Truths and misconceptions about the attraction, role and “genotype” of foreign direct investment: the case of the Republic of Serbia
Keywords:
direct foreign investment, economic transition, Serbia, privatizationsAbstract
The transition model of economic growth in Serbia, which began in 2000, after the October 5th changes, is largely based on attracting foreign direct investment (FDI) through privatization, with the objective of modernizing and recovering the economy. The process so far has had no visible results. Observing the effects that should have occurred with the privatization process, it is observed that except for the transfer of ownership, macroeconomic indicators have not been drastically improved. In other words, the privatization process has failed to boost industrial production or improve the export performance of the Serbian economy. The consequences caused by privatizations carried out in this way are numerous, and are reflected in the balance of payments deficit, high unemployment, poor export performance, high inflation rate and instability of the exchange rate.
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NBS: Narodna banka Srbije, zvanična mrežna stranica, www.nbs.rs
SIEPA: Srbijanska agencija za promciju investicija i izvoza, zvanična mrežna stranica, www.siepa.gov.rs
