Impact of foreign direct investments on Serbian industry

Boljanović, Srđan; Hadžić, Мiroljub

doi:10.5937/industrija45-13465

Cited by 6 publications

(5 citation statements)

References 12 publications

(15 reference statements)

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“…Low level of domestic savings is partially compensated with high volume of FDI, 2-3 billion € per year. However firstly, the Government subsidies foreign investors and secondly, foreign investments policy is not adequate, as those investments are mainly based on the low technological level and oriented toward domestic market [6]. Large companies only had investments per company more than 4 million €, while SMEs 7.6 thousand € per company (Table 1).…”

Section: Graph 2 Serbia Investments Per Employee (Thousand Rsd)mentioning

confidence: 99%

Strengthening SME competitiveness through financial support

Hadžić¹,

Paunović²

2021

International Review

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Serbian SMEs after 2000 experienced high growth rate and become an important economic subject. During the economic crisis SMEs faced with severe problems. With economic recovery from 2015 on SMEs again have positive business demography. If look in SME`s business performances one cannot be satisfied. SMEs have experienced low level of profitability and competitiveness. Low efficiency, namely low gross value added, GVA made no room for savings and investments into development. The share of gross savings and investments into gross domestic product, GDP has for long time been less than 1/5. Thanking to high and increasing foreign direct investments total investments are on the level that made room for increase in rate of growth. The average rate of growth, 2-3% p.y. is insufficient to catch up other transitory economies. External sources of financing SMEs are limited and the discrepancy between demand for financial sources and supply is more than one billion euros. The difficult access to finance by SMEs can be explained by biased approach of banks toward large companies, problem of bank`s non - performing loans, high interest rates and high requirements of banks. The paper examines low efficiency of SMEs, especially problem of access to finance and try to recommend measures to overcome them.

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Section: Graph 2 Serbia Investments Per Employee (Thousand Rsd)mentioning

confidence: 99%

Strengthening SME competitiveness through financial support

Hadžić¹,

Paunović²

2021

International Review

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“…Serbian manufacturing has been stagnant during the transition period, mainly due to low investments and low value added (25%). The steps which can change this related to the increase in investments in manufacturing as foreign direct investments (FDI) were oriented toward nontradable sector [11] and to invest in order to close competitiveness gap (Serbian productivity in manufacturing is around 40% of those in Hungary, Czech Republic, Slovakia and Poland, while at the same time wages are lower in comparison to those countries). There are different possibilities to improve competiveness by the government active measures and at the same time on the level of companies, with a differentiation between large companies and SMEs.…”

Section: -The Reexamination Of Government Measures and Strategic Docmentioning

confidence: 99%

Rethinking Strategy for SMEE Support in the Light of the Entrepreneurial Ecosystem

Hadžić

Pavlović

2019

Emerg Sci J

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Serbia has started transition in 2000. Although it experienced fast growth prior to the global economic crisis, critical number of SMEs was not created to achieve a sustainable development of entrepreneurial sector. During the crisis period SMEs faced with development limits, especially shops and micro companies. In the period 2009-2014 Serbian economy had zero rate of growth, the business climate was generally somewhat deteriorated and support to SMEE weakened by Government, local level of governance and financial institutions. There are positive signs of economic recovery of Serbia during 2015 and 2016. The market reforms got momentum in some important areas. The Government successfully put under control huge budget deficit and public debt. The inflation rate became for the first time low, similar to the European level. The Strategy for support SME, entrepreneurship and competitiveness in the period 2015-2020 was enacted at the end of 2014. Its importance became critical considering weaknesses of entrepreneurial sector, bottlenecks and limits of existing governmental measures for SMEE support. The point is to highlight those from the point of view of development the entrepreneurial ecosystem, as a new conceptual framework designed to foster economic development via entrepreneurship, innovation and small business growth.

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“…It is important to note that existing FDI policy (if any) has overemphasized subsidization, which is wrong, but necessary in order to overcome unfavorable business conditions, and more importantly it includes stimulations to foreign investors to place their products on the domestic and not on the global market. Thus the overall result of such foreign investments is negative for the trade balance and the balance of payments (Boljanović and Hadžić, 2017). The formation of supportive clusters is seen as an important vehicle for DIP which has already begun, but there is a lot of room for improvement in the sectors of former traditional exporters, and more importantly in high tech ITC.…”

Section: Reindustrialization As a Policymentioning

confidence: 99%

Rethinking deindustrialization, and the reindustrialization policy in Serbia

Hadžić

Zeković

2019

Spatium

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The paper explores deindustrialization as the main development problem in Serbia and examines the possibilities for a new industrial policy and its implementation. The aim of the paper is to reexamine the process of deindustrialization in Serbia (its causes and consequences), and to give useful suggestions related to Serbia's existing strategy of longterm industrial development until 2020 and to new industrial policies. Addressing the deindustrialization process is an issue of developmental and economic policy. A reindustrialization strategy or a new industrial policy could be one answer, and this has to be addressed if the share of industry in the GDP is to increase. Both qualitative and datagiven approaches have been applied to the analysis of deindustrialization and to the question of how to improve the conceptual framework for reindustrialization in Serbia. Also, some recommendations to the ongoing national reindustrialization strategy, or the "smart specialization strategies" are made.

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Impact of foreign direct investments on Serbian industry

Abstract: The empirical researches to date on the impact of foreign direct investments (FDI) on the host country were either focused on the overall macroeconomic impact of FDI on exports of the host country or

Cited by 6 publications

References 12 publications

Strengthening SME competitiveness through financial support

Strengthening SME competitiveness through financial support

Rethinking Strategy for SMEE Support in the Light of the Entrepreneurial Ecosystem

Rethinking deindustrialization, and the reindustrialization policy in Serbia

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