How to accelerate export-led growth in contemporary world?

Boskov, Tatjana and Bishev, Gligor (2014) How to accelerate export-led growth in contemporary world? In: SMEs Development and Innovation: Building competitive future of South-Eastern Europe, VIII International Conference, 03-04 Oct 2014, Ohrid, Macedonia.

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Globalization brings the threat of a weakened SME sector, since its role in (direct) exporting is less than proportional to its size; this reflects the economies of scale characterizing big markets. But globalization can also increase the importance of a strong SME sector, either where direct SME exports are feasible or where SME subcontractors help keep the country's large exporters competitive. Many markets are too small to have enough large firms to curtail the use of monopoly/monophony and oligopoly/oligopoly power, so price-competition and quality-based competition tends to come from SMEs. Prices of domestic products on international markets are often underestimated because of the poor reputation or ranking the products with a low degree of processing. Namely, it is necessary small and medium enterprises to make efforts in this domain to contribute in a way that they will make the promotion of domestic products, have organized a joint presentation on external markets, will exhibit initiatives for creation of distribution centers. In this regard, the entry of FDI in manufacturing is expected to contribute to the production of high quality products, and distinctive products, which would lead to higher absolute prices, higher productivity and lower unit labor costs of products. So the recommendations are on building relationships with financial institutions, especially with banks, to facilitate funding to SMEs. In this context, it is useful to identify where SMEs are dealing in foreign currency and seek opportunities to provide value-adding advice in areas such as managing foreign exchange risks and forecasting currency needs. In this context, the key factors for realization of these aims are innovation and knowledge that would help for increasing competitiveness as the role of FDIs for productivity and efficiency growth, with support of real exchange rate by stimulating the growth of export, too. The domestic industry by using knowledge, innovation development and upgrading the capacity of the small and medium enterprises can take the necessary changes for its output and increase export performance. All of this can contribute to sustainability of the economic growth and economic integration especially of small economies on which mainly this paper is focused with special emphasis on the Macedonian economy.

Item Type: Conference or Workshop Item (Paper)
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Tatjana Boskov
Date Deposited: 21 Nov 2014 15:23
Last Modified: 21 Nov 2014 15:23

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