Reliance of Serbia on the European Union Foreign Direct Investments: Empirical Analysis
DOI:
https://doi.org/10.46793/Rev25110.015MKeywords:
Serbia, foreign direct investments (FDI), economic development, foreign capital, European Union (EU)Abstract
Foreign direct investments (FDI) represent one of the decisive factors of globalization, international trade and international economic integration in the modern world. Today, FDI are an important source of overall economic and social development and progress of every country. The purpose of this article is to provide a comparative insight into the differences in the net FDI inflows among different countries of the Western Balkans, to indicate the net FDI inflows and outflows from Serbia, their sectorial structure, as well as important differences in the FDI inflows among the different countries of their origin. The European Union (EU) is the largest trade partner, foreign investor and main donor in Serbia. On the other hand, Serbia is recognized as a regional leader in attracting FDI, the largest part of which undisputedly comes from EU member states. In addition, Serbia has the largest trade exchange with the EU, as indicated by the dominance of European companies in the domestic economy. Therefore, the paper concludes that Serbia has no alternative, and that it needs the EU due to its geographical proximity, intense trade relations, the country's dependence on foreign capital and the need for further modernization of its economy and society.
References
Ahmeti, F., & Kukaj, H. (2016). The Importance of Foreign Direct Investments on Economic Development in Transitional Countries: A Case Study of Kosovo. European Scientific Journal, March 2016, pp. 1-26. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2752979
Ahn, J.B., Habib, A., Malacrino, D., & Presbitero, A. F. (2023). Fragmenting Foreign Direct Investment Hits Emerging Economies Hardest. IMF Blog, April 5, 2023. https://www.imf.org/en/Blogs/Articles/2023/04/05/fragmenting-foreign-direct-investment-hits-emerging-economies-hardest
Beta (2024). Ministarstvo zdravlja traži hitnu kontrolu nad lekarima koji otvaraju bolovanje, Sindikat Sloga se protivi. Danas, February 13, 2024. https://www.danas.rs/vesti/drustvo/ministarstvo-zdravlja-trazi-hitnu-kontrolu-nad-lekarima-koji-otvaraju-bolovanje-sindikat-sloga-se-protivi/
Chowdhury, R. A., Abdullah, M. N., Saha, J., & Tooheen, R. B. (2017). Problems and Prospects of the Foreign Direct Investment-based Organization in Bangladesh. International Journal of Economics and Financial Issues, 7(4), pp. 488-497
Delegacija Evropske unije u Srbiji (2023). Nova mogućnost za preduzeća – „Srbija i EU – oprema za privredu“. August 24, 2023. https://europa.rs/nova-mogucnost-za-preduzeca-srbija-i-eu-oprema-za-privredu/
Delegacija Evropske unije u Republici Srbiji (2024). EU tim: Najbolji partner Srbiji. https://www.euzatebe.rs/rs/covid/cinjenice
Ignjatijević, S. (2015). Ekonomska analiza značaja stranih direktnih investicija. Oditor: časopis za menadžment, pravo i finansije, 11(2015), pp. 4-15
Jovanović, M. (2021). Srbija na stranputici razvoja? – o uticaju koneskih investicija. In: Miloš Nikolić (editor), Srbija i strani kapital – Osvrti i analize. Beograd: Libek, pp. 91-97
Kastratović, R. (2016). Uticaj stranih investicija na privredni i društveni razvoj Srbije. Bankarstvo, 45(4), pp. 70-93. doi: 10.5937/bankarstvo1604070K
Madžar, L., Balaban, S., & Simić, M. (2023). Finansijski i monetarni aspekti međunarodne ekonomije. Beograd: Alfa BK univerzitet.
Mallampally, P., & Sauvant, K. P. (1999). Foreign Direct Investment in Developing Countries. Finance & Development, March 1999. Washington D. C.: International Monetary Fund, pp. 34-37
N1 Beograd (2025). Petrović: Srbija je zemlja državnog kapitalizma, domaći privatni sektor potpuno ugušen. Interview.
Narodna banka Srbije (2024). Statistika platog bilansa. https://nbs.rs/sr_RS/drugi-nivo-navigacije/statistika/platni_bilans/
Organization for Economic Co-operation and Development (2002). Foreign Direct Investment for Development: Maximising Benefits, Minimising Costs. Paris: OECD.
Organization for Economic Co-operation and Development (2008). Benchmark Definition of Foreign Direct Investment, Fourth Edition. Paris: OECD. https://doi.org/10.1787/9789264045743-en
Panić Conić, S. (2023). Kompanije iz EU najveći investitori u Srbiji. May 9, 2023. https://www.rts.rs/lat/vesti/srbija-danas/5188119/kompanije-iz-eu-najveci-investitori-u-srbiji-.html
Pavlović, D. (2021). Privilegije i zloupotrebe – uloga administracije u privrednom razvoju Srbije. In: Miloš Nikolić (editor), Srbija i strani kapital – Osvrti i analize. Beograd: Libek, pp. 39-45
Popovčić-Avrić, S., & Vidas-Bubanja, M. (2009). Međunarodna ekonomija. Beograd: Zavod za udžbenike i Fakultet za ekonomiju, finansije i administraciju.
Rodrik, D. (1999). Making Openness Work: The New Global Economy and the Developing Countries, Washington D.C.: Overseas Development Council.
Samuel, C. (2013). The Dark Side of Foreign Direct Investment: A South African Perspective. Occasional Paper No. 167, December, 2013. Johannesburg: South African Institute for International Affairs.
Statistical Office of the Republic of Serbia (2024). Foreign Affiliates in the Republic of Serbia (inward FATS). https://www.stat.gov.rs/en-us/oblasti/strukturne-poslovne-statistike/strane-podruznice-u-srbiji/
Tasić, S. (2021). Strani kapital između teorije i prakse – iskustvo Srbije. In: Miloš Nikolić (editor), Srbija i strani kapital – Osvrti i analize. Beograd: Libek, pp. 9-15
Tomić, M., Antonijević M., & Pejović, B. (2021). Uticaj pandemije COVID-19 na kretanja SDI – Iskustva Srbije. Ekonomske ideje i praksa, 42(2021), pp. 47-72. https://doi.org/10.54318/eip.2021.mt.296
UNCTAD Stat. (2023). Foreign direct investment: Inward and outward flows and stock, annual. September 22, 2023. https://unctadstat.unctad.org/datacentre/dataviewer/US.FdiFlowsStock
United Nations Conference on Trade and Development (2007). Definitions and Sources, In: World Investment Report 2007: Transnational Corporations, Extractive Industries and Development. Geneva: UNCTAD, pp. 245-249
United Nations Conference on Trade and Development (2023). World Investment Report 2023: Investing in Sustainable Energy for All. Geneva: UNCTAD.
Unković, M., & Kordić, N. (2011). Mogućnosti Srbije za privlačenje stranih direktnih ulaganja. Singidunum revija, 8(1), pp. 163-177
U.S. State Department (2023). 2023 Investment Climate Statements: Serbia. https://www.state.gov/reports/2023-investment-climate-statements/serbia/
World Bank (2025). Foreign Direct Investment, net inflows and net outflows. https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD
