Foreign direct investment as a factor of economic growth and development of the Serbia

Stefanović, Saša and Radović-Marković, Mirjana and Ćirilović, Tamara (2009) Foreign direct investment as a factor of economic growth and development of the Serbia. In: Business Opportunities in Serbia : the case of Italian business sector and the role of management education. Belgrade Banking Academy and Institute of Economic Sciences, Belgrade, pp. 251-257. ISBN 978-86-9852-025-9

Preview

Text mrm_2009_01.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (298kB) | Preview

Abstract

In the globalized economy, foreign direct investment (FDI) represent one of the key factors of the country development. For an invest destination, FDI means new job creation, export stimulation and in general, that presents the generator of economic growth and development. Until 2000, Serbia was not an attractive destination for foreign investors, but after the democratic changes, the country became one of the most atractivness European destinations where the volume of FDI have noted a large expansion. The global economic crisis, that reduced the volume of FDI inflows, also affected their inflows in Serbia and the other countries of the same region which among the other factors, led to a significant slowing down of the economic growth, and other adverse macroeconomic consequences. The paper describes the analysis performed and the scope and structure of FDI in Serbia in the period after the democratic changes of 2000. It determined a positive relationship between the volume and structure of FDI and economic growth and development of Serbian economy. Inflow of FDI is the factor that had a large impact on the rapid economic growth, as well as the establishment of macroeconomic stability. Notwithstanding the positive impact on employment and the growth of budget revenues as well as the significant acceleration in the growth and development of a number of branches, such as the banking system, telecommunications, and other activities. Also, we have found factors that will in future have a key influence on the scope and structure of FDI in Serbia.

Actions (login required)

View Item