THE ROLE OF INSTITUTIONS IN TRANSITION ECONOMICS: A DEEPER LOOK AT THE RELATIONSHIP BETWEEN PRIVATIZATION AND ECONOMIC GROWTH IN BOSNIA AND HERZEGOVINA

THE ROLE OF INSTITUTIONS IN TRANSITION ECONOMICS: A DEEPER LOOK AT THE RELATIONSHIP BETWEEN PRIVATIZATION AND ECONOMIC GROWTH IN BOSNIA AND HERZEGOVINA

Krcić, Suad

The field of Institutional Economics is about the theoretical and empirical findings that have a major role in today’s understanding of institutions. The relationship between the institutions and Economic growth is confirmed by the literature. The objective of this study is to present the current situation of government institutions and economic situation in Bosnia and Herzegovina. This paper begins with the principles and explanations of the theoretical aspects of old and new institutional economics, and its role in transition economics like in Bosnia and Herzegovina. In this case Multiple Linear Regression Method is used and analyzed according to the sets of variables. Results show the positive relations of Large Scale Privatization and Small Scale Privatization and negative relations of Government Budget on Gross Domestic Product. The author expects that this research topic should help to the Government institutions and Private sectors in Bosnia and Herzegovina. Keywords: Institutional Economics, Economic growth, Bosnia and Herzegovina, Multiple Linear Regression Method, Large Scale Privatization, Small Scale Privatization, Government Budget, Gross Domestic Product

Thesis
NonPeerReviewed

2014

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