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Innovative Approach to Measuring the Impact of FDI on Some Macroeconomic Indicators in B&H

Subotić Slobodan, Erceg Živko, Marković Vladimir and Mitrović Goran
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Erceg Živko: University of East Sarajevo, Faculty of Traffic EngineeringDoboj, Bosnia and Herzegovina
Marković Vladimir: Slobomir P University, Faculty of Economics and Managements, Bosnia and Herzegovina
Mitrović Goran: Drina insurance company ad Milici, Bosnia and Herzegovina

Economics, 2018, vol. 6, issue 1, 7-15

Abstract: The necessity of economic life and economic development of every economy is the free movement of capital. The international movement of capital has its balance of payment when capital export represents economic surplus in relation to consumption of the national economy and the import of capital represents an increase of consumption in regard to the output of a national economy. Analysis of the influence of foreign direct investment (FDI) on economic growth of the host country, among other things, is emphasized in the function of the achieved phase of its economic development. Taking all this into consideration, the aim of this paper refers to an attempt to indicate the significance and the role of FDI as well as the importance of attracting foreign direct investment in B&H and the determination of the effects of FDI on the economy of B&H. In this regard, we will try to determine the level of FDI’s impact on some macroeconomic indicators in B&H (GDP, import, export, unemployment) by using contemporary SPSS statistical analysis program (model) and applying the methods (calculating coefficients) of correlation and regression analysis. In other words, we will determine the analytical expression used to describe a statistical relationship of these macroeconomic categories.

Keywords: FDI; macroeconomic indicators; regression and correlation; Bosnia and Herzegovina (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:econom:v:6:y:2018:i:1:p:7-15:n:8

DOI: 10.2478/eoik-2018-0008

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