Preliminary communication

INTRA-INDUSTRY TRADE AND ECONOMIC DEVELOPMENT (CASE OF BOSNIA AND HERZEGOVINA)

Željko Marić ; Faculty of Economics, University of Mostar

Abstract

By CEFTA 20062 creation and Stabilisation and Association Agreement implementation, Bosnia and Herzegovina has been exposed toward foreign trade liberalization and national economy adapting, which should bring the higher B&H international competitiveness before its full entrance into EU membership.
The measurement of intra-industry trade share into foreign trade as a whole, as well as in individual economic branches, could be very significant indicator of the competitiveness and B&H economic development in the context of macroeconomic policy as a whole. Passing through three stages of economic
development (factor-driven stage, efficiency-driven stage, and innovation-driven stage), where the income per capita constantly increase according to productivity increment, the relatively intra-industry trade share becomes more and more important. According to economic theory, the turnover of goods increment and foreign trade deficit decrement should have positive correlation with the intra-industry trade increment. The subject of this paper is analysis of these statements on the example of B&H foreign trade and its economic development.

Keywords

intra-industry trade; GL index; international competitiveness; stages of development; Bosnia and Herzegovina

Hrčak ID:

74652

URI

https://hrcak.srce.hr/74652

Publication date:

6.12.2011.

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