engleski

The competitiveness and attractiveness of investment environment in Croatia and excommunist countries

Increasing competitiveness and attractiveness of investment environment is one of the most important macroeconomic objectives of each national economy. Foreign direct investments have variety of positive impacts on host country: increase of export competitiveness, employment, competition, consumption and GDP, modernization of production equipment, transfer of new technologies and knowledge, filling the state budget through taxation and employee contribution payments, improving corporative culture, preserving jobs in joint ventures with domestic companies and more effective integration of the country into the international economy. In this paper is examined competitiveness and attractiveness of investment environment of Croatia and 21 ex- communist countries in the period 2013–2018. Aims of this research are to determine key drivers to attract FDI and increase competitiveness of investment and overall macroeconomic environment. Through examination of investment environments, this paper aims to determine policies and measures that can be applicable for Croatia and observed ex- communist countries to increase competitiveness and attractiveness of investment and macroeconomic environment. This key policies and measures should enhance economic growth of these countries and faster level of integration into global economy. The methodology is based on a system GMM estimator for dynamic panel data models on a sample covering up twenty two countries. Main results confirm correlation of economic growth, taxation and institutional efficiency on FDI stock in host country. Analysis and results of the model and research are providing recommendations to attract more foreign direct investments and enhance economic growth. Contribution of this research is determination of key drivers of FDI and providing policies and measures for increasing competitiveness of investment and overall macroeconomic environment in Croatia and observed ex-communist countries

FDI ; competitiveness ; attractiveness ; Croatia ; ex-communist countries

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