Original scientific paper
EFFECTS OF INTEGRATION PROCESS ON COMPETITIVENESS OF BOSNIA AND HERZEGOVINA
Marina Jerinić
orcid.org/0000-0002-9850-0227
; University of Mostar, Faculty of Economics, Bosnia and Herzegovina
Abstract
World Economic Forum (WEF), in The Global Competitiveness Report 2018, identifies competitiveness with productivity level concluding that all countries benefit from being more competitive. The competitive economy is also productive economy; productivity growth leads to economic growth and higher standard of living. Theoretical and practical experience suggests that establishing a free trade zone leads to positive effects but also has negative consequences, especially in the short term. Bosnia and Herzegovina takes part in the Stabilization and Association Process, and the relative bilateral Stabilization and Association Agreement (SAA) has been signed in 2008, ratified in 2010, and entered into force in 2015. Meanwhile, the trade bilateral relations were regulated by an Interim Agreement. Adapted SAA entered into the force on February 1, 2017. The aim of this paper is to analyze the effects of trade liberalization on the level of competitiveness ten years after establishing free trade zone with EU, the most important trade partner, i.e. to estimate relationship between GDP pc, GCI and trade balance in the long run.
Keywords
GCI; productivity; EU integration process
Hrčak ID:
228678
URI
Publication date:
28.11.2019.
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