Impact of Manufacturing Industry Performance on Economic Growth of Bosnia and Herzegovina in the pre-COVID-19 Period

Abstract

In this research, our primary goal is to examine the impact of specific performance of the manufacturing industry on the economic development of Bosnia and Herzegovina. In view of the above, we examine the factors that are considered relevant and that have an impact on economic development, namely the gross domestic product of Bosnia and Herzegovina. Some specific performance of the industry can be reflected through the number of companies, the number of employees in the industry, the amount of exports, as well as investments within the manufacturing industry. The analysis is based on the collected quantitative data published in bulletins, releases and publications of statistical organizations in Bosnia and Herzegovina for the manufacturing industry over a period of five years (2015-2019). In accordance with the mentioned topic, a research model with essential variables, four independent variables (number of companies, number of employees, volume of exports within the industry) and one dependent variable (gross domestic product) were developed. This research will give us the results as well as insight into the specific performance of the processing industry that affects one of the most important indicators of economic development, that is, the gross domestic product of Bosnia and Herzegovina. The results that will emerge from this research will serve as a good basis for further research that could treat this topic with somewhat more identified variables. Also, it is expected that the results of this research will be useful to economic policy makers in Bosnia and Herzegovina, potential investors in some sectors of the manufacturing industry, but also educational institutions as generators of adequate staff.