<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper analyses trends in three key aspects of economic globalization: international trade, foreign investment and global product chains. The paper points to downward tendencies of the world economic integration in all three segments. The paper finds that causes of these trends are not cyclical, but structural, that is, the process of deglobalization of the international market and transformation of the very foundations of the international economic system is underway. The paper also includes an empirical analysis of the potential effects of these changes on six economies of the Western Balkan. The multiple regression models reveal very strong statistic connection between these economies and the world economy trends. There are direct relations with global foreign trade and production, but inverse relation with FDI share in the world economy. That indicates significant challenges such as declining income and job losses, but also certain opportunities to reduce trade deficits and increase domestic production.</p></abstract>

This paper analyses trends in three key aspects of economic globalization: international trade, foreign investment and global product chains. The paper points to downward tendencies of the world economic integration in all three segments. The paper finds that causes of these trends are not cyclical, but structural, that is, the process of deglobalization of the international market and transformation of the very foundations of the international economic system is underway. The paper also includes an empirical analysis of the potential effects of these changes on six economies of the Western Balkan. The multiple regression models reveal very strong statistic connection between these economies and the world economy trends. There are direct relations with global foreign trade and production, but inverse relation with FDI share in the world economy. That indicates significant challenges such as declining income and job losses, but also certain opportunities to reduce trade deficits and increase domestic production.

Deglobalization of the World Economy and its Effects on the Western Balkan Countries

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This paper analyses trends in three key aspects of economic globalization: international trade, foreign investment and global product chains. The paper points...

Deglobalization of the World Economy and its Effects on the Western Balkan Countries

Article Category: Original scientific paper

Published Online: Dec 16, 2020

Page range: 343 - 362

Received: Apr 12, 2020

Accepted: Jul 23, 2020

DOI: https://doi.org/10.2478/ethemes-2020-0020

Keywords
deglobalization, Western Balkan, international trade, foreign investment, international production chains

© 2020 Nataša Stanojević, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Deglobalization of the World Economy and its Effects on the Western Balkan Countries

Article Category: Original scientific paper

Published Online: Dec 16, 2020

Page range: 343 - 362

Received: Apr 12, 2020

Accepted: Jul 23, 2020

DOI: https://doi.org/10.2478/ethemes-2020-0020

Keywordsdeglobalization, Western Balkan, international trade, foreign investment, international production chains

© 2020 Nataša Stanojević, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
deglobalization, Western Balkan, international trade, foreign investment, international production chains