Revealed Comparative Advantages and Competitiveness of the Manufacturing Industry of the Republic of Serbia

Abstract

Abstract Тhе key research questions in this paper are related to determining the effects and impacts of a new economic growth model on the comparative advantages and competitiveness of exports of Serbian technological manufacturing product groups on the EU-28 market. The research used some of the analytical instruments of the methodology developed by the International Trade Center (ITC), as well as a modified RCA index. There was conducted a comparison of results of measuring export competitiveness using the methodology and RCA index according to the Balassa formula. All relevant analyses brought up similar conclusions regarding the modest effects of the reformed growth model, the low level of export competitiveness of medium and high technology products, but also regarding Serbia’s lagging behind its competitors from the immediate surrounding and the world average. The results indicate that Serbia has failed to balance the structure of sources of financing for the new economic growth model, especially in terms of under-representation of domestic, public and private investments. They reflected on the low volume of gross investment, investment in industry in particular, their inadequate structure and the slow growth of export in production sectors, being the most affected by technological progress.