Foreign direct investments in the role of strengthening the export competitiveness of the Serbian economy

Abstract

The globalization of economic activity imposes the need for all countries to participate intensely in the current international economic cooperation and exchange processes of goods, services, labor and capital. Greater integration into international economic and trade flows is particularly important for small countries, given that the limitation of resources and insufficient domestic production impose the need for greater imports. On the other hand, import imposes a greater need for more exports so that the growing imports could be financed. Adjusting the challenges of globalization is an important task for all countries in order to accomplish basic economic goal, and that is the growth of living standards of all citizens. In this sense, in this paper, special attention is paid to the state of foreign trade and the analysis of the effects of FDI on export competitiveness and increase exports of the national economy, as one of the most important conditions of economic progress in the future. The main objective of this paper is to highlight the importance of the impact of foreign direct investments to strengthen the export activities of the Serbian economy, and the importance of intensification of export activity and qualitative changes in the structure of domestic exports.

Keywords

• globalization
• exports
• foreign direct investments
• economic growth