INNOVATIVE APPROACH TO MEASURING THE IMPACT OF FDI ON SOME MACROECONOMIC INDICATORS IN B&H

Abstract

The necessity of economic life and economic development of every economy is the free movement
of capital. The international movement of capital has its balance of payment when capital export
represents economic surplus in relation to consumption of the national economy and the import
of capital represents an increase of consumption in regard to the output of a national economy.
Analysis of the influence of foreign direct investment (FDI) on economic growth of the host
country, among other things, is emphasized in the function of the achieved phase of its economic
development. Taking all this into consideration, the aim of this paper refers to an attempt to indicate
the significance and the role of FDI as well as the importance of attracting foreign direct investment
in B&H and the determination of the effects of FDI on the economy of B&H. In this regard, we
will try to determine the level of FDI’s impact on some macroeconomic indicators in B&H (GDP,
import, export, unemployment) by using contemporary SPSS statistical analysis program (model)
and applying the methods (calculating coefficients) of correlation and regression analysis. In other
words, we will determine the analytical expression used to describe a statistical relationship of
these macroeconomic categories.