IMPACT OF FIRM SIZE ON THE EXPORT PERFORMANCE IN MANUFACTURING COMPANIES IN BOSNIA AND HERZEGOVINA

Exports play an important role in the economy of Bosnia and Herzegovina, influencing the level of economic growth, employment and the balance of payments. The objective of this research is to analyze impact of the firm size (revenue and number of employees) on export performance in manufacturing sector in Bosnia and Herzegovina. These are performed to test whether the firm size has a positive effect on the export performance. Secondary, audited financial performance data of 4077 manufacturing companies, covering the period from 2012-2017 were analyzed. A knowledge gap is clearly visible since Bosnia and Herzegovina is still having more imports than exports, which is resulting in negative trade balance. Descriptive statistics were used in the means of correlation and regression in order to analyze impact of firm size on the export performance and provide the evidence that firm’s characteristics, such as size and revenue have impact to the export performance of manufacturing companies in Bosnia and Herzegovina. Results confirmed the main hypothesis that the firm size has a positive effect on the export performance in manufacturing companies in Bosnia and Herzegovina. Those results are expected to help and guide governments and companies in Bosnia and Herzegovina behave and make significant changes when it comes to exporting. Since no similar research was previously conducted in the country, it will be a contribution to the poorly developed research area. Further research should explore related topics such as impact of industry on competitive advantage in international trade.