PROBLEMS AND PROSPECTS TO SUSTAINABLE DEVELOPMENT IN COVID-19 "NEW NORMAL": EVIDENCE FROM WESTERN BALKANS' STOCK MARKETS

ABSTRACT

The paper examines empirically the adaptation of frontier stock markets of selected "capture" states in the Western Balkans in COVID-19 "new normal" realities by identifying the challenges and prospects to these countries and their stock exchanges for sustainable development. It focuses specifically to the deteriorating institutional quality of the business environment in the period 2013 - 2020 with lasting medium to long-term negative impacts on economic, social and environmental sustainability dimensions of the business setting. Peripheral stock exchanges of the Western Balkans would need to respond to various sustainability challenges at macroeconomic level (i.e., eco-innovation requirements, human development, democracy score deterioration etc.) as a condition for credible sustainable financial development in the foreseeable future.