Development and Transition in Serbia: Economic Aspects

Abstract

Abstract The study deals with key questions of Serbia’s economic development, including the regularities of transforming self-managed socialism to a standard capitalist system. It is based on the concept of endogenous growth and the general theory of market transition. In the empirical part of investigation, the main directions of economic development and transition in Serbia are analysed. Crucial issues of economic policy are also considered with a particular emphasis on the latest phase of transition. Concerning the problems of economic efficiency, an attempt is made to quantify the various types of technical progress and determine their contribution to its overall rate. The macroeconomic role of external factors is quantitatively shown through a globalisation effect related to inflows of FDI. The author believes that the Serbian economy, despite all its problems and difficulties, in principle has the potential necessary for finding adequate answers to the challenges of ‘neo-transition’. Of these challenges, he regards as most serious Serbia’s ability to comply with the standards of accession to the European Union, which, among others, requires closer regional cooperation.