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Attracting foreign investment in the Western Balkan region and state aid: Race to the bottom or necessity?

Goran Kovachev (), Ivana Velkovska, Vesna Garvanlieva Andonova () and Marjan Nikolov

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this study is to review the current situation regarding the development of state aid policies in countries in the region in the context of attracting foreign investment and to identify possible implications for the regional economies from incentive-based policies. The study provides an overview of the placement and status of state aid to support foreign investment in countries in the region to understand the place and importance in the context of building a functioning market economy according to EU standards and highlighting both shortcomings and opportunities through such policies. This study also seeks to establish a link between the inflow of foreign investment and the impact of state aid. The study provides an overview, conclusions, and recommendations for progress in this area, which are addressed to both decision makers and the public.

Keywords: Western Balkans; state aid; foreign direct investment; FDI (search for similar items in EconPapers)
JEL-codes: H3 H5 (search for similar items in EconPapers)
Date: 2020-06
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