Strane direktne investicije kao faktor održivog razvoja privrede Srbije
Foreign direct investment as a factor of sustainable development of Serbian economy
Committee membersJovanović Gavrilović, Biljana
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In today's global environment, the growth and functioning of a national economy is largely dependent on the connections and relationships that it establishes with the rest of the world. The content and intensity of these relationships more, in addition to trade, investment flows marked that provide internationalization and integration into the dynamics of the world market. Sustainable development combines concern for wildlife and the environment with economic and social challenges facing every society, state and mankind as a whole. The concept of sustainable development has been associated with environmental protection, social development planning, environmental, economic and political issues. Subject of scientific research is to analyze the impact of FDI on economic growth, ie. how foreign direct investment contribute to sustainable development. Discussed the question of the extent to which foreign direct investment is an important factor for sustainable economic development of Serb...ia. Foreign direct investment in addition to making a potentially large impact on the economic growth of the host country through various channels (through the impact on the quality and quantity of capital formation, technology transfer, increase the level of development of human capital, expanding trade opportunities), exercise influence on the quality of the environment, with certain implications for the long-term sustainability of economic growth and the possibility of achieving sustainable development. Bearing in mind the possibility of manifestation of different effects on economic development, as well as the specifics of the transition process, the state of Serbia should implement an active policy of attracting foreign capital, which would primarily have to be based on the creation of an attractive investment environment, and not on financial incentives. This paper presents the empirical model that analyzed the impact of FDI on economic growth in transition countries. The results suggest that there is no statistically significant relationship between FDI inflows and economic growth rates, and economic growth in the previous period does not constitute the principal motive of attracting foreign capital in the countries in transition. In order inflow of foreign direct investment had a positive effect on economic growth should be taken primarily on the structure of foreign direct investment. If these investments go to the tertiary sector they have a negative effect and does not reflect the efficiency. On the other hand, the share of foreign direct investment in the secondary sector, increases the impact on economic growth and affects productivity.