Inward foreign direct investments to Serbia – investigating motives in the past and prospects for the future

Ivan Milenkovic () and Dragana Milenkovic
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Ivan Milenkovic: University of Pristina, Faculty of Economics Kosovska Mitrovica and University of Novi Sad, Faculty of Economics Subotica, Serbia
Dragana Milenkovic: University of Pristina, Faculty of Economics Kosovska Mitrovica, Serbia

Review of Applied Socio-Economic Research, 2012, vol. 4, issue 2, 158-165

Abstract: Our research tackles inward foreign direct investments to Serbia. In the introduction we explain the reasons why the Republic of Serbia is a latecomer in the transition process and why foreign direct investments passed by Serbia until the 2000s. The first part of the paper investigates what the motives are for inward foreign direct investments to the Republic of Serbia. Secondly we discuss factography of the dynamics of inward direct investments to Serbia and analyze how those affected other macroeconomic indicators, primarily the balance of payment and the exchange rate. Thirdly other implications, as well as their causes, are analyzed in detail, including the quality of inward foreign direct investments to Serbia (greenfield vs. grayfield investments). The fourth part of the paper discusses future prospects of the Serbian economy regarding the quantity and quality of foreign direct investments until the year 2020.

Keywords: foreign direct investments; balance of payment; current account deficit; exchange rates; Serbia (search for similar items in EconPapers)
JEL-codes: F21 F32 (search for similar items in EconPapers)
Date: 2012
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