Investing in Education and Economic Development in BiH: The Case of International University of Sarajevo

The relationship between education and economic growth gained significant focus and attention as the ‘knowledge economy’ emerged. State economic development depends on many different factors, however the higher education institution play significant role in delivering and providing knowledge as basis for further economic development. Therefore it is significant to explore what has been the link between higher education and economic development in Bosnia and Herzegovina? Thus, this article will attempt to analyze the current level of higher education in Bosnia and Herzegovina, the conception of human capital, the income-based approach, the cost-based approach, and education and Bosnian economic development. Furthermore, this article will attempt to analyze the impact of higher education and investments in higher education at micro level considering the impact level of International University of Sarajevo, as higher education investment, and economic development of Ilidza municipality as investment recipient.