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Increasing the effectiveness of FDI as a driving factor in raising the level of competitiveness in the Western Balkans

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Article

Jacimovic, Danijela

SEER. Journal for Labour and Social Affairs in Eastern Europe

2012

15

1

95-108

competitiveness ; foreign investment

South East Europe

Economic development

http://www.nomos-zeitschriften.de/

English

Bibliogr.

"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. "

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