PUBLIC DEBT AND ECONOMIC GROWTH NEXUS: DYNAMICS IN BOSNIA AND HERZEGOVINA

Amra Babajić () and Mirza Suljić ()

BH Ekonomski forum, 2024, vol. 20, issue 1

Abstract: It is well known that the economic growth of the country is a complex phenomenon and that it is influenced by a large number of different factors. The intensity of the influence of each factor is important, as well as their mutual relationship. Almost every decision concerning economic growth is long-term, that is, it has long-term effects on the citizens of a certain country. The main goal of this research is to investigate determinants of economic growth in Bosnia and Herzegovina with an emphasis on the effects of public debt. In order to determine the mutual influence of these two phenomena, correlation and partial correlation coefficients will be used on the available data for public debt, gross domestic product (hereinafter referred to as GDP) and gross national income (hereinafter referred to as GNI) of Bosnia and Herzegovina. The research results suggest to a positive correlation between public debt and gross national income of Bosnia and Herzegovina, and to an inversely proportional relationship between public debt and gross domestic product. Research findings may help decision-makers when designing policies and strategies, that is, when making decisions regarding future internal and external borrowing and directing the economic growth of Bosnia and Herzegovina. Policy implication in BiH should accentuate growth-oriented policy measures with care regarding future public borrowing.

Keywords: economic growth; gross national product; public debt; Bosnia and Hercegovina (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://bhef.unze.ba/article/62 Journal Article (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:etl:journl:62

DOI: 10.62900/BHEF242001002

Access Statistics for this article

More articles in BH Ekonomski forum from University of Zenica, Faculty of Economics Zenica
Bibliographic data for series maintained by University of Zenica, Faculty of Economics Zenica ().