EXPLORING CONNECTIONS BETWEEN INDUSTRIES IN THE WESTERN BALKAN COUNTRIES: A NETWORK ANALYSIS APPROACH

HOBBIE Waseem (Department of International Economics, Budapest University of Economics and Business, Budapest, Hungary), waseem.hobbie@gmail.com
VASIĆ Jelena (Head of the Centre for Strategic Analyses, Analytics, Planning and Publications, Chamber of Commerce and Industry of Serbia, Belgrade, Sebia), jelena.vasic@pks.rs
BUGARČIĆ Filip Ž. (Research Associate, Faculty of Economics, University of Kragujevac, Kragujevac, Serbia), f.bugarcic@kg.ac.rs

This study employs a network analysis framework to evaluate economic vulnerabilities within the Western Balkans (WB) value chains, focusing on Serbia, North Macedonia, Albania, Bosnia and Herzegovina, and Montenegro. The aim is to identify industries critical to the network’s structural integrity and assess potential impacts from disruptions. This approach provides new insights into the connections between the WB countries and regional industries based on input/output data for each sector. Evidence from raw bilateral trade data often misses those insights and does not provide the level of interconnectivity between industries. Our findings highlight the dominant importance of Serbia’s Electricity, Gas, and Water (ELE) industry and Transport (TRA). Also, several industries from North Macedonia are important within the region. The obtained results can be used to revise and adjust industrial and trade policies in the WB countries. Identified interconnectedness is significant for improving the countries’ position in international frameworks and their possibilities for more active participation in value chains.

Keywords: Network analysis; Western Balkans; industry; trade; value chains.