Economic development of the Republic of Serbia determined by the sectoral structure of the economy

• Main Author: Vladimir Micic
• Format: Article
• Language: English
• Published: University of Kragujevac 2017-05-01
• Series: Economic Horizons
• Subjects: economic development; structural changes; economic growth rate; employment; value added
• Online Access: http://www.horizonti.ekfak.kg.ac.rs/sites/default/files/Casopis/2017_1/EN/EH_2017_1_en_Vladimir_Micic.pdf

Experience and good practice show that, in order to achieve economic growth and development, changes in the economic structure need to be made. They have an influence on the relative share, place and role of certain activities in the economy and they are the driver of sustainable economic development. Efficient structural changes are related to the capability of an economy to create more propulsive economic activities. The subject matter of the research in this paper is the determination of the degree of the determination of the economic development of the Republic of Serbia by the sectoral structure of the economy. The research goal is to indicate the adequacy of the size of and contribution of the sectors to the creation of gross value added and the total employment, i.e. the influence of the size, intensity and directions of changes between the sectors on the economic development. The research results are indicative of the fact that the achieved level of the development and low growth rate of the economy of the Republic of Serbia are the consequence of insufficiently comprehensive and intensive changes, changes that are late and are not stable. The future development of the economy will directly depend on the speed of changes and the creation of a modern sectional economic structure, especially the development of a propulsive manufacturing structure or “4.0 industries”.