Vol. 11 | No. 21-22, 2024


EXPLORING CHALLENGES AND BARRIERS TO ICT ADOPTION AND THEIR SIGNIFICANCE IN THE WESTERN BALKAN ECONOMIES

Filloreta BRAHIMI, Mimoza MALOKU

Abstract

The ICT industry in the Western Balkans presents a highly advanced and favorable sector with substantial potential to positively influence economic development. This sector has demonstrated great potential in creating new employment opportunities for young entrepreneurs, thereby positively impacting the region's export levels. Economic growth models emphasize the role of technology in maintaining productivity and economic development. This paper presents a literature review highlighting the impact of ICT on productivity within the Western Balkans (WB) and the structural convergence of the region. Utilizing secondary data and analyses from various scholars, this review explores different indicators for each country in the Western Balkans: Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia. The initial conclusion indicates that while the Western Balkans exhibit a tendency towards productivity convergence among themselves and towards the EU, this progress lags behind the pace of GDP per capita convergence. The impact of ICT development in the region is significant both at the firm level and in terms of overall economic growth, yet it remains behind other regions. Promoting incentives for ICT businesses and fostering innovation is crucial to enhancing the region's economic competitiveness.

Pages: 73 - 81

DOI: https://doi.org/10.62792/ut.evision.v11.i21-22.p2710