THE IMPACT OF ECONOMIC OPENNESS ON THE ECONOMIC GROWTH OF BOSNIA AND HERZEGOVINA

<p>This paper presents a study of the impact of economic openness (imports, exports<br />and foreign direct investment) on the economic growth of Bosnia and Herzegovina (B&H) in<br />the period from 2005 to 2024. The paper applied multiple regression and OLS estimation.<br />The research results indicate that the observed independent variables have a significant<br />impact in the estimated model. The variables exports and foreign direct investment have a<br />positive effect on the economic growth of Bosnia and Herzegovina, while imports have a<br />negative effect. The main limitation of the conducted research is the relatively short<br />observation period, i.e. the inability to apply quarterly or monthly data in the empirical<br />analysis. Finally, the obtained results can contribute to the generation of economic policies<br />that will focus on those economic factors that contribute most to the economic growth of<br />Bosnia and Herzegovina.</p>