Business Environment in Bosnia and Herzegovina – Analysis of the Current Situation and Recommendations for Improvement

• Main Authors: Миро И. Џакула, Бојан Ј. Данон
• Format: Article
• Language: English
• Published: University of Banja Luka, Faculty of Economics 2015-02-01
• Series: Acta Economica
• Subjects: business environment; factors of business environment; investments; politics; Doing Business-WB
• Online Access: http://ae.ef.unibl.org/index.php/AE/article/view/64

Poor economic and social situation in Bosnia ane Herzegovina; high unemployment rate, stagnation of GDP, week export/import ratio, uncultivated agricultural land, lack of domestic and foreign investments, all is pointing to importance of proffesional answering to the questionin what condition is business environment in Bosnia and Herzegovina, which is the essence of the research problem in this paper. Using the methods of analysis, deduction and induction, based on World Bank’s publication „Doing Business” and other relevant data sources, this paper has undoubtedly confrmed main research hypothesis: The business environment in BiH is in poor condition and is among the worst in the region. Using the same methods, we have also confrmed supporting hypothesis: The political factor and political instabilityare major obstacles to the development of the business environment in BiH. In the last part of the paper, are given generalrecommendations for improving the economy and business environment in BiH.