IMPACT OF INVESTMENT POLICY IN DECISION-MAKING
4th International Scientific – Business Conference LIMEN 2018 – Leadership & Management: Integrated Politics of Research and Innovations, Belgrade – Serbia, December 13, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Engineering Management – Belgrade, Serbia; Modern Business School – Belgrade, Serbia; Faculty of Business and Management Sciences – Novo Mesto, Slovenia; Faculty of Business Management and Informatics – Novo Mesto, Slovenia; Business Academy Smilevski – BAS, Skopje, Macedonia; BAS Institute of Management, Bitola, Macedonia, ISBN 978-86-80194-15-8
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
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