IDEAS home Printed from https://ideas.repec.org/a/vrs/econom/v6y2018i1p63-80n7.html
   My bibliography  Save this article

Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina

Author

Listed:
  • Šušićv Milan

    (University of Business Studies Banja Luka, Faculty of Business and Financial Studies, Bosnia and Herzegovina)

Abstract

From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of economic entities in the micro segment. Investments present an essential element of any economic policy, as their presence provides a platform, not only for economic development, but also create a basic condition for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and the most common presenting the most important tool in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large and therefore the states are directing significant activities in order to create a more favorable environment to attract investors. The paper pays special attention to direct investmens in financing the economy on a global scale, their importance for the development of the global economy and particulary screens the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The emphasis is placed on activities that have to be carried out in order to realize more investments. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is fundamental prerequisite for generating and accelarating of economic development in general. The inflow of foreign capital has an exstraodinary positive impact on the economic development and increase of business activities in visably undeveloped and slow economic in Bosnia and Herzegovina.

Suggested Citation

  • Šušićv Milan, 2018. "Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina," Economics, Sciendo, vol. 6(1), pages 63-80, June.
    • Handle: RePEc:vrs:econom:v:6:y:2018:i:1:p:63-80:n:7
    DOI: 10.2478/eoik-2018-0007
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/eoik-2018-0007
    Download Restriction: no
    File URL: https://libkey.io/10.2478/eoik-2018-0007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mehmet Demirbag & Ekrem Tatoglu & Keith W. Glaister, 2008. "Factors affecting perceptions of the choice between acquisition and greenfield entry: The case of Western FDI in an emerging market," Management International Review, Springer, vol. 48(1), pages 5-38, February.
    2. Jože Mencinger, 2003. "Does Foreign Direct Investment Always Enhance Economic Growth?," Kyklos, Wiley Blackwell, vol. 56(4), pages 491-508, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Wood, Geoffrey & Glaister, Keith W., 2018. "Board composition, family ownership, institutional distance and the foreign equity ownership strategies of Turkish MNEs," Journal of World Business, Elsevier, vol. 53(6), pages 862-879.
    2. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    3. Özlem Onaran & Engelbert Stockhammer, 2006. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis," Department of Economics Working Papers wuwp094, Vienna University of Economics and Business, Department of Economics.
    4. Philipp Harms & Pierre-Guillaume Méon, 2013. "The Growth Effects of Greenfield Investment and Mergers and Acquisitions: Econometric Investigation and Implication for MENA Countries," Working Papers 794, Economic Research Forum, revised Nov 2013.
    5. Bastian Gawellek & Jingjing Lyu & Bernd Süssmuth, 2016. "Did Chinese Outward Activity Attenuate or Aggravate the Great Recession in Developing Countries?," CESifo Working Paper Series 5735, CESifo.
    6. Santos, Eleonora & Khan, Shahed, 2019. "FDI Policies and Catching-Up," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 0(7(61)), pages 1821-1853.
    7. Lee, Hsiu-Yun & Lin, Kenneth S. & Tsui, Hsiao-Chien, 2009. "Home country effects of foreign direct investment: From a small economy to a large economy," Economic Modelling, Elsevier, vol. 26(5), pages 1121-1128, September.
    8. Mohammad Salem Oudat & Ayman Abdalmajeed Alsmadi & Najed Massad Alrawashdeh, 2019. "Foreign direct investment and economic growth in Jordan: An empirical research using the bounds test for cointegration," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 11(1), pages 55-63, February.
    9. Gohar S. Sedrakyan, 2018. "Can Tax Regulation and Administration Practices Impact Foreign Direct Investments?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1812, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    10. Martin Bijsterbosch & Marcin Kolasa, 2010. "FDI and productivity convergence in Central and Eastern Europe: an industry-level investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 689-712, January.
    11. Mohamed Elheddad & Mohga Bassim & Rizwan Ahmed, 2021. "FDI and economic growth in the GCC: does the oil sector matter?," Economics and Business Letters, Oviedo University Press, vol. 10(3), pages 178-190.
    12. Gál, Zoltán, 2019. "Az FDI szerepe a gazdasági növekedés és a beruházások területi differenciálódásában Magyarországon [The foreign direct investment role in Hungarys economic growth and territorial differentiation of," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 653-686.
    13. Gulcin Elif Yucel, 2014. "FDI and Economic Growth: The Case of Baltic Countries," Research in World Economy, Research in World Economy, Sciedu Press, vol. 5(2), pages 115-134, September.
    14. Hiep Ngoc Luu, 2016. "Greenfield investments, cross-border M&As, and economic growth in emerging countries," Economics and Business Letters, Oviedo University Press, vol. 5(3), pages 87-94.
    15. Ines TROJETTE, 2016. "The Effect Of Foreign Direct Investment On Economic Growth: The Institutional Threshold," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 111-138.
    16. Ansgar Belke & Gunther Schnabl & Holger Zemanek, 2013. "Real Convergence, Capital Flows, and Competitiveness in Central and Eastern Europe," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 886-900, November.
    17. Chenxi Wan & Carlos M. P. Sousa & Jorge Lengler & Qun Tan, 2023. "Entry Mode Choice: A Meta-Analysis of Antecedents and Outcomes," Management International Review, Springer, vol. 63(2), pages 193-246, April.
    18. Ansgar Belke & Ulrich Haskamp & Gunther Schnabl, 2018. "Beyond Balassa and Samuelson: real convergence, capital flows, and competitiveness in Greece," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(2), pages 409-424, May.
    19. Rajneesh Narula & André Pineli, 2017. "Multinational Enterprises and Economic Development in Host Countries: What We Know and What We Don’t Know," Palgrave Studies in Impact Finance, in: Gianluigi Giorgioni (ed.), Development Finance, chapter 6, pages 147-188, Palgrave Macmillan.
    20. Mohd IRSHAD & Syed Hasan QAYED, 2022. "Casual nexus between economic growth, FDI and employment: An inquiry into BRICS and ASEAN," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(631), S), pages 107-124, Summer.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:econom:v:6:y:2018:i:1:p:63-80:n:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.