Restructuring of State Enterprises as a Prerequisite for Economic Growth in the Republic of Serbia

Jakopin Edvard (), Gračanac Aleksandar () and Aničić Jugoslav ()
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Jakopin Edvard: University “Union - Nikola Tesla”, Faculty of Economy and Finances, Republic of Serbia and Statistical Office of theRepublic of Serbia
Gračanac Aleksandar: University “Union - Nikola Tesla”, Faculty of Entrepreneurial Business and Real Estate Management, Republic of Serbia
Aničić Jugoslav: University “Union - Nikola Tesla”, Faculty of Economy and Finances, Republic of Serbia

Economic Themes, 2021, vol. 59, issue 1, 1-22

Abstract: This study of the performance of state-owned enterprises in Serbia has shown that the state has great difficulties managing the enterprises that are in its portfolio and under its control. The adaptation of state-owned enterprises to exogenous shocks unfolds at a slow pace and is faced with many problems. The institutional environment for the strategic restructuring of the state sector is not in the service of strengthening the efficiency of its business operation. The study has shown that the economic performance of state-owned enterprises exerts a direct influence on economic growth, the budget, government balance sheets, and debt. While the “healthy” enterprises (the ones conducting their business successfully) are valuable state-owned property, enterprises with a loss or over indebted enterprises are obligations which demand intervention through the injection of additional capital or through other forms of help from the state. The main goal of restructuring state-owned enterprises is to improve responsibility and efficiency. The array of measures for improving efficiency ranges from modifications of the legal framework and corporate governance of socially owned enterprises (including corporatization and separation of activities) to the sale of property to the private sector or complete privatization. Reforms are aimed at improving the transparency and responsibility of state-owned enterprises, not just for the purpose of efficiency, but also for the purpose of harmonization with the ethical and deontological requirements.

Keywords: state-owned enterprises; structural changes; qualitative business performance; modes of restructuring and reforming state-owned enterprises (search for similar items in EconPapers)
JEL-codes: L32 M21 O12 O43 P13 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecothe:v:59:y:2021:i:1:p:1-22:n:3

DOI: 10.2478/ethemes-2021-0001

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