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Analysis of Macroeconomic Factors Effect to Gross Domestic Product of Bosnia and Herzegovina Using the Multiple Linear Regression Model

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  • Stanić Stanko

    (University of Banja Luka, Faculty of Economics, Bosnia and Herzegovina)

  • Račić Željko V.

    (University of Banja Luka, Faculty of Economics, Bosnia and Herzegovina)

Abstract

This paper presents the application of the multiple regression analysis model in macroeconomic research using the model of Bosnia and Herzegovina in the period from 2005 to 2018. The objective of the research is to evaluate the effects of macroeconomic factors (independent variables) to gross domestic product (dependent variable), and based on theoretical and methodological research. Applying the Enter method, out of six independent variables, they are all included in the regression model, whereas the sequence of inclusion in the model is the following: foreign direct investments, Import, Export, Growth rate, unemployment and inflation. Numerous research indicate positive connection between gross domestic product as the dependent variable and foreign direct investments, Import, Export, Growth rate, unemployment and inflation, as independent variables. Other factors negligibly explain the most important indicator of economic activities of a country. Our assignment is to either confirm or reject the abovementioned statement.

Suggested Citation

  • Stanić Stanko & Račić Željko V., 2019. "Analysis of Macroeconomic Factors Effect to Gross Domestic Product of Bosnia and Herzegovina Using the Multiple Linear Regression Model," Economics, Sciendo, vol. 7(2), pages 91-97, December.
    • Handle: RePEc:vrs:econom:v:7:y:2019:i:2:p:91-97:n:11
    DOI: 10.2478/eoik-2019-0022
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    References listed on IDEAS

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    1. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," LEQS – LSE 'Europe in Question' Discussion Paper Series 64, European Institute, LSE.
    2. Engjell Pere, 2015. "Impact of good governance in the economic development of Western Balkan countries," European Journal of Government and Economics, Europa Grande, vol. 4(1), pages 25-45, June.
    3. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 4, London School of Economics / European Institute.
    4. Estrin, Saul & Uvalic, Milica, 2013. "Foreign direct investment into transition economies: are the Balkans different?," LSE Research Online Documents on Economics 53180, London School of Economics and Political Science, LSE Library.
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    Cited by:

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    More about this item

    Keywords

    Gross domestic product; multiple regression linear model; Enter method; determination coefficient;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

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