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...

How do non-belligerent societies view the return of large-scale conflict to Europe? Among European countries, with their different historical ties to Russia and lived experiences of conflict, this article examines how the public in Bosnia and Herzegovina and Serbia-two former Yugoslav republics...

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,...

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...

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...

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...

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...

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...

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...

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...

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 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...

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...

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...

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...

Relevant demographic indicators and available projections suggest a continued deterioration in the age structure of the population, accompanied by persistent depopulation trends in Bosnia and Herzegovina. These changes have multiple implications for labor force dynamics, as well as for the...

This paper analyzes the efficiency of banks in Bosnia and Herzegovina in 2023 using Data Envelopment Analysis (DEA) and Stochastic Frontier methods (SFA). The aim of the research is to measure the efficiency of banks in generating income, using variables such as total assets, number of employees...

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...

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 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...

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

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...

Since 25 June 2024, the 27 member states of the European Union (EU) have been engaging in accession negotiations with Ukraine and Moldova. The EU wants and needs to provide a strategic response to new geopolitical challenges, especially the Russian war of aggression against Ukraine. At the same...

The theory of fiscal federalism suggests that debt of subcentral levels of government is closely related to the internal organization of the country, defined through intergovernmental fiscal relations. Due to a great importance of subcentral levels of government in the theory and practice of...

This research investigates the factors influencing managers' willingness to adopt Environmental, Social, and Corporate Governance (ESG) practices in small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina. As these practices are becoming increasingly important, it is crucial to...

Growth decelerated to 1.7 percent in 2023 from 4.2 percent in 2022 but has proven resilient despite ongoing headwinds, such as spillovers from the war in Ukraine and from the economic slowdown in Europe. Inflation has moderated from 17.4 percent in October 2022 to 6 percent, on average, in 2023,...

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 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...

This paper explores the influence of socio-economic status on the education performance of male and female students in Bosnia and Herzegovina, utilizing data from the 2018 Programme for International Student Assessment (PISA). The study defines key terms such as education, socio-economic status,...