ULOGA STRANIH DIREKTNIH INVESTICIJA U EKONOMIJI ZEMALJA JUGOISTOČNE EVROPE SA POSEBNIM OSVRTOM NA BOSNU I HERCEGOVINU /

Abstract

Foreign direct investments (FDI) are one of the key instruments in reform processes in the countries of Southeast Europe. Inflow, dynamics and structure of the direct foreign investments depended on the extent to which the countries of Southeast Europe were successful in implementing reforms aimed at market economy, company restructuring and privatization, and achievement of macroeconomic stability and positive growth rates.  FDI are a development opportunity for transition countries and best way towards long-term production growth. They can boost production, increase employment and upgrade the living standard of population. FDI attract new and advanced technology and know-how, and enable access to the international production and trade network. Also, FDI are the best source of financing of balance of payments deficit, since they create no foreign liabilities. This is also a reason for which the transition economies, of which all have a balance of payments deficit, are constantly improving conditions for attracting FDI. Among the trends in FDI in the SEE region, this paper will give a special overview of FDI in Bosnia and Herzegovina, analyzing the structure and amount of FDI inflows in recent years. There will also be discussion about what Bosnia and Herzegovina as a state needs to do on better promotion and creation of favorable conditions in its business environment, in order to be able to attract more foreign investment.