engleski

The Importance of Foreign Direct Investments for Stimulating Economic Growth in Croatia

The authors first try to access the importance of foreign direct investments (FDI) for the economic growth in transition countries in general, and Croatia in particular. To that end use is made of the results of a regression analysis and the experiences of some transition economies, most notably Hungary, are compared with Croatia's experience about FDI. The authors come to the conclusion that FDI are essential for economic growth, particularly at this phase of economic transition in Croatia. The main part of the paper suggests that there are some sectors of the economy in Croatia that are important for economic growth and the data on FDI is analysed to see what sectors of the economy received the most FDI. Consequently conclusions are drawn about the patterns of FDI movements and an evaluation of such movements is provided. To draw further conclusions and policy suggestions the authors consider the Irish experience with FDI and analyze its FDI stimulating policy. An assessment of future developments and prospects is given. Such a comprehensive evaluation is needed for some suggestions for economic policy and conclusions in the light of Croatia's integration in the European Union.

foreign direct investment; Croatia; economic growth; financial system

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