Abstract
It is known that the economic stability and economic development of each economy depends on the free movement of capital. The international movement of capital has its balance of payment when capital export represents economic surplus in relation to consumption of the national economy and the import of capital represents an increase of consumption in regard to the output of a national economy. The paper is analyzed of the influence of foreign direct investment (FDI) on economic growth of the host country, among other things, is emphasized in the function of the achieved phase of its economic development. The aim of this paper refers to an attempt to indicate the significance and the role of FDI as well as the importance of attracting foreign direct investment in B&H and the determination of the effects of FDI on the economy of B&H. We will try to prove it, i.e. to determine the degree of impact of FDI on some macroeconomic indicators in B&H (GDP, import, export, unemployment) by using IBM SPSS v.22 statistical analysis program (model) and applying the methods, calculating coefficients of correlation and regression analysis. In other words, we will determine the analytical expression used to describe a statistical relationship of these macroeconomic categories.
Highlights
The International Monetary Fund (IMF) defines foreign direct investment (FDI) as a category of international investment that reflects a phenomenon when a resident located in a single country - a foreign direct investor or a parent company - obtains permanent benefits over an enterprise that is a resident of another country - an FDI enterprise or enterprise affiliate or foreign affiliate
Based on the results presented by the equation of regression it can be concluded that the growth of foreign direct investment in BiH will lead to a decrease in unemployment (Figure 5)
Foreign direct investments in Bosnia and Herzegovina amounted to KM 7,860 billion in the period from 2007 to 2017, while foreign direct investments in the eight-year period (20102017) amounted to 3,571 billion KM
Summary
According to the classic definition, foreign direct investment (FDI) means investing in a newly established company (institution) or investing in an existing domesticcompany (institution), which can be in things, rights and money. The International Monetary Fund (IMF) defines foreign direct investment (FDI) as a category of international investment that reflects a phenomenon when a resident located in a single country - a foreign direct investor or a parent company - obtains permanent benefits over an enterprise that is a resident of another country - an FDI enterprise or enterprise affiliate or foreign affiliate. FDIs are defined as investments made with the intention to achieve a lasting interest in managing the company in which it is invested, at least 10% of the votes in the governing (According to World Bank) or voting structure or according to UNCTAD (United Nations Conference on Trade and Development) as investments that imply a long relationship with a lasting interest and control resident company of a country in a company resident company resident in another country (According to UNCTAD). The paper deals with the conditions and motives of foreign direct investm The positive results of the inflow of foreign direct investment in BiH should be shown by increasing and changing GDP, production structure, market openness and an increase in the employment rate
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
