Does Enhancing of the Competitiveness Influence on Foreign Direct Investments in Western Balkan Countries? (original) (raw)
Related papers
SEER, 2012
A significant increase in the flows of foreign direct investment to the Balkans has had positive effects on the entire economic and political environment of countries in the region, increasing their level of competitiveness. Large demand in and high competition between Balkans countries has influenced the provision of better conditions for foreign investors. Nevertheless, the high levels of openness and the high dependence of this region on FDI have made western Balkans countries vulnerable during the current crisis. Policies towards the attraction of foreign capital should prefer productive, self-sustaining and competitive sectors, along with a strong financial and fiscal sector, so as to alleviate the effects of future crises. Factors of attraction are significantly different between sectors and should be taken seriously into consideration in the new development strategies of countries via a focus on the development of the respective sectors as well as on strategies for the attraction of foreign investment to the region.
An Investigation of Competitiveness Index Effect on The Foreign Direct Investment
Innovation and Global Issues Congress IV, 2018
The aim of this study is to investigate the effect of competitiveness power on foreign direct investment (FDI). The dimensions that determine the competitiveness of countries are basic requirements, efficiency enhancers, innovation and sophistication factors. Furthermore, these are the subindexes of Global Competitivenes Index (GCI). Besides FDI handled in two direction; FDI inflows and FDI outflows. Sample of this study consists of 130 countries with data gathered from 2017 GCI and 2017 World Investment Report (WIR). Multiple regression analysis applied to data set. According to research results, basic requirements dimension effects both FDI inflows and FDI outflows positively and significantly. There was no multicollinearity between independent variables. Durbin-Watson value for autocorrelation researched. Results show that for FDI inflow as a dependent variable, Durbin-Watson value is 1,862. And for the FDI outflow 1,899. In conclusion, this study is fundamental in terms of examining both FDI inflows and FDI outputs separately from the perspective of competitiveness of the countries.
A LITERATURE REVIEW ON THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN BALKAN COUNTRIES ARMIRA LAZAJ Polytechnic University of Tirana, Tirana Albania, 2022
The process of globalisation has made the world a single global village. This process is now irreversible; it was primarily caused by trade and investment across economies resulting in strong worldwide market for goods, services and capital. Foreign Direct Investment is one of the important outcomes of globalisation. The world is full of development opportunities, covering the entire range from countries that have just begun to modernise to the richest countries. FDI help countries secure financing for their economic growth. These investments promote economic growth in both the host country and the country of origin. The host country benefits from FDI by financing projects planned, developing new technologies and generating new jobs. Investing companies benefit from the expansion of markets and, consequently, the growth of their shares in international markets. This paper targets and discusses the main theoretical aspects of existing literature pertaining to FDI. It starts with some definitions given by different institutions or authors regarding FDI, continuing with a history of foreign direct investments from ancient times to the present.
Foreign direct investment and competitiveness in transition economies: the case of Croatia
International Journal of Entrepreneurship and Small Business, 2005
The aim of this paper is to address the issues of foreign direct investment (FDI) and to give a comparative analysis of its impact on Croatian competitiveness. Our findings show that in the case of Croatia, unlike in the other transition economies, the majority of inflows of foreign capital is concentrated in the service sector. Also, the impact on the overall Croatian competitiveness level has not been significant. High labour costs and production of low value addition in manufacturing were the main reasons why foreign capital sought mostly service sectors, such as telecommunications and banking, which are oriented towards the domestic markets. This did not contribute towards improving the Croatian export competitiveness either. Other transition economies in Central and Eastern Europe, where FDI went to manufacturing, particularly to the export oriented sectors, as well as to services, recorded a noticeable raise in their competitiveness levels.
Competitiveness of the selected Balkan countries in the period 2006-2015
Marketing, 2016
The paper considers the level of competitiveness of two groups of Balkan countries. The first group consists of neighboring countries of the Republic of Serbia that are not members of the EU (Albania, Bosnia and Herzegovina, Macedonia, Montenegro, Serbia), while the second group consists of five member states of the EU (Bulgaria, Croatia, Greece, Hungary and Romania). Research refers to a time period from 2006 to 2015. The level of competitiveness of countries is analyzed through the value of the Global Competitiveness Index of the World Economic Forum. Special focus is on Basic & Efficiency factors based competitiveness, on the one hand, and Innovation & Sophistication factors based competitiveness, on the other. The conclusion is that Serbia and the selected non-EU countries are lagging behind the group of EU countries, by all indicators. However, data for the observed period reveal trend of convergence of these groups' competitiveness.
In a globalising economy, maintaining and enhancing external competitiveness has become of increasing concern to countries around the world. This applies in particular to Western Balkans countries (WBC), whose small economies have to rely mainly on export-led growth and which have reported large current account deficits and widening trade deficits over the past decade. This paper aims to point out of the directions for achieving external competitiveness of WBC. Starting from the assumption that a strong export performance is a sign of a country’s competitiveness in the long run, we have considered a broad list of indicators, such as those related to structural trade indicators, price and cost competitiveness, the sold of the current accounts, productivity, foreign direct investment, as well as institutional factors. Secondary analysis of previous quantitative data and published studies, combined with an own qualitative study in the field has provided a reliable and convincing basis for analysis. Keywords: Western Balkans countries, external competitiveness, export performances, foreign direct investment
Foreign Direct Investment and Competitiveness of the Croatian Economy
2004
The aim of this paper is to address the issues of foreign direct investment (FDI) and to give a comparative analysis of its impact on Croatian competitiveness. Our findings show that in the case of Croatia, unlike in the other transition economies, the majority of inflows of foreign capital is concentrated in the service sector. Also, the impact on the overall Croatian competitiveness level has not been significant. High labour costs and production of low value addition in manufacturing were the main reasons why foreign capital sought mostly service sectors, such as telecommunications and banking, which are oriented towards the domestic markets. This did not contribute towards improving the Croatian export competitiveness either. Other transition economies in Central and Eastern Europe, where FDI went to manufacturing, particularly to the export oriented sectors, as well as to services, recorded a noticeable raise in their competitiveness levels.
Does the Economy Size Affect FDI?-Evidence from Western Balkan Countries (2005-2014)
This study treats the relationship of economy size of Western Balkan countries with Foreign direct investment (FDI) for ten years' period. Through knowing the FDI importance in economic development is measured the impact of economy size of Western Balkan countries in attracting foreign direct investments. Data to realize this study were taken from World Bank, in yearly frequence for 2005 to 2014 period. After using Pearson Correlation technique for empirical analysis which is realized with SPSS v. 21.0, statistical program. Results showed that there is a positive relationship that is not statistically important. From this result is clearly shown that factors for foreign direct investment attracting is not economy size, but FDI attraction is influenced more from specific policies of places and trade liberalization. Abstract-This study treats the relationship of economy size of Western Balkan countries with Foreign direct investment (FDI) for ten years' period. Through knowing the FDI importance in economic development is measured the impact of economy size of Western Balkan countries in attracting foreign direct investments. Data to realize this study were taken from World Bank, in yearly frequence for 2005 to 2014 period. After using Pearson Correlation technique for empirical analysis which is realized with SPSS v. 21.0, statistical program. Results showed that there is a positive relationship that is not statistically important. From this result is clearly shown that factors for foreign direct investment attracting is not economy size, but FDI attraction is influenced more from specific policies of places and trade liberalization.
FDI into transition economies 1 Are the Balkans different
The article explores the determination of foreign direct investment (FDI) into the Balkan transition economies – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Montenegro, Romania and Serbia. Detailed FDI inflows to Southeast Europe are analysed to determine the main differences in the volume, timing and sectoral structure of FDI within the region and in comparison to the Central East European countries. A gravity model for all transition economies during 1990–2011 is then estimated to assess whether the factors driving FDI to the Western Balkans are different. They are found to be so; even when the size of their economies, distance from the source economies, institutional quality and prospects of EU membership are taken into account, Western Balkans countries receive less FDI than other transition countries. These issues are of policy relevance for the Balkan economies and ought to contribute to the current debate on the 'new growth model'.