engleski

Foreign Direct Investment in Croatia: From FDI Policy to its Impact on Local Business

As an important source of capital accumulation and transfer of technology, FDIs represent nowadays a significant factor in economic development and restructuring of the less developed, and transition economies in particular. However, much of the benefits which 'spill over' from foreign to local companies depend upon domestic economy's absorption capacity, i.e. the ability to exploit the MNEs-ownership advantages. Despite the lack of unanimous opinion on conditions of spillover creation, many empirical studies have confirmed positive impact of foreign presence on local companies. However, due to economic policy measures which did not recognise the real (indirect and long term) benefits of FDIs, Croatia failed to achieve significant spillover effects and speed up company' restructuring. Therefore, in order to become one of the most attractive FDI-locations with strong spillovers Croatia should position itself as a well-regulated business environment offering high quality soft business infrastructure with strong emphasis on R&D, innovation and highly qualified labour force.

FDI-policy; spillover effects; productivity; MNE; regional approach

nije evidentirano