<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper assesses the impact of trade liberalisation on the economic growth of the Republic of Srpska (RS). The aim of the research is to prove the hypothesis that trade liberalisation and export orientation positively impact on GDP growth. RS has characteristically small and open economies. The degree and character of the connections between the observed variables was determined by means of regression analysis. Regression analysis indicates that there is a positive connection between the total trade and GDP growth. Further, there is a marked positive correlation between export and GDP, that is, export growth contributes to GDP growth. Foreign trade deficit stands in a negative correlation with GDP. Lastly, regression analysis points to the connection between the Republic of Srpska economic growth and openness of its economy. However, uncontrolled opening and exposure to foreign competitiveness can also bring about problems which in certain circumstances lead to long-term macroeconomic instability.</p></abstract>

This paper assesses the impact of trade liberalisation on the economic growth of the Republic of Srpska (RS). The aim of the research is to prove the hypothesis that trade liberalisation and export orientation positively impact on GDP growth. RS has characteristically small and open economies. The degree and character of the connections between the observed variables was determined by means of regression analysis. Regression analysis indicates that there is a positive connection between the total trade and GDP growth. Further, there is a marked positive correlation between export and GDP, that is, export growth contributes to GDP growth. Foreign trade deficit stands in a negative correlation with GDP. Lastly, regression analysis points to the connection between the Republic of Srpska economic growth and openness of its economy. However, uncontrolled opening and exposure to foreign competitiveness can also bring about problems which in certain circumstances lead to long-term macroeconomic instability.

Foreign Trade Liberalisation and Economic Growth: The Case of the Republic of Srpska

Faculty of Mediterranean Business Studies

ECONOMICS

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper assesses the impact of trade liberalisation on the economic growth of the Republic of Srpska (RS). The aim of the research is to prove the...

Foreign Trade Liberalisation and Economic Growth: The Case of the Republic of Srpska

Published Online: Dec 31, 2019

Page range: 99 - 108

Received: Nov 25, 2019

Accepted: Dec 04, 2019

DOI: https://doi.org/10.2478/eoik-2019-0020

Keywords
Liberalisation, growth, trade, export, small economies, Republic of Srpska

© 2019 Goran Popović et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Foreign Trade Liberalisation and Economic Growth: The Case of the Republic of Srpska

Published Online: Dec 31, 2019

Page range: 99 - 108

Received: Nov 25, 2019

Accepted: Dec 04, 2019

DOI: https://doi.org/10.2478/eoik-2019-0020

KeywordsLiberalisation, growth, trade, export, small economies, Republic of Srpska

© 2019 Goran Popović et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Liberalisation, growth, trade, export, small economies, Republic of Srpska