Professional paper
The Importance of Foreign Direct Investments in the Republic of Croatia
ŽELJKO MARTIŠKOVIĆ
; PRIVREDNA BANKA ZAGREB
NIKOLINA VOJAK
orcid.org/0000-0003-2502-0625
; KARLOVAC UNIVERSITY OF APPLIED SCIENCES
SILVIO POŽEGA
; MPS-67 d.o.o.
Abstract
Foreign direct investments encompass activities that enterprises make outside the home country, and mostly refer to investments in manufacturing systems or subsidiaries. Main benefits expected for foreign investor are optimization
of portfolio, profit gaining, costs reduction, increasing of market share and acquirement of other competitive advantages. For the recipient country main benefits are the increase of gross investments and employment, positive influence on balance of payments and transfer of technology. Indirect effects, which refer to increasing performances of enterprises because of connecting domestic with foreign enterprises, are not less important. In the past twenty years, through foreign direct investments in Croatia there was an
attempt to achieve stronger competition of domestic economy and total investments in the country. This work gives an overview of achieved foreign direct investments in Croatia and the impact of investments on Croatian economy.
Keywords
foreign direct investments; investments; economy
Hrčak ID:
87542
URI
Publication date:
20.8.2012.
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