Legal environment as a factor in the inflow of Foreign Direct Investment: Case of Serbia

Authors

DOI:

https://doi.org/10.15549/jeecar.v11i3.1588

Keywords:

Legal environment, Property, FDI, Foreign investors, Serbia

Abstract

The economic growth and development of a country depend on the inflow of foreign direct investment, and the legal environment factors play an important role in securing it. Compared to other countries in South-Eastern Europe, Serbia has achieved remarkable results in terms of FDI inflows over the last ten years. The research examines the impact of the legal environment on FDI inflows in Serbia. The study was conducted using a quantitative approach and a survey technique based on a structured questionnaire. The basic set of the research consists of the 300 most prominent foreign investors (response rate of 28%) who invested capital in Serbia in the period 2011-2019. The results of the conducted research show that ownership in Serbian companies is the most important factor in the legal environment that influences a foreign investor's decision to invest capital in these companies. The results show that labor legislation, law enforcement, and confidence in the legal system can significantly contribute to a foreign investor's decision to invest capital in Serbia. The legal environment's implications influence investor decisions and shape the overall investment climate of a country. A well-structured and investor-friendly legal framework will increase Serbia's competitiveness and attractiveness for foreign investments.

Author Biographies

Darko Marjanović, Institute of Economic Sciences, Belgrade, Serbia

Dr. Darko Marjanović is a Senior Research Associate at the Institute of Economic Sciences. His current areas of professional interest are competitiveness, FDI and public finance. He has published, as author or co-author, more than 70 scientific papers. He is a member of the Scientific Board at the Institute of Economic Sciences and an associate member of the Scientific Society of Economists of Serbia. He was a Vice President of the Scientific Board at the Institute of Economic Sciences, head of the Center for Strategic Cooperation, coordinator of the Macroeconomics Department and editor-in-chief of the international publication SEE-6 Economic Outlook.

Ivana Domazet, Institute of Economic Sciences, Belgrade, Serbia

Dr. Ivana Domazet is a Principal Research Fellow at the Institute of Economic Sciences. Her scientific interests refer to competitiveness, marketing research and strategy, communications, CRM, and strategic management. She published a book in the field of competitiveness, market research, and integrated marketing communications, as well as numerous papers related to the foregoing topics. She is Vice President and Board member of the Institute of Economics Sciences, Board member of the Institute of Social Sciences, member of the Scientific Society of Economists in Serbia, and member of the Serbian Marketing Association. She was President of the Scientific Council at the Institute of Economic Sciences.

Valentina Vukmirović, Institute of Economic Sciences, Belgrade, Serbia

Dr. Valentina Vukmirović is a Research Assistant at the Institute of Economic Sciences. She is a PhD candidate at the Faculty of Organizational Sciences, University of Belgrade. Her research interests and publications lie at the intersection of Marketing Communication, Competitiveness, and Regional/Sectorial Development Policies. She was engaged as a Research Assistant in a strategic project of the Serbian Ministry of Education, Science, and Technological Development and is currently engaged in two scientific projects financed by the Science Fund of the Republic of Serbia.

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Published

2024-06-04

How to Cite

Marjanović, D., Domazet, I., & Vukmirović, V. (2024). Legal environment as a factor in the inflow of Foreign Direct Investment: Case of Serbia. Journal of Eastern European and Central Asian Research (JEECAR), 11(3), 478–492. https://doi.org/10.15549/jeecar.v11i3.1588