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The Effect of Trade Liberalization of Bosnia and Herzegovina with the Leading Trade Partners

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Kurtovic, S., Halili, B., Maxhuni, N. The Effect of Trade Liberalization of Bosnia and Herzegovina with the Leading Trade Partners. Applied Economics Quarterly, 63(4), 341-367. https://doi.org/10.3790/aeq.63.4.341
Kurtovic, Safet; Halili, Blerim and Maxhuni, Nehat "The Effect of Trade Liberalization of Bosnia and Herzegovina with the Leading Trade Partners" Applied Economics Quarterly 63.4, , 341-367. https://doi.org/10.3790/aeq.63.4.341
Kurtovic, Safet/Halili, Blerim/Maxhuni, Nehat: The Effect of Trade Liberalization of Bosnia and Herzegovina with the Leading Trade Partners, in: Applied Economics Quarterly, vol. 63, iss. 4, 341-367, [online] https://doi.org/10.3790/aeq.63.4.341

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The Effect of Trade Liberalization of Bosnia and Herzegovina with the Leading Trade Partners

Kurtovic, Safet | Halili, Blerim | Maxhuni, Nehat

Applied Economics Quarterly, Vol. 63 (2017), Iss. 4 : pp. 341–367

2 Citations (CrossRef)

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Faculty of Management and Business Economics, University of Travnik, Aleja Konzula 5, Travnik, 72270, Bosna and Herzegovina

Department of Economics, College “Biznesi” 29 Motrat Qiriazi, 10 000, Prishtinë, Republic of Kosovo

Department of Economics, College “Biznesi”, 29 Motrat Qiriazi, 10 000, Prishtinë, Republic of Kosovo

Cited By

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  2. Trade relations between Hungary and Bosnia and Herzegovina: The evidence from the gravity model

    Đogo, Marko | Gligorić, Dragan | Berecz, Marianne

    Ekonomski horizonti, Vol. 26 (2024), Iss. 2 P.183

    https://doi.org/10.5937/ekonhor2402183D [Citations: 0]

Abstract

This paper presents our research on the effect of trade liberalization with leading trade partners on Bosnia and Herzegovina’s (B&H) trade balance. The theoretical framework includes a gravity model and GMM dynamic panel analysis as the econometric technique. The research results show that the export of products from B&H increased thanks to the growth of macroeconomic indicators of trading partners, dummy variables and the export of certain products according to the sector structure. On the other hand, imports of products to B&H decreased due to the decline of B&H’s macroeconomic indicators, dummy variables and reduced imports of certain products according to the sector structure. From these findings, we can conclude that through the process of trade liberalization with developed countries, B&H recorded an increase in exports and reduction of the leading imports sector, which led to a reduction in the trade deficit.

JEL Classification: F14, F31, F32