Development trends of the Textile industry of the Republic of Serbia in labyrinths neoliberal growth model

Abstract

The textile industry of the Republic of Serbia, for a long time, has been one of the key drivers of economic growth, the mainstay of exports, demographic change and the bearers of social policy. However, in the period from 2000 to 2008, that is, in the period of application of the neoliberal model of growth, it was treated by the creators of economic policy as a relic of the past and the socialist model of growth and continuously recorded negative production results. In accordance with the above, the main goal of the research in this paper is to analyze the key macroeconomic indicators to consider the development trends of this industry in this period. The analysis used the method of induction, while the analysis of competitiveness of the textile industry of Serbia used the following indicators: market share analysis and RCA index (revealed competitive advantage index). The results of the research clearly indicate the disastrous consequences of the application: first, shock therapy in the liberalization of trade flows, second, the wrong model of privatization and third, inadequate economic policy measures, but also the fact that the textile industry has maintained a significant share in exports Republic of Serbia.