FOREIGN DIRECT INVESTMENTS IN SOUTH-EASTERN EUROPE COUNTRIES ANALYSIS OF INFLUENCE FACTORS

Abstract

That influences the inflow of foreign direct investments (FDIs) into South-Eastern Europe (SEE), whereby main emphasis will be put on republics of Former Yugoslavia, but also with some references to Romania’s case.Choice of the countries for comparison is made upon assumption that they were characterized by relatively the same industrial, market and social development before they entered the process of transition, so comparisons from the aspect of achieved results is of scientific importance. Special attention will be directed to the result made by the Republic of Serbia in the process of attracting FDIs. First of all, main terms of foreign direct investments will be defined in this paper and we will give general review of literature related to allocation of foreign direct investments. Then, recent trends of foreign direct investments in south-astern Europe will be described. Finally, the factors that influence allocation of FDIs,as well as relationship between index of global competitiveness of observed countries and accumulated FDIs during period of transition will be analyzed.

Keywords

• Foreign direct investments (FDI)
• location factors
• transition economies
• global competitiveness index (GCI)