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                    <text>Tourism and GDP Growth Linkage: Evidence from Developed and
Developing Countries
OguzOcal
NevsehirHaciBektasVeli University
Turkey
oguz_ocal@yahoo.com
AlperAslan
NevsehirHaciBektasVeli 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 lessdeveloped 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

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                <text>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.</text>
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                <text>Abstract :  The paper examines the relationship between tourism demand and its macroeconomic determinants (GDP, oil price, exchange rate) with an aim to test the dynamic interdependence between them in the case of Tunisia. Using yearly data from 1971 to 2014, the output of the ARDL model and the more recent Bootstrap rolling window Granger causality tests show important results with great economic implications for researchers, regulators, investors, … The results substantiate, especially, the following causal relationships, i.e. i) tourism-demand induces substantial increase in both economic growth and oil price, ii) economic growth led tourism demand, iii) increase in oil price affects negatively the tourism demand, iv) tourism demand and exchange rate are not significantly associated.     Keywords: Tourism demand, GDP, Oil price, ARDL, Bootstrap Rolling window.  JEL classification: O40, L83, P1.</text>
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                    <text>Tourism Expenditure and Economic Growth

AlperAslan
NevsehirHaciBektasVeli 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 growthled 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

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                <text>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.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Tourism Performance of Balkan Countries: Travel and
Tourism Competitiveness Pillars as Determining Factors
Kazım Develioğlu
Akdeniz University, Alanya Faculty of Business, Alanya-Antalya / TURKEY
kdevelioglu@akdeniz.edu.tr
Kemal Kantarcı
Akdeniz University, Alanya Faculty of Business, Alanya-Antalya / TURKEY
kantarci@akdeniz.edu.tr
Contemporary volatility of global macroeconomic environment
necessitates governments to balance their countries’ macroeconomic
figures. In this unpredictable environment, tourism has been valued as a
good source of foreign currency and employment. In this sense, WTTC’s
2012 report indicates that over the next ten years tourism industry is
expected to account for 1 in every 10 jobs on the world. To succeed this
goal country should increase their capabilities and develop a competitive
position to attract more tourists from around the world. In this sense,
tourism performance can be evaluated as a result of using competition
tools effectively in order to create a sustainable macroeconomic
environment.
In this study, we use World Economic Forum’s (WEF) classification of Travel
and Tourism Competitiveness factors to examine resources that are
expected to influence tourism performance in Balkan countries. Tourism
performance is measured by two variables: International tourist arrivals
and tourism receipts. Additionally, we measured competitive factors in
tourism industry using WEF’s classification of Travel &amp; Tourism
competitiveness factors, which consists of three sub-indexes and 14
factors that measure these sub-indexes that are reported below:




T&amp;T regulatory framework (Policy rules and regulations,
Environmental sustainability, Safety and security, Health
and hygiene, Prioritization of Travel &amp; Tourism)
T&amp;T business environment and infrastructure(Air transport
infrastructure, Ground transport infrastructure, Tourism
infrastructure, Information and Communication Technology (ICT)
infrastructure, Price competitiveness in the T&amp;T industry)

182

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo



T&amp;T human, cultural, and natural resources (Human resources,
Education and training, Availability of qualified labour, Affinity for
Travel &amp; Tourism, Natural resources, Cultural resources).

Methodology
In this study, the Balkans comprises the following countries: Albania,
Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Macedonia,
Montenegro, Romania, Serbia, Slovenia, and Turkey. In order to investigate
the impact of Tourism &amp; Travel competitiveness factors on the
performance of Balkan countries, we obtained the data from The World
Economic Forum’s “The Travel and Tourism (T&amp;T) Competitiveness Index”
for the years between 2008-2011 that is, currently, the only available data.
To reveal the relationship between aforementioned independent and
dependent variables, we performed two-separate multiple regression
analyses and obtained some useful insights, which are reported below.
Findings
The first multiple analysis results, in which tourist arrivals is used as
dependent variable, reveal that air transport infrastructure, safety-security,
and human resources factors are three variables that have the potential to
influence the number of tourists to visit Balkan countries. The second
multiple regression analysis results indicate that air transport
infrastructure, cultural resources, and human resources have the greatest
impact on international tourism receipts among aforementioned fourteen
competition factors.
Keywords: Balkan Countries, Tourism Performance, Travel&amp;Tourism
Competitiveness Index, Strategic Marketing.

183

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                <text>Contemporary volatility of global macroeconomic environment  necessitates governments to balance their countries’ macroeconomic  figures. In this unpredictable environment, tourism has been valued as a  good source of foreign currency and employment. In this sense, WTTC’s  2012 report indicates that over the next ten years tourism industry is  expected to account for 1 in every 10 jobs on the world. To succeed this  goal country should increase their capabilities and develop a competitive  position to attract more tourists from around the world. In this sense,  tourism performance can be evaluated as a result of using competition  tools effectively in order to create a sustainable macroeconomic  environment.  In this study, we use World Economic Forum’s (WEF) classification of Travel  and Tourism Competitiveness factors to examine resources that are  expected to influence tourism performance in Balkan countries. Tourism  performance is measured by two variables: International tourist arrivals  and tourism receipts. Additionally, we measured competitive factors in  tourism industry using WEF’s classification of Travel &amp; Tourism  competitiveness factors, which consists of three sub-indexes and 14  factors that measure these sub-indexes that are reported below:   T&amp;T regulatory framework (Policy rules and regulations,  Environmental sustainability, Safety and security, Health  and hygiene, Prioritization of Travel &amp; Tourism)   T&amp;T business environment and infrastructure(Air transport  infrastructure, Ground transport infrastructure, Tourism  infrastructure, Information and Communication Technology (ICT)  infrastructure, Price competitiveness in the T&amp;T industry)     T&amp;T human, cultural, and natural resources (Human resources,  Education and training, Availability of qualified labour, Affinity for  Travel &amp; Tourism, Natural resources, Cultural resources).  Methodology  In this study, the Balkans comprises the following countries: Albania,  Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Macedonia,  Montenegro, Romania, Serbia, Slovenia, and Turkey. In order to investigate  the impact of Tourism &amp; Travel competitiveness factors on the  performance of Balkan countries, we obtained the data from The World  Economic Forum’s “The Travel and Tourism (T&amp;T) Competitiveness Index”  for the years between 2008-2011 that is, currently, the only available data.  To reveal the relationship between aforementioned independent and  dependent variables, we performed two-separate multiple regression  analyses and obtained some useful insights, which are reported below.  Findings  The first multiple analysis results, in which tourist arrivals is used as  dependent variable, reveal that air transport infrastructure, safety-security,  and human resources factors are three variables that have the potential to  influence the number of tourists to visit Balkan countries. The second  multiple regression analysis results indicate that air transport  infrastructure, cultural resources, and human resources have the greatest  impact on international tourism receipts among aforementioned fourteen  competition factors.  Keywords: Balkan Countries, Tourism Performance, Travel&amp;Tourism  Competitiveness Index, Strategic Marketing. </text>
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                    <text>2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Tourism Policy and Planning in Context Of The Sustainable Development
Furkan BALTACI
Akdeniz University Alanya Faculty of Business, Turkey
fbaltaci@akdeniz.edu.tr
Abstract:Competitiveness have become more important for developed or developing
countries in today‘s globalized world economy. For a country to be succesfull in both
national and international markets is related how efficient they use economics resources.
Competitiveness degree of countries is a positive function of providing opportunities for
source of revenue for citizens, improving the quality of life, increasing employment
opportunities fort he reduction of unemployment etc… To progress on a strable manner on
the factors we stated will be possible with composing a sustinable economy. Tourism
activities can be used for providing a sustinable economy. It is seen as an undeniable fact
that tourism provides employment, acces foreign Exchange, investment opportunities,
regional and national development for economies of countries.
This study will expose the role of tourism for Bosnia – Herzegovina‘s economy growth in a
sustainable way. Also it will be determined that what kind of policies they should follow to
have more shares from global tourism market.
Key Words: Sustainable, Sustainable Development, Tourism Policy Planning.

1.

Introduction

Sustainable development lies at the hearth of the new Goverment‘s policies. It means achieving a balance
between three broad objectives-maintenance of economic growth, protection of the environment and prudent use of
natural resources, and social progress which recognized the needs of everone. Goverments hav efor many years used
the key economic inditacotors to develop and monitor their economic policies. The new challenge for statisticians is
to develpo a package of meaningful national indicators to monitor and report on our progress towards the broder
concept of sustainable develpoment, and to highlight the key issues and objectives.

2.

Sustainable Development

It is possible to see numerous of articles and reports on sustainable development. Sustainable development
can be defined in technical terms as a development path along which the maximisation of human well-being for
today‘s generations does not lead to declines in future well-being. There sustainable development was defined as a
development that ―meets the needs of the present without compromising the ability of future generations to meet
their own needs‖.This definition suggests the need to balance two concerns, one having to do with present, or
intragenerational needs and the other having to do with future, or inter-generational needs(WCED,1987). Attaining
this path requires eliminating those negative externalities that are responsible for natural resource depletion and
environmental degradation. It also requires securing those public goods that are essential for economic development
to last, such as those provided by well-functioning ecosystems, a healthy environment and a cohesive society.
Sustainable development also stresses the importance of retaining the flexibility to respond to future shocks, even
when their probability, and the size and location of their effects, cannot be assessed with certainty(OECD,2001).
Most important purpose of the development is provide that human goodness and mindkind reach to his
maximum capacity. Leaders of developed and developing countries, civilian society organizations, development
experts and international aim organizations are agree that about the sustainable development can be achieved by four
factors. These factors are healty and improving economy which attuned to changes of the age, revenues of the
country is distrubitioned between the citizens, a politic system and effective leaddership which to guarantee human
rights and freedom, an economic policy which consider that environment protect(Çelik,2006).
Sustainable development enormously important for developing country. If we consider that changes on
conditions of the internatioanl competition and international companies affect the basic establishments like
AB,OECD,WTO etc. by lobby(Türkel) , we can understand this very well.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Because of developing countries discover the new way fort he globalmarketing. So, From day to day,
conditions of competition get difficult for developed country. This conditions cause that come up against developed
country, to encounter. For example, lose the their market share.
It is possible that if a country want to have bigger share in global market, it must follow and use new
technology and have a strong economy. These factors are necessitate a good economic policy plannig.

3.

Economic Case in Bosnia-Herzegovina

Bosnia-Herzegovina economy based on energy, metal, forest products and mining sector. Foremost two
advantages of these sektors; they have high competition power and can bring lots of investors to aera.
The interethnic warfare in Bosnia and Herzegovina caused production to plummet by 80% from 1992 to
1995 and unemployment to soar. With an uneasy peace in place, output recovered in 1996-99 at high percentage
rates from a low base; but output growth slowed in 2000-02. Part of the lag in output was made up in 2003-08 when
GDP growth exceeded 5% per year. However, due in large part to the global economic crisis, GDP fell by about 3%
in 2009, exports fell 24%, and unemployment - as officially reported - rose above 40%(gia.gov).
In First three quarter of 2004, The Bosnia-Herzegovina Goverment‘s revenue increased %13,2 and it
attained 569 millions $. But, this rate is under the budget‘s targets and growth in industry is continue(FERB,2005).
We examined Bosnia-Herzigovina Economy on the table.
a.

Competitiveness Indicator 2000-2008

Competitiveness is become most important for developing and developed counyries global world
economy of today. Countries can be succesfull directly proportional with their resources use productive or not.
Countries would like to know that their advantage and disadvantage as far as other countries in international global
markets(TCCC, 2010).

Real effective exchange rate (REER) developments indicate stable (based on relative consumer prices) to
improving (based on relative unit labor costs) external competitiveness of BiH that has underpinned its growing
export market shares. A closer look at the evolution of unit labor cost shows a decline in employment, while output
and wages have been increasing. At the same time, BiH‘s export structure has shifted toward higher-value added
manufacturing goods. The growth of the more capital-intensive export sector ―metal and aluminum‖ implies an
upward shift in the capital-labor ratio over time. This argues for caution in interpreting the otherwise positive trends
in competitiveness based on labor cost indicators(World Economic Forum 2009-2010).

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

b.

Gross Wages and GDP per Employee
(Wages and labor productivity appear to be in line with neighboring countries)

Source: International Monetary Fund
Gross wages and GDP per employee indicator shows B.H‘s sub-par performance relative to
neighboring countries. According to members of private sectors, key factors impeding FDI and higher access of
companies to foreign markets include:

Political instability,

Complicated and ―expensive‖ bureaucracy,

Lack of clear vision for economic development,

Corruption and weak legislative framework,

Poor quality control(World Economic Forum,2010)
These indicators shows B.H haven‘t got sufficient competition. It is clear that B.H make a move for get
strong between the it‘s neighbour.
c.

Employment and Unemployment Indicator
2003

2004

2005

2006

2007

2008

(Percentage change)
Employment
Labour force (end-year)

0,8

1,6

0,5

9,6

1,6

-0,6

Employment (end-year)

-1

0,2

2,1

4,3

4,5

4

43,2

40,6

(In per cent of labour force)
Unemployment (end-year)

42,1

42,9

42

44,8

All of the developing counties have same problems. One of these problems is unemployment.
Employment and unemployment indicator shows B.H face to serious unemployment problem too. When we look at
the indicator, we can see Unemployment rate is %42,1 in labour force in 2003. This rate recedes to %40,6 in 2008.
Unemloyment rate is decreased by %2,1 from 2003 to 2008. B.H a country which AB‘s candidate an this rate is not
sufficient for E.U standarts.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

d.

Inflation Developments Indicators (2006-2009)

Sources: BiH authorities; and IMF staff calculations.
AB standarts necessitate mono division‘s inflation rate. If we look at the figure from this
perpective, we can suppose that B.H fulfils AB‘s inflation rate. But, wages and inflation figure show real state.
Decrease on the inflation was triggered by decrease on the wages.
All of these figure show that B.H have an uneven economy. Because of high unemployment rates,
low wages, sectors which need to progress etc., B.H needs to new employment and revenue areas.

4.

Tourism Potential Of Bosnia-Herzegovina

There are 393 hotels,motels, hostels ,pensions and 24,402 capacity of beds in Bonia-Herzegonia in
2009(for eleves months). Lots of hotels,motels,hostels and pensions are existing in Bosnia-Herzegovina Federation.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Source: Turkey Devolopment Bank(2010)
2007

2008

Capasity Of Building In
Tourism Sector.

2009

Piece

Piece

Hotels

169

179

5.9

Motels

95

95

0.0

Pensions and Hostels

50

61

22.0

Others

30

34

13,3

Total

344

369

7.3

Room Numbers(Total)

10,667

Bed Numbers(Total)

22,149

Ġncrease
or
decrease(%)

11,064

3.7

23,015

3.9

Piece

Ġncrease
or
decrease(%)
1

89
1
06
6
2
3
6
3
93
1

5.6

11.6

1.6

5,9

6.5
6.1

1,737
2

6.0

4,402

Tourists Arrivals And Change Rates

When we look at the tourist arrival and change rates figure, we can monitör increase of tourist arrivals
regularly. But, tourist arrivals rate declined %-6 in 2009. This declined resulted from global economic crisis.

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�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

Tourism Revenue and change rates per years
Years
Tourism Revenue
Change Rates(%)
(Million $)
2003
404
2004
507
25,5
2005
557
9,9
2006
658
18,1
2007
798
21,3
Tourism revenue of B.H increased regularly. The biggest increase rate can be watched in 2004(%25).
Sectoral Growth Rate of Hotels and Restaurants and GDP

Sectoral growth rate of hotels and restaurants followed an uneven path. We can watch taht The biggest
rate in 2006(%20) and the smallest rate in 2007(%-20). But, sectoral growth and GDP rates increased from 2007 to
2009(%30).
Tourism Indicators of B.H And Neighbouring Countries
Room Numbers
Bed Numbers
Overnight
visitors
(X1000)
Nights(X1000)
Tourism Revenue
(Million $)

B.H
10,789

Croatia
76,078

Montenegro
17,965

Serbia
24,023

Austria
285,558

Macedonia
7,214

22,442
306

163,171
9,307

42,778
984

52,547
696

646,915
20,766

17,124
3,903

1337
798

56006
9,576

7294
457

7329
1,011

100645
21,292

2018
219

Figure of tourism indicator show me that B.H have low rates and competition power for tourism
between the it‘s rival country.

5.

Tourism Types in Bosnia-Herzegovinia

Bosnia-Herzegovinia tourism based on natural and cultural tourism. Especially, winter sports, thermal,
SPA and ecological tourism, hunting and nature sports are very important for B.H toursim sector. Besides, country
have a seashore for 25 km to Adriatic Sea in Neum city.

6.

Tourism Policy And Planning for Sustainable Development in Bosnia-Herzegovina

An Effective tourism policiy and planning will be benefit to the B.H Economy. Because, tourisim is now a
major area of academic, goverment, industry and public concern. While it is now an oft-citied truism that is the

584

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo
world‘s largest industry, tourism is significant not just because of its size in terms of the number of people travelling,
how many people it employs, or how much Money it brings into a destinations(Hall,2008).
a.

What Is The Planning?
Planning is a tradinational and basic human activity(Dredge and Jenkins,2007). According to Gleeson
and Low(2000), planning is a dialectical concept rather than an ―analytical‖ one. An analiytical concept is one
that can be perfectly and finally defined in such a way that we can know what it is and what ist is not. A
dialectical concept,on the other hand, ,s one that overlaps with other concepts an deven eith its
opposite.It(planning),s a concept, like ―justice‖ or ―democracy‖ or ―money‖, crucially important for social life,
but one that can never be pinned down in a unique, perfectly encompassing definition.

b.

What Is The Policy?

Defining policy is not wasted efford. Clarifying what policy is, even if it is done from perpectives,
provides a means for people to enderstand what it is we are talking about, examining or researching. If such concepts
were not clarified, it wolud not be possible for us to refer to any particular disciplines or fields of study and for
bodies of knowledge to be developed. One could not developed a philosophy or set of principles for policy analysis
if one could not define policy(Dredge and Jenkins,2007).
c.

Sustainable Development in Bosnia Herzegovina and tourism

The speed and extent of the economic transformations associated with toursim devlopment, together with
the social and territorial changes consequent upon this, area by now familiar subject in tourism. Such transformations
are epitomised by the sequence of changes in the social construction of the Costa del Sol as a tourism destination,
and the territorial recognisation associated with this(Barke and France,1996;Marchena,1987). The Costa del Sol was
little more than a ascatter of fishing villages in the 1950s, but by the 1960s it had become a fashinable international
destination, and by the 1970s a mass toursim destinations(Williams and Shaw,1998)
Previously, we mentioned about the issue of B.H economy. B.H can be became a toursim destinations by
an effective tourism policy and planning like Costa del Sol for solve the issues in the B.H Economy. So, B.H
Goverment must to know that disadvantages in tourism sector.
d.

Disadvantage of B.H In Tourism Sector

B.H goverment must apply suggestions in down paragraph for tourism policiy and planning in the context
of sustainable development(Turkey Development Bank,2010);
 Advertisement activities are insufficient. This state ise disadvantage for international tourism market,
 Transport substructure is not sufficient,
 Hotels in the B.H are insufficient according to other Balkan Countries,
 Number of qualified personel is low and insufficient about the quality and quantitiy,
 Others sector which supported the tourism sector need to developt,
 There is insufficiencies about the tourist‘s healt and security,
 Natural, cultural, historical inheritences are defended adequately,
 Nights in the hotels are low too,
 B.H‘s economy depends on other countries‘s economic aims. So, B.H tourism investments become very
hard,
 B.H‘s constitution isn‘t sufficient for tourism investment,
 There is wrong competition in B.H‘s economy,
 There is out of balance revenue in B.H‘s economy,
 B.H‘s competition with the other Balkan countries.
If all of these negatives stats changes from these disadvantage to advantage, B.H will has good tourisim
policiy and planing.

585

�2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo

7.

Conclusion

Planning studies must be done for attain the targets which determined previously. National plans must be
prepared attentively for economic development context of the these plans.
Because of we see low indicators of tourism sector and economy, we can understand that B.H. haven‘t
sufficiet tourisim and economic policy and plannig. If B.H goverment would like the sustainable development for
it‘s economoy, urgently they must determine policy and planning of economy and tourism sector.
B.H goverment will have been obtained very well tourism policy and plannig when they determined which
they enter tourism markets. So, first of all B.H goverment overwiev it‘s tourism resources and advantage in tourism
sector.
After the tourism resources and advantage was determined in tourism sector, B.H goverment must began
to intensive advertisement activities all of the target markets, encourage tourism investments and infrastructure,
follow the activities which his rivals in the tourism sector, etc.
Unemploymnet, low wages, nights and competition power, depends on the aims of other countries of
issues can be solved by new ways, policy and planning. Exactly, we understand that importance of tourism sector
for B.H‘s sustainable development.

References
Barke,M and France,L.(1996).‖The Costa
pain.Wallingford.CAB International:.p.343-375

del

Sol‖,in

M.Barke,

J.

Towner

and

M.T.Newton(eds).Tourism

In

Çelik,Y.(2006).Hacettepe Sağlık Ġdaresi Dergisi.V.9.N.1
Definitions
and
Notes:
Economy
–
overview(https://www.cia.gov/library/
(https://www.cia.gov/library/
publications/theworldfactbook/docs/notesanddefs.html?countryName=Bosnia%20and%20Herzegovin&amp;countryCode=bk&amp;region
Code=eu" \l "2116"\o)
OECD.(2001).―Sustainable Development:Critical Issues‖.Policy Brief(2 Policy Brief).
Dredge,D.&amp;John J.(2007).Tourism Planning and Polic.Fabulous Printers.Australia.p.4.8.
Foreign economic relations boards.(2005).‖Bosna Hersek Ülke Bülteni.p.2-3
Gleeson,B&amp;N,Low,(200).Australian Urban Planning:New Challenges.New Agendas.Allen and Unwin.Sydney.p.12
Hall,C.M.(2008).‖Toursim Planning Policies,Processes and Relationships‖.Pearson Education Limited,England.p.1.
IMF Country Report.(2008),.Bosnia and Herzegovina: 2008 Article IV Consultation—Staff Report; Public Information Notice on
the Executive Board Discussion; and Statement by the Executive Director for Bosnia and Herzegovina. No. 08/327 October 2008
Washington, D.C.p.11
Marchena, M.(1987).Territorio y Tourismo en Andalucia.Sevilla:Junta de Andalucia.Direction General to tourismo.
MinibaĢ,T.(1960).Sürdürülebilir Kalkınma ve Etkileri.Ġstanbul Üniversitesi Ġktisat Fakültesi.
Turkish Cypriot Chamber of Commerce.(2010)

.‖North Cyprus Competition Report 2009-2010‖.p.4

Williams,A.M.&amp;Gareth S.(1998).Tourisim &amp; Economic Development.John Wiley &amp; Sons Ltd.England.p.1
Turkey Development Bank.(2010). Sector Reports of the Bosnia-Herzegovina.Tourism Report.Ankara.
World Commission on Environment and Development.(1987),‖Our Common Future‖.Oxford
University Press.Oxford.(See: http://www.worldinbalance.net/pdf/1987-brundtland.pdf)
World Economic Forum, Competitiveness Report 2009-2010.p.7

586

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                <text>Competitiveness have become more important for developed or developing  countries in today‘s globalized world economy. For a country to be succesfull in both  national and international markets is related how efficient they use economics resources.  Competitiveness degree of countries is a positive function of providing opportunities for  source of revenue for citizens, improving the quality of life, increasing employment  opportunities fort he reduction of unemployment etc… To progress on a strable manner on  the factors we stated will be possible with composing a sustinable economy. Tourism  activities can be used for providing a sustinable economy. It is seen as an undeniable fact  that tourism provides employment, acces foreign Exchange, investment opportunities,  regional and national development for economies of countries.  This study will expose the role of tourism for Bosnia – Herzegovina‘s economy growth in a  sustainable way. Also it will be determined that what kind of policies they should follow to  have more shares from global tourism market.</text>
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                    <text>Tourist Potential as a Factor of Rural Territories Development: Experience of
the Russian Federation Regions
Polina Ananchenkova
Academy of labour and social relations
Russia
ananchenkova@yandex.ru
Abstract: World experience shows that in Russia and other countries, the development of rural tourism
can be a very effective activity aimed at environmental, economic, and social development.
Today, about 20000 villages in Russia are on the verge of extinction. Consequently, rural tourism can
and should become the very “locomotive” that will really pull out and revive the rural areas of Russia.
The development of rural tourism is named among the priority area provided for in the “Concept of
Sustainable Development of Rural Territories of the Russian Federation for the period up to 2020”,
approved by Order of the Government of Russia in 2010.
Expert assessments based on studies conducted in the regions of the Russian Federation show that the
approximate level of income from rural tourism activity per administrative region of the constituent
entity of Russia may be about 30 million rubles (500 thousand US dollars) per year. In the case of the
implementation of an integrated approach involving the joint development of agricultural activities and
rural tourism, the effect can double – up to 50-60 billion rubles per year.
Rural tourism in Russia is a new socio-economic phenomenon oriented to the use of natural, cultural,
historical resources of rural areas to create and supply a tourist product to a wide range of people. In
this regard, it should be thought that the strategic priorities of the national policy aimed at stimulating
tourism in rural areas should be the concentration of tourist resources and creation of destinations that
include backbone tourist centers with high potential for the formation of rural tours, and territories
adjacent to the borders. At the same time, the activation of rural tourism will allow developing territories
that do not have promising industrial and agricultural organizations, and thereby improve the socioeconomic situation of the country as a whole.
Keywords: rural territories, development, tourism, Russian Federation
JEL Classification: Z320, R190, Q010

Introduction
World experience shows that in Russia and other countries, the development of rural tourism can
be a very effective activity aimed at environmental, economic, and social development. At the
end of XX and beginning of XXI century in the world a great interest to rural tourism has arisen,
and different countries have excellent examples of organization and promotion of this type of
tourism. At this, each country thanks to natural landscapes, traditions of agriculture and cattle
breeding, specifics of cuisine, rural culture, architectural appearance and vernacular legacy of
villages create own national model of rural tourism development. Rural tourism is slowly
56

�becoming popular, fashionable and recreation in countryside already takes second place after
seaside vacation. Russia does not remain aside from modern trends in this area. Today, about
20,000 villages in Russia are on the verge of extinction. Consequently, rural tourism can and
should become the very “locomotive” that will really pull out and revive the rural areas of
Russia.
Subjects of rural tourism services provision
According to data of monitoring of rural tourism development in regions of the Russian
Federation, subjects of rural tourism services provision, in general, are:
- small businesses providing accommodation, catering, and excursion services;
- Peasant Farm Enterprises, Household Farms, farmers;
- food processing enterprises;
- administration of Specially Protected Natural Reservations (SPNR);
- institutions of culture and sports in rural areas, in some cases, schools;
- religious sites;
- rural residents and summer visitors.
Subjects of services provision have one thing in common, i.e. all of them are located at rural
area, but due to organizational-legal stats and different departmental affiliation there is a certain
discrepancy in interests.
List of services provided to tourists nowadays in almost each region is rather diverse, and
depends on demand as well as on initiative and wishes of subjects providing services.
Approximate range of services is as follows:
- services of temporary accommodation in guest rooms, rural guest houses, houses, inns, etc.;
- catering and tasting services;
- agro-tourist services (participation in agricultural operations: haymaking, shearing, milking,
etc.);
- agro-tourist services (gathering of mushrooms, berries, vegetables, wild plants, etc.);
- sale of agricultural products, meat, dairy products, wild plants, crafts, etc.;
- riding horses, deer, camels, dogs, agricultural machinery;
- services of fishing, hunting;
- rental services, baths, bakeries, smokehouses, parking lots, etc.
- cultural and educational facilities (rural Museum, Club, library);
- training and teaching handicrafts and trades;
- participation in event activities and religious holidays;
- other.
Despite wide range of services to be provided within rural tourism subjects’ activities are
focused on three directions:
57

�At first, services of temporary accommodation in guest rooms, rural guest houses, houses, inns,
etc. One of the first regions of Russia to have achieved positive results in reception of tourists in
private (rural) houses with “bed &amp; breakfast” services as well as in teaching local residents the
basics of tourism organization is the Republic of Karelia (http://www.ticrk.ru). Rural estates’
owners in Karelia were supported within frames of implementation of international project,
Tacis, “Development of rural tourism on basis of rational use of natural and cultural resources”
main result of which according to experts was establishment of Association of Rural Estates’
Owners “Estate” for coordination and support of activities of rural houses’ owners.
Second, tourist and tour services on basis of agricultural enterprises, farms, fishing facilities,
facilities of food processing industry, and etc. It should be noted that National Standard of the
Russian Federation GOST R 50681-2010 “Tourist Services. Design of Tourist Services”
determines co-providers of tourist services:
Organizations and enterprises of tourist industry as well as private entrepreneurs rendering
certain services (accommodation, catering, transport entities, exhibition complexes, museums,
and etc.) under contracts concluded with tour operators at formation of tourist product.
Obviously, objects of agricultural sector providing tourist and tour services refer to this list to
the similar ones.
In many Russian regions tours to special agricultural farms/agricultural production facilities
become rather popular, during which the visitor can get acquainted not only with production
process but also can try and purchase ready products, can learn some recipes, etc. (cheese
makers, wine makers, smokehouses, dairies, mushroom farms, etc.). Level of agriculture
development in regions attracts attention of both farmers and manufacturers of agricultural
products, and people interested in agriculture of the region.
Third, tourist and tour services rendered by rural cultural institutions (libraries, museums,
cultural and recreational institutions), whereby we are talking not only about tours, acquaintance
with life and traditions, visiting religious sites, eves, but also about teaching handicrafts and
trades, singing and dancing skills, and etc.
In 2014, for the first, in federal budget there was allocated over three billion Rubles for
renovation of material base of culture in villages and small towns. Mobile multi-functional
cultural centers have been provided for rural area. Since 2016 till 2020 Federal Target Program
“Sustainable Development of Rural Territories” where Ministry of Culture of the Russian
Federation is a state customer, for reconstruction of operating rural institutions of culture
provides for 2.8 billion Rubles from Federal Budget. Today, outside culture it is impossible to
ensure better quality and variety of services of cultural, -educational, ethnographic, rural, event,
and social tourism. These are exactly the types of tourism that significantly contribute to
education and moral improvement of society, civil patriotism and harmonization of inter-ethnic
relations, development of tolerance and respect for cultures of different peoples.

58

�State support of rural tourism in the Russian Federation
Nowadays, a great attention in the Russian Federation is drawn to state support of tourism
development in general and rural tourism in particular.
Strategy of Tourism Development in the Russian Federation until 2020 under Federal Target
Program “Development of Domestic and Inbound Tourism in the Russian Federation (20112018)” defines rural and ecological tourism as most promising for majority of regions of Russia.
This involves a range of issues, i.e. creation of tourist product, rational use of natural and
cultural heritage of the region, interests of local economy on basis of interaction and mutual
benefits, full support of driving force of rural tourism, entrepreneurship, involvement of
community in tourism development, linking interests of businesses and residents on basis of
mutually beneficial cooperation. Today, in many Russian regions priority of rural tourism
development has been confirmed by real actions and quite tangible results. And, and in light of
modern realities in terms of imposition of sanctions, stimulation of interest in products and
services of domestic tourism will increase business and investment activity in field of rural
tourism.
In 2014, the Ministry of Culture of the Russian Federation and the Federal Agency for Tourism
hosted a number of major events in field of rural tourism. These are international forum
“Agrotourism in Russia” held at the Republic of Buryatia, Russian Conference on Conservation
of Village Culture and Rural Tourism Development in Lipetsk, tourist forum “Rural Tourism in
Russia” in the Orenburg region. Within each event there were discussed current trends and
experiences of development of rural tourism in regions of the Russian Federation, especially
organization of tourist activity in rural areas and problems of legislative, infrastructure,
financial, personnel, informational support of development of rural tourism. Special attention
was given to measures of state support for rural tourism development at federal, regional and
municipal levels. Of vast interest there was experience of self-organization and coordination of
agro-tourist activities within such projects as the “Association of Most Beautiful Villages of
Russia”, and “Peasant Hospitality”. At presentation venues of Forums considerable part of space
has been showcasing best regional projects in chosen areas of rural tourism development
included in collection of materials reflecting best practices of subjects of the Russian Federation
on development of rural tourism.
Concept of sustainable development of rural areas of the Russian Federation for a period until
2020, and Federal Target Program “Sustainable Development of Rural Territories of the Russian
Federation for a Period till 2020” define objectives of stimulating increase in jobs in nonagricultural fields of activity in all possible organizational forms, especially, in field of
recreational and environment protection activities, agro- and environmental tourism, rural hotel
business. To improve cultural services for rural population, preservation and development of
cultural heritage, and enhance creative capacity of rural inhabitants there was determined an
objective of rebuilding, having cultural and historical significance farmsteads and other
59

�architectural and natural monuments, creation of museums, manor-ethnographic complexes and
other infrastructure of rural tourism as well as other activities.
By Decree of the Government of the Russian Federation as of February 2, 2015 No. 151-r there
was adopted a strategy for sustainable development of rural territories for a period till 2030
aimed at creation of conditions for sustained improvements in quality and standard of living of
rural population through benefits of rural lifestyle. Strategy states that rural tourism is one of
major directions of non-agricultural types of activity as well as has important socio-economical
functions of creation of attractive jobs including for rural youth and women; on development of
rural territories; on complex use of natural and cultural potentials of rural areas. Most important
for subjects of agricultural activities providing tourist services, for tourist companies organizing
tours to rural areas, for regional and local governments is a need to implement measures aimed
at formation of agro-tourist clusters; at holding educational events (advanced qualification
courses, educational workshops, master-classes, and trainings) for owner of rural guest houses,
representative of farms, private entrepreneurs, rural residents engaged in organization and
provision of tourist services in rural areas; media coverage of best practice and most successful
projects on development of rural tourism.
Analysis of measures of state support for rural tourism in regions has shown that more used
measures are provision of subsidies and grants (for repair and reconstruction of rural guest
houses, landscaping; participation in exhibitions; promotion; contests; training). Recipients of
subsidies and grants are small enterprises (owners of guest houses, manors, ethnicity complexes,
and farms in rare cases). In majority of regions state support of rural tourism is provided within
frames of state programs on development of culture and tourism, development of agriculture,
support for small businesses. Exception is Belgorod Region, where program of “Development of
rural tourism in the Belgorod Region for 2011-2015” is being implemented.
The main problems of rural tourism development in the Russian Federation

Analysis of materials of conferences, forums, round tables on rural tourism determined key
problems of rural tourism development in regions of the Russian Federation which hinder
effective and dynamic development of this direction of rural population occupancy.
1) Existing federal regulatory-legal acts governing activities in field of tourism lack the
concept of rural tourism. Regional practice for identification of discussed type of tourist
activity widely apply following concepts: “agro-tourism”, “green tourism”, “farm
tourism”, “village tourism”, and etc. However, nowadays, all those regulating this field
of activity and those engaged in this type of activity, as well as supervisory authorities
and consumers have to use single legal definition.
2) Currently in regions main means for accommodation in rural areas are "guest houses"
whereas paragraph 3.3 of the national standard of the Russian Federation GOST R
51185-2008 “Tourist services. Accommodation. General requirements” approved by the
60

�3)

4)

5)

6)

7)

Decree of Rostechregulirovanie as of 18.12.2008 No. 518-st specifies only “guest rooms,
chalets, bungalows, caravans”.
Significant problem for development of rural tourism is underdeveloped and in some
municipalities missing transport and engineering infrastructure (roads, electricity, water
networks, sewage treatment plants, bank protections, etc.), which is an obstacle to private
investments in tourism industry. Lack of telephone communication, Internet is often an
insurmountable obstacle for both, tourists and service providers. But above all, absence
of roads to rural tourism sites which include guest houses, and farms.
In most regions, one of the most important motivations for recreation at countryside is
visiting sites of cultural and historical heritage, religious sites, ethnographic and museum
complexes, old houses, castles, estates, etc.
Tourism allows for drawing attention to unique historical and cultural values, discoveries
of earlier unknown or unfairly forgotten historical settlements, sites and names.
Experts note inadequate involvement of values of the territory in tour programs.
In many Russian regions growing demand for rural tourism services enhanced
investment activities in reconstruction and construction of guest houses, small hotels,
manors, ethnicity complexes, catering, rural markets, trading pavilions, etc. Today it is
quite difficult to obtain available loans for implementation of these projects in rural
areas. According to experts, it is necessary to provide for small businesses in field of
rural tourism concessional borrowings, as well as development of methodical
recommendations and providing special advice for preparation and implementation of
business project.
Significant problem is misunderstanding and sometimes ignorance by rural entrepreneurs
of need to use market-based instruments for promotion of rural tourism services. In many
regions there are formed information databases of rural tourism sites, and first of all, of
accommodation facilities.
According to experts, there is a need in consolidated actions of rural tourism businesses
and greater cooperation on part of authorities on organization of study tours,
participation in exhibitions, advertising, website creation, etc. Experts recommend to
regularly fill the portal www.naselo.ru, the first Russian social network designed to
increase tourist flow to the countryside.
Serious and long-term challenge is staffing of rural tourism which shall be addressed
comprehensively. To avoid mistakes and disappointments, it is necessary to know
organization of tourist services, hotel and restaurant business, marketing rules,
calculation of costs, cost recovery and funding strategy. In some regions of the Russian
Federation (Altai Region, the Republic of Buryatia, the Republic of Karelia, Pskov,
Ryazan, Sverdlovsk regions, etc.) there is ongoing large and coherent work on
organization of training courses, development of methodological recommendations for
development of rural tourism. With purpose of informational, legal and financial support
it is proposed to establish informational-methodological centers for owners of rural
houses and providers of accompanying services for rural tourism.

61

�8) Insufficient level of coordination of activities in field of rural tourism, despite increased
attention to creation of associations of rural tourism. At the federal level, there are such
associations as the “Association for promotion of rural tourism”, “National association of
rural tourism entities” which pay especial attention to issues of development of
regulatory base for rural tourism; classification of objects of rural (agro) tourism, first of
all, rural guest houses; development of mechanisms for address support of rural tourism
subjects; informational and consultancy support of business entities; increase of role of
local governments in development of rural tourism.
Experts of Associations are confident that success of rural tourism development largely
depends on local governments, their ability to coordinate planning and management of
tourism development, encourage participation of local people in arrangement of tourist
services, advise and help those people who want to establish business, to support
development of rural culture.
Conclusion
At the end of XX and beginning of XXI century in the world a great interest to rural tourism has
arisen, and different countries have excellent examples of organization and promotion of this
type of tourism. At this, each country thanks to natural landscapes, traditions of agriculture and
cattle breeding, specifics of cuisine, rural culture, architectural appearance and vernacular legacy
of villages create own national model of rural tourism development. Russia does not remain
aside from modern trends in this area. Rural tourism is slowly becoming popular, fashionable
and recreation in countryside already takes second place after seaside vacation.

References
Kamilov M., Kamilova P., Kamilova, Z. (2016). Rural tourism as a factor of sustainable
development of territories. Russian Agriculture Economy, 12, 39-54.
Novichkov N., Novikov V., Novichkova N. (2014). Development of tourism at rural territories
of Russia in context of number of social-economic trends. Russian Agriculture Economy, 3,
7-14.
Shimova O.S. (2012). Basics of sustainable tourism. - Moscow: INFRA-M.
Russia in figures. 2012: Brief statistical collection/Rosstat. - M., 2012
Russia in figures. Annual Report for 2015 (2016). Moscow: Federal state statistics service.
Main indicators of agriculture in Russia. Annual Report for 2015 (2016). Moscow: Federal state
statistics service.
Leontiev J., Timoshenkova O. (2013). Regional tourist destination and its social-economic
development. Retrieved from: http://business-inform.net/pdf/2013/6_0/165_170.pdf

62

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                <text>Abstract: World experience shows that in Russia and other countries, the development of rural tourism  can be a very effective activity aimed at environmental, economic, and social development.  Today, about 20000 villages in Russia are on the verge of extinction. Consequently, rural tourism can  and should become the very “locomotive” that will really pull out and revive the rural areas of Russia.  The development of rural tourism is named among the priority area provided for in the “Concept of  Sustainable Development of Rural Territories of the Russian Federation for the period up to 2020”,  approved by Order of the Government of Russia in 2010.    Expert assessments based on studies conducted in the regions of the Russian Federation show that the  approximate level of income from rural tourism activity per administrative region of the constituent  entity of Russia may be about 30 million rubles (500 thousand US dollars) per year. In the case of the  implementation of an integrated approach involving the joint development of agricultural activities and  rural tourism, the effect can double – up to 50-60 billion rubles per year.    Rural tourism in Russia is a new socio-economic phenomenon oriented to the use of natural, cultural,  historical resources of rural areas to create and supply a tourist product to a wide range of people. In  this regard, it should be thought that the strategic priorities of the national policy aimed at stimulating  tourism in rural areas should be the concentration of tourist resources and creation of destinations that  include backbone tourist centers with high potential for the formation of rural tours, and territories  adjacent to the borders. At the same time, the activation of rural tourism will allow developing territories  that do not have promising industrial and agricultural organizations, and thereby improve the socioeconomic  situation  of  the  country  as  a  whole.        Keywords:  rural  territories,  development,  tourism,  Russian  Federation</text>
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                    <text>Towards Establishing Financial and Budget Indicators for Municipalities:
A Literature Review
MirjanaSejdini
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

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                <text>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.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Towards regional market of creative industries and
“creativisation“ of Western Balkans economy
Hristina Mikid
Modern Business School/Creative, Economy Group, Belgrade, Serbia
hristinamikic@gmail.com
Mirjana Rikalo
Creative Economy Group, Belgrade, Serbia
mirjana.rikalo@gmail.com
The objective of this paper is to compare and analyze developmental role
of the creative industries in Western Balkans countries (Serbia, Bosnia and
Herzegovina, Croatia, Montenegro, Albania, Macedonia) for the period
2000-2012. Statement and trends of creative industries development is
analyzed by cross-country based structural analysis that explains economic
situation in creative industries of the selected countries with special
emphases on impact of the economic crisis and institutional framework on
their position and development. The creative industries are studied on the
basis of some selected variables- employment, gross value added, business
activities (size and structure of creative sector), trade performances, etc. as
well as their contribution in fostering economic growth and development
in Western Balkan countries (“creativisation” effect). Institutional
framework is study by evaluation of economic, legal and organizationaladministrative measures and their influence in supporting or limiting
developmental process in creative industries.
The paper aim is also to provide analysis of options and potential effects of
the creation a regional market of creative industries in the Western
Balkans. The idea of a common creative industries market in the territory
of the Western Balkans is based on the assumption that this regional
market would include existing national creative industries markets in the
area of mentioned region, providing possibility for expansion on other
countries in the wider environment of the region. Creation of this regional
creative industries market can be understand as a positive component of
the integration process of the Western Balkans into the EU, but also as a
important step towards the stability of the national creative industries
systems, better nurturing of creativity, creative industries sustainable
development in all the Western Balkan countries, especially in the

158

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

conditions of economic crisis as well as higher level of “creativisation” of
Western Balkans economy.
The main hypotheses which should be validated are: What is the economic
contribution and potential of creative industries in Western Balkan
countries? Do they can affect the catalytic conditions of the economic
crisis in Western Balkans? How institutional framework influenced
development of creative industries in Western Balkans? Which innovative
policy response should be developed for encouraging of creative industries
in Western Balkans? How creative intangible assets could be transforming
into better source of economic development and what can be effects of
“creativisation” of Western Balkans economy? What are options and
potential effects of the creation a regional market of creative industries in
the Western Balkans?
Keywords: Public Policies, Creative Industries, Western Balkans, Economic
Development, Regional Market, Employment, Gross Value Added,
Creativisation of Economy.

159

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                <text>MIKIĆ, Hristina
RIKALO, Mirjana</text>
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                <text>The objective of this paper is to compare and analyze developmental role  of the creative industries in Western Balkans countries (Serbia, Bosnia and  Herzegovina, Croatia, Montenegro, Albania, Macedonia) for the period  2000-2012. Statement and trends of creative industries development is  analyzed by cross-country based structural analysis that explains economic  situation in creative industries of the selected countries with special  emphases on impact of the economic crisis and institutional framework on  their position and development. The creative industries are studied on the  basis of some selected variables- employment, gross value added, business  activities (size and structure of creative sector), trade performances, etc. as  well as their contribution in fostering economic growth and development  in Western Balkan countries (“creativisation” effect). Institutional  framework is study by evaluation of economic, legal and organizationaladministrative  measures and their influence in supporting or limiting  developmental process in creative industries.  The paper aim is also to provide analysis of options and potential effects of  the creation a regional market of creative industries in the Western  Balkans. The idea of a common creative industries market in the territory  of the Western Balkans is based on the assumption that this regional  market would include existing national creative industries markets in the  area of mentioned region, providing possibility for expansion on other  countries in the wider environment of the region. Creation of this regional  creative industries market can be understand as a positive component of  the integration process of the Western Balkans into the EU, but also as a  important step towards the stability of the national creative industries  systems, better nurturing of creativity, creative industries sustainable  development in all the Western Balkan countries, especially in the conditions of economic crisis as well as higher level of “creativisation” of  Western Balkans economy.  The main hypotheses which should be validated are: What is the economic  contribution and potential of creative industries in Western Balkan  countries? Do they can affect the catalytic conditions of the economic  crisis in Western Balkans? How institutional framework influenced  development of creative industries in Western Balkans? Which innovative  policy response should be developed for encouraging of creative industries  in Western Balkans? How creative intangible assets could be transforming  into better source of economic development and what can be effects of  “creativisation” of Western Balkans economy? What are options and  potential effects of the creation a regional market of creative industries in  the Western Balkans?  Keywords: Public Policies, Creative Industries, Western Balkans, Economic  Development, Regional Market, Employment, Gross Value Added,  Creativisation of Economy.</text>
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