Foreign direct investments’ openness in local communities – the case of Slovenia and Serbia

Anita Maček, Rasto Ovin, Marko Divjak, Hazbo Skoko and Tatjana Horvat

Economic Research-Ekonomska Istraživanja, 2021, vol. 34, issue 1, 1013-1032

Abstract: Inward foreign direct investments are usually cited as an essential tool for economic growth and are often listed as one of the priorities by national governments, especially in transition countries strive. When local communities are concerned, the economic effects of international capital flows in principle should not differ from the national economy. Despite the threats they can also pose, they should mostly represent the opportunity for technological improvements and raising the competitiveness of the economy. When inward foreign direct investments are more or less limited to a local community, its leadership is in a position to follow them carefully. In this case, they are usually also well informed on sentiments of the population regarding these investments. These processes may add to the governments’ responsibility when planning the investments but often also add to the transparency of other stakeholders, which could help the governments to manage foreign direct investments in the local community. To offer a novelty with research in the field, the authors added this perspective to existing studies, predominantly analysing foreign direct investment effects in the national economy. The paper brings a comparative analysis of sentiments in local communities in Slovenia and Serbia. Statistical analysis based on opinion polls, although not free of statistical risks, enabled expected conclusions but also opened new insights.

Date: 2021
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DOI: 10.1080/1331677X.2020.1819848

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