Foreign trade of textile industry of Serbia: Situation and trends of change

The development crisis in the Serbian industry creates the need of its radical structural adjustments, particularly in the direction of adequate involvement in the international division of labor. The influx of foreign direct investment is insufficient, with a relatively poor prognosis for their large-scale increase in the short to medium term, due to the global financial crisis. In these circumstances, it is important to identify the industries that, with the existing factors of competitiveness, supported by appropriate measures of industrial policy can improve the foreign trade balance of the country. Textile industry in Serbia has remained recognizable export potential in spite of numerous problems and weaknesses in the sphere of foreign trade relations. Volume of exports, this industry is one of the five major exporters, but at the same time, a growing deficit in foreign trade. Evident is the necessity of its structural changes in the direction of raising the low level of competitiveness, but also need to create a more favorable institutional environment for the implementation of those changes.