Improving the business environment in cities and municipalities in Serbia

Abstract

One of the ways to determine the benefits of a particular municipality and indicate its readiness to cooperate with potential investors is to promote standards of effective and transparent local administration. This task can be realized through the certification of cities and municipalities with a favorable business environment. Certification is a process that, among other things, allows the assessment of quality of services and information that municipalities provide for investors and businessmen. It is a process aiming at improvement of business environment in Serbia through institutional reforms with the active participation and cooperation of industry, municipalities and citizens. One of the key questions is to determine the importance of the criteria relevant for evaluating the attractiveness of municipality in terms of potential investors. Analysis of criteria importance for certification of cities and municipalities with a favorable business environment, shown in this paper, aims to identify those who have played a key role in the efficiency of municipalities and cities in attracting foreign direct investment. This paper presents three alternative ways of determining the importance of the criteria. The results of this analysis should indicate to the authorities of cities and municipalities possible ways of improving their position at the list of those with a favorable business environment.