COMPARATIVE ANALYSIS OF THE SECTOR COMPATIBILITY OF THE ECONOMY OF BOSNIA AND HERZEGOVINA AND THE EUROPEAN UNION IN THE FUNCTION OF THE CONVERGENCE OF BOSNIA AND HERZEGOVINA ACCORDING TO EU.

The problem encountered by transition countries or developing countries, such as Bosnia and Herzegovina, in the process of European integration, requires a certain degree of sectoral harmonization of its economy with the European Union economy in the function of convergence towards the EU at the macroeconomic level. The aim of this research is to problematize the importance of meeting the conditions and criteria of convergence for joining the European Union, by analyzing the sectoral compatibility of the economy of Bosnia and Herzegovina with the economy of the European Union, using the comparative analysis method. In the continuation of the paper a comparative analysis of the economic structure of Bosnia and Herzegovina and the economy of the European Union will be presented, with a view to determining their structural coherence. The application of the Krugman specialization index and the Balassin specialization index will result in a clearer and more transparent comparative analysis of the structural coherence of the B&H economy with respect to the European Union's economy. [ABSTRACT FROM AUTHOR]