Rojec, M.; Jaklic, A.; (2002) Integration of Slovenia into EU and global industrial networks: review of existing evidence. (Economics Working Papers 14). Centre for the Study of Economic and Social Change in Europe, SSEES, UCL: London, UK.

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Abstract

Slovenia is a small economy, which is somehow "condemned" to be open and highly internationalised. Relatively high shares of exports and imports in GDP indicate that the economy is highly dependent on foreign markets and inputs. This orientation is additionally strengthened by the final stage of the transition process and accession to the EU, both meaning definite opening of the economy and its integration into EU and global economy. Internationalisation of operations is, therefore, increasingly becoming a critical factor for creating and stimulating a competitive corporate sector in Slovenia. To strengthen the internationalisation processes, the policy of internationalisation should be based on the following: (i) lifting barriers to internationalisation; (ii) taking the actual needs of companies as a starting point; (iii) flexibility, transparency and the long-term perspective; (iv) adaptability and a re-examination of policy; and (v) a holistic concept of internationalisation. Increasingly important aspects of internationalisation are inward and outward FDI. The paper review the existing evidence on the internationalisation of Slovenian economy in all the various modes. The paper is composed of three parts. In the first part the scale and dynamics of industry integration of Slovenia into EU/global industrial networks by the way of foreign trade, outward and inward processing trade (OPT) and subcontracting and FDI is given. The second part analyses the integration of Slovenian car components industry in international industrial networks, and the third part concentrates on the motivation and strategies of foreign investors in Slovenia and Slovenian investors abroad.

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