Competitiveness and Private Sector Development Sector Specific Sources of Competitiveness in the Western Balkans: Recommendation for a Regional Investment Strategy
Competitiveness and Private Sector Development Sector Specific Sources of Competitiveness in the Western Balkans: Recommendation for a Regional Investment Strategy
The Western Balkan region benefits from a cost-competitive labour force and geographic and cultural proximity to EU markets. Wages currently are significantly below those of Western European and even many Central European countries. Transport times to the EU can be less than 24 hours, and the region benefits from strong skills in several European languages. However, cost competitiveness as a source of differentiation is not sustainable. Cost levels are increasing gradually in some sectors, reducing firms' profitability. In ...
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The Western Balkan region benefits from a cost-competitive labour force and geographic and cultural proximity to EU markets. Wages currently are significantly below those of Western European and even many Central European countries. Transport times to the EU can be less than 24 hours, and the region benefits from strong skills in several European languages. 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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