Economic Themes (2014) 52 (3) 2, 263-280


Slavica Penev, Boštjan Udovič, Mihajlo Đukić

Abstract: The paper analyses the challenges of modern commercial diplomacy (CD), which became more relevant than it was in the pre crisis period. In this context, the authors analyzed the chronology of implementation of CD in Serbia, scope and efficiency of its activities, and the areas for improvement. Some of their findings, related to the efficiency and challenges in CDs activities, are based on the questionnaire conducted among 25 Serbian CDs. The paper concludes that in order to increase the efficiency of commercial diplomacy, coordination of the activities of the responsible institutions should be improved, to avoid overlapping in their work and to rationalize use of limited resources. However, the authors emphasised that the space for contribution of commercial diplomacy to the increase of export and FDI is insufficient, due to limited export potential and poor investment climate in Serbia. The authors conclude that in order to increase the efficiency of commercial diplomacy in export promotion area, it is important to implement the necessary reforms, which will result in the restructuring of Serbian economy, make it more competitive and export oriented. To increase the inflow of FDI to Serbia, it is necessary to create a business friendly investment climate.

Keywords:  commercial diplomacy; export promotion; FDI; economic crisis; Serbia.

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