Interregional economic relations include the flow of traditional
production factors (labour and capital), the flow of information, of
technology, of goods and services, money flow, organizational linkage,
as well as special forms of business cooperation. The volume and
structure of interregional relations depended on: (a) the size of
regions or their respective economic power; (b) the level of economic
development of regions; (c) the proximity (or distance) of regions, and
(d) the structure of regional economies. Since in Yugoslavia the
exchange of commodities and services was the most prominent feature of
interregional relations,10
by observing it we can get reliable data on the changes in the
interdependence of republics and provinces.
An increasing autarky of regions was the fundamental trend in
interregional trade. In general, the most closed were the most
developed and/or the largest regions. The process of closing was the
most rapid in the least developed and smallest regions (with the
exception of Macedonia), although they were unable to catch up with the
developed regions since, initially, they had been very open in relative
terms. Developed regions (Slovenia, Croatia and Vojvodina) were more
open in deliveries than in purchases. Trade within this group,
including central Serbia, was more intensive. Less developed regions
generally traded more with developed regions, although in the observed
period links between underdeveloped regions grew somewhat stronger
(with the exception of Kosovo-Metohia) despite the general pattern of
increasing closure.
The relatively high volume of trade among neighbouring regions
confirms the hypothesis that proximity is an important determinant of
the intensity of interregional trade. However, relations between
bordering regions displayed a tendency to decline, while relations
between remote regions grew relatively stronger. The best examples are
the relations between Slovenia and Kosovo-Metohia and between
Montenegro and Vojvodina.
The more developed regions (Slovenia, Croatia and Vojvodina) had a
positive total trade balance. On the other hand, total trade balance of
less developed regions (Bosnia-Herzegovina, Montenegro, Macedonia and
Kosovo-Metohia) was negative. Central Serbia also had a negative total
balance of trade. Thus, there is a noticeable regularity in terms of a
correlation between the degree of a region's economic development and
the number of positive (or negative) balances in transactions with
other regions. Vojvodina's specific structure of production made it an
active region in terms of trade with other regions almost without
exception. Hence, the strongest influence on the volume and the balance
of trade between regions was exerted by their levels of economic
development.