IZAZOV FINANSIRANJA SKOKOVITOGA RASTA MALIH EKONOMIJA
THE CHALLENGE OF FINANCING RAPID GROWTH OF SMALL ECONOMIES

Author(s): Silvije Orsag, Dejan Mikerević
Subject(s): Economy, National Economy, Financial Markets, Public Finances, Accounting - Business Administration
Published by: Finrar d.o.o Banja Luka
Keywords: economic growth; small economies; internal financing; external financing; privatization; capital; foreign direct investment; capital market; banks; privatization, earnings; corporate control; funds;
Summary/Abstract: Achieving economic growth is the basis for the development of society and improving the living standards of citizens. A high rate of investment is necessary to provide the conditions for rapid growth, especially for small economies. A positive investment climate is key to attracting foreign investment and stimulating domestic investors to invest additional funds to improve their business activities. The realization of the rapid growth of small economies is possible with internal and external sources of financing, and the choice between them depends on the potential that the observed countries possess as well as the degree of their development. The strength of financial markets and institutions is also extremely important for economic development. If there is a strong traditional commercial banking and capital market in the country then they jointly contribute to more diverse sources of financing the rapid growth of small economies. Observing the countries in the region shows the great bancocentrism of their financial systems and it is certain that the future development of the capital markets in these countries is the basis of their economic growth and overall prosperity of the region. In less developed countries, it is necessary to achieve much stronger economic growth than in developed countries in order for them to catch up with modern global processes of digitalization and economic reform processes around the world.

• Details
• Contents