Foreign direct investment in countries in transition

Abstract

At the beginning of the nineties, almost all transition countries were faced with the problem of foreign 
investments. For a state to be entered, the investment means encouraging economic growth and development, 
as well as create new jobs and increase exports. In addition, foreign investment is accelerating the privatization 
process, which leads to strengthening competitiveness in the domestic economy, and promoting export 
competitiveness. To increase efficiency, the expansion of production and trade links with the supply chains of 
production and marketing, in particular those of the European Union's decisive role companies are "greenfield" 
investments. Countries in transition economies that are changing from a centrally organized, to countries where 
free market is, include and Kosovo. They have a shortage of capital, and they are the most profitable to fill the 
gap in foreign direct investment as the best way of using foreign capital. 
Keywords:  foreign direct investment, transition, economic development