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Th e analysis of foreign trade in global trading of today requires the usage of macro-analytical activities which are based on contemporary and classical evaluation methods, trading measurements and macroeconomic indicators of economic stability and growth. Th is paper starts from the idea and the need to evaluate the infl uence of foreign trade between Bosnia and Herzegovina using the gravity model. Th e aim of this paper has been set based on this idea and is refl ected in the advantages and disadvantages of using the gravity model in evaluating foreign trade between Bosnia and Herzegovina and Montenegro.

USAGE OF GRAVITY MODEL IN EVALUATING FOREIGN TRADE BETWEEN BOSNIA AND HERZEGOVINA AND MONTENEGRO AS MEMBERS OF CEFTA AGREEMENT 2006