A literature review on the relationship between foreign direct investment and economic growth in Balkan countries

Abstract

The process of globalisation has made the world a single global village. This
process is now irreversible; it was primarily caused by trade and investment across
economies resulting in strong worldwide market for goods, services and capital.
Foreign Direct Investment is one of the important outcomes of globalisation.
The world is full of development opportunities, covering the entire range from
countries that have just begun to modernise to the richest countries. FDI help
countries secure financing for their economic growth. These investments
promote economic growth in both the host country and the country of origin.
The host country benefits from FDI by financing projects planned, developing
new technologies and generating new jobs. Investing companies benefit from
the expansion of markets and, consequently, the growth of their shares in
international markets. This paper targets and discusses the main theoretical
aspects of existing literature pertaining to FDI. It starts with some definitions
given by different institutions or authors regarding FDI, continuing with a history
of foreign direct investments from ancient times to the present.