The tourism sector as a determinant of reducing the balance of payments deficit in the Republic of Serbia

Abstract

The importance of the tourism sector for the successful functioning of the national economy differs considerably from one country to another. Economic research has mainly dealt with the impact of tourism on economic growth, development and employment. The subject of this paper is an examination of the tourism sector as a possible factor in reducing the balance of payments deficit in the Republic of Serbia. The goal of the research is to find out to what extent the tourism sector can contribute to the correction of the disequilibrium in balance of payments of the Republic of Serbia. Secondary data analysis, comparative methods and correlation analysis were used in the research. The results of the research indicate that the decline in imports of tourist services, due to the change of direction of domestic tourist demand, can have a positive effect on the reduction of the current account deficit and, consequently, the balance of payments deficit in the Republic of Serbia.