engleski

Foreign Direct Investment Effects on the Foreign Trade of the EU and Croatia

The European Union experiences show that the foreign direct investments, besides contributing to economic growth, rising rate of employment, improving balance of trade, competitiveness and specialisation of the European economies, also provide for the increase of foreign trade with the non-members. Croatia s most significant foreign trade partners are the EU members or the countries which are about to become members, (i.e. Slovenia). In such circumstances Croatia realizes a notably negative foreign trade balance, and the trade is focussed on a very limited number of countries. Besides the measures of economic policies, and trade policies in particular, such a situation can be facilitated by foreign direct investments. This paper is to show how foreign direct investments can influence the rise and diversification of foreign trade, op the basis of results realized by the EU.

Foreign direct investment; Foreign trade

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