Acta Economica (Jun 2008)
THE PROMOTION OF EXPORT AS BASIC POSTULATION OF LONGTERM STRATEGY OF DEVELOPMENT (EXAMPLE OF BOSNIA AND HERZEGOVINA)
Abstract
The final goal of national economic policy is an increase of life standard of the population. Theory explains and economic events confirm positive effects of export on economic development. The strategy of growth of one national economy based on the effects of export is optimally determined only if it is conceived on longterm strategy of development. The increase of the export of products, which are, by development strategy, qualified as products with comparative advantages in international exchange, understands export promotion of those products. Long-term strategy, therefore, understands recognition of comparative advantages of domestic products on world market, transformation of comparative advantages into competing ones, export promotion of those products on world market and, as consequence, an increase of export with effects on economic development of the country. Appreciating comparative advantages and bigger utility of higher phase of finalization of products, BiH can define strategy of development based on the effects of the export of food products as potential competitors on world market.
