Veličina tržišta i spoljna trgovina kao determinante održivosti nacionalne konkurentnosti

Abstract

Market size in many ways determines the national competitiveness of an economy. If there is a large national market, it is a source of demand for manufacturing companies. There are cases where the national economy has a large market and a weak industry, e.g. Russia, while on the other hand, Switzerland, which has a small market size, compensates that with productivity and exports to other markets. Market size and foreign trade complement each other in influencing the sustainability of national competitiveness. If there is a large market and insufficient industry to meet the demand in that market, it is necessary to import the products and satisfy the needs of the domestic market. However, the small national market and the production of a large quantity of products that it cannot absorb requires export to other markets. The paper presents a comparative analysis of the competitiveness of Serbia and countries in the region, and their indices of market sizes, which include, but are not limited to, foreign market percentages and exports. Certainly, both determinants significantly affect national competitiveness and its sustainability.