engleski

FDI Impact on Emerging Markets

Foreign investments play an important role in stabilizing, but not in the development of Croatian economy. The most of large foreign investments flows have been materialized as a state budget revenue used to balance magnified public expenditure. The contribution of capital revenues originated in state own firms sales to the foreign investors is of significant importance in achieving the balanced consolidated central government budget, as well as overall fiscal and monetary stability. But the fact is that foreign investments canalized in such a way have a minimal effect on the urgent and necessary restructuring and modernizing the Croatian economy. This unpropitious FDIs growth impact on national economy is fully visible in the stagnating and/or negative BDP growth rates and in increasing unemployment. The FDIs composition and direction also mirror growth-vise inauspicious foreign investment process. Dominance of Luxemburg as off shore destination among investors into Croatian economy in certain years for instance, indicates financial operations with a positive short term effects on the government finance but with the doubtful long term impact on the growth and employment.

FDI; development; Croatian economy

nije evidentirano