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Business & Economics

IMPACT OF REGULATORY INCENTIVES ON LOCAL ECONOMIC DEVELOPMENT: MONTENEGRO CASE
Mijat Jocovic, Nikola Milovic, Jadranka Kaluderovic

ABSTRACT. The aim of the present paper is to analyse the impact of regulatory incentives on local economic development in Montenegro. After reviewing the relevant literature, the authors analyse the available programmes of regulatory incentives at the central and local level. The second part of the work presents the results of the survey identifying the degree of use and satisfaction of enterprises in relation to the analysed programmes. Having conducted the survey, the authors have concluded that in the period following the beginning of the economic crisis of 2009, local self-governments have engaged in the trend of conducting policy of local economic development that was not encouraging for the economy, so the support programmes have not been sufficiently developed. On the other hand, in the same period, the central government has created and implemented a series of stimulating regulatory incentives. However, the survey conducted among enterprises has shown that local and central-level support programmes for enterprises are scarce and financially very modest, failing to contribute significantly to the operations of the enterprises as such .

KEYWORDS:  local economic development, local self-government, central government, regulatory incentives.

JEL classification:  O11, O12, O23, P21.