engleski

Foreign direct invetsments in Croatia: Implication of the liberalised policy from a manager's perspective

The paper examines foreign direct investment in Croatia and the European managers' perception. Croatia's economic stability in recent years has been achieved, with a stable currenc that appreciates on occasions against leading western currencies, a fairly stable political regime and an acceptable level of relations with neighbouring countries. The net international position of Croatia shows considerable deficit: the assets are growing at a much slower pace than libilities. FDI is pouring into Croatia - increasing more than three times in the period from 1998 to 2002. Portfolio investments more than doubled in the same period. Bonds issued by the Croatian Government played an important role, as they are accepted in many countries. This should be a clear sign of the growing interest of foreign firms for sound investments in some sectors of the Croatian Economy. Croatia scores relatively poorly in the law enforcement indicators. It seems that the legal processes are too long, overly complicated and certainly the attitude of the judical system can be decribed at least as relaxed. Managers of smaller firms operating in Croatia believe that further corporate tax reductions would help in attracting additional FDIs, but we believe that there is also a personal motive which influences their attitude.

globalization; foreign direct investment; macroeconomic situation; managers' perception

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