Jelena Stanković, Dragana Radenković-Jocić

DOI Number
First page
Last page


Many municipalities and cities face certain problems in attracting local and foreign investors and one of them is ineffective local administration, as well as the lack of transparency of rules and procedures start-ups and enterprises, branches and the like. Many local governments are not even aware of what is causing the problem and the lack of investment and investor preferences for other municipalities and cities. To be able to clearly state the causes of the problem, a program of certification of cities and municipalities has been initiated in many countries, including Serbia. This program involves evaluating the quality of services of municipalities and cities in terms of those elements that are particularly relevant to existing and potential investors. On the basis of the data on the level of quality of certain elements, one can realize what the local government of a city or municipality must change in order to be a convenient area for investment, and that would provide a friendly environment for potential investors. In addition, the program ends with a certification in case the municipality or city meets the minimum requirements in each of the elements of assessment. Since the evaluation of the conditions represents the basis for gaining the certificate confirming that the city or municipality is a favorable environment for investors, a very important issue is to determine the significance of the elements, and appropriate criteria, bearing in mind that not all elements are equally important from the perspective of investors. The aim of this paper is to establish a link between the level of fulfillment of the criteria in the process of certification of cities and municipalities and the ability to attract investors, and the acceleration of investment activity at the local level. The paper presents the current way of conducting the procedure of certification of cities and municipalities, and based on the results of the correlation analysis and DEA (Data Envelopment Analysis) method an insufficient influence on the fulfillment of these criteria to attract and activate investments at the local level was found.


business environment, cities certification, investment, improvement, DEA method.

Full Text:



Adler, N., Friedman, L., & Sinuany-Stern, Z. (2002). Review of ranking methods in the data envelopment analysis context. European Journal of Operational Research, 140(2), 249–265.

Aranđelović, Z., & Marjanović, V. (2011). Strategija i ekonomska politika u regionalnom razvoju Srbije. Regionalni razvoj i demografski tokovi zemalja jugoistočne Evrope[Strategy and Economy Politics in the Regional Development of Serbia. Regional Development and Demographic Currents of the Southeast European Countries]. Niš: Ekonomski fakultet.

Bulajić, M., Savić, G., Savić, S., Mihailović, N., & Martić, M. (2011). Efficiency assessment of banks in Serbia. Technics Technologies Education Management, 6(3), 657–662.

Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429–444.

Charnes A., Cooper, W. W., Golany, B., Seiford, L. M. and Stutz, J. (1985). Foundations of Data Envelopment Analysis for Pareto-Koopmans Efficient Empirical Production Functions. Journal of Econometrics 30(1/2): 91–107.

Cooper, W. W., Seiford, L. M., & Tone, K. (2005). Introduction to data envelopment analysis and its uses: with DEA-solver software and references. New York: Springer.

Cook, W. D., & Seiford, L. (2009). Data envelopment analysis (DEA)—Thirty years on. European Journal of Operational Research, 192(1), 1–17.

Cooper, W. W., Seiford, L. M., & Zhu, J. (2011). Data envelopment analysis: History, models, and interpretations. New York: Springer US.

Cvetanović, S. &, Mladenović, I. (2012). Factors of economic growth in the region: theoretical explication approach with emphasis on new economic geography. Regional Development and Demographic Trends of South-East Europe (13–22). Niš: Faculty of Economics.

Despotis, D. K., & Smirlis, Y. G. (2002). Data envelopment analysis with imprecise data. European Journal of Operational Research, 140(1), 24–36.

Premachandra, I. M. (2001). Controlling factor weights in data Envelopment analysis by incorporating decision maker's value judgement: An approach based on AHP. International journal of information and management sciences, 12(2), 67–82.

Savić, G., & M. Martić (1997). Connecting data envelopment analysis and multi-criteria analysis. SYM-OP-IS 97, Bečići, Montenegro, p. 811–814.

Stanković, J., & Anđelković Pešić, M. (2010). Primena kvantitativnih metoda i modela u poslovnom odlučivanju [Application of Quantity Methods and Models in Business Decission Making]. Vrnjačka Banja: Scientific and Technical Center for Intellectual Property – SaTCIP., taken from 11. 2. 2015., taken from 05. 4. 2013., taken from 12. 2. 2015., taken from 19. 4. 2015., taken from 23. 5. 2013.


  • There are currently no refbacks.

Print ISSN: 0353-7919
Online ISSN: 1820-7804