REGIONALIZATION BASED ON SOCIO-ECONOMIC DEVELOPMENT INDICATORS IN BOSNIA AND HERZEGOVINA – EXAMPLE OF FEDERATION OF BOSNIA AND HERZEGOVINA

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Adela Delalić Mirza Šikalo Selma Numanović

Abstract

This study classifies local self-government units (local communities) in the Federation of Bosnia and Herzegovina (FBIH) according to socio-economic characteristics by applying the following multivariate methods: principal component analysis (PCA), regression and cluster analysis. The selection of variables was based on literature and adjusted by FBIH specifics, covering the four hypothetical dimensions of regional differentiation: macroeconomic, demographic, infrastructural and socio-cultural indicators. PCA has identified five components: the productivity component, demographic component, component of economic activity potential, spatial component and employment component. Further analysis showed that all identified factors are significant predictors of local communities’ development, measured by the development index. The cluster analysis resulted with four clusters in the FBIH with significant differences in development level. Considering that FBIH municipalities are administrative units of local government and that the classification is based on socio-economic dimensions, identified clusters correspond to the NUTS principles.

Article Details

How to Cite
Delalić, A., Šikalo, M., & Numanović, S. (2023). REGIONALIZATION BASED ON SOCIO-ECONOMIC DEVELOPMENT INDICATORS IN BOSNIA AND HERZEGOVINA – EXAMPLE OF FEDERATION OF BOSNIA AND HERZEGOVINA. The South East European Journal of Economics and Business, 18(1), 15-26. Retrieved from http://journal.efsa.unsa.ba/index.php/see/article/view/1827
Section
Scientific and Professional papers: Economics and Business
Author Biographies

Adela Delalić, School of Economics and Business University of Sarajevo

Associate Professor
School of Economics and Business University of Sarajevo
Bosnia and Herzegovina
E-mail: adela.delalic@efsa.unsa.ba ORCID: 0000-0003-2556-0461

Mirza Šikalo, School of Economics and Business University of Sarajevo

Senior Teaching Assistant
School of Economics and Business University of Sarajevo
Humska 438, Sarajevo 71000 Bosnia and Herzegovina
E-mail: mirza.sikalo@efsa.unsa.ba ORCID: 0000-0001-8709-3745

Selma Numanović, Bosna Bank International d.d.

Senior expert associate for business with large clients Bosna Bank International d.d.
Bosnia and Herzegovina
E-mail: selma_sa94@hotmail.com
ORCID: 0000-0002-1441-4293