UTICAJ INVESTICIJA NA BRUTO DOMAĆI PROIZVOD U BOSNI I HERCEGOVINI

Abstract

The impact of investments on Gross Domestic Product (GDP) is a significant topic in economic analysis. Investments are a key factor in economic growth and development as they directly influence GDP. This paper analyzes the impact of investments on GDP through theoretical and empirical aspects, considering both long-term and short-term effects. Observing multiple effects, investments not only increase aggregate demand but also positively affect productivity, technological progress, and employment. The methodological approach to the analysis includes several steps: defining variables, collecting data for the given variables, conducting descriptive statistics, and performing econometric analysis. In addition to promoting sustainable development and macroeconomic stability, investment policies also strengthen the economy’s resilience to global economic changes and crises. In this paper we comes to the conclusion that long-term sustainable investments represent a significant factor in economic growth.