The City of Nis competitiveness analysis in the field of foreign direct investment

Abstract

The favorable climate and the environment in which economic activity takes place is one of the factors for attracting investments, both in terms of the state or when it comes to regions, cities and municipalities within the state. At the international level, states are competing for funds and investors and they are trying to attract as much as possible of investments for starting or accelerating economic activity. Analogue process has been taken within the state, where cities and municipalities are rivals to each other in attempt to emphasize their comparative advantages. Due to specific characteristics that make them able to stand out in relation to other cities and municipalities and with the prior support of a favorable climate for investors, municipalities become 'business friendly'. Experiences from the past in Serbia shows that local government can create a business environment such that the level of competitiveness of the city, municipality or region is far above the level of competitiveness of the state. City of Nis has attracted a significant number of investors over the past period and positioned itself in third place in Serbia in the amount of foreign direct investment, as well as in fourth place by the total number of jobs created after the activation of these investments. The aim of this paper is primarily analysis of the results that City of Nis achieved in the previous period in the field of attracting FDI, but also to emphasize its competitive advantages and opportunities to improve competitiveness.