(ANSA) - BELGRADE, MAY 21 - Countries in the Western Balkans could profit from new trends in the so-called "near-shoring" in the post pandemic period, but would have to go beyond low labour costs in order to maximize the benefits, a new study of the Vienna Institute for International Economic Studies (WIIW) said.

The terms 'reshoring', 'back-shoring', 'near-shoring' and 'onshoring' refer to a "current trend among multinational companies, of reconsidering their supply chains," choosing geographically closer locations, the study recalled.

According to the report, "near-shoring to countries and regions closer to Western Europe is likely to emerge after the pandemic.

Even if it turns out to be on a smaller scale, it can still have a major impact on the Western Balkan economies due to their small sizes." A survey among foreign companies, included in the study, revealed that the region "appeal to Western European companies, not just because of their good geographical locations and competitive wage levels, but also because of 'soft' factors such as cultural proximity and the reputation of their workers as skilled and hard-working." However, "building on the competitive advantage of low labour costs alone may not be sufficient to attract more investments in the future. Putting a focus on skilled labour, investment in education and training, and modernisation of the educational system would be beneficial for attracting investors in the time to come. Improving infrastructure and governance would be similarly important from the perspective of current and potential investors," the study reads. (ANSA).