Abstract
The primary purpose of investment is to increase employment and development services further. In general, Eastern Europe, instead of searching of a new model more convenient to growth, is constantly hiding behind the global economic crisis. Local crisis in Eastern Europe is still very important, but it is analyzed in the context of the global crisis, which is unacceptable. We need to see exactly what the global effects are, and what are effects of the local crisis. In general, all Eastern European countries have high public spending, inefficient administration, weak investment in research and development problems and serious problems regarding the quality of education. The global economic crisis has resulted only in further reduction of the gross domestic product (GDP), increasing the deficit, unemployment, lack of liquidity in the real sector throughout Eastern Europe.Western Balkan countries are in urgent need for a transition. Previous transition has pushed countries to much larger problems than they had before. Now it is necessary to create a serious strategy of economic and legal conditions favorable economic and investment in export-oriented sectors, aimed at long-term development of infrastructure, human resources and relatively high rates of economic growth. DOI: 10.5901/ajis.2015.v4n2p473
Highlights
The key issue for the countries of Eastern Europe is the lack of strategy for attracting foreign direct investments
Other Greenfield investments are usually associated with the services sector, such as the Hotel Splendid, the financial sector, such as Hypo Alpe Adria Bank and LB Leasing
The structure of the flow, foreign direct investment (FDI) had most of investments in real estate, which, according to the Central Bank of Montenegro, was 51% or more than half of the 1 billion EUR in 2007
Summary
The key issue for the countries of Eastern Europe is the lack of strategy for attracting foreign direct investments. They will not go beyond the first stage if it does not consider the economic viability of the investment, the real motives for the arrival of foreign investors and the origin of their capital. FDI will not be in order to increase the competitiveness of their companies, the international competitiveness of their products, increase employment and achieve better standard of living. The largest green field investment is the mobile operator Promonte. Investments in production were weak, bottle factory Coca-Cola is an example which has invested € 2,000,000
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