INDISPENSABILITY OF THE RE-INDUSTRIALIZATION POLICY IN FUNCTION OF THE FOREIGN TRADE DEFICIT REDUCTION

Abstract

The economic policy of Serbia during the transition period was based on the wrong neoliberal concept that has caused high external indebtedness of the country and the unfavorable structure of gross domestic product, in which the largest share have non-tradable goods sectors, which for a long-term makes difficult servicing of external debt. The future strategy of economic development must be based on reindustrialization as a model that can stop and mitigate the negative effects of so far economic policies. Setting up of competitiveness at the center of development strategies requires from all businesses entities the new models of development that will enable better use of existing resources and result in increased export performance. Support both to small and medium-sized enterprises and entrepreneurship, modeled on the highly developed countries is the basis of successful management of economic policy and in Serbia there are all necessary prerequisites.

Keywords

• foreigntrade
• deficit
• re-industrialization
• competitiveness.