Investment for Sustainability: How FDI Drives Sustainable Development in Serbia

Abstract

Objective – The paper examines how the sectoral and regional structure of foreign direct investment (FDI) in Serbia contributes to the Sustainable Development Goals (SDG 8, 9, 10, and 12).

Research method - The paper uses descriptive analysis of secondary data on net FDI for the period 2015–2024. It includes indicators of productivity, wages, employment structure, regional distribution, and environmental pressure.

Results - FDI in Serbia is mainly directed toward low-wage, high-pollution sectors, while those with greater development potential and lower environmental impact remain underrepresented. This sectoral structure provides partial support for SDG 8 and limits progress on SDG 9 and SDG 12. Regionally, FDI is concentrated in more developed areas, reinforcing spatial disparities and failing to support SDG 10.

Originality / Value / Implications / Recommendations – The paper evaluates the alignment of Serbia’s sectoral and regional FDI structure with selected SGDs - a perspective still underrepresented in national-level empirical research. The results indicate structural misalignments between current investment patterns and national sustainability priorities. The analysis emphasizes the potential of more strategically directed FDI—both sectorally and regionally—to support development that is socially inclusive, economically progressive, and environmentally responsible.