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Foreign direct investments and their impact on the economy of the Balkan countries in transition
Univeristy of Niš, Faculty of Law
Abstract
The Balkan countries in transition are facing serious obstacles in the process of transformation and building market oriented economies. After a decade of conflicts, stagnation and economic decline, these countries need economic growth which will enable them to catch up with the countries that have achieved biggest progress in market economy development and integration with the European Union. The realization of sustainable economic growth rates, in the conditions of insufficient accumulation, is possible only with the considerable inflow of foreign capital, in this paper, the authors analyse the impact of foreign direct investment (FDI) on transition economies. Serious constraints which these countries have been facing during the transformation stimulate additional interest in foreign direct investments, which are expected to raise the efficiency of the existing enterprises, reduce the technological gap, facilitate the transfer of new knowledge and enable conquest of new markets. In addition, this paper analyses flows of foreign direct investments and actual measures used for their encouragement.
References
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article language: Serbian
document type: Paper
published in SCIndeks: 02/06/2007