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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Abstract
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 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/11396 |
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