Foreign Direct Investments' Impact on Economic Growth in Serbia

Abstract

As a main input for economic growth and competitiveness, foreign direct investments (FDI) remain one of the most important sources in both emerging and developing countries. This study emphasizes the importance of FDI into Serbia's economy by analysing the forecasts between FDI, GDP, the unemployment rate and global competitive index (GCI). In this paper, authors focussed on a comparison of FDI inflows from China, Russia and the EU countries. According to the multiplicative and seasonal aspects of trend analysis considered, projections show a gradual increase in GDP, FDI, competitive ranks and a decrease in the unemployment rate for the following 5 years. These results shed light on the future potential directions under which investment and other public policies should be created. Theoretical and practical implications are also discussed.