Delevic, Uros (2014) Destitute and closer to the EU: why Serbia needs new FDI policy? Student Economic Law Review, 8 (2). pp. 9-19. ISSN 2217-5202 (Online)

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Abstract

Within this paper I intend to provide evidence that current FDI-based model of development in Serbia is not sustainable in the long run. Primarily because Serbian governments have been offering cheap labour and subsidies as incentives for multinational enterprises (MNEs), both of which ultimately have contra productive effects. The paper will challenge infinitely repeated assertion that correlates the EU integration process and greater inflows of FDI. Moreover, the quality of attracted FDI and their effect on domestic enterprises will be examined. It will be argued that only high-value adding activities of MNEs may be associated with economic development. In order to facilitate aforementioned activities, Serbia needs to invest in National Innovation Capacity (NIC) and drive MNEs to complement domestic producers instead of substituting them. In that regard, the trend of increasing poverty is not essentially related to high unemployment, but also to very low quality of employment.

Item Type:	Article
Uncontrolled Keywords:	foreign direct investments (FDI), Serbia, EU, National Innovation Capacity (NIC)
Subjects:	H Social Sciences > H Social Sciences (General)
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of International Business & Economics
Last Modified:	23 Apr 2021 08:32
URI:	http://gala.gre.ac.uk/id/eprint/30000

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