Foreign Direct Investment in the Function of Economic Development - Example of Selected Countries in the Western Balkans

Domazet, Ivana and Marjanović, Darko (2017) Foreign Direct Investment in the Function of Economic Development - Example of Selected Countries in the Western Balkans. International letters of social and humanistic sciences, 79. pp. 1-15. ISSN 2300-2697

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Abstract

The main aim of this work is to determine, on the basis of empirical research, whether and to what extent foreign direct investment has impact on the overall economic development of selected countries in the Western Balkans. Analyses made for the purpose of this paper were performed on the basis of available secondary data possessed by the World Bank for the period of 2000-2012. The research methodology involved the use of the techniques of linear regression and correlation analysis. The first task was to determine whether there is an impact of foreign direct investment on the overall economic development of these countries. Where such influence occurred, it was necessary to define its level in comparison to the influence of other variables. The results of the analysis in this paper suggest that inflow of foreign direct investment does not affect to a significant extent the economic development of selected countries in the Western Balkans.

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