LIMEN.2018.190

In the past few decades, governments around the world have made great efforts to
promote foreign direct investment, with tax and financial incentives widely used. They are
mainly related to the reduction of corporate income tax, export incentives, customs exemption,
grants and other subsidies to attract foreign investors. In other cases, governments are trying
to achieve certain goals, such as job creation, transfer of technology, the development of
necessary skills, or an increase in exports. The largest part of the research in the literature is
oriented towards the analysis of foreign direct investments in a given country in one sector over
a certain period. On the other hand, foreign direct investment is analyzed as a homogeneous
phenomenon. This duality makes it difficult for governments of developing countries to draw
lessons in policy making. They need a sufficiently simple framework that allows logical
conclusions to be made. These frameworks should also help in the clear organization and
setting of priorities of multiple, complex variables that influence the maximization of investment
benefits. In this context, there is a gap in the literature on investment policy that links these two
requirements.
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investment policy, foreign direct investment, trade and investment, productivity,
wages

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Radić_Radić_UTICAJ INVESTICIONE POLITIKE NA DONOŠENJE ODLUKA_pp_190-198