FROM DEFECTIVE TO EFFECTIVE BiH DEVELOPMENT POLICY

Authors

  • Vjekoslav Domljan Sarajevo Science and Technology School (SSST), Department of Economics
  • Goran Mirašćić Сарајевска школа за науку и технологију (SSST), Одсек за економију
  • Goran Riđić International University of Sarajevo (IUS), Faculty of Business and Administration (FBA)
  • Ognjen Riđić International University of Sarajevo (IUS), Faculty of Business and Administration (FBA)

DOI:

https://doi.org/10.7251/ACE1727137D

Keywords:

Macroeconomics, economic growth, savings, upper middle income

Abstract

After 21 post-war years Bosnia and Herzegovina (BiH) found itself in a “middle income trap”. It is not classified into low income countries because workers and citizens do not accept low wages and low standard of living, nor does it ft into high income countries because those workers do not produce sophisticated products that ensure competitiveness, export and the basis for high wages and the standard of living. The development vision of BiH is to become a high income country. However, the state has neither suitable strategy nor policy.

This paper represents a detailed research of multifaceted secondary sources (i.e. journal articles, government publications, internet sources, etc.), conducted in a cross-sectional time manner. By utilizing secondary sources of data we conducted our own calculations based on data from the World Bank, the Central Bank of Bosnia and Herzegovina and Agency for Statistics of Bosnia and Herzegovina.

We hold that key sectors which would provide return to pre-crisis GDP growth rate of 6-7 percent per year, should be: financial system, diaspora and digitalization of industry (with the introduction of suitable strategies and policies), each of which would contribute to GDP growth of two percent per year. The key agents of change should be the leaders of value chains (large-scale companies), cities-regions, gazelle companies (fast growing small and medium size companies) and micro digital companies.

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References

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Published

2017-12-31

How to Cite

Domljan, V., Mirašćić, G., Riđić, G., & Riđić, O. (2017). FROM DEFECTIVE TO EFFECTIVE BiH DEVELOPMENT POLICY. Acta Economica, 15(27), 137–162. https://doi.org/10.7251/ACE1727137D

Issue

Section

Preliminary Communication