Understanding the ‘EU factor’: the Balkans regions as recipients of FDI and industries
Understanding the ‘EU factor’: the Balkans regions as recipients of FDI and industries

Summary/Abstract: Now that the need for business-oriented policies is a well-established fact, it is important to show that an inflow of foreign capital is a key component of the solution to the shortage of domestic capital and productivity. This, in turn, must take in the trajectory of industry. I will give evidence of the region’s progress and its readiness for FDI, as well as addressing issues related to economic backing for foreign participation and unveiling projections for foreign investment inflows. With this in mind, the article proceeds as follows. Section 2 briefly raises issues concerning the most recent FDI inflows, highlights the varying records of accomplishment of countries in attracting their share of investment and elaborates on the requisites to do so. Section 3 develops a line of reasoning concerning how these countries may become recipients of sizeable foreign investment during the years ahead and which sectors will benefit more than may others. Arguably critical to the success of the economic recovery is sufficient macroeconomic and political stability at both the single state and the broad regional levels, completing the privatisation of large enterprises and services and creating the right conditions for backing small and medium enterprises. I will be making a case for a stronger political European commitment towards the accession of remaining countries to the EU en bloc. Section 4 concludes the analysis and outlines the points which require further research in the study of industrial clusters and competitiveness.

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