YIELD CURVE IN BOSNIA AND HERZEGOVINA: FINANCIAL AND MACROECONOMIC FRAMEWORK
Journal Title: UTMS Journal of Economics - Year 2018, Vol 9, Issue 1
Abstract
Finance and macroeconomics have different perspectives on the yield curve. In the case of Bosnia and Herzegovina, specific context, data issue and financial market that is in its developing phase, do not allow us to have one, unique perspective. The Nelson-Siegel yield curve model could be appropriate, but additional information provided by factor augmented vectorautoregresion, that is found to be appropriate macro-economic tool, could be crucial for the correct analysis. Nelson-Sigel model performs better than Svensson model in this case, but results interpretation could be confusing. The reason for that could be, the significant importance of „foreign“ factors for the observed economy. Factor analysis allows us to control certain latent factors and in the nexus „domestic“ versus „foreign“ factor this could be crucial feature. The overall relative significance of “foreign”, when it is compared to the significance of the “domestic” factor, convince us in the importance of exogenous factors for B&H’s’ economy.
Authors and Affiliations
Bojan Baskot, Silvije Orsag, Dejan Mikerevic
THE ECONOMICS AND MANAGEMENT OF INNOVATION IN TRAVEL AND TOURISM SERVICES: THE CASE OF EUROPEAN CRUISE INDUSTRY IN DUBAI
Firms entering new markets face a difficult challenge: how to manage the innovation process to satisfy specific clients’ requests. In view of its geographical location and business friendly policies Dubai has become the...
BANKS IN TRANSITION COUNTRIES AS ONE OF MOST ATTRACTIVE INVESTMENTS
The primary goal of this paper is to analyze the banking sector in transition countries in Central and Eastern Europe, and identify bank’s potential as an investment in the globalized environment. The primary hypothesis...
CRM DEVELOPMENT IN HOSPITALITY COMPANIES FOR THE PURPOSE OF INCREASING THE COMPETITIVENESS IN THE TOURIST MARKET
CRM as a trend in business and business philosophy consists of a series of complex and diverse business resources such as: modern technological resources, information resources, human resources and all other procedural r...
CLIMATE CHANGES AND ADAPTATION POLICIES IN THE BALTIC AND THE ADRIATIC REGIONS
This paper provides an overview of differences and similarities of the current climate changes in the Baltic and Adriatic coastal regions and appropriate adaptation policies on national, regional and European level. All...
GENERAL CHARACTERISTICS OF RELIGIOUS TOURISM IN CROATIA
Croatia has a rich sacral (tangible and intangible) heritage, which undoubtedly has great cultural value, and part of the religious heritage has been included in the World Heritage List of UNESCO. The fact is, however, t...