Economic Themes (2013) 51 (1) 3, 37-57
Srđan M. Boljanović
Abstract: Foreign direct investments can affect the structure and specialization of the host country’s exports directly, if the products of foreign companies differ from the existing export structure, and indirectly, through spillover effects. The effects of foreign direct investments on the structure and specialization of exports depend on the level and type of foreign direct investments, sectoral distribution and technology used in the production as well as absorption capacity of domestic enterprises. Foreign direct investments in Serbia in the past were largely directed to the marketoriented activities that belong to the tertiary sector, which did not contribute to solving the problems of permanent trade deficit. On the basis of comparative analysis of the impact of foreign direct investments on the structure and specialization of Serbian and Hungarian exports, the aim of this paper is to highlight the importance of foreign direct investments for raising export competitiveness and determination of the degree of export specialization that positively affects the valuation of exports and troubleshooting trade deficit.
Keywords: foreign direct investments; export structure; specialisation of exports; competitiveness
A COMPARATIVE ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENTS ON THE STRUCTURE AND SPECIALIZATION OF SERBIAN AND HUNGARIAN EXPORTS
Srđan M. Boljanović
Abstract: Foreign direct investments can affect the structure and specialization of the host country’s exports directly, if the products of foreign companies differ from the existing export structure, and indirectly, through spillover effects. The effects of foreign direct investments on the structure and specialization of exports depend on the level and type of foreign direct investments, sectoral distribution and technology used in the production as well as absorption capacity of domestic enterprises. Foreign direct investments in Serbia in the past were largely directed to the marketoriented activities that belong to the tertiary sector, which did not contribute to solving the problems of permanent trade deficit. On the basis of comparative analysis of the impact of foreign direct investments on the structure and specialization of Serbian and Hungarian exports, the aim of this paper is to highlight the importance of foreign direct investments for raising export competitiveness and determination of the degree of export specialization that positively affects the valuation of exports and troubleshooting trade deficit.
Keywords: foreign direct investments; export structure; specialisation of exports; competitiveness
