Oditor, No. 11/2015

ECONOMIC ANALYSIS OF THE IMPORTANCE OF FOREIGN DIRECT INVESTMENTS
Svetlana Ignjatijević[29]

UDK: 339.727.22 (4-664)
338.1 (497.11)

Abstract

Foreign direct investments are developmental chance of companies from transition countries and the best way to increase productin, employment and living standard for the long term. Foreign direct investments have had a long tradition in the modern Serbian history. The influence of the foreign capital on the Serbian economy was particulary expressed in the jperiod between the two World Wars. In the last few years, privatization has been oriented only to sale and inflow of foreign capital, while the reverse process, investment into foreign countries, has been total neglected. Therefore, orientation only to the foreign direct investements inflow constitutes both an opportunity and an obstacle to intensive economic development. In today’s business conditions, it is necessary to rely upon those foreign direct investments that would contribute to the restructuring towards the production of product that are competitive at the international market.

Key words: foreign direct investments, opportunity, intensive economic development.

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[29]Svetlana Ignjatijević Ph.D., Assistant professor, University Business Academy, Cvećarska no. 2, Novi Sad, Serbia