INFLUENCE OF FOREIGN TRADE WITH CEFTA AND EU ON GDP OF B&H

by | Jan 14, 2020 | DOI 2018

Dijana Grahovac
Central Bank of Bosnia and Herzegovina, University of Business Studies Banja Luka, Bosnia and Herzegovina
Senad Softić
Central Bank of Bosnia and Herzegovina, Faculty of Economics, Sarajevo, Bosnia and Herzegovina
DOI: https://doi.org/10.31410/eraz.2018.55

4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia;  Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia, ISBN 978-86-80194-12-7

Abstract

The process of globalization shapes the international economic environment and affects all aspects of modern life. In today’s world, no country functions in an economic isolation, but all are interconnected through the international movement of goods and services, production factors of labour and capital, international enterprises, technology, etc. thus creating great independence of national economies. Contrary to the globalisation in terms of a single global market, there is the process of regional economic integration, which unites efforts to strengthen regional competitiveness. During the transition process, Bosnia and Herzegovina has opted for the EU integration. The step that is a part of that process is also CEFTA membership, as the EU authorities want to see the Western Balkans region in the “package”. The paper analyses the foreign trade of Bosnia and Herzegovina with the EU and CEFTA through a regression analysis of the impact of the above mentioned exchange on the GDP of Bosnia and Herzegovina.


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