Sustainability of Bosnia and Herzegovina’s international trade flows

Abstract

The aim of this research is to examine the sustainability of international trade flows of Bosnia and Herzegovina with the rest of the world. The data sample consists of quarterly data from the first quarter of 2008 to the last quarter of 2016. Johansen tests of cointegration indicated that exports and imports are cointegrated in the case of Bosnia and Herzegovina and Vector Error Correction Model (VECM) is estimated and tested. Research results revealed a bidirectional weakly sustainable relationship between exports and imports pointing out the need to improve external competitiveness of Bosnia and Herzegovina’s economy.

Time-varying parameters approach to sustainability of international trade flows: the case of Croatia and Serbia compared

“…Nonetheless, a cointegrating relationship between exports and imports was established following Johansen and Juselius' (1990) cointegration approach in most of the neighbouring countries. Franc and Peuli c (2017) provided the results for the case of Slovenia, while Skoko and Zovko (2018) illustrated the case of Bosnia and Herzegovina. Following the cointegration approach from Johansen and Juselius (1990), the existence of cointegration was tested for Hungary and the results are summarised in Table 3.…”