Analysis of factors affecting the savings of private profit companies in Bosnia and Herzegovina expressed in relative amount of GDP by applying the ARDL methodology
Purpose: This paper is aimed at analyzing one component of private savings and its factors, namely the savings of private profit companies. Methodology: An analysis was conducted of the savings of the private profit companies in Bosnia and Herzegovina (BiH), which,...
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Business in Osijek
2021-01-01
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| Series: | Ekonomski Vjesnik |
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| Online Access: | https://hrcak.srce.hr/file/377934 |
| Summary: | Purpose: This paper is aimed at analyzing one component of private savings and its factors, namely the savings of private profit companies.
Methodology: An analysis was conducted of the savings of the private profit companies in Bosnia and Herzegovina (BiH), which, viewed as the sum of savings and time deposits, recorded a cumulative growth of 78.72% until the outbreak of the global financial crisis. In order to examine what factors favored such positive developments the ARDL methodology was applied.
Results: The variables that statistically significantly affect the savings of private profit companies in BiH are GDP growth rate, deposit interest rate, money supply in % of GDP and current account balance in % of GDP (marginally significant at 6% significance level).
Conclusion: The methodology applied confirmed the hypothesis of the paper, which proposes that the savings of private profit companies in BiH are significantly influenced by variables of the financial type. |
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| ISSN: | 0353-359X 1847-2206 |