Sector Specific Sources of Competitiveness in the Western Balkans

Recommendation for a Regional Investment Strategy

Business & Finance, Finance & Investing, Finance
Cover of the book Sector Specific Sources of Competitiveness in the Western Balkans by Collective, OECD
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Author: Collective ISBN: 9789264055698
Publisher: OECD Publication: May 14, 2009
Imprint: OECD Language: English
Author: Collective
ISBN: 9789264055698
Publisher: OECD
Publication: May 14, 2009
Imprint: OECD
Language: English

The Western Balkan region benefits from a cost-competitive labour force and geographic and cultural proximity to EU markets. However, cost competitiveness as a source of differentiation is not sustainable. Cost levels are increasing gradually in some sectors, reducing firms’ profitability. In order to sustain competitiveness, the Western Balkans needs to move up the value chain, from investing in automated technology to producing higher-quality goods and enhancing its human capital. This report examines the apparel manufacturing, automotive components and business process and technology outsourcing sectors, focusing on market competitiveness factors, industry key success factors and policy recommendations.

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The Western Balkan region benefits from a cost-competitive labour force and geographic and cultural proximity to EU markets. However, cost competitiveness as a source of differentiation is not sustainable. Cost levels are increasing gradually in some sectors, reducing firms’ profitability. In order to sustain competitiveness, the Western Balkans needs to move up the value chain, from investing in automated technology to producing higher-quality goods and enhancing its human capital. This report examines the apparel manufacturing, automotive components and business process and technology outsourcing sectors, focusing on market competitiveness factors, industry key success factors and policy recommendations.

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