual and hybrid environments. The paper argues that digital transformation should be understood less as a technical modernization program and more as an ongoing leadership challenge in which soft skills such as empathy, communication, and collaborative influence become at least as important as technical literacy. It examines how continuous change, data-rich decision contexts, and ethical tensions around surveillance, fairness, and autonomy place new demands on leaders at all levels. Particular attention is given to the rise of projectization, the need for robust governance and data literacy, and the centrality of inclusion and psychological safety for maintaining engagement in digitally mediated organizations. Overall, the paper shows that organizations succeed with digital transformation when they develop leaders who can align technology, structure, and culture while keeping human meaning and dignity at the center of change. Conceptually, the article systematizes scattered insights on soft skills, projectization, and network governance into an integrated leadership perspective that can inform both empirical research and leadership-development practice.