ATTRACTING FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES: WHY BOSNIA AND HERZEGOVINA SHOUD BE LEARNING FROM CHINA

Sanel Halilbegovic, Emina Sabic

Abstract


The importance of capital inflows and outflows is something that country needs and encourage it to help the economies of countries to grow at a steady rate. The purpose of this study is to provide a framework and to explain what main drivers of FDI in the world are and what policies should be made to encourage the FDI in BiH. Main limitations of this study would be that, since this is rather an extensive study, it will not be able to cover all factors in-depth, but the author will try to explain in great detail the ones that she considers to be of great importance for Bosnia and Herzegovina. The author will examine factors that China took into consideration as it's incentives for attracting FDI. Furthermore, this study will show what the main factors are influencing the FDI of other countries and how Bosnia can improve its policies and change them to attract FDI.


Keywords


foreign direct investment, inflow, incentive, developing countries, government’s actions

References


• US Department of State. (2015). Retrieved from https://www.state.gov/e/eb/rls/othr/ics/2015/241489.htm

• CEIC. (2017). Retrieved from https://www.ceicdata.com/en/indicator/bosnia-and-herzegovina/foreign-direct-investment--of-nominal-gdp

• China Corporate Tax Rate | 1997-2018 | Data | Chart | Calendar | Forecast. (2018). Tradingeconomics.com. Retrieved 1 December 2017, from https://tradingeconomics.com/china/corporate-tax-rate

• China open u the regulatory framework for FDI. (2016). https://china.taylorwessing.com. Retrieved 1 December 2017, from https://china.taylorwessing.com/en/china-opens-up-the-regulatory-framework-for-foreign-direct-investment

• China Political stability - data, chart | TheGlobalEconomy.com. (2018). TheGlobalEconomy.com. Retrieved 1 December 2017, from http://www.theglobaleconomy.com/China/wb_political_stability/

• China's banking sector performance. (2017). Retrieved from https://assets.kpmg.com/content/dam/kpmg/cn/pdf/en/2017/10/china-banking-sector-performance-of-listed-banks-and-hot-topics-2017-q2.pdf

• Federation of Bosnia and Herzegovina. (1997). FBIH Law on Corporate Taxes. Sarajevo: Fedration of Bosnia and Herzegovina.

• FIPA.GOV.BA. (2017). FDI Position and Performance. Sarajevo: FIPA. Retrieved from http://www.fipa.gov.ba/informacije/statistike/investicije/default.aspx?id=180&langTag=en-US

• Foreign investment in Bosnia and Herzegovina. (2018). Retrieved from https://en.portal.santandertrade.com/establish-overseas/bosnia-and-herzegovina/investing

• Halilbegovic S., Halaba A., Ilguen E., (2017), Behavioral economics perspective on foreign direct investment in emerging markets: The case on Bosnia and Herzegovina, Accounting – Growing Science, 181-196

• Inequality in China: The Rural and Urban gap widens. (2018). Understanding Modern China. Retrieved 1 December 2017, from https://uosm2018.wordpress.com/2014/03/22/inequality-in-china-the-rural-and-urban-gap-widens/

• Intelligence, f. (2016). Serbia ranks first in 2016 greenfield FDI Performance Index. Fdiintelligence.com. Retrieved 1 December 2017, from https://www.fdiintelligence.com/Rankings/Serbia-ranks-first-in-2016-greenfield-FDI-Performance-Index

• Marketing of a country. (2018). Retrieved from http://documents.worldbank.org/curated/en/884891468763824660/pdf/multi-page.pdf

• Moran, T. (2015). How to encourage foreign investment. World Economic Forum. Retrieved 1 December 2017, from https://www.weforum.org/agenda/2015/01/how-to-encourage-foreign-investment/

• Moffett, M., Stonehill, A., & Eiteman, D. (2014). Fundamentals of multinational finance (5th ed., pp. 9,10, 34-44). Pearson.

• SanderTrade. (2016). Retrieved from https://en.portal.santandertrade.com/establish-overseas/serbia/investing

• Oatley, T. (2013). International Political Economy (5th ed., pp. 165-201). Pearson.


Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.