The E?ect of foreign trade on economic growth in the Republic of Srpska

Authors

  • Миленко Крајишник Faculty of Economics, University of Banja Luka
  • Далибор Томаш Faculty of Economics, University of Banja Luka

DOI:

https://doi.org/10.7251/ACE1420125K

Keywords:

foreign trade, economic growth, economic structure, Republic of Srpska, regression and correlation analysis

Abstract

Ever since Adam Smith the scientists have been investing enormous e?orts to explore and prove relationships between the foreign exchange and economic growth. One thing in common to all researches so far is that there is no complete agreement on a direct, positive inter-relation between the foreign exchange and economic growth. However, the major number of researches confirm the existence of the statistically significant, direct relation. The special attention is paid to the analysis of the in?uence of the foreign trade to the developing countries, principally as a channel for the import of new technologies by which it has been proven that the growth of the import does not have to have necessarily a negative impact to the economic growth but it may also impact the productivity growth, i.e. indirectly the total economic growth of the country of import.

The research of the in?uence of the foreign trade to the economic growth becomes even more relevant after year 2008, i.e. after the world economic crisis as small, open economies, such as the Republic of Srpska see its “development drive” in the growth of the export through the consolidation of the developed countries and thus additional growth of the foreign demand. That is why in our paper we have tried to explore the relevance of the foreign trade to the economic growth of the Republic of Srpska, to analyse the foreign trade exchange of Republic of Srpska in order to determine the weaknesses of its commodity structure and the relations with the leading foreign trade partners as well as to explore the interrelated, quantitative relation between the foreign trade and the GDP of Republic of Srpska.

Summarizing the results of our research we have come to a conclusion that the foreign trade is very relevant for the economic movements in the Republic of Srpska, i.e. the relevance of the foreign trade for the economic development of Republic of Srpska is very high. However, it is necessary to work on the decreasing of the foreign trade deficit through the increase of the export and the improvement of its commodity structure as well as through the selective decreasing of the import. Before all this, it is necessary to undertake the change of economic structure and considerably increase the competitiveness of the domestic producers.

Downloads

Download data is not yet available.

References

Choudhri, E., Hakura, D. (2000). International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries. IMF Working Paper. WP/00/17.

Dowrick, S., Golley, J. (2004). Trade Openness and Growth: Who Benefts? // Oxford Review of Economic Policy. 20(1), 38-56.

Комић, Ј. (2000). Методи статистичке анализе кроз примјере: Збирка задатака. Бањалука: Економски факултет.

Krugman, P.; Obstfeld, M. (2008). International Economics: Theory and Policy. New Jersey: Prentice Hall.

Ловрић, М., Комић, Ј., Стевић, С. (2006).Статистичка анализа: методи и примјена. Бања Лука: Економски факултет.

Maklup, F. (1950). International Trade and the National Income Multiplier, Philadelphia: The Blakiston Company.

Николић, Г. (2005). Утицај Спољне трговине на економски раст. Економски анали. 165, 145-164.

Rodriguez, F. (2006). Openness and Growth: What Have We Learned?. (URL: http://www.un.org/esa/analysis/backgroundpapers/openness_and_growth.pdf -23.11.2013.)

Romer, P. (1986). Increasing Returns and Long-Run Growth. Journal od Political Economy. 94(5), 1002-1037.

Romer, D.; Frankel, A. (1999). Does Trade Cause Growth?. The American Economic Review. 89(3), 379-399.

Samuelson, P. (1962). The Gains from International Trade Once Again. The Economic Journal. 72(288), 820-829.

Салваторе, Д. (2009). Међународна економија. Београд: Економски факултет.

Статистички годишњак Републике Српске. (2012). Републички завод за статистику Републике Српске.

URL: http://www.rzs.rs.ba

URL: http://www.stat.wto.org

Downloads

Published

2014-02-28

How to Cite

Крајишник, М., & Томаш, Д. (2014). The E?ect of foreign trade on economic growth in the Republic of Srpska. Acta Economica, 12(20), 125–153. https://doi.org/10.7251/ACE1420125K

Issue

Section

Review article