COMPETITIVENESS UNITS OF LOCAL GOVERNMENT
The paper attempts to analyze competitiveness for Local Government Unit (LGU) based on unit labour costs, as well as labour productivity. The main purpose of this paper is to identify those local government units, which are the most competitive, based on unit labour cost that can be considered as indicator for future investments. This paper analyzes local government units during the timeframe 2010–2012 in Federation of Bosnia and Herzegovina. Main hypothesis is that labour costs should not increase faster than labour productivity on a permanent basis. This paper introduces basic information on local government unit, reviews research methodology, discusses results and finally gives conclusion. The contribution of the paper is LGU productivity and competitive indicator as barrier for future investments.