The Implications of Foreign Direct Investment for Development in Transition Countries: Challenges for the Croatian Economy

Jasminka Sohinger and Glenn Harrison

Eastern European Economics, 2004, vol. 42, issue 1, 56-74

Abstract: This article reviews the pattern of foreign direct investment (FDI) into Croatia. We place the Croatian experience within the context of FDI into transition economies and review the motivation of foreign investors. The costs and benefits of FDI, both financial and real, are reviewed, and we then examine the sectoral structure of FDI into Croatia in the light of these costs and benefits. We close by drawing some policy implications of our findings.

Date: 2004
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