Повезаност страних директних инвестиција и привредног развоја у Босни и Херцеговини

Abstract

This research paper aims to investigate the relationship between foreign direct investment (FDI) and economic development in Bosnia and Herzegovina. Foreign direct investment (FDI) is one of the key factors of economic growth and development, especially in countries in transition and underdeveloped economies. In the last few years, foreign direct investment has been a trend in the world. Bosnia and Herzegovina, as a transition country, is striving for a greater inflow of foreign direct investment with the aim of achieving a higher GDP, and thus the economic development of Bosnia and Herzegovina. Bosnia and Herzegovina is a country with many untapped resources and potential, which is one of the factors that places it among the underdeveloped countries. For this reason, foreign direct investment is of great importance for the economic development of Bosnia and Herzegovina. The benefits of this type of investment for the economy of Bosnia and Herzegovina would be numerous: economic growth, technology and knowledge transfer, infrastructure development, connectivity with global markets, increased competition, incentives for investment by domestic companies, and increased employment.