LAW AND ECONOMIC ASPECTS OF APPLICATION ELECTRONIC BUSINESS IN LOCAL SELF-GOVERNMENT UNITS

The use of e-business is the result, the application of information communication technologies (ICT) in modern business. A wide array of information and financial innovations intensifies competition, affects the improvement of business processes in the business environment, in business between businesses and related institutions and individuals. The use of ICT, as services implemented for better quality electronic services for citizens in the public sector, especially at the level of local self-government units, increases the quality of public sector services. The subject of this research is the analysis of characteristics, development factors and economic effects of electronic business in local government units in Bosnia and Herzegovina. The aim of the paper is to point out possible economic benefits, new ways: communication, access to services, education, acceptance of feedback, organization and delivery of information. The paper emphasizes the necessity of innovating and completing the legislation in this field. The underlying hypothesis is that e-business in local government units is necessary to positively affect the speed and efficiency of operations and that the success depends on effective protection of the financial privacy of users.