Abstract

Recently almost all countries of the world without exception developed countries or the developing countries are attracting foreign direct investments. The reason is that there is no dilemma that benefits of foreign direct investments in the host countries as well as domestic countries are greater than the damage that can have.Western Balkan countries also follow this trend for attracting foreign direct investment. Some of them have achieved notable successes, while the others have achieved less success. Macedonia is a country that during the last two decades ranks among the countries with smaller foreign direct investments.In the paper which I have chosen to analyze, in the start I gave a general overview of the meaning, role and importance of foreign direct investments for economic development of a country. Later I have analyzed the trend of foreign direct investments in the region, and especially in Macedonia. At the end sought and given reasons of locking foreign direct investment in Macedonia and recommendations to overcome such a situation.

Highlights

  • Foreign direct investment is undoubtedly one of the main factors which will stimulate the economic growth in a country and world

  • If we look foreign direct investment (FDI) from the perspective of the host country, especially in developing countries, we will see that they mostly prefer investments "Greenfield"

  • If we compare foreign direct investments that were realized in recent years in Macedonia with FDIs in the region, we will see that it holds the last place

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Summary

Introduction

Foreign direct investment is undoubtedly one of the main factors which will stimulate the economic growth in a country and world. On the other hand foreign investors in recent years have been very active They are investing in different countries of the world, to realize fat profits, but have played a crucial role in the development of the economies of those countries where they invest. The Internet and especially the development of ecommerce stimulated and accelerated as ever increasing foreign direct investment During this great round FDI began to liberalize by adopting a series of laws and regulations that aimed at facilitating the penetration of FDI in different countries of the world. The number of multinational companies of the so-called "parents" at the global level has exceeded 61,000, while the number of their subsidiaries reaches 900,000 (Hill, 2007, p.12)

The meaning of Foreign Direct Investment
The role and importance of FDI in a countrys Economic Development
FDI trends in Western Balkan countries and Macedonia
Causes of low level of FDI in Macedonia
The main factors that affect the efficiency of the FDI
What should Macedonia do to upgrade situation in attracting FDI?
Findings
Conclusions
Full Text
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