Public Procurement System in Service for Strengthening the Market Economy in Bosnia and Herzegovina

Public procurement system in Bosnia and Herzegovina (BH) is defined by various laws and regulations and is often identified with the legal profession. However, it is actually more significant and relevant for economists and public officials. One of the key challenges remains the application of transparency to the system of public procurement in the context of strengthening market competition in BH, as well as the market economy in general. The research methods applied reveal the market strength of the contracting authorities (buyers) and market competition among suppliers (sellers) in the public procurement market in BH, as measured by their market shares. Based on the research, the connection between the market strength of contracting authorities and the level of development of competition on the public procurement market in BH in the period from 2010 to 2012 was examined in terms of choosing more or less transparent procurement procedures.