The debt buildup process: Bosnia and Herzegovina – Republic of Srpska versus other European countries
Keywords:Republic of Srpska, debt, GDP per capita, recession, financial investments, indebtedness
Financial and economic crisis from 2008 created debt problems throughout the world, in developed and developing countries. Although the problems cause by the crisis were similar for all countries there were some specific differences between them. Here, e?ects of firm’s indebtedness in the Republic of Srpska are analysed in comparison with 15 European countries before and after the crisis, which serve as a benchmark. In the RS and also other considered countries in the collapse year (2009), the relative debt increases of under and over median firms di?ered drastically. In the main crisis year of 2009 the RS had 2 percentage points higher impact (relative to the Core European countries) of the financial accelerator or/and correspondingly di?erent e?ect of the shape of firm investment distribution on the debt increase. In 2009, country specific e?ects on the debt build-up process disappeared for all other observed countries except the RS, while in the year after the collapse they disappeared in the RS and picked upped again in all other countries, showing lagging of the impact of the crisis as well as a milder e?ect in the RS.
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