inostrani kapital kao faktor razvoja zemalja - Ekonomski fakultet u ...

FDI-Foreign Direct Investment (in million USD)
Time period - 2000-2007
Source: EBRD
Standard error in parenthesis
70
2
t1= -1,477; t2= 2,040; F= 4,164; R = 0,51;
α = 0,
01
In order to understand the link between FDI and employment, it is inevitable
to explore the determinants of FDI, i.e. weather they have been market, resource or
efficiency seeking. Most of the greenfield FDI inflows in Western Balkan
economies have been resource and efficiency seeking. However, the low impact
of foreign capital on employment is a result to the FDI pattern, being part of the
process of privatization in the form of mergers and acquisitions. The level of
greenfield investment have so far played an episodic role.
Concluding remarks
The paper addresses the influence of the foreign capital inflows on the
achieved growth rates, export performances and employment in the Western
Balkan economies. The impact of foreign investment on growth and employment
has been lower than expected. This can be explained by the pattern and sector
structure of the investment. Services experienced a surge in FDI inflow as a
consequence of deregulation and came in the form of mergers and acquisitions as a
result of the privatization of state-owned enterprises. The remaining part of FDI
mainly went to transport infrastructure and low value added manufacturing
industries.
Countries with relatively underdeveloped financial markets and weak
institutions tend to depend more on FDI compared to countries with bigger
financial markets and better institutions. The value of foreign portfolio investment
in the region is insignificant due to the underdeveloped financial markets. All
economies in the region have not still built strong institutions and experience
shallow and volatile financial markets. Generally, the portfolio flows in the
transition countries have weak direct effect on domestic investment since the
foreign investors seem to be led by diversification goals. In terms of the
consequences of capital account liberalization, the transition economies, as well as
the counties in the region, replicate the developing countries pattern. The Western
Balkans countries face relative price adjustments beyond the Balassa-Samuelson
effect because of their ongoing structural reforms and liberalization in such areas as
telecommunications, energy, transportation, and health care.