scholarly journals Central Bank in the Function of Development of National Economy of Bosnia and Herzegovina

Author(s):  
Zoran Mastilo ◽  
Nenad Božović ◽  
Dejan Mastilo

The paper addresses and evaluates the currency board policy and assesses whether the currency board, as a form of monetary policy, is in the function of development of Bosnia and Herzegovina's national economy. In this context, a hypothesis that the currency board provides the foundation for growth and development of a transition economy is being put to the test. To test the hypothesis, the paper compares the movement of economic growth indicators (gross domestic product) among the countries of South Eastern Europe with the primary focus on Bosnia and Herzegovina. By comparing the obtained results, as well as by applying the correlation and regression analysis, by means of simple linear regression, it is proven that the currency board does not represent an obstacle to economic growth, but is the basis for establishing the stability of the economy and the basis for sustainable growth and development able to adequately respond to shocks.

2020 ◽  
pp. 198-202
Author(s):  
І. В. Ліченко

In the current conditions of instability of the national economy and tense geopolitical situation, one of the key factors contributing to the realization of national interests and priorities of Ukraine is economic security. Which characterizes a state of the economy in which the economic interests of the enterprise, region, state and society are reliably protected from internal and external threats. The development of integration processes in the world community contributes to the economic growth of the state, however, like any development process, it faces a number of negative factors and risks that pose a threat to economic security. Given the complexity of the processes in domestic and foreign policy, the majority of the population is unsure of their future. The global crisis has revealed serious shortcomings in the mechanism for managing the economic security of the state and domestic economic entities, which has been reflected in declining economic growth, gross domestic product, rising unemployment and other indicators. As a result, there is a growing focus on security and risk management tools at the macroeconomic level, as well as their effectiveness in the national context. The article examines the mechanisms of ensuring the economic security of the state in the insurance process, which are crucial factors for sustainable growth and functioning of the national economy as a whole. Various areas are considered: ensuring the safety of policyholders, private insurance companies, national institutions (government agencies, organizations). The article examines the mechanisms for ensuring the economic security of the state in the insurance process, which are the most important components of stable growth and functioning of the national economy as a whole. Various areas are considered: ensuring the safety of insured persons, private insurance companies, national institutions (government agencies, organizations). The economic security of the state must be ensured, first of all, by the efficiency of the economy itself, that is, along with the protective measures taken by the state, it must protect itself on the basis of high productivity, product quality and more.


2021 ◽  
Vol 26 (11) ◽  
pp. 1227-1235
Author(s):  
V. D. Ardzinov ◽  
N. V. Chepachenko ◽  
A. A. Leont’ev

The presented study examines the comparative characteristics of industrial revolution targets, national goals, and strategic objectives for the development of the Russian economy; proposes methods for measuring and evaluating technological development; describes its impact on economic growth and shows the performance of enterprises.Aim. The study aims to determine the specific features of formation of economic and social development targets and the potential of new technologies, including breakthrough technologies, for shaping the technological development of the Russian economy; to propose methods for measuring and evaluating technological development and its impact on the growth and development of the national economy that would improve the quality of economic and managerial decision-making.Tasks. The authors clarify the interpretation of the concept of breakthrough technologies; identify distinctive features in the formation of industrial revolution targets and priority targets for the development of the Russian economy; substantiate methodological approaches to identifying parameters and indicators, methods for measuring and evaluating the level of technological development, its impact on the results of changes in economic growth and development of the national economy and its economic entities.Methods. The authors use the methods of scientific research, theoretical and comparative analysis, synthesis, generalization, general theory of economic growth, and elements of the economic efficiency theory.Results. The interpretation of breakthrough technologies as dominant new technologies that can ensure accelerated progressive development of the economy and minimize damage to the natural environment is clarified. The distinctive features of formation of industrial revolution targets and their relationship with the targets for the development of the Russian economy are identified. Evaluative features are substantiated; indicators for measuring and evaluating the transformation of the technological development of enterprises engaged in different activities and indicators for measuring and evaluating the impact of new technologies, including breakthrough technologies, on economic growth and development are proposed. The influence of the recommended measurement and evaluation methods on improving the quality of management decisions is shown.Conclusions. The study substantiates the need to improve methods for assessing the actual achieved (projected, planned) level of technological development as a necessary prerequisite for its qualitative analysis, evaluation, control, and monitoring required to make sound economic and managerial decisions. The proposed methods for measuring and evaluating technological development, measuring and evaluating the impact of new technologies, including breakthrough technologies, on the quality of economic growth, efficiency and competitiveness of the national economy (region, industry, activity, enterprises) improve the quality of managerial decision-making in achieving national goals for the development of the national economy.


2021 ◽  
Vol 16 (2) ◽  
pp. 114-131
Author(s):  
Irma Đidelija

Abstract The causal link between savings and economic growth has been extensively discussed in the economic growth and development literature, but the question of the direction of this link has not yet been clearly defined. The aim of this paper is to determine the direction and intensity of savings causality (components of private savings) and economic growth in Bosnia and Herzegovina. Granger’s causality test, the Toda-Yamamoto procedure, was applied to test for causality between savings and economic growth. The results of Granger’s causality test indicated that there is no causal link between components of private savings with economic growth in Bosnia and Herzegovina. It was found that among the variables there is cointegration, but not causality, which means that the variables have a common stochastic trend. This fully corresponds to the characteristics of the Bosnia and Herzegovina’s economy.


2021 ◽  
Author(s):  
Faruk Hadžić ◽  
◽  
Nebojša Savanović ◽  

The paper investigates the impact of fiscal policy on economic growth, foreign direct investment and employment in Bosnia and Herzegovina. The focus of research is fiscal policy, which as a lever of economic policy that affects economic growth and development. The aim of the research is to determine the impact of fiscal policy on the economy of Bosnia and Herzegovina and propose solutions for higher growth and development, a higher degree of foreign direct investment and reducing the unemployment rate. The results of the research show that the fiscal policy for the years that are the subject of the research, has affected the public debt of the state. High taxes and contributions have contributed to the spread of the gray economy, fiscal discipline is at a low level due to the management in this way of this lever of economic policy. Public financial management should be one of the key macroeconomic goals, with special emphasis on fiscal policy. The research went in the direction of analyzing current trends and proposals for improving the situation. The research aims to show the current statistical impact of variables on gross domestic product, on growth and development and the impact after the application of expansionary fiscal policy on the same variables. It is recommended that economic policy be conducted in the direction of releasing additional funds through the redistribution of taxes in favor of workers, in the direction of capital investments that will repay themselves, to reduce the rate of taxes and contributions on wages and with incentives for investors, to go towards stimulating production and tax reliefs for export-oriented activities with an effort to try to produce products whose production is possible in our conditions, and all this is mostly possible with the implementation of an expansive fiscal policy.


2016 ◽  
Vol 48 (3) ◽  
pp. 245-259 ◽  
Author(s):  
Stephanie A. Pink-Harper

Counties have expanded the scope of their activities in the economic development process. However, limited research exists of the factors that influence economic growth and development trends of these unique communities. The primary focus of this case study analysis is to determine whether form of government has an impact on county economic growth and development trends while controlling for environmental context and demographic characteristics in Alabama, Pennsylvania, Illinois, and Washington. To empirically test the impact that county form of government and environmental factors have on local economic growth and development trends, ordinary least squares regression is used. The results of this study show that form of government has only a marginal impact on county economic growth and development trends. County environmental factors are found to have a more substantive impact on the economic growth and development trends of counties across these four states.


2017 ◽  
Vol 13 (4) ◽  
pp. 211 ◽  
Author(s):  
Napoleon Kurantin

This paper surveyed and access the empirical literature on the sources of budget deficit and their policy implications on the processes of sustainable economic growth and development. The Ghanaian experience and evidence shows that the budget is not projected to be on a sustainable growth path under current socio-economic and political (governance) policies; the budget is projected to increase more quickly than the country’s Gross Domestic Product (GDP). The modeling of underlying variables (Inflation, Gross Domestic Product, Real Interest Rate, Gross Investment, Real Exchange Rate) to estimate the quantitative effect of continued budget deficit on the rate of economic growth, governance and development. The sample used for this study is based on panel data-sets between 1994 and 2014. Results obtained from the analysis pointed to an adverse impact of continued budget deficit on the processes of economic growth and development. The paper recommends the adoption and implementation of policies that could reverse the un-sustained budget deficit leading to crowding out of the private investment but rather, put the economic on a sustained path of growth and, development in the medium to long term.


2021 ◽  
Vol 13 (23) ◽  
pp. 13126
Author(s):  
Victor I. Espinosa ◽  
Miguel A. Alonso Neira ◽  
Jesús Huerta de Soto

The analysis of sustainable economic growth and development often focuses on how to control the market process through coercive state intervention. While state interventionism may play a significant role in countries’ progress, entrepreneurship is the driving force behind sustainable growth and development. Entrepreneurship is the people’s judgment on ideas, plans, and projects, which promises profit in uncertain times. Its effects are the creation and transmission of information and social coordination as a dynamic process of identifying and solving human problems. Sustainable development is the widening range of entrepreneurial alternatives open to people, and sustainable growth is a phase of sustainable development that depends on genuine savings to finance increasingly capital-intensive production structures. The degree to which people are entrepreneurs and the direction genuine savings take depend on institutional arrangements. Some institutions are more conducive to sustainable growth and development than others. After reviewing principles of growth and development sustainability, how coercive state intervention influences economic performance is discussed, proposing novel policy conclusions and research avenues to cultivate entrepreneurship and genuine savings in a post-COVID-19 world.


2014 ◽  
Vol 12 (20) ◽  
pp. 213
Author(s):  
Бранка Топић-Павковић

Резиме: Осигурати раст националне економије, уз истовремену унутрашњу и спољну стабилност цијена, поставља се као примарни задатак економске политике. Избор валутног одбора као модела управљања монетарном политиком обезбјеђује раст повјерења у домаћу валуту, макроекономску стабилност и јачање кредибилитета централне банке, посебно у земљама транзиционих и реформских процеса. Полазећи од ограничења овог модела монетарне политике, питања домаће конкурентности и контроле биланса текућег рачуна постају све битнија. У условима немогућности интервенције монетарне политике штетне посљедице на извоз и економски раст земље несумњиво показују да класични монетарни одбор представља погодно средство монетарне стабилизације, али не и механизам динамизирања привредног раста. Рад се фокусира на избор облика монетарне политике која би у датим условима могла да обезбиједи највећи допринос расту и привредном опоравку. Циљ рада је указати на могуће модификације постојећег система монетарног одбора у Босни и Херцеговини, анализом савремених валутних одбора и искустава земаља чланица које су примјењивале овај режим прије приступања Европској (монетарној) унији. Резултати истраживања потврђују низ предности које монетарни одбор пружа малим и отвореним економијама, али истичу и недостатке који доводе у питање одрживост овог аранжмана монетарне политике и воде модификацији постојећег модела валутног одбора, што би проширило дјеловање Централне банке Босне и Херцеговине.Summary: To ensure the growth of the national economy with simultaneous internal and external price stability is set as the primary goal of economic policy. Choosing the currency board as a model of monetary policy provides increased confidence in the local currency, macroeconomic stability and strength of the central bank credibility, especially in development countries. Considering the constraints of the currency board, national competitiveness and control of the current account balance are becoming very significant questions. In terms of the inability of monetary policy interventions to effect on exports and economic growth of the country, undoubtedly show that classical monetary board is a convenient measure of monetary stabilization but not the mechanism of intensification of economic growth. This paper focuses on the choice of monetary policy model to the given conditions which could provide the growth and economic recovery. The aim of this paper is to emphasize the possible modification of the existing system of currency board in Bosnia and Herzegovina, by analyzing modern currency boards and experiences of member states that have followed this regime before accession to the European (Monetary) Union. The results confirmed a number of benefits that monetary board provides for a small and open economy, but also point out the shortcomings that stress questions about the sustainability of this arrangement and possible tendencies of modification of existing model of the currency board, primarily with widening the instruments and action of the Central Bank of Bosnia and Herzegovina.


2019 ◽  
Vol 5 (1) ◽  
pp. 55-66
Author(s):  
Amila Pilav-Velić ◽  
Hatidža Jahić ◽  
Jasmina Okičić ◽  
Meldina Kokorović-Jukan

AbstractEducation plays a central role in today’s understanding of growth and development dynamics. However, its relationship with other factors is complex. This paper aims to investigate the effect of different forms of education on youth employability in Bosnia and Herzegovina. This is done by using the USAID MEASURE – BiH National Youth Survey. Research has shown that formal education and non-formal education through internship programmes, volunteering, paid jobs other than internships are significant predictors of youth employment status. The study also has several implications for academics and practitioners since it provides new insights into both employment patterns and practices in one transition economy but also calls for further analysis of the link between education, formal and non-formal, and youth employment.


2020 ◽  
Vol 2 (11) ◽  
pp. 83-95
Author(s):  
V. I. MUNTIYAN ◽  
◽  
V. E. BOCHAROV ◽  

The article deals with the development of the Russian financial system at the present stage, in conditions of uncertainty. The historical series of relations between reparations and Russia's economic growth is shown. From the point of view of system analysis, the author substantiates a set of measures to increase the stability of the national economy and ensure coordinated work of the financial and industrial spheres aimed at stimulating the socioeconomic development of the country. Special attention is paid to the problematic issues of ensuring the financial security of the state and suggested ways to solve them.


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