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                    <text>Foreign Direct Investment as a Factor of Economic Empowerment of the
European Union

AmraNuhanović
University of Tuzla
Bosnia and Herzegovina
amra.nuhanovic@untz.ba
HidajetKlapić
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

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                    <text>Study of Consumers View on the Appearance of Packaging by Producers:
Meggle, Milkos and Zim Using Descriptive Analysis and Student’s TDistribution
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
SašaVujić
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

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VUJIĆ, Slobodan
VUJIĆ, Saša
ABDUZAIMOVIĆ, Aida</text>
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                <text>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.</text>
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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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ASLAN, Alper</text>
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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>The Fulfillment of the Maastricht criteria by Macedonia and Albania: a
Challenging Journey towards the EU
RufiOsmani
South East European University
Macedonia
rufi.osmani@seeu.edu.mk
JetonMazllami
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

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                <text>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</text>
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                    <text>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

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                <text>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.</text>
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                    <text>Waste Disposal and Recycling in Albania: Case of Lezha Town
SalihOzcan
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

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BORA, Altin</text>
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                <text>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</text>
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                    <text>Role of the Media in Shaping Political and Electoral Behavior of the
Albanian University Students
SalihOzcan
Epoka University
Albania
sozcan@epoka.edu.al
DeaDhima
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

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DHIMA, Dea</text>
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                <text>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</text>
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                    <text>Globalization and Albanian Civil Society during the Democratic Transition

SalihOzcan
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

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HOXHA, Gilda</text>
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                <text>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.</text>
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                    <text>Political Ideologies and their Influence on the Political Behavior of the
University Students in Albania
SalihOzcan
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

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                <text>OZCAN, Salih
SALIHU, Arber</text>
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                <text>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.</text>
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                    <text>The Importance of Public Investments in Regional Development: An
Example of Gap in Turkey
SadettinPaksoy
Kilis 7 AralıkUniversity
Turkey
spaksoy@kilis.edu.tr
ErdalAlancioglu
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

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ALANCIOGLU, Erdal</text>
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                <text>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)</text>
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