The importance of trade openness and human capital for the economic growth of countries is the su... more The importance of trade openness and human capital for the economic growth of countries is the subject of many studies today. The role of innovations and the innovativeness of economies in modern economic development is extremely important. With greater accumulation of human capital, knowledge, skills and innovation are accumulated. All these variables are crucial for achieving higher economic growth. Special attention in the studies of relevant authors is directed towards researching this relationship on the example of small open economies, as well as developing countries. The purpose of this paper is to examine the relationship between trade openness and human capital as explanatory variables and GDP as a dependent variable in a sample of eight Balkan countries. The goal of the research is to quantify the relationship between two independent variables and GDP as a dependent variable. The period in which we observe this relationship covers the period from 2000 to 2019. Achieving th...
Zagreb International Review of Economics and Business, 2020
Constant current account deficit in Bosnia and Herzegovina results from a large foreign trade imb... more Constant current account deficit in Bosnia and Herzegovina results from a large foreign trade imbalance, which in turn is a consequence of uncompetitiveness of the economy in the global market. The current account deficit is mainly financed by foreign remittances, foreign aid, and least of all by foreign investment. Lately, the outflow of the active, working population has been decreasing the labor force (especially the qualified and highly educated employees), as well as the domestic demand, which will exert further pressure on the balance of payments account. On the other hand, monetary policy is operating under the principles of currency board, i.e. applying a firm exchange rate, so the question arises whether and to what extent it is sustainable, under the conditions of a high current account deficit. The purpose of this paper is precisely to examine the relation between the deficit of balance of payments and the sustainability of the currency board arrangement in Bosnia and Her...
Small and medium business (SMB) are very important in developed economies. They are very flexible... more Small and medium business (SMB) are very important in developed economies. They are very flexible, they lead in business initiative and innovations and very often they create a high growth rate. They are also very important because of their great participation in employment. All those reasons make it very important to adapt macroeconomic environment to demands of small and medium entrepreneurship. It is been noticed that there is more interaction between creation of economic policy and needs of SMB. Today SMB are more involved in international market which requires nee role of state in creating favorable economic environment. In stimulating SMB to participate on international market specific measures must be taken, which are only in certain segments similar to those on domestic market. Those measures include short-term measures (prices, nominal exchange rate...) and long-term measures for stimulating productivity and external competitiveness. Link between state and SMB is relation between endogenous and exogenous factors that are affecting external competitiveness which is central hypothesis of this work. Traditional instruments of foreign policy are less used because of global restrictions on that field, so governments of states are searching for alternative ways to increase competitiveness of national economies, and one way is certainly strengthening competitiveness of SMB on international market.
Bosna i Hercegovina spada u sam vrh zemalja po obimu doznaka i one čine značajan dio kapitalnih t... more Bosna i Hercegovina spada u sam vrh zemalja po obimu doznaka i one čine značajan dio kapitalnih tokova zemlje. Doznake u Bosni iHercegovini su uglavnom neproizvodnog karaktera i usmjerene su na ličnu potrošnju, izgradnju kuća i razvoj poljoprivredne proizvodnje.Nadalje, van svake sumnje je da su doznake doprinijele smanjenju siromaštva podizanjem raspoloživog dohotka stanovništva koje ih jeprimalo, a na taj način i u zemlji kao cjelini. Ipak, bez obzira na značajan i stabilan priliv po ovom osnovu, veoma mali dio doznaka jeuložen u razvoj. Za razliku od strane pomoći i privatizacionih prihoda, koji su ograničenog trajanja, i stranih direktnih investicija, čiji seobim menja zavisno od rizika zemlje, doznake su stabilan izvor deviznog priliva. Doznake za zemlje na nižem nivou razvoja čine i osnovnosredstvo pokrića deficita platnog bilansa i najznačajniji kanal kapitalnih priliva. One se mogu posmatrati i kao svojevrsni amortizer kojidoprinosi ublažavanju kriznih simptoma u privredi ze...
European Journal of Multidisciplinary Studies, 2016
The paper aims to analyze the influence of the Balassa-Samuleson effect on the competitiveness of... more The paper aims to analyze the influence of the Balassa-Samuleson effect on the competitiveness of Bosniaand Herzegovina. As we know, theBalassa and Samuelson argue that developing economies have an appreciating currency, because they have relatively high inflation due to higher productivity growth in the production of tradable goods. This problem has existed, more or less, in all transitional countries in the EasternEurope, and it was particularly stressed in the countries with a fixed exchange rate. This paper just shows that in Bosnia and Herzegovina, in which monetary policy operates on the principles of "currency board", there is an extremely high influence of theBalassa-Samuelson effect, which leads not only to make a competitive position on the international market worse, but it brings up the question of sustainability of the existing currency board system.
The importance of trade openness and human capital for the economic growth of countries is the su... more The importance of trade openness and human capital for the economic growth of countries is the subject of many studies today. The role of innovations and the innovativeness of economies in modern economic development is extremely important. With greater accumulation of human capital, knowledge, skills and innovation are accumulated. All these variables are crucial for achieving higher economic growth. Special attention in the studies of relevant authors is directed towards researching this relationship on the example of small open economies, as well as developing countries. The purpose of this paper is to examine the relationship between trade openness and human capital as explanatory variables and GDP as a dependent variable in a sample of eight Balkan countries. The goal of the research is to quantify the relationship between two independent variables and GDP as a dependent variable. The period in which we observe this relationship covers the period from 2000 to 2019. Achieving th...
Zagreb International Review of Economics and Business, 2020
Constant current account deficit in Bosnia and Herzegovina results from a large foreign trade imb... more Constant current account deficit in Bosnia and Herzegovina results from a large foreign trade imbalance, which in turn is a consequence of uncompetitiveness of the economy in the global market. The current account deficit is mainly financed by foreign remittances, foreign aid, and least of all by foreign investment. Lately, the outflow of the active, working population has been decreasing the labor force (especially the qualified and highly educated employees), as well as the domestic demand, which will exert further pressure on the balance of payments account. On the other hand, monetary policy is operating under the principles of currency board, i.e. applying a firm exchange rate, so the question arises whether and to what extent it is sustainable, under the conditions of a high current account deficit. The purpose of this paper is precisely to examine the relation between the deficit of balance of payments and the sustainability of the currency board arrangement in Bosnia and Her...
Small and medium business (SMB) are very important in developed economies. They are very flexible... more Small and medium business (SMB) are very important in developed economies. They are very flexible, they lead in business initiative and innovations and very often they create a high growth rate. They are also very important because of their great participation in employment. All those reasons make it very important to adapt macroeconomic environment to demands of small and medium entrepreneurship. It is been noticed that there is more interaction between creation of economic policy and needs of SMB. Today SMB are more involved in international market which requires nee role of state in creating favorable economic environment. In stimulating SMB to participate on international market specific measures must be taken, which are only in certain segments similar to those on domestic market. Those measures include short-term measures (prices, nominal exchange rate...) and long-term measures for stimulating productivity and external competitiveness. Link between state and SMB is relation between endogenous and exogenous factors that are affecting external competitiveness which is central hypothesis of this work. Traditional instruments of foreign policy are less used because of global restrictions on that field, so governments of states are searching for alternative ways to increase competitiveness of national economies, and one way is certainly strengthening competitiveness of SMB on international market.
Bosna i Hercegovina spada u sam vrh zemalja po obimu doznaka i one čine značajan dio kapitalnih t... more Bosna i Hercegovina spada u sam vrh zemalja po obimu doznaka i one čine značajan dio kapitalnih tokova zemlje. Doznake u Bosni iHercegovini su uglavnom neproizvodnog karaktera i usmjerene su na ličnu potrošnju, izgradnju kuća i razvoj poljoprivredne proizvodnje.Nadalje, van svake sumnje je da su doznake doprinijele smanjenju siromaštva podizanjem raspoloživog dohotka stanovništva koje ih jeprimalo, a na taj način i u zemlji kao cjelini. Ipak, bez obzira na značajan i stabilan priliv po ovom osnovu, veoma mali dio doznaka jeuložen u razvoj. Za razliku od strane pomoći i privatizacionih prihoda, koji su ograničenog trajanja, i stranih direktnih investicija, čiji seobim menja zavisno od rizika zemlje, doznake su stabilan izvor deviznog priliva. Doznake za zemlje na nižem nivou razvoja čine i osnovnosredstvo pokrića deficita platnog bilansa i najznačajniji kanal kapitalnih priliva. One se mogu posmatrati i kao svojevrsni amortizer kojidoprinosi ublažavanju kriznih simptoma u privredi ze...
European Journal of Multidisciplinary Studies, 2016
The paper aims to analyze the influence of the Balassa-Samuleson effect on the competitiveness of... more The paper aims to analyze the influence of the Balassa-Samuleson effect on the competitiveness of Bosniaand Herzegovina. As we know, theBalassa and Samuelson argue that developing economies have an appreciating currency, because they have relatively high inflation due to higher productivity growth in the production of tradable goods. This problem has existed, more or less, in all transitional countries in the EasternEurope, and it was particularly stressed in the countries with a fixed exchange rate. This paper just shows that in Bosnia and Herzegovina, in which monetary policy operates on the principles of "currency board", there is an extremely high influence of theBalassa-Samuelson effect, which leads not only to make a competitive position on the international market worse, but it brings up the question of sustainability of the existing currency board system.
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