Unlocking regional value chains: Fintech’s role in the Western Balkans' integration into global markets
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Digitalization and automation are restructuring the geographical landscape of operations and labor, significantly altering operations in global value chains (GVCs). Digital technologies are expected to boost resilience, enhance transparency, and foster sustainability in GVCs. In this context, this paper looks at how the application of fintech solutions fosters the creation of regional value chains (RVCs), increasing attractiveness and generating new opportunities for enterprises in the Western Balkan region to participate in GVCs To fill the existing gap for granular analysis at the industry level, the paper examines if enterprises in the Western Balkans that apply of fintech solutions in financial management have better opportunities to create RVCs than the ones that resist fintech implementation. Using a benchmarking instrument on fintech solutions implemented on 370 enterprises, this paper tries to identify industries with the highest potential to create RVCs and higher prospects for integration in GVCs. Our findings indicate that fintech solutions and applications can be one of the main driving forces in transforming and upgrading RVCs in Western Balkan countries.
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