Naslov
Foreign Portfolio Investments in the Republic of Croatia

Autori
Prohaska, Zdenko ; Olgić Draženović, Bojana

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
4th International Conference Economic System of European Union and Accession of the Republic of Croatia "Theory and Practice of Transition and Accession to the EU" : proceedings / Kandžija, Vinko ; Kumar, Andrej - Ljubljana : Ekonomski fakultet Sveučilišta u Zagrebu, 2003, 293-303

ISBN
961-240-004-0

Skup
International Conference Economic System of European Union and Accession of the Republic of Croatia (4 ; 2003)

Mjesto i datum
Opatija, Hrvatska, 09.05.2003. - 10.05.2003

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
economic development; foreign portfolio investment; capital market; Croatia

Sažetak
In this paper capital movement as a necessary factor of economic development and especially foreign portfolio and direct investments in Croatia will be discussed. Even this has been of prior importance for involving Croatia in the world economic system, results are not on a satisfactory level and foreign investments didn't give the required impulse to the domestic economy. In the focus of our research will be primarily portfolio investments in Croatia and other transitional countries, for example Slovenia. A comparative analysis will be carried out by calculating volume, structure and share of foreign portfolio investments in total foreign investments in transitional countries mentioned above. Importance of foreign portfolio investments will also be pointed by calculating all data as percentages of GDP. The structure of portfolio investments is in favor of debt securities, especially government bonds. Equity capital (shares) and reinvested earnings are almost negligible. Foreign investments began to flow in a great volume since 1996¸ even they are still deficient in relation to Croatia's GDP as well as in the case of Slovenia. In comparison to other leading transitional countries the importance of foreign portfolio investments could be much higher. Therefore an analysis will be done on the main reasons for such a trend. One of the factors involved is insufficient development of Croatia's financial market and especially deficient breadth and depth of the secondary capital market. Also, the privatization process didn't meet all the expectations and it was delayed compared to other transitional countries. Country risk has been also been taken into consideration. The main result of our research will among others be that Croatia has to encourage development of domestic capital market by attracting foreign investments and make itself to a profitable destination for portfolio and direct investors from abroad.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA