Structural changes in Serbian industry during transition

Transition is complex process whereby a country in transition is stimulating structural changes with the goal to achieve economic growth and improved social wellbeing. In this paper the authors strive to prove that during transition in Serbia, such changes in the structure of manufacturing industry occurred, that resulted with only modest growth which was, in fact, slower than in other transitional countries. By the means of theoretical and empirical approach the authors have come to conclusion that structural changes did not improve industry branches like the hi-tech industry that contribute the most to PPP generation. At the same time, some low productive industries have gained on importance, therefore holding the living standard on the low levels with no capacity to rapidly converge towards EU average, which was set as an ultimate goal of transition in Serbia