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Vitez University of Travnik University Of Vitez University of Travnik University of Rijeka – Faculty of Economics – Jean Monnet Chair University of Antwerp – Jean Monnet Centre of Excellence University of Ljubljana – Faculty of Economics – Chair Jean Monnet University of Belgrade – Faculty of Organizational Sciences University of Zagreb – Faculty of Economics and Business Institut CEDIMES Paris – CEDIMES Rijeka 1st International Conference Economic System of the European Union and Accession of Bosnia & Herzegovina Vitez University of Travnik University of Rijeka – Faculty of Economics – Ad Personam Jean Monnet Chair Vitez University of Travnik University of Rijeka – Faculty of Economics – Jean Monnet Chair University of Antwerp – Jean Monnet Centre of Excellence University of Ljubljana – Faculty of Economics – Chair Jean Monnet University of Belgrade – Faculty of Organizational Sciences University of Zagreb – Faculty of Economics and Business Institut CEDIMES Paris – CEDIMES Rijeka 1st International Conference ECONOMIC SYSTEM OF THE EUROPEAN UNION AND ACCESSION OF BOSNIA & HERZEGOVINA ECONOMIC SYSTEM OF THE EUROPEAN UNION AND ACCESSION OF BOSNIA & HERZEGOVINA Program committee PRESIDENT University of Rijeka, Faculty of Economics, Vinko Kandžija Ad Personam Jean Monnet Chair, Croatia VICE-PRESIDENTS Claude Albagli University of Paris XII; Institut CEDIMES Paris, France Evrard Claessens University of Antwerp, Europacentrum Jean Monnet, Belgium Nikola Grabovac Vitez University of Travnik, Bosnia & Herzegovina Dragana Kragulj University of Belgrade, Faculty of Organizational Sciences, Serbia Andrej Kumar University of Ljubljana, Faculty of Economics, Slovenia Tonći Lazibat University of Zagreb, Faculty of Economics and Business, Croatia MEMBERS Heri Bezić University of Rijeka, Faculty of Economics, Croatia Jacques Bourrinet University of Aix-Marseilles III, Franc Kadrija Hodžić Vitez University of Travnik, Bosnia & Herzegovina Andras Inotai Institute for World Economics, Budapest, Hungary University of Wrocław, Institute of Economics, Jean Monnet Chair , Jarosław Kundera Poland University of Wrocław, Faculty of Law, Administration and Leon Olszwsky Economics, Poland Ivan Pavić University of Split, Faculty of Economics, Croatia Mario Pines University of Trieste, Italy Christos Pitelis University of Cambridge, Judge Business School, CIBAM, UK Alain Redslob University of Panthéon-Assas (Paris II), France Ion Stegăroiu Valahia University of Targoviste, Romania Dragoljub Stojanov University of Rijeka, Faculty of Economics, Croatia Boris Tihi Academy of Sciences and Arts of Bosnia & Herzegovina Miloš Trifković Vitez University of Travnik, Bosnia & Herzegovina Željko Turkalj University of Osijek, Faculty of Economics, Croatia I Organizing committee PRESIDENT Alen Host University of Rijeka, Faculty of Economics, Croatia VICE-PRESIDENT Senad Tatarević Vitez University of Travnik, Bosnia & Herzegovina MEMBERS Edin Arnaut Vitez University of Travnik, Bosnia & Herzegovina Jamila Jaganjac Vitez University of Travnik, Bosnia & Herzegovina Darijo Jerković Vitez University of Travnik, Bosnia & Herzegovina Amra Kraksner Vitez University of Travnik, Bosnia & Herzegovina Dražen Laštro Vitez University of Travnik, Bosnia & Herzegovina Danijela Sokolić University of Rijeka, Faculty of Economics, Croatia Sveučilište u Rijeci – University of Rijeka, Faculty of Publisher Economics, Ivana Filipovića 4, HR-51000, Croatia For publisher Heri Bezić Alen Host Technical editors Vinko Zaninović First edition (2012) 100 copies September 22-23 rd , 2011 Date and venue Hotel Central in Vitez, Bosnia & Herzegovina ISBN 978-953-7813-09-3 II CONTENT Plenary session Andrej Kumar Vinko Kandžija EU MEMBERSHIP IMPACTS; THEORY AND SOME EXPERIENCES OF SLOVENIA …………………………………………………………………….. 1 Kadrija Hodžić QUASI-MACROECONOMIC STABILITY AND INCERTITUDE OF REAL CONVERGENCE OF BOSNIA AND HERZEGOVINA TOWARDS EUROPEAN UNION………………………………………………………….….. …28 Evrard Claessens Vesna Stavrevska Armen Tatarević A TRADING S.T.O.R.M.P.A.T.H. ACROSS AN UNFINISHED CONTINENT; THE EU ASSOCIATION OF CROATIA AND GEOGRAPHICAL PERSPECTIVES FOR B&H ………….…………. …………43 Session 1 Theory and Practice of Economic Integration Iva Konda Neva Maher THE EUROPE 2020, KNOWLEDGE BASED ECONOMY AND CREATING INTEGRATION PROJECTS IN SLOVENIA …………………… 62 Branislav Dudić ACCESSION OF SERBIA TO THE EUROPEAN UNION ……………………. .72 Goran Miraščić ECONOMIC CHALLENGES OF THE EUROPEAN UNION WITH SPECIAL EMPHASIS ON THE EUROPEAN MONETARY UNION AND THE EURO ZONE ………………………………………………………………….79 Vinko Kandžija Alen Host Tomislav Kandžija NEWLY INDUSTRIALIZED COUNTRIES - THE MOVING FORCE OF ECONOMIC GROWTH ………………………………………….……………….. 94 III Session 2 International Business and Competitiveness in Changing Global Environment: Theory and Practices Tonći Lazibat Tomislav Baković Ines Sutić MANAGING INNOVATION SYSTEMS IN TRANSITION ECONOMIES…. 103 Božo Vukoja Bojana Katić THE RESPONSIBILITY AND ROLE OF THE AUDIT COMMITTEE AS A FUNCTION OF CONTROL OF INTERNAL AND EXTERNAL AUDITS IN THE DEVELOPMENT OF CORPORATE GOVERNANCE IN B&H …….. 115 Katja Zajc Kejžar Tina Golob Nina Ponikvar COMPETITIVE PROCESS AND FOREIGN FIRM ENTRY IN LIGHT OF EU ACCESSION: THE CASE OF SLOVENIAN RETAIL TRADE SECTOR …………………………………………………………………………...…127 Session 3 Case Studies on Specifics of National Economic Policies Related to Economic Integration Heri Bezić Tomislav Galović EXPORT COMPETITIVENESS OF CROATIA’S HIGH AND MEDIUM-HIGH TECHNOLOGY SECTOR …………………………………... …142 Fahrudin Fehrić Jamila Jaganjac INFLUENCE OF CORPORATE COMMUNICATIONS ON COMPANY’S OPERATIONS AND COMPETITIVENSESS ……….………………………...… 159 Milica Kostić Stanković Vesna Damnjanović THE SOCIAL MEDIA INTERACTION: CASE STUDY IN STUDENTS PERSPECTIVE …………………………………..…….………………………...… 172 Vidoje Vujić Željko Tepšić REGIONAL COMPETITIVENESS AND USE OF EUROPEAN UNION FUNDS – THE CASE OF CROATIA ………………………………………..…….179 Alen Host EFFECTS OF THE GLOBAL FINANCIAL CRISIS ON THE STABILITY OF THE BANKING SECTOR IN CROATIA …………………………….………..195 IV Session 4 Bosnia & Herzegovina; EU Integration Perspective, Trade and Cooperation Zdravko Bazdan WHAT WOULD JEAN MONNET AND ROBERT SCHUMAN SAY TODAY IF THEY WERE HERE WITH US IN VITEZ ……..……….. …………208 Alen Host Igor Cvečić Tomislav Kandžija ADJUSTMENT OF THE SOCIAL SYSTEM OF BOSNIA AND HERZEGOVINA TO THE EU SOCIAL POLICY ………………………..……. 223 Session 5 Regulatory Environment of the EU; EU and National Perspective Pavle Jakovac CURRENT PROGRESS IN CREATING EU INTERNAL ELECTRICITY MARKET – WHERE IS EU NOW? ……………………….…………….….……. 237 Teodor-Cezar Nita-Balasescu MANAGEMENT DE L’INNOVATION AU CENTRE DE LA POLITIQUE COMMUNAUTAIRE ……………………………………..…………………..……. 252 Deša Mlikotin Tomić ACCESSION TO EU AND MANAGEMENT OF CHANGES …..………..……. 261 Session 6 Business and Government Perspectives of EU Enlargements Božo Vukoja Matko Knežević DEVELOPMENT OF FINANCIAL REPORTING AND AUDIT AS KEY DETERMINANTS OF CORPORATE MANAGEMENT IN B&H ……………. 267 Edin Arnaut Darijo Jerković CURRENCY BOARD IN BOSNIA AND HERZEGOVINA - MACROECONOMIC STABILITY FACTOR, OR OBSTRUCTION OF ECONOMIC DEVELOPMENT IN THE PROCESS OF INTEGRATION IN EU AND EMU ………………………………………………………………………287 Ilija Ćorić Tihomir Luković THE ROLE OF CONTROLLING IN STRATEGIC ALLIANCES OF GLOBAL BUSINESS INDUSTRIES ……..……………………….. ………………297 V Ivo Šperanda THE USE OF HEDGING IN CROATIAN ECONOMY – ANALYSIS OF SURVEY RESULTS …………………………………………………..….……. 314 VI Andrej Kumar University of Ljubljana, Faculty of Economics, Jean Monnet Chair, Ljubljana, Slovenia Vinko Kandžija University of Economics, Faculty of Economics, Ad Personam Jean Monnet Chair, Rijeka, Croatia EU MEMBERSHIP IMPACTS; THEORY AND SOME EXPERIENCES OF SLOVENIA ABSTRACT For the majority of transitional countries, including those established form the territories and republics of ex Socialist Federal Republic Yugoslavia (SFRY), fully fledged membership in the European Union (EU) had been and for some is still one of the major economic and political development objectives. Reasons for such objectives are but few. From beginning of the last decade of 20 th century countries in economic and political transition vision EU member countries (EU 15) as a beacon and hope for their fast national welfare grows and for democratic system development. Besides hoping to become part of EU economic and political success and stability transitional countries were often aware of the global growth in the number of economic integrations. Registered number of economic integrations – Regional Trade Agreements (RTA) - with the World Trade organization (WTO) has grown significantly after 1991; from approximately 100 to 484 registered and 293 active RTAs at the end of December 2010. The process was coupled with so called economic globalization characterized and driven by non precedential fast and structured technological progress. Technological progress in last approximately 20 years was much faster that any time in the human history. Technology advancements created a need for growing national and business investments into R&D, together with vital need for improved and growing utilization of economics of scale and scope effects. RTAs number growth was probably one of the most acceptable responses of increasing number of national governments to the new challenges and opportunities created by globalization and technological progress. Global process of growing number of RTAs was and is just one of additional arguments supporting the wish and the need of remaining transitional countries in Europe – Western Balkan Countries (WBCs)- to speed up their process of
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