Search results

This paper deals with the analysis of the economic effects of Fiat investment
on the development of automotive industry in Serbia. The main objective of
the research is to determine why the expected local suppliers base was not
created, and whether it was mainly influenced by Fiat. The research is based
on the concept of clusters as effective instruments that enable the
integration of local suppliers into supply chain of global automotive
manufacturers, as well as on the assumption that the strength of clusters is
primarily determined by the presence of large, powerful enterprises. The
empirical research was conducted using econometric analysis (stochastic
frontier analysis) and statistical t-tests on panel data consisting of 40
enterprises operating in the Serbian automotive sector. The aim was to
analyze whether the presence of large enterprises increases the cluster
performances in Serbian automotive industry. The empirical research results
showed that large companies, on average, decrease cluster performances thus
pointing out to the conclusion that the absence of large and powerful global
companies in the automotive cluster of Serbia, i.e. the absence of Fiat, has
significantly reduced the possibility of creation of local suppliers base in
the Serbian automotive sector.

The main research objective is the promotion of the intensity of innovative activities of small and medium-sized enterprises and entrepreneurs (SMEE) in the Republic of Serbia. The importance of research is reflected in the role that innovative SMEEs play in national economic growth and development. The subject of the research is awareness of the representatives of SMEEs on available sources of financing for innovative activities, innovation policy measures and programs implemented by the Government of the Republic of Serbia, as well as data on the amount of SMEEs' investments in research and development (R&D), forms of innovations, etc. The research was conducted by using desk and field research methods. The research results include measures for promoting the innovation intensity of SMEEs. The measures are classified into those whose implementation is the responsibility of policy makers and those whose implementation is the responsibility of managers of SMEEs. The implementation of the proposed measures is supposed to contribute to the development of strategic approach to innovation of both SMEEs and other actors in the national innovation system.

Relevant strategic documents have demonstrated the positive effects of clustering. Serbia, as a small transition economy, should consider clustering as a means of strengthening competitiveness of enterprises and regions, improving the structure of business activities, and strengthening cooperation and links between businesses and public and scientiic institutions. Clusters' contribution to economic growth and development is limited by the poor implementation of relevant strategic documents. The main objective of this paper is to identify speciic government measures for the improvement of the existing business environment, the implementation of strategic documents, and the development of innovative SMEs and clusters. To promote SME innovation activities, it is necessary to introduce a national innovation system based on a feedback mechanism between science and businesses, and to raise awareness on the beneits of innovation for improved competitiveness. More dynamic cluster development also requires promotion of cluster development policy, evaluation of cluster activities, more intensive cooperation with the EU in the ield of cluster policy implementation, as well as supervision and evaluation of these policies.

The main objective of the paper is to evaluate the effects of transition on economic trends in the Western Balkan (WB) countries by using the selected economic indicators and to elicit recommendations for more advanced economic growth. The economic trends in the WB countries in the last two decades are characterized by unsatisfactory level of actual gross domestic product, high unemployment and foreign trade deficits, insufficient foreign direct investments and growing indebtedness. Given that the above economic trends are caused by different political and economic circumstances as well as dynamics and the way they implemented a comprehensive economic reform in order to shift from a centrally planned to a market based economy and integrate into the EU, the paper reviews the basic characteristics of the transition in the WB countries and evaluates their effects on the level of economic development of each country.

Expansion of banking sector in Serbia, the result of regulatory reforms in financial system, has been followed by increased growth of capacities, productivity and profitability. Reduction in the number of banks, strengthening of the capital base and more efficient methods of management are the main characteristics of domestic banking during the past few years. Banking sector in Serbia encountered effects of the world economic crisis which was followed by the increase in bank interest rates, all increasing difference among interest rates at which banks launched their resources and referential interest rates of the European central banks, as well as crisis in trust of the citizens in the banking sector. Reduction of domestic savings on one hand and limited and expensive sources of financing in the world on the other resulted in narrower scope of business activities and increase in prices of banking services in Serbia. In order to bring about stabilization in banking sector in Serbia, the National Bank of Serbia and the Government took over a set of measures directed mainly towards perseverance of the level of the loan activities, increase in savings and attracting foreign investments.

"This book is driven by major developments in the world economy and fills the gap in the literature by providing new insights into some of the main opportunities and challenges faced by multinational enterprises seeking to pursue their foreign investment activities and gain access to new markets. Specifically focusing on cross-border investment and how multinational enterprises are able to exploit new global business opportunities."

Small and Medium-sized Enterprises are recognized as the backbone of every economy and the key source of economic growth, dynamism and flexibility in advanced industrialized, as well as in transitional and developing countries. Policymakers are conclusive in attempt to promote the more dynamic development of SME sector by creating policies and consistently implementing the basic principles contained in the European Charter for Small Enterprises. The further course of the Serbian integration into the European Union will be primarily determinate by the development of the SME sector. The SME sector in the Serbian economy accounts for the largest part of total number of active companies, GDP, total export and import and for the majority of employment. Due to the fact that the world financial crisis has worsen the already vulnerable SME sector in Serbia, the government, by setting the adequate policy framework in which SMEs can operate, has provided economic benefits through the selection of business support instruments, the problems they address and the way they are delivered. Even though the importance of the role SMEs play is even more emphasized in times of crisis, these enterprises are facing significant problems when providing necessary financial resources and maintaining liquidity.

Small and Medium-sized Enterprises (SME) in general and particularly innovative ones are becoming an increasingly important factor on the road to achieving smart, sustainable and comprehensive development. Because of their propensity to innovative undertaking and risk, SMEs contribute significantly to economic growth but are generally less productive and pay the cost of high rates of death and lower rates of profitability. Financing SMEs is risky and uncertain and for innovative SMEs it is even more difficult to access financing. When financing innovative activities, investors perceive high risks and it is even more emphasized in times of crisis when there is an increase in the cost of capital. Institutional support and governmental programmes have an important role in closing financial gap that innovative SMEs are faced with. Because the survival and development of SMEs is to a great extant determined by their ability to access favorable financing, the main objective of this paper is to provide policy recommendations for promoting availability of financing to innovative SMEs in order to foster economic recovery and more dynamic development of Serbia. The recommendations are to emerge from analyzes and evaluation of currently available sources of finance for innovative SMEs.

The concept of clusters, as the empirical phenomenon of geographical concentration of economic and innovation activities, is recognized as one of the key factors for strengthening small and medium-sized enterprises, which are believed to be the driving force of local economic development. The evidence suggests that local economies that are based on networking and cooperation between companies, financial institutions, public and academic actors, as well as different organisations, generate better outcomes. Clusters are significantly related to prosperity and local economic development by providing an environment that is conductive to innovation creation and knowledge spillovers, vertical integration and specialisation, pressure for competition, supply chain creation, and competitiveness and employment growth. The role of national governments at all levels in creating and implementing cluster policies has been increasing in the last decade. Through various policy actions, programs and cluster initiatives, governments provide much needed support and initial platforms for dynamic growth of clusters. The case of Czech Republic is presented as an example of successful cluster policy development. The analysis of two specific clusters, supported by the government, illustrates their significant impact on economic development of regions.

With the economic crisis acknowledged in 2008, unemployment strongly increased – mostly due to the fall in the industrial sector – which indicates the possible emergence of a new poor and extremely poor population, alongside the decrease of trade deficit and foreign direct investment. Serbia has a large informal sector estimated at 35 per cent of GDP in 2007, fuelled by a weak regulatory framework, inappropriate tax and expenditure policies, and weaknesses in law enforcement, including the fight against corruption. It remains an important challenge as it reduces the efficiency of economic policies. The government should now focus on the following three issues to attract entrepreneurs in the formal sector: (i) contract enforcement (especially the functioning of the courts); (ii) access to finance (particularly bank credits); and (iii) clear title to land real property.

Each national economy has specific characteristics that determine its innovative capabilities to a greater or lesser extent. National innovation capacity can be a source of prosperity and growth for the national economy. Measuring national innovation capacity is very important because it provides knowledge about the dynamics of inventions in economic activities. By measuring the innovative capacity of the economy, indicators are obtained that are significant for the creation of development policy and are an important element in evaluating the success of its implementation. The connection between innovation and competitive advantage is direct and positive because the innovative capacities of companies can create, support, and make sustainable competitiveness both in the domestic and foreign markets. This paper aims to determine whether there is a relationship between national innovative capacity and competitiveness. To allow for data mutual comparability and generalization, the research included four countries: Serbia and three neighboring European Union member countries (Bulgaria, Hungary, and Romania). The evaluation was conducted using statistical data from international databases (WEF, INSEAD, and WIPO) covering 2008 to 2018. The findings indicate a positive relationship between a country's competitiveness and innovative capacity, as measured by the Global Innovation Index and the Global Competitiveness Index. In the cases of Serbia and Bulgaria, there was a strong correlation between national competitiveness and the country's innovation index. In Hungary and Romania, on the other hand, the correlation coefficient is low. The paper's originality is reflected in the analysis and comparison of the innovation capacities four Eastern European countries (Serbia, Bulgaria, Hungary and Romania), which are rarely the subject of research in innovation.