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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Ana S. Trbovich & Jana Subotić & Jasna Matić, 2013. "Foreign Direct Investment As Export Facilitator In Serbia’S Apparel Industry," Serbian Association of Economists Journal, SAE - Serbian Association of Economists, issue 5-6, pages 339-353, August.
  • Handle: RePEc:srb:journl:y:2013:i:5-6:p:339-353
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    References listed on IDEAS

    as
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    3. 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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    5. Ali M Kutan & Goran Vukšić, 2007. "Foreign Direct Investment and Export Performance: Empirical Evidence," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(3), pages 430-445, September.
    6. Adugna Lemi, 2004. "Foreign Direct Investment, Host Country Productivity And Export: The Case Of U.S. And Japanese Multinational Affiliates," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(1), pages 163-187, June.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    FDI; export; apparel industry; Serbia;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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