Policy Options for Competitiveness and Economic Development in the Western Balkans: the Case for Infrastructure Investment
Holzner, Mario
Policy Options for Competitiveness and Economic Development in the Western Balkans: the Case for Infrastructure Investment - Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2016. - 14 S., 9 Figures, 30cm. - wiiw Policy Notes and Reports 16 . - wiiw Policy Notes and Reports 16 .
Summary
The Western Balkans are a region with a substantial economic catch-up potential. Compared to other European economies these countries are either poor or very poor.
Structural underdevelopment and low competitiveness impede the catch-up process. Mass unemployment and a huge trade deficit indicate heavy internal and external imbalances.
Short-run policy measures should focus on fiscal devaluation and NPL resolution to foster cost competitiveness and private investment.
A ‘Big Push’ in infrastructure investment is imperative for long-term prosperity. An investment volume of EUR 7.7 billion as envisaged in the ‘Berlin Process’ has the potential for an additional GNP growth impulse of about 1% p.a. and a positive employment effect of up to 200,000 people in the region.
macroeconomic policy
investment
infrastructure
fiscal devaluation
competitiveness
Western Balkans
Berlin Process
Albania
Bosnia and Herzegovina
Kosovo
North Macedonia
Montenegro
Serbia
Western Balkans
Policy Options for Competitiveness and Economic Development in the Western Balkans: the Case for Infrastructure Investment - Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2016. - 14 S., 9 Figures, 30cm. - wiiw Policy Notes and Reports 16 . - wiiw Policy Notes and Reports 16 .
Summary
The Western Balkans are a region with a substantial economic catch-up potential. Compared to other European economies these countries are either poor or very poor.
Structural underdevelopment and low competitiveness impede the catch-up process. Mass unemployment and a huge trade deficit indicate heavy internal and external imbalances.
Short-run policy measures should focus on fiscal devaluation and NPL resolution to foster cost competitiveness and private investment.
A ‘Big Push’ in infrastructure investment is imperative for long-term prosperity. An investment volume of EUR 7.7 billion as envisaged in the ‘Berlin Process’ has the potential for an additional GNP growth impulse of about 1% p.a. and a positive employment effect of up to 200,000 people in the region.
macroeconomic policy
investment
infrastructure
fiscal devaluation
competitiveness
Western Balkans
Berlin Process
Albania
Bosnia and Herzegovina
Kosovo
North Macedonia
Montenegro
Serbia
Western Balkans