The impact of foreign direct investment in the Western Balkans

This paper intends to analyse the economic growth of Western Balkan Countries. Economic growth can be defined as the nation’s capacity to produce goods and service. The capability of the country depends mostly by its resources, such as level of technology, labour force, capital, productivity, etc. At first, our analysis will focus on a macroeconomic overview of these countries, and afterwards to the economic growth trends in these countries, given the fact these countries have joined1 or are preparing to join the European Union. Recently, the role of foreign direct investment in the host countries’ economies is more studies. In this paper, will deal with the performance and role of FDIs in economic growth of the Western Balkan countries.