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Effects of Foreign Trade on Budget Equilibrium - Case Study of Bosnia And Herzegovina

Author

Listed:
  • Almir Alihodzic

    (University of Zenica - Faculty of Economics, Bosna and Herzegovina)

  • Dzenan Donlagi

    (School of Economics and Business University of Sarajevo, Bosna and Herzegovina)

Abstract

The analysis of economic trends in BH in 2012 recorded further weakening of economic activity. Primarily, this is a result of stagnant economies of the EU and the region. In the first trimester of 2013 year, exports grew in real terms by 19% and imports by 13%, which led to the real growth in the trade deficit to about 7%. The given deficit significantly reduced the earlier estimate of economic growth for the first trimester in which the strong export growth, coupled with an increase in industrial production represented a very important step forward compared to the previous year. The main objective of this paper is to discuss the global financial crisis, the movement of the budget deficit in BH for the period 200 - 2012, as well as monitor the constraints set by the Maastricht Treaty that the amount of the budget deficit should not exceed 3% of the GDP and the interdependence of imports of goods and nominal GDP.

Suggested Citation

  • Almir Alihodzic & Dzenan Donlagi, 2014. "Effects of Foreign Trade on Budget Equilibrium - Case Study of Bosnia And Herzegovina," Economic Analysis, Institute of Economic Sciences, vol. 47(3-4), pages 121-135.
    • Handle: RePEc:ibg:eajour:v:47:y:2014:i:3-4:p:121-135
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    More about this item

    Keywords

    imports of goods; exports of goods; indicators of foreign trade; budget deficit; criteria of convergence;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt

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