The Role of Governance in Improving the Global Effectiveness of the Serbian Economy: the Case of the Building Construction Industry

Based on international business theory premise that first entrants to a new market gain comparative advantages, Serbia, the latest nation to transit to a market economy, is an interesting target for foreign investors. This paper attempts to present what business people may expect in terms of governance if entering the Serbian market. Attention is paid to the building and construction industry which has significantly contributed to the economic recovery of the country destroyed by political disaster. If foreign companies know what constitutes the role of governance in improving the effectiveness of the Serbian economy, they will make quicker decisions to enter this market and consequently gain competitive advantages.