INFRASTRUCTURE, TRANSPORT COSTS, AND BOSNIA AND HERZEGOVINA'S TRADE: A GRAVITY MODEL APPROACH

Authors

  • Amir Fejzić
  • Enes Čovrk

Abstract

This paper examines the impact of transport infrastructure, as an important determinant of transport costs, on trade between Bosnia and Herzegovina and Bosnia and Herzegovina’s fifteen largest trading partners. The estimation is based on a gravity model and panel data for the years 2005 to 2014. Transport costs have been estimated on the basis of distance, geography and quality of transport infrastructure, as well as on sets of "dummy" variables, such as the impact of borders, language or "dummy" variables for identifying whether a country is surrounded by land or sea. The results can be summarized as follows: (i) the quality of infrastructure and logistics is an important determinant of trade performance; (ii) the importance of distance is not diminished when the quality of infrastructure is included; (iii) Bosnia and Herzegovina trades with countries with which it shares a common language – ceteris paribus – twice as much as with others.

Keywords: Bosnia and Herzegovina, trade, transport infrastructure, gravity model 

Author Biographies

Amir Fejzić

Doc. dr. Amir Fejzić, PhD / Department of Economic Theory and Policy/ School of Economics and Business in Sarajevo

 

In period 2009-2014, worked as Deciding Editor in proceeding called “Second, Third and Fourth BH Congress on Roads”, published by the ACE B&H. The B&H Congresses on Roads are International Congresses. The environmental protection, new road management system, new road construction and maintenance materials, innovations in road designing, standardization and financing are topics, which are at interest for experts of various profiles, investors, public administration, economy and broad public.


 

Enes Čovrk

In period 2007-2011, worked as Deciding Editor in journal called “Transportation and Transport Infrastructure”, published by the ACE BiH which was not referenced internationally. From 2011, continued to work as Deciding Editor in journal “Transport Infrastructure and Transportation”, published by the ACE BiH under the changed title and with the aim of international referencing.

Downloads

Published

2016-12-30

How to Cite

Fejzić, A., & Čovrk, E. (2016). INFRASTRUCTURE, TRANSPORT COSTS, AND BOSNIA AND HERZEGOVINA’S TRADE: A GRAVITY MODEL APPROACH. Ekonomski vjesnik/Econviews - Review of Contemporary Business, Entrepreneurship and Economic Issues, 29(2), 77–90. Retrieved from https://hrcak.srce.hr/ojs/index.php/ekonomski-vjesnik/article/view/4485

Issue

Vol. 29 (2016): Special Issue

Section

PRELIMINARY COMMUNICATION

License

Upon acceptance of an article for publication in Ekonomski Vjesnik / Econviews – Review of Contemporary Entrepreneurship, Business, and Economic Issues, contributing authors automatically waive their copyright in favour of the journal. The journal reserves copyright of all papers published in it.