The paper deals with the problems related to economic development in Serbia and Southeast-European countries. Comparative analysis has been used for distinguishing typical changes of gross domestic product, foreign direct investment and gross domestic product per capita in Serbia, the countries of Southeast Europe and the Commonwealth of Independent States. The analysis indicates that the levels of both the gross domestic product (GDP) and production in Serbia and other countries are currently lower than in 1989, the year generally taken as the beginning of the process of transition from centrally planned to market economies. .

This paper analyses equilibrium in financial market when investors are aymmetrically informed, by using the methodology of game theory. We will show that bid-ask spread is increasing in probability of insider trading. Dynamic trading models suggest that insider?s informational advantage over market-maker is diminishing in time. By using sequential trading models we can explain various types of market manipulations and stock market crashes.

Although the decrease in foreign trade imbalance is almost the only positive macroeconomic shift in 2005, it seems that this problem is losing importance for no reason. Other burning economic problems (inflation, first of all) have pushed aside this problem that was a real burning issue. Of course that there has to be understanding for such treatment by the creators of economic policy considering the fact that the inflation in this year will surpass the originally planned inflation almost twofold, and that the International Monetary Fund is firm in insisting on additional rendering both fiscal and monetary policy more severe in order to restrain the growing price instability. Bearers of economic policy have already fulfilled a large part of the given requirements. Nevertheless, the foreign trade imbalance is still fairly high. This thesis is supported by the fact that Serbia is a country in transition with almost the lowest degree of import coverage by export. Despite the marked rise in goods export that has been realized in this part of the year, it is difficult to say which part of the growth has been caused by the privatization processes and restructuring, and which part accounts for a more realistic statistical expression that is a consequence of value added tax (VAT) endorsement. Also, there are certain vague issues concerning the import itself. The economists agree that VAT endorsement led to overflowing the import from 2005 to 2004 especially in the last quarter of 2004. Additionally, it seems that there is a wide consensus that VAT endorsement implied the decrease in the phenomenon which was supposed mostly by the creators of economic policy, to have played an important role, and it is about the "inflated" import invoices. Elimination or at least reduction in this phenomenon resulted in more realistic expression of goods import value. It is almost clear that a part of this year?s decrease in foreign trade imbalance has been due to temporary disorder caused by VAT endorsement. On the other hand, there is no doubt that the rest is due to the expansive increase in export which is the consequence of restructuring and privatization of domestic enterprises. In another words, if the mentioned tax form had not been endorsed, the foreign trade deficit would have been decreased, but with rather low intensity.

The intensity of foreign trade deficit and the dynamics of its growth from 2000 to 2004 suggest the need to give a special attention to the problem of competitiveness. It is a general opinion of professional public that the long-term competitiveness of a state and business cannot be generated from the current economic structure and, therefore, the structure of product export. Therefore, the solution to the problem is to be sought in restructuring the economy and the export offer, and adjusting it so that it meets the demand of the most important foreign trade partners. First of all there is the need to converge the product structure of export with the structure of foreign import, that is, the needs of the European Union. This is a consequence of the fact that this particular group of countries represents the most important destination of Serbian export, that is, that a little more than the half of the total product export is intended for these countries. This is exactly why it is necessary to establish a diagnosis of the degree of structural adequacy in terms of Serbia?s export to the European Union, and to provide a set of useful suggestions about how to find the cure.

Both the actual market flows and dynamiting of power ratios bring about the revolutionary changes within the marketing strategies and basic management approaches, while completely deranging the traditional value system (i.e. system established through marketing channel members' interaction). What is being altered are the market performance patterns, channel communication standards, and forms of institutional pressure manifestation toward the remainder of members which is being performed by the institution with highest economic and negotiating power. Retail company becomes the leader in development of break-the-rule strategies as well as the mutual revolutionary and innovational processes in marketing channel functioning. The final objectives of initiation of co-revolutionary retail strategy with the remainder of marketing channel members are identification and removal of all non-efficient points in the process of development and the process of adding value at all levels of distribution. In addition, these goals are the advanced management of supply chain and integration of consumers with appropriate marketing channel on a long-term basis.

The subject of the paper is to point out the need of compatibility between economic institutes and economic freedom in which the former are given priority. The aim of the paper is to try to explain - with a critical view of theoretical recommendations of neo-liberal economic pseudo-reformers certain aspects, dilemmas, errors and negative results of the post-socialist transition and privatization, especially the imbalance between defeating practical results and rhetorical theoretical absolutism of the private property institute as the basis of economic freedoms, entrepreneurial and market business.

Market processes can be analyzed by means of dynamic games. In a number of dynamic games multiple Nash equilibria appear. These equilibria often involve no credible threats the implementation of which is not in the interests of the players making them. The concept of sub game perfect equilibrium rules out these situations by stating that a reasonable solution to a game cannot involve players believing and acting upon noncredible threats or promises. A simple way of finding the sub game perfect Nash equilibrium of a dynamic game is by using the principle of backward induction. To explain how this equilibrium concept is applied, we analyze the dynamic entry games.

Financial development is correlated with several underlying regulatory variables (such as indicators of investor protection, market transparency variables for corporate governance growth and rules for capital market development), which are under the control of national legislators and EU directives. This paper provides estimates of the relationship between financial market development and corporate growth and assesses the impact of financial market integration on this relationship with reference to European Union (EU) countries. The regression results obtained using this panel support the hypothesis that financial development promotes growth particularly in industries that are more financially dependent on external finance. For policy purposes, analyzing changes in these regulatory variables may be a more interesting exercise than analyzing integration of the financial systems themselves. Since assuming that EU countries will raise its regulatory and legal standards to the U.S. standards appears unrealistic, in this case we examine a scenario where EU countries raise their standards to the highest current EU standard.

Corporate performance measurement is a key prerequisite for successful management, a process of guiding the enterprise from the existing to the particular, desired performance. Traditional performance measurement systems, based on the use of financial indicators, do not satisfy the needs of modern enterprises. They provide the measurement of the past results, but they do not provide enough quality information for improvement of performance in the future. Nowadays, a great number of different performance measurement systems have been developed. They have a more complex approach to performance analysis, using both financial and non financial indicators grouped in a certain number of performance perspectives. The disadvantages of this modern performance measurement systems can be diminished through their integration, which leads to creating new, integrated performance measurement systems.

In this paper we have calculated indexes of export-import similarity (Serbian exports and EU imports) by using certain statistical methods. A considerable increase in indexes of export-import similarity, after the approval of the EU preferential, shows that Serbian exports used to be adjusted to the EU market. After suddenly increasing, indexes of export-import similarity then decreased followed by a fall in the share of manufactured products in total exports, although the total exports and exports to the EU recorded a further increase. This fact clearly shows that a growth in exports was achieved mainly by primary products, which widened a gap between the Serbian export structure and that of the EU import structure. Therefore, a growth in Serbian exports can not be sustained without radical restructuring of the Serbian export sector.