Although middle-income Balkan countries have attracted substantial FDI inflows, the level of that inflow is still significantly lower than the European average, with no visible redirection towards the Balkans. Both wages and labour productivity have had a significant impact on FDI inflows in European Union (EU) countries. This research aims to explore the significance of those variables in the countries of the Balkans. We have found that, in Balkan countries, FDI inflows respond negatively to shocks in labour productivity, which is contrary to the experience of EU countries. In EU countries, growth in gross wages has a negative impact on FDI inflows, while in Balkan countries, we found a paradoxical scenario, in that increased wages actually have a positive impact on FDI inflows.

Montenegrin insurance market is in a low level of development compared to developed countries, with dominant share of non-life insurance. There are many factors influencing the insufficient development of life insurance in Montenegro. This manuscript offers an analysis of significant factors that have important impact on life insurance products purchase. In order to prove the hypotheses established in the manuscript, based on the survey, chi square test of independency and regression analysis were carried out. Testing results showed that age structure and education as demographic factors as well as level of employment as economic factor highly influence demand for life insurance in Montenegro while there is no evidence that different trust in insurance system, gender and region influenced purchase of life insurance.

In this study, we analyse the impact of service exports on GDP and productivity growth in a sample of thirty-eight European countries for the period 2000-2019. Descriptive statistics analysis of the panel data shows that growth in exports of goods is more positively related to GDP growth, total fixed assets growth and productivity growth, while growth in export of services is more positively related to employment growth. In addition, the analysis shows that the volume of exports (in terms of its share in relation to GDP) of knowledge-intensive services (information and communication, other business services, intellectual property) is higher in more developed countries (measured as GDP per person). The pooled panel OLS model (fixed effects) with GDP growth rate and labour productivity growth as the dependent variables shows a positive impact on GDP growth of exports of services, although the positive impact of growth in exports of goods is higher. It applies to labour productivity growth, with a larger positive impact from exports of goods than services.