Abstract

In this research the authors analyzed domestic legislation in order to determine the cause-effect relationship between the inflow of foreign direct investments to the dynamics in the development of domestic economy. They focused on progress of the Republic of Serbia on WB’s Doing business list for 2020, because Serbia has advanced four places and currently occupies the 44th place among the 190 countries listed. The most important results of this research indicate that development of the domestic economy is based on comprenhensive legal and economy measures. The influence of foreign direct investments on strengthening domestic economy is considerable and it is measured by exports and growth of gross domestic product, and the placement of Serbia on the Doing Business List, with a focus on significant benefits that the state offers to investors in order to influence the macro and micro business climate in the Republic of Serbia. The authors concluded that these facts will be very important for the challenges caused by COVID 19 pandemic for domestic economy in the future, but they pointed out that domestic economy is healty economy and will be able to amortize impact of global recesion in announcment.

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