ULOGA REGULATORNOG OKVIRA NA PRILIVE STRANIH DIREKTNIH INVESTICIJA
THE ROLE OF THE REGULATORY FRAMEWORK ON INFLOWS OF FOREIGN DIRECT INVESTMENTS

Summary/Abstract: In recent years, we have witnessed the increasing restrictiveness of countries in the policies that regulate foreign direct investments. All restrictions are regulated by legislation and legal acts. The reasons for the restrictiveness of foreign direct investments, which in recent years have been applied by the USA and to a lesser extent by the EU towards Chinese investments, are security risks and the protection of strategic companies, infrastructure and technologies. Unlike them, developing countries desperately need foreign capital through foreign direct investments, because they do not have enough of their own resources to finance development and get out of the vicious circle of poverty, and for this reason it is difficult to decide to introduce any restrictions on foreign direct investments. . Their regulatory framework is based on the openness of the market economy and the creation of conditions for the investment framework to be useful primarily for the host country and not only for the foreign investor. The aim of this paper is to point out the role of the regulatory framework for foreign direct investments. In the work, we will also analyze the flows of foreign direct investments in the world and by groups of countries. Whether foreign direct investment will achieve its purpose depends primarily on the regulatory framework through which it gets its expression and content and on which the final result depends.

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