Analysis of factors affecting the savings of private profit companies in Bosnia and Herzegovina expressed in relative amount of GDP by applying the ARDL methodology

Purpose: This paper isaimed at analyzing one component of private savings and its factors, namely thesavings of private profit companies. Methodology: An analysis was conducted of the savings of theprivate profit companies in Bosnia and Herzegovina (BiH), which, viewed as thesum of savings and time deposits, recorded a cumulative growth of 78.72% untilthe outbreak of the global financial crisis. In order to examine what factorsfavored such positive developments the ARDL methodology was applied. Results: The variablesthat statistically significantly affect the savings of private profit companiesin BiH are GDP growth rate, deposit interest rate, money supply in % of GDP andcurrent account balance in % of GDP (marginally significant at 6% significance level). Conclusion: The methodologyapplied confirmed the hypothesis of the paper, which proposes that the savingsof private profit companies in BiH are significantly influenced by variables ofthe financial type.