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Foreign Direct Investment As Export Facilitator In Serbia’S Apparel Industry

  • Ana S. Trbovich

    (Singidunum University Faculty of Economics, Finance and Administration − FEFA, Belgrade)

  • Jana Subotić

    (Singidunum University Faculty of Economics, Finance and Administration − FEFA, Belgrade)

  • Jasna Matić

    (Singidunum University Faculty of Economics, Finance and Administration − FEFA, Belgrade)

Registered author(s):

    The attraction of foreign direct investment, especially export oriented FDI has been one of the main economic policy goals for Serbia since the start of transition in 2001, backed by incentives for attracting this type of investment. The apparel industry is one sector that has drawn significant amount of FDI, and where the link between FDI and exports is emerging strongly, as confirmed by data presented in this article. Appearance of several multinational investors, particularly from Italy, led to positive spillovers on Serbian apparel industry in terms of specific products production and their export on foreign markets, especially “panty hose, tights, stockings & other hosiery, knitted or crocheted”. In 2012, Serbia’s exports for this product represented 1.8% of world exports, ranking Serbia 10th in the world and hence representing a rising niche export. Recent investments of big industry players like Benetton will have further positive effects on export and employment in years to come, provided that the government engages in activities to improve branding in addition to continued investment incentives and policies aimed at advancing infrastructure, education and general business climate.

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    File URL: http://www.ses.org.rs/ekonomika-preduzeca/2013-5-6-04.pdf
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    Article provided by SAE - Serbian Association of Economists in its journal SAE Journal.

    Volume (Year): (2013)
    Issue (Month): 5-6 (August)
    Pages: 339-353

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    Handle: RePEc:srb:journl:y:2013:i:5-6:p:339-353
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    1. Torfinn Harding & Beata S. Javorcik, 2011. "Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows," Economic Journal, Royal Economic Society, vol. 121(557), pages 1445-1476, December.
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    3. M.M. Metwally, 2004. "Impact of EU- FDI on Economic Growth in Middle Eastern Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 121-132.
    4. Gabor Hunya & Monika Schwarzhappel, 2012. "Short-lived Recovery," wiiw FDI Reports 2012-05, The Vienna Institute for International Economic Studies, wiiw.
    5. Ali M Kutan & Goran Vukšić, 2007. "Foreign Direct Investment and Export Performance: Empirical Evidence," Comparative Economic Studies, Palgrave Macmillan, vol. 49(3), pages 430-445, September.
    6. Robert E. Lipsey, 2002. "Home and Host Country Effects of FDI," NBER Working Papers 9293, National Bureau of Economic Research, Inc.
    7. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
    8. Greenaway, David & Sousa, Nuno & Wakelin, Katharine, 2004. "Do domestic firms learn to export from multinationals?," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1027-1043, November.
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