Resource information
Big cities are becoming even bigger and
these have been and will be the key drivers of economic
growth in Serbia. Belgrade, Novi Sad, Nis and Kragujevac,
Serbia's four largest cities contributed to about 60
percent of the increase of value added in the economy over
the period 2001-2008. These four largest cities in 2008
accounted for about two thirds of country s economy. Spatial
characteristics of foreign direct investments inflow,
privatization process and location of export oriented
sectors, indicate significant concentration. FDI and
privatization were attracted by largest cities, though the
proximity to the key transit routes, like Corridor 10, is
also important for making decision where to invest. Export
is concentrated in several places, depending on the type of
production, and proximity of major export markets
contributed to concentration of export near the borders of
the EU (i.e., Hungary) and Bosnia and Herzegovina, the
second most important export market for Serbia. Spatially
uneven growth caused differences in living standards. Wages
did not play significant role, as migrations did in
adjusting differences in economic development among regions.
Living standards are lowest in southern Serbia which has on
average negative growth rates over this period and where
both unemployment and poverty are highest. The last section
of the report discusses some of the possible options for
policy makers as response to spatially biased growth.
