КАМАТНЕ СТОПЕ КАО ФАКТОР ОДЛУЧИВАЊА У ИНВЕСТИЦИЈАМА У БОСНИ И ХЕРЦЕГОВИНИ

Abstract

The interest rate determines the cost of capital and the borrowing costs of investors, it is an important factor that influences investment decisions. The relationship between interest rate and investment can be analyzed through several theoretical frameworks, including Keynesian and neoclassical approaches. According to Keynesian theory, a negative relationship is expected, when the interest rates rise, investment decline because the financing is more expensive. For the empirical analysis, the Error Correction Model (ECM) model was used. The interest rate was taken as an independent variable, and gross investments as a dependent variable. The observed period is in the range of 2002-2023. year. Based on the analysis, it was determined that there is an inverse relationship between interest rates and investments, and that the relationship between interest rates and investments is statistically significant in the short term. The conducted analysis supports the hypothesis that there is a stable long-term relationship between interest rates and investments.