49^th International Scientific Conference 2018

FOREIGN DIRECT INVESTMENTS AND CREATING THE CONDITIONS FOR ECONOMIC GROWTH – THE EXPERIENCE OF SERBIA

Marija Petrović, Ranđelović, Snežana Radukić, Milana Radović

Abstract:  Attracting foreign direct investments (FDI) for most countries represents necessary condition for increasing production and exports to the level that would enable the country to have stable economic growth and successful debt servicing. Accordingly, one of the main goals is creating the investment climate that is suitable for attracting foreign direct investments. The aim of the research is to determine and analyze the impact of FDI on gross domestic product, imports, exports, net exports and unemployment in Serbia for the period 2008-2017. For determining the impact of foreign direct investments on the economic growth of the Republic of Serbia, statistical and econometric analysis has been used by means of application of correlation and regression analysis. The conclusion of this paper shows that there is a statistically significant linear correlation between FDI and GDP, whereas linear correlation between FDI and exports of goods and services, imports of goods and services, net exports and unemployment rate has not been established in the observed period. Development effects of FDI are expected only when the absorption and adaptive opportunities of domestic companies are improved. Active state policy towards FDI is necessary for its full effects.

Keywords:  FDI, economic growth, GDP, unemployment, import, export, Serbia

Published: February 12, 2019.  p. 101-110   PDF