<abstract xmlns="http://www.w3.org/1999/xhtml"><p>From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of economic entities in the micro segment. Investments present an essential element of any economic policy, as their presence provides a platform, not only for economic development, but also create a basic condition for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and the most common presenting the most important tool in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large and therefore the states are directing significant activities in order to create a more favorable environment to attract investors. The paper pays special attention to direct investmens in financing the economy on a global scale, their importance for the development of the global economy and particulary screens the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The emphasis is placed on activities that have to be carried out in order to realize more investments. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is fundamental prerequisite for generating and accelarating of economic development in general. The inflow of foreign capital has an exstraodinary positive impact on the economic development and increase of business activities in visably undeveloped and slow economic in Bosnia and Herzegovina.</p></abstract>

From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of economic entities in the micro segment. Investments present an essential element of any economic policy, as their presence provides a platform, not only for economic development, but also create a basic condition for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and the most common presenting the most important tool in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large and therefore the states are directing significant activities in order to create a more favorable environment to attract investors. The paper pays special attention to direct investmens in financing the economy on a global scale, their importance for the development of the global economy and particulary screens the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The emphasis is placed on activities that have to be carried out in order to realize more investments. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is fundamental prerequisite for generating and accelarating of economic development in general. The inflow of foreign capital has an exstraodinary positive impact on the economic development and increase of business activities in visably undeveloped and slow economic in Bosnia and Herzegovina.

Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina

University of Business Studies Banja Luka

Faculty of Business and Financial Studies

ECONOMICS

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of...

Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina

Published Online: Jul 04, 2018

Page range: 63 - 80

Received: Mar 19, 2018

Accepted: Apr 05, 2018

DOI: https://doi.org/10.2478/eoik-2018-0007

Keywords
foreign investment, the global economy, economic development, knowledge and technology

© 2018 Milan Šušićv, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina

Published Online: Jul 04, 2018

Page range: 63 - 80

Received: Mar 19, 2018

Accepted: Apr 05, 2018

DOI: https://doi.org/10.2478/eoik-2018-0007

Keywordsforeign investment, the global economy, economic development, knowledge and technology

© 2018 Milan Šušićv, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
foreign investment, the global economy, economic development, knowledge and technology