ECONOMIC COMPETITIVENESS OF BOSNIA AND HERZEGOVINA AND THE COUNTRIES OF WESTERN BALKANS

Abstract

High unemployment rates and low living standards are a major problem in Bosnia and Herzegovina. Additionally, Bosnia and Herzegovina is a low ranked nation in terms of international competitiveness. We intend to research the relationship between low living standards and a competitively low ranked economy. Competitiveness can be observed from a micro and macro viewpoint. Microeconomic competitiveness represents the relative efficacy of companies to sell their products and services on markets where international competitiveness is present, while macroeconomic competitiveness represents the realization of larger income shares of factors of productions in conditions when the domestic companies are exposed to direct influences of international economy. The competitiveness of the BiH economy will be analyzed by factors to indicate the main weaknesses, as well as the competitiveness of the countries of Western Balkans. The essence of this research is to, after a brief theoretical elaboration, analyze the competitiveness of the BiH economy and to perform a comparative analysis with the competitiveness of the countries of Western Balkans with a goal to determine the leading deficiencies.