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The growth landscape of Bosnia and Herzegovina (BiH) is undermined by adverse productivity developments and weak private sector development. BiH is still finding a pathway to rebalance its current public sector-led growth model to a private sector-led one. In this light, enhancing innovation and entrepreneurship (I and E) is a key priority for BiH. This report provides a comprehensive assessment of the current I and E landscape in BiH and offers a roadmap for innovation policy reforms. It showcases current I and E outcomes in BiH and provides analysis of whether current support policies and programs in BiH (including public budget allocations) address existing market failures. The report concludes that recent policy measures have not effectively addressed BiH's needs for supporting I and E, specifically in terms of access to skills, ease of business regulations, and predictability of business environment. to this end, this report offers a roadmap for policy reforms as well as suggestions for pilot programs.
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Using firm-level data for Georgia, the paper estimates the quasi-elasticity of employment and wages with respect to the share of exports in total sales, to explore whether changes in the structure of sales (exporting versus selling to the domestic market) matter for labor market outcomes. The methodology uses exogenous fluctuations in exchange rates combined with firms' initial exposure to various markets as instrumental variables to identify a causal effect. The results differentiate employment levels and average wages by gender and consider whether export destination or the competiveness of economies matters for the magnitude of this elasticity. The data are from the National Statistics Office of Georgia Statistics Survey of Enterprises merged with customs data for 2006-17. The instrumental variables regression results show that the act of exporting improves female employment but reduces overall average wages and female wages. Increasing exports to the European Union as well as high-income countries drives this positive result for female employment, whereas exporting to upper-middle-income countries is found to have a negative relationship with female employment.
Access To Markets --- Domestic Market --- Employment and Unemployment --- Export Competitiveness --- Exports --- Female Employment --- Gender and Development --- Gender and Economics --- Inequality --- Labor Markets --- Market Access --- Trade --- Wages
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