Foreign Investment in the Function of Accelerated Economic Development of Countries in Transition with Special Reference to Republika Srpska
Foreign Investment in the Function of Accelerated Economic Development of Countries in Transition with Special Reference to Republika Srpska

Summary/Abstract: In terms of the lack of domestic accumulation, foreign investments represent a significant source of additional capital to accelerate economic development. Political developments on a global scale and instability which they bring, as well as instability in commodity markets and reducing economic growth in developed countries led to the fact that foreign investors have become more cautious when making investment decisions. These developments have led to a decrease in investment activity, which is particularly reflected in the transition countries, and thus in Republika Srpska. Although Republika Srpska conducted a series of reforms, the situation at the global level leads to the need to review investment policy and its harmonization with the new situation. The aim is to analyze the volume of foreign investment in the world, the region and in Republika Srpska, as well as the factors influencing investment decisions and to find solutions for increasing the volume of foreign investments based on this analysis, in order to accelerate the economic development of Republika Srpska. The analysis showed that although Republika Srpska conducted a series of reforms in order to attract new investments, it is necessary to conduct e-business registration, improve the business environment, with special attention paid to reducing the tax burden on labor, education reform and carry out targeted attracting of investors, not only in the agricultural sector - fruits and vegetables, but also in other sectors.

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