IMPORTANCE AND IMPACT OF FOREIGN INVESTMENT ON THE ECONOMIC DEVELOPMENT OF BOSNIA AND HERZEGOVINA

  • Milan Šušić University of Business Studies Banja Luka, Faculty of Business and Financial Studies

Abstract

From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of economic entities in the micro segment. Investments present an essential element of any economic policy, as their presence provides a platform, not only for economic development, but also create a basic condition for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and the most common presenting the most important tool in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large and therefore the states are directing significant activities in order to create a more favorable environment to attract investors. The paper pays special attention to direct investments in financing the economy on a global scale, their importance for the development of the global economy and particularly screens the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The emphasis is placed on activities that have to be carried out in order to realize more investments. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is fundamental prerequisite for generating and accelerating of economic development in general. The inflow of foreign capital has an extraordinary positive impact on the economic development and increase of business activities in visibly undeveloped and slow economic in Bosnia and Herzegovina.

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Published
2018-06-22
How to Cite
ŠUŠIĆ, Milan. IMPORTANCE AND IMPACT OF FOREIGN INVESTMENT ON THE ECONOMIC DEVELOPMENT OF BOSNIA AND HERZEGOVINA. ECONOMICS - Innovation and economic research, [S.l.], v. 6, n. 1, p. 63-80, june 2018. ISSN 2303-5013. Available at: <http://economicsrs.com/index.php/economicus/article/view/144>. Date accessed: 19 aug. 2018. doi: https://doi.org/10.2478/eoik-2018-0007.
Section
Review report