Faculty of Economics, University of Niš, 13 October 2016 International Scientific Conference THE PRIORITY DIRECTIONS OF NATIONAL ECONOMY DEVELOPMENT 109 IMPACT OF THE BUSINESS SOPHISTICATION INDICATORS ON THE REAL ECONOMIC INDICATORS Goran Balotić * Slađana Paunović • Jelena Mićić ♦ Abstract: The basic precondition for good economic performance of a country, expressed through key macroeconomic indicators such as the industrial production level, GDP, exports and unemployment, lies in the competitive strength of its economy. Since the competitiveness of an economy is based on the competitive strength of its companies, the paper analyzes the factors which directly act on the micro-economic level, and in the case of developed countries, contribute to their overall economic prosperity. Business sophistication is the main subject of this work, particularly in the segment concerning its impact on overall economic dynamics, both those of most developed countries and those of developing countries, which are in various phases of transition process. Keywords: Competitiveness of economy, Real macroeconomic indicators, Business sophistication, Competitive capacity of companies, GCI. 1. Introduction Actual economic trends in the world show that economies with higher levels of industrial competitiveness are more resistant to the crisis. In statistical terms, referred statement is corroborated by monitoring of indicators movement, which are directly linked to the industrial competitiveness of a country, such as the share of industrial value added in GDP, the share of exports and changes in GDP, unemployment and so on. Tracing the analysis of factors that determine industrial competitiveness in this paper will examine the * University of East Sarajevo, Faculty of Business Economics, Bijeljina, BiH,  goran.balotic@gmail.com • University of East Sarajevo, Faculty of Business Economics, Bijeljina, BiH,  sladjanapaunovic11@gmail.com ♦ University of East Sarajevo, Faculty of Business Economics, Bijeljina, BiH,  helena.jelena@gmail.com UDC 65.2:330.3