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Foreign Investments and Trade in the Western Balkan–Focus on Economic and Legal System

Danijela P. Jacimovic and Mijat XX Joćović
University of Montenegro/Faculty of Economics, Podgorica, Montenegro
Abstract—The high openness and high dependence of this region on foreign capital have made the Western Balkan countries vulnerable to capital volatility. The reduction of foreign capital imposed rapid adjustments in domestic demand that, together with a collapse in exports, resulted in substantial output declines. High competition between the Western Balkan countries favored investors and a race to the bottom in terms of regional investment conditions (taxes, subsidies) led to a situation that made regional development policies difficult.

Index Terms—FDI flows, trade, Western Balkans, regulatory reforms

Cite: Danijela P. Jacimovic and Mijat XX Joćović, "Foreign Investments and Trade in the Western Balkan–Focus on Economic and Legal System," Journal of Advanced Management Science, Vol. 2, No. 4, pp. 301-305, December 2014. doi: 10.12720/joams.2.4.301-305
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