• Mladen Rebić University of East Sarajevo, Faculty of Economics Pale
  • Milica Bojat University of East Sarajevo, Faculty of Economics Pale
  • Nemanja Šarenac University of East Sarajevo, Faculty of Economics Pale


There is no universal model of local economic development. Development strategies vary from country to country, city to city, and depend on the level of development, political system, development potential, social values, available resources, etc. Republic of Srpska faces with significant differences in the level of development of its territory. Local communities in the Republic of Srpska are increasingly facing with several obligations - providing support to business, creating a favorable business environment for attracting investment and providing an adequate infrastructure. The biggest problems that most of municipalities in the Republic of Srpska encounter are reflected in the emptying of cities, the departure of young people, low average wages and high unemployment rates. They are trying to solve these problems by attracting investments. However, it is very important to say that an effective investment policy must be based on the creation of new enterprises with capital-intensive production. The average wage level in local communities of the Republic of Srpska is low, due to the fact that most of the investments have a labor-intensive character. The subject and aim of this paper is to determine the competitiveness and level of development of local communities in the Republic of Srpska. Municipal competitiveness will be higher if it has a positive trade balance, higher average wages, high natural increase, low unemployment rate and positive migration. Higher natural increase, favorable trade balance and low unemployment rate are in direct correlation with the degree of local development. The results of the research have shown that the key problems of underdeveloped municipalities in the Republic of Srpska are demographic aging, population migration, underdeveloped infrastructure, high unemployment rates, low average wages, low level of investment, low export activity, weak institutional capacities, etc.


Download data is not yet available.


Bander, W. 1959. “Impact of Agricultural Adjustment on Community Structure”. Rural Socionogy in a Changing Economy. Urban.
Bartik, T. 2003. “Local Economic Development Policies”. Upjohn Institute Working Paper No. 03-91.
Batley, R. and Stoker, G. 1991.Local Government in Europe – Trends and Developments. London: Macmillan.
Begović, B. and Vacić, Z. and Matković, G. 2006. Lokalni ekonomski razvoj. Beograd: Centar za liberalno-demokratske studije.
Bennet, R. 1990. Decentralization, Local Government and Markets. Oxford: Clarendon Press. Direkcija za ekonomsko planiranje Bosne i Hercegovine. 2017. Ekonomski trendovi: Godišnji izvještaj za 2016. godinu. Sarajevo: DEP.
Đorđević, S. 2012. Renesansa lokalne vlasti: uporedni modeli. Beograd: Čigoja štampa.
Geissel, B. 2009. “How to improve the Quality of Democracy? Experiences with Participatory Innovations at the Local Level in Germany”. Political Science and Political Sociology. Issue 93. Vol. 27. No. 4.
King, A. 1992. Local Government Economics in Theory and Practice. London: Routledge. Ministarstvo uprave i lokalne samouprave Republike Srpske. 2017. Prijedlog strategije razvoja lokalne samouprave u RS 2017-2021. Banja Luka: Ministarstvo uprave i lokalne samuopave RS.
Osborne, D. and Gaebler, T. 1992. “Reinventing government”. A Willian Patrick Book. Addison Wesley Publishing Company.
Pejanović, M. and Sadiković, E. 2010. Lokalna i regionalna samouprava u Bosni i Hercegovini. Sarajevo/Zagreb: Šahinpašić.
Peters, G. 1998. Comparative Politics: Theory and Methods. Basinstoke: Macmillan.
Pusić, E. 1963. Lokalna zajednica. Zagreb: Narodne novine.
Radulović, M. Dejan. 2013. Regionalna politika i regionalni razvoj – Srbija. Beograd: Narodna biblioteka Srbije.
Reiss, A. J. 1959. Sociological Studies of Communities. Madison: Frontiers of Community Research and action.
Sellers, J. 2002. Governing from Below. UK: Cambridge University Press.
Sullivan, A.M. 1990. Te Urban Economics. Boston: Richard D.IRWIN Inc. Homewood.
Šuvar, S. 1973. Između zaseoka i megapolisa. Zagreb: Centar za sociologiju sela, Institut za društvena istraživanja sveučilišta u Zagrebu.
Waltzer, N. 1995. Local economic development. Westview Press.
How to Cite
REBIĆ, Mladen; BOJAT, Milica; ŠARENAC, Nemanja. COMPETITIVENESS AND DEVELOPMENT OF LOCAL COMMUNITIES IN THE REPUBLIC OF SRPSKA. ECONOMICS - Innovation and economic research, [S.l.], v. 6, n. 1, p. 103-111, june 2018. ISSN 2303-5013. Available at: <>. Date accessed: 19 aug. 2018. doi:
Review report