Economic Themes (2015) 53 (2) 7, 267-277
Olgica Nestorović
Abstract: The main objective of this paper is to show whether foreign direct investment affect developing countries. This paper presents an empirical model which analyzes the sixteen countries in transition in the ten-year period. The existence of a positive correlation between the level of inward foreign direct investment and economic performance and competitiveness of the economy is evident in the numerous studies that have researched this topic, but there are opposing views. The increase in foreign direct investment in the host country itself does not mean a positive impact on economic growth, but it depends on many factors such as human capital, development of the financial structure, macroeconomic stability and other institutional factors.
Keywords: foreign direct investment; countries in transition; economic development; human capital; macroeconomic stability
ARE FOREIGN DIRECT INVESTMENT CONTRIBUTION TO THE ECONOMIC GROWTH OF TRANSITION?
Olgica Nestorović
Abstract: The main objective of this paper is to show whether foreign direct investment affect developing countries. This paper presents an empirical model which analyzes the sixteen countries in transition in the ten-year period. The existence of a positive correlation between the level of inward foreign direct investment and economic performance and competitiveness of the economy is evident in the numerous studies that have researched this topic, but there are opposing views. The increase in foreign direct investment in the host country itself does not mean a positive impact on economic growth, but it depends on many factors such as human capital, development of the financial structure, macroeconomic stability and other institutional factors.
Keywords: foreign direct investment; countries in transition; economic development; human capital; macroeconomic stability
