COMPARATIVE ANALYSIS OF DIGITAL ECONOMY DEVELOPMENT IN THE REGION

Abstract

This paper analyzes the development of the digital economy in Southeast Europe, with a particular focus on Bosnia and Herzegovina. The digital economyserves as a framework for economic growth driven by information and communication technologies (ICT), the digitalization of business processes, and innovations in production and services. The aim of the paper is to present the current level of digital transformation, identify key challenges and opportunities, and assess the impact of digitalization on the labor market, productivity, and competitiveness. Through descriptive and comparative analysis with countries in the region, notably Serbia and Croatia, the paper highlights areas where Bosnia and Herzegovina lags behind and where it outperforms its peers. Bosnia and Herzegovina leads in ICT employment (4.8 %) compared to Croatia and Serbia (both 4.3 %), but lags in e-commerce (43.9 % versus 59.7 % in Serbia and 59.4 % in Croatia). Broadband penetration is very high (99.4 %), nearly equal to Serbia (100 %) and above Croatia (87.5 %). The paper concludes with policy recommendations emphasizing strategic investments in digital infrastructure, strengthening digital skills and the ICT sector, and stimulating e-commerce through legislative and economic measures.