The Public Finance Review (PFR) for Bosnia and Herzegovina (BiH) aims to support policymakers in strengthening medium-term fiscal frameworks and aligning fiscal policy with sustainable and inclusive growth. Against the backdrop of BiH’s highly decentralized governance structure, heightened...

This paper describes the Quarterly Macro Forecasting Framework (QMFF), which is a novel approach to macroeconomic policy analysis and forecasting. At the core of this framework is a Quarterly Projection Model, with main behavioral equations quantified as deviations of real variables from their...

Since Russia launched its full-scale war of aggression against Ukraine in 2022, the European Union (EU) has pursued its enlargement policy as part of a geopolitical approach. According to the European Commission and candidate states, the EU could admit new members from 2028 onwards, while...

Migration has long shaped the demographic and economic realities of the Western Balkans, with Germany emerging as the primary destination for emigration. Since the 1990s, persistent emigration, combined with negative natural population growth, has led to significant population declines in...

This report describes the bioeconomy policy developments in Albania, Armenia, Bosnia and Herzegovina, Georgia, Kosovo*, Montenegro, North Macedonia, Moldova, Serbia, Türkiye and Ukraine, associated to the Horizon Europe Framework Programme. The work extends the geographic coverage of the...

Understanding the cognitive perspective is regarded as highly useful to the field of entrepreneurship. This study aims to understand the cognitive differences between individuals who wish to start their own business and those who do not, as well as those who started a business and those who have...

The banking sector in the Western Balkan countries has changed dramatically in recent years. A variety of factors have contributed to these changes, such as economic growth, increased competition, and the implementation of new regulations. As a result, the profitability of the banking sector...

With the growing interest in intergovernmental fiscal relations and theory of fiscal federalism, the academic study of subcentral public debt has gained prominence, particularly in developed countries. However, this focus has been less prevalent in post-transition economies. This article...

The European Centre for Disease Prevention and Control (ECDC) is cooperating with countries in the Western Balkans and Türkiye to improve their infectious disease prevention and control systems and public health workforce in order to prepare them for their future participation in the Centre's...

Are railways always a harbinger of prosperity? We examine the economic effects of railways in Bosnia-Herzegovina under Habsburg colonial rule. Our novel dataset consistently tracks the non-agrarian population share of over 4,500 settlements in Habsburg Bosnia in 1885, 1895, and 1910, based on...

Purpose The study aims to examine whether there is a difference in entrepreneurial intentions (EI) and intrapreneurial intentions (II) between current labor force (CLF) and future labor force (FLF). Moreover, the role of entrepreneurial orientation (EO) as a common determinant has been...

This study is an extended version of the case study included in the study on Multi-level governance structures in the EU enlargement countries. It presents a complete overview of the institutional decentralisation levels in Bosnia and Herzegovina, with tasks attributed at all levels of...

Economic governance is a key aspect of the EU enlargement process, mirroring efforts in the EU to strengthen economic policy coordination and multilateral surveillance under the European Semester. The Annual Economic and Financial Dialogue with Regional Partners aims to prepare these (potential)...

This paper examines the key aspects of corporate governance of stateowned enterprises (SOEs) through a comparative survey conducted in Bosnia and Herzegovina, Croatia, and Serbia. The research explores two distinct perspectives: the state's view on the necessity and governance of SOEs, and the...

Technical assistance to develop a macroeconomic framework was delivered to the Central Bank of Bosnia and Herzegovina (CBBH) between April 2021 and December 2023. The Quarterly Macro Forecasting Framework (QMFF) developed during this project is a quarterly framework whose main behavioral...

Technical assistance to develop a macroeconomic framework was delivered to the Central Bank of Bosnia and Herzegovina (CBBH) between April 2021 and December 2023. The Quarterly Macro Forecasting Framework (QMFF) developed during this project is a quarterly framework whose main behavioral...

This note examines the grants and loans provided by the European Union (EU) and China to the Western Balkan economies. The EU remains dominant in grant funding, with annual Instrument for Preaccession Assistance (IPA) grants averaging 0.8% of the region's GDP, far above the 0.02% of GDP from...

The World Bank presents this report for the WB6 to provide an evidence-based policy narrative to showcase the opportunities for the WB6 transport sector to contribute to the green, resilient, and inclusive economic development (GRID) agenda. It discusses both passenger and freight transport....

People in many parts of Bosnia and Herzegovina (BiH) are exposed to more toxic particulate matter (PM) air pollution than their neighbors in Western Europe. This is especially true for residents in urban areas, such as Sarajevo. The burning of solid fuels - often of poor quality - for domestic...

The Country Opinion Survey in Bosnia and Herzegovina assists the World Bank Group (WBG) in better understanding how Bosnia and Herzegovina stakeholders perceive the WBG. It provides the WBG with systematic feedback from national and local governments, multilateral and bilateral agencies, media,...

Monetary policies have one of the key roles in the creation of economic policies of all countries of the world. Although the main task of monetary policy is to regulate the required amount of money, the objectives of monetary policy can have a development and stabilization character, which...

This Selected Issues Paper (SIP) analyzes recent developments in the real estate market in Bosnia and Herzegovina, focusing on housing price dynamics, financial stability implications, and policy responses. Housing prices in Bosnia and Herzegovina have increased sharply in recent years,...

This paper revisits labor tax wedge issues in Bosnia and Herzegovina (BiH) in light of recent changes to minimum wages and social security contribution (SSC) rates. Using detailed information, it provides estimates of average and income-specific labor tax wedges in both the Federation of BiH...

This Selected Issues paper revisits labor tax wedge issues in Bosnia and Herzegovina (BiH) in light of recent changes to minimum wages and social security contribution (SSC) rates. Using detailed information, it provides estimates of average and income-specific labor tax wedges in both the...

The 2025 Article IV Consultation discusses that growth has remained resilient despite a challenging environment and is projected at 2.4 percent in 2025 in Bosnia and Herzegovina. Downside risks are elevated, including trade tensions, weaker external demand, heightened domestic political tensions...

This study aims to measure digital financial literacy of MSME managers and to analyse the relationship between business experience, digital financial literacy and fintech behavioural adoption. The direct and indirect effects of business experience to fintech behavioural adoption are being...

Migrationspolitik ist mittlerweile ein zentrales Thema bei Wahlen. In der Debatte um eine bessere Steuerung von Migration kommen wesentliche Aspekte allerdings zu kurz. So sind wir in Deutschland längst auf Erwerbsmigration angewiesen, zugewanderte Arbeitskräfte kompensieren den...

Financial literacy is crucial in navigating complexities of personal finance, enabling individuals to make informed decisions about budgeting, saving, investing, and borrowing. Financially more literate individuals are better equipped to withstand economic uncertainties, achieve their financial...

This report describes the employment and social situation of young people in the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia - the WB6) and also looks at employment in Türkiye. It focuses on young people because they were particularly hard...

The Media Pluralism Monitor (MPM) is a research tool that is designed to identify potential risks to media pluralism in the Member States of the European Union and in Candidate Countries. This narrative report has been produced on the basis of the implementation of the MPM that was carried out...

Soil contamination in the Western Balkans is a significant challenge, hampered by inadequate legal frameworks, lack of comprehensive field data, and insufficient site investigations. This report aims to support the JRC's efforts to fill information gaps on soil pollution across the Western...

The project's main aim is to strengthen cooperation within the Western Balkans and between the region and the EU on fighting organised crime and terrorism using modern tools and instruments. This will lead to an enhanced level of interaction and integration between the EU and the Western Balkan...

This article examines the evolution of an industrialized and capital-driven timber extraction in Bosnia and Herzegovina under Habsburg governance from 1878-1914 and its social and ecological effects on the region. It emphasizes the role of both imperial policy-making and local socio-ecological...

The implementation of capacity development (CD) advice and reforms since a 2018 TADAT assessment shows slower progress than expected. Renewed recommendations suggest initiating a transformation program for integrated reform

This report analyzes the possible impact of future coal mine closures on coal sector workers as well as workers in other economic sectors linked to the coal value chain and the implications for local labor markets. The labor market context in which mine or plant closures occur matters because it...

This paper empirically analyses the determining factors of the growth in the migration rate in the countries of the Western Balkans. The analysis is carried out with panel data over 17 years from 2005 to 2021. The purpose of this paper is to analyse social variables such as unemployment and...

The economic growth and development of a country are reflected in many aspects, one of them being the stock market indices. The purpose of the article is to examine and determine the relationship between selected macroeconomic variables and stock market indices in Bosnia and Herzegovina (BiH)....

This policy note explores key issues in the Danube Region, focusing on labour market dynamics, including the development of digital skills, foreign direct investment (FDI) with a particular emphasis on FDI in the IT sector, and the robotisation and automation of the region's industries. Covering...

The transport system is a crucial component of economic development in any country. Bosnia and Herzegovina, being a country with a diverse topography, faces unique challenges and opportunities in its transport system. This paper examines the potential challenges and opportunities of the...

Bosnia and Herzegovina (BiH) have made significant development progress since the last Country Economic Memorandum (CEM) in 2005, most notably in obtaining EU candidate status in 2022. Despite persistent political tensions, the country has enjoyed nearly three decades of peace. The...

This report outlines a strategic approach to introduce pay-for-performance (P4P) incentives for improved noncommunicable disease (NCD) care in Republika Srpska (RS) and the Federation of Bosnia and Herzegovina (FBiH). Developed under the context of the Functional Review of Health Systems'...

This report describes the external quality assessment (EQA) scheme for the European Legionnaires' disease Surveillance network, for the detection, isolation, identification, and enumeration of Legionella species. The EQA schemes provide an outbreak scenario with packages of clinical and...

ECDC is helping countries in the Western Balkans and Türkiye to improve their infectious disease prevention and control systems and public health workforce to prepare them for their future participation in ECDC's work. Technical cooperation with Western Balkans and Türkiye aims to improve...

This study investigates emigration patterns among healthcare professionals in Bosnia and Herzegovina, examining the underlying reasons for emigration and proposing actionable solutions to curb this trend. A mixed-methods approach is employed, combining quantitative data from surveys administered...

There have been significant improvements in public investment management (PIM) in Bosnia and Herzegovina - Republika Srpska (RS) over the last decade and the legal and institutional design is now ahead of many regional comparators. The effectiveness of the PIM framework is lagging behind its...