Foreign Direct Investments in Serbia (Report)

1. Introduction What can a developing country reasonably expect from foreign direct investments? Do they promote economic growth and social development? Foreign direct investments are part of investment finance, alongside, mostly, domestic savings. Foreign direct investments (FDI) contribute to economic growth in their net amount: the amount that remains after repatriation of foreign capital and profits are taken into account. If FDI finance research and development or in some other way bring in the most recent technology, they can be an ingredient of another source of growth, called technical progress.