Improved Business Climate and FDI in the Western Balkans

Improved Business Climate and FDI in the Western Balkans

OSMANI, Rufi

Abstract: The process of economical and political transition in the Western Balkans, up to this point has shown a high correlation between achieved economical results and the determination of national authorities for drawing and implementing policies for economical stabilization and development as well as structural reforms with the support of the International Monetary Fund, the World Bank and other relevant international institutions. The analyzed countries from the Western Balkans region have managed to achieve appropriate levels of macroeconomic stability and an improvement of the business climate due to the implemented reforms, these countries have not been successful enough in attracting Foreign Direct Investments as a precondition to ensure a more dynamic economical development and an appropriate fall in the level of unemployment and poverty. A comparative analysis of the real economic indicators of the Western Balkans countries as contracted to the EU average shows that these countries are well under the real convergence levels of the EU countries. The main objective of the paper is to provide some additional arguments regarding the potential positive or negative correlation between the business climate and the levels of Foreign Direct Investments in the Western Balkans countries, some of which are already members of the EU and others aspiring to become members in the future, having in mind the asymmetric economic positions of the countries being analyzed. Keywords: Business climate, Structural reforms, Foreign Direct Investment, Economic Development, Western Balkan countries, European Union JEL Classification: E3, E4, F15, F21, M21, M48, O10, O11, O12

Article
PeerReviewed

ISSN 1986 – 8502,

doi: http://dx.doi.org/10.14706/JECOSS16611

International Burch University

2016

2971