Openness and growth: Empirical research on the case of Serbia

This paper shows the results of research related to the impact of Serbia openness to its economic growth in the period between January 2005 and December 2009. The subject of the research are two potential channels of indirect impact, as follows: (a) impact of the openness to economic growth through capital accumulation, and (b) impact of the openness to economic growth through total factor productivity growth. The results of this empirical research point out to positive effect of capital accumulation and total factor productivity growth to the economic growth. On the other hand, there is no reliable evidence about any impact of the Serbian economy openness to TFP growth and capital accumulation. Hence, bearing in mind the results obtained in this empirical research, we cannot make a satisfactorily reliable conclusion that openness affects economic growth of Serbia via the aforementioned channels.