Volume 27 Number 3, September – December 2025

ANALYZING THE IMPACT OF MACROECONOMIC CONDITIONS ON GDP GROWTH: BRICS VS. G7 COUNTRIES

Farial Faizi1, Mariam Sawas1, Dina Abohassan1, Ilija Stojanović1 and Marko Selaković2

The economic rivalry between the BRICS countries and the G7 nations has been a central theme in global development for decades. This study seeks to compare the GDP growth dynamics between the BRICS and G7 countries, while examining the differential impact of the key macroeconomic indicators on their economic trajectories. To achieve this, statistical methodologies, including independent t-tests and ANOVA, were utilized so as to compare the group-level differences, while the tests of between-subjects effects were applied to assess the variations in the effects of the regression coefficients for the macroeconomic factors influencing GDP growth. The study posits that the distinct economic structures of the BRICS countries and the G7 nations lead to varying macroeconomic conditions which shape their growth patterns in distinct ways. The findings of this research offer actionable insights into the strongest and weakest determinants of the GDP growth within these economic blocs. It contributes to a broader discourse on global economic competition, offering evidence-based recommendations for balanced growth strategies.

Volume 27 Number 3, September – December 2025

THE EURASIAN ECONOMIC UNION AT CROSSROADS: NAVIGATING TRADE INTEGRATION AND COMPETITIVENESS

Paskal Zhelev1 and Olga Malashenkova2

This study investigates the Eurasian Economic Union (EAEU) as a regional economic integration bloc, analyzing its evolution, trade integration, and industrial policy framework amid shifting global dynamics. Established in 2015, the EAEU has encountered structural challenges, geopolitical upheavals, and intensifying sanctions, especially following the war in Ukraine. These pressures have disrupted trade flows, widened economic disparities among member states, and tested the bloc’s cohesion. The paper emphasizes the fact that enhancing competitiveness is critical for the resilience of the EAEU, with the industrial policy serving as the cornerstone of this effort. Employing trade indicators, such as intra-regional trade shares and the Revealed Comparative Advantage (RCA) index, the study highlights uneven integration and dependence on resource-based exports. It evaluates the institutional framework of the EAEU’s industrial policy, focusing on subsidy harmonization, value-added industry development, and coordination between national and regional priorities. Despite persistent institutional weaknesses and external pressures, the findings suggest that fostering industrial modernization and achieving better synergy between domestic policies and regional ambitions could strengthen the bloc’s resilience and global competitiveness.

Volume 27 Number 3, September – December 2025

FOREIGN DIRECT INVESTMENT AND/OR INSTITUTIONS IN THE GROWTH FUNCTION OF THE WESTERN BALKANS: EXPECT THE (UN)EXPECTED

Iva Glišić and Slavica Manić

The economic literature is rich in papers analyzing the effects of FDI inflows or the impact of institutional quality on economic activity. The same is not true for analyzing the impact of institutional quality on FDI attraction and/or the joint impact of these two factors on economic growth, especially concerning the Western Balkans region. Our analysis covers five countries in this region over the period from 2007 to 2022 and aims to contribute to the relevant literature in that segment. The panel data were modelled using the GLS method. The result of the final model (out of the three evaluated) indicates an (un)expected positive effect of a lower institutional quality on economic activity through the FDI channel. One possible explanation for this finding is the hypothesis that “weaker” legislation (especially in the environmental field) in the Western Balkan countries attracts precisely the FDI that generates negative externalities in addition to economic growth. Nevertheless, it also suggests the necessity for considering the long-term risks associated with economic growth, relying predominantly on this type of FDI.

Volume 27 Number 3, September – December 2025

THE IMPACT OF HUMAN CAPITAL IMPROVEMENT ON PER CAPITA INCOME DYNAMICS IN THE CENTRAL AND EASTERN EUROPEAN COUNTRIES

Đorđe Kotarac1 and Zoran Popović2

Theoretical and empirical findings confirm the thesis that the accumulation of physical capital partly explains the movement of countries’ economic growth rates. Researchers in the field of development economics, as well as creators of economic policies, are shifting their focus from physical (PC) to human capital (HC) as a determinant of countries’ economic development. The subject matter of this paper is the analysis of the impact of HC on achieving higher per capita income growth rates. According to the “Lisbon Strategy” and the “Europe 2020 Strategy”, HC is placed on a pedestal of importance, all with the aim of making the EU-27 the most competitive market in the world. The empirical part was conducted using a panel regression model. The research results indicate a significant impact of HC on the per capita income of the CEE-10 countries. This research study contributes by reducing a gap in the scientific literature by examining the impact of HC on the per capita income of the European countries. The concluding implications point to the importance of HC development as an effective instrument for ensuring countries’ greater economic growth.

Volume 27 Number 3, September – December 2025

ASSESSING THE INFLUENCE OF ECONOMIC GROWTH ON COMPETITIVENESS AND INNOVATION IN THE CIRCULAR ECONOMY

Andrija Popović1, Andreja Todorović1 and Vladan Vučić2

This research explores the relationship between economic growth and competitiveness and innovation in the circular economy across the 27 EU countries from 2011 to 2020. Using descriptive statistics, Principal Component Analysis (PCA), panel data regression, and cluster analysis, the research investigates how the key economic indicators, such as GDP, GDP per capita, and gross fixed capital formation, affect the performance of the circular economy. The results obtained indicate a positive correlation between overall economic growth and circular competitiveness, though wealthier nations do not consistently lead in circular transitions. The analysis underscores the need for tailored, country-specific policies to promote sustainable practices in the circular economy, especially in less developed economies. These findings provide valuable insights for policymakers aiming to balance economic growth with sustainability.

Volume 27 Number 3, September – December 2025

Editorial 2025 (3)

Milena Jakšić

After conducting the double-blind peer review process, Issue 3 Volume 27 Year 2025 of the scientific journal Economic Horizons contains three original scientific papers, three review papers, and the List of the Authors and Titles of all the contributions published in the Journal in 2025.

Acknowledgements to the reviewers of the manuscripts submitted to the Editorial Board of the Journal in 2024

Milena Jakšić

Uredništvo naučnog časopisa Ekonomski horizonti se zahvaljuje recenzentima na kritičkom, objektivnom i argumentovanom vrednovanju rukopisa podnetih Uredništvu u 2024. godini.
Predmeti istraživanja rukopisa su iz značajnih oblasti ekonomije, poslovne ekonomije, menadžmenta i njima komplementarnih tematskih oblasti. Kompetentni predstavnici akademske zajednice, navedeni u ovom pregledu, su kritičkim vrednovanjem rukopisa podržali Uredništvo da, kroz dvostruko anonimni recenzentski postupak, unapredi ukupni kvalitet Časopisa.
S obzirom na to da je uređivačka politika Časopisa usmerena na neprekidno poboljšanje kvaliteta objavljenih rukopisa, recenzenti su konstruktivnim komentarima pomogli Uredništvu pri odlučivanju o prihvatanju radova za publikovanje i njihovoj kategorizaciji. Takođe, recenzenti su svojim konkretnim primedbama i predlozima značajno pomogli autorima da poboljšaju kvalitet svojih rukopisa, kao važnog uslova za kontinuirano unapređenje kvaliteta Časopisa.

Glavni i odgovorni urednik
Milena Jakšić

Volume 27 Number 2 May – August 2025

Comparison of humans and artificial intelligence in the AHP method-based content creation for digital marketing

Jelena Šiđanski

In digital marketing, the ability to create engaging and relevant content is a key success factor. Advancements in technology present new opportunities, with artificial intelligence (AI) reshaping various business sectors. AI can assist or fully manage content creation, helping marketers enhance work processes and outcomes. Using a multicriteria analysis model, it is possible to evaluate criteria and make decisions between alternatives for content creation. This paper uses the Analytical Hierarchy Process (AHP) to evaluate the alternatives, namely humans, AI, and a combination of the two, with the aim of improving content creation based on the criteria of creativity, speed, cost, content quality, adaptability, and conversion. The results of the paper indicate that marketing professionals consider humans to be most effective for content creation, particularly in creativity, content quality, adaptability, and conversion. While the combination of humans and AI offers advantages in cost efficiency and speed, it does not surpass the human-driven approach.

Volume 27 Number 2 May – August 2025

The impact of transfer pricing on the optimization of the financial and tax positions of related entities in the Republic of Srpska

Ljiljana Ž. Tanasić1, Srđan M. Lalić1, Željana Jovičić2 and Teodor M. Petrović1

This paper investigates transfer pricing as a strategic tool for optimizing business performance and reducing the tax burden of related entities in the Republic of Srpska. The goal of the research is to quantitatively assess the impact of transfer pricing on the achievement of the key business goals, including the improvement of financial performance, the minimization of tax burden and the strategic allocation of resources. The empirical data for the research were collected from the Register of Financial Statements for the year 2023. A simple linear regression model was used to determine the relationship between the application of transfer prices and the financial and tax position of related entities. Research findings show a significant and positive impact of transfer pricing on improving the financial and tax position of related entities, especially those operating in multiple tax jurisdictions. The results emphasize the importance of transfer prices as a strategic instrument for financial planning and the optimization of resources and recommend that the national regulatory framework should be harmonized with international guidelines.

Volume 27 Number 2 May – August 2025

The influence of mobile applications on customer loyalty in omnichannel retail

Svetlana Sokolov Mladenović, Suzana Đukić and Jelena Stanković

Modern customer loyalty programs are increasingly based on new technologies and forms of rewards, in which sense customer loyalty programs are increasingly implying the use of mobile applications not only as a means of collecting and realizing points, but also as a means ensuring ease of purchase, the personalization of the offer and entertainment through various types of prize games. Based on these facts, the paper explores the influence exerted by mobile applications on customer trust and loyalty in omnichannel retail. The research draws on Self-Determination Theory to explain the influence of autonomy, competence and relatedness as the key needs of people as customers on their trust and loyalty. The empirical research conducted using the survey method and carrying out SEM analysis showed that mobile applications significantly affected customer loyalty, with the moderators such as age and membership duration in the loyalty program playing a significant role in the process. The research results suggest that customers value the mobile applications that provide them with a sense of autonomy, i.e. control over the purchasing process, strengthen their existing competences and enable them to acquire new ones, making possible connectedness and friendship with other members of the program, thus generating their confidence in the quality and reliability of the mobile application and strengthening customer loyalty to the seller.