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ECONOMIC GROWTH MODEL FOR BOSNIA AND HERZEGOVINA IN THE PERIOD 2007-2017 - OPPORTUNITIES FOR FUTURE RISKS REDUCTION -

The theory of the system indicates that the metastable state (state of the system described as a state which is close to the equilibrium state) will go into equilibrium if we wait long enough. The behavior of a particular system in the future depends on historical events, current and future shocks. In the equilibrium, all participants in economic life - economic agents are satisfied with their position, and economists call this a state of Nash equilibrium. The problem that we will deal with is the question of whether the economy of Bosnia and Herzegovina is in equilibrium, how to measure equilibrium, how to achieve stability and the balance of the system. The research will focus on productivity function for BiH, the concept of a potential gross domestic product, deviations in the nominal gross domestic product from the potential. We will analyze aggregate demand with the aim to define the model of economic growth of Bosnia and Herzegovina. We believe this knowledge will provide a basis that we believe can serve to create instruments, measures and policies that are needed to reduce future risks - deviations in economic growth.