Institutional efficiency as a function of export capability of small economies

Abstract

Institutions and their efficiency are key factor towards strengthening of export capacities of small economies. Main responsibility for establishing these institutions and for their efficiency is up to the Government. Without institutions and their efficiency there is no export capacity, which has direct negative impact on the welfare of the citizens. Therefore, primary thing to do is to make an effort towards establishing missing institutions and at the same time efficiency growth of existing institutions through reform agenda on every level of government in Bosnia and Herzegovina in order to reduce the gap between import and export in Bosnia and Herzegovina as a small economy.

Keywords

• institutional efficiency
• macroeconomic policy
• trade instruments
• export capacity
• gross domestic product
• gross national product