Impact of FDI on GDP and Unemployment in Macedonia Compared to Albania and Bosnia and Herzegovina

TitleImpact of FDI on GDP and Unemployment in Macedonia Compared to Albania and Bosnia and Herzegovina
Publication TypeBook Chapter
Year of Publication2019
Book Title a book: Creative Business and Social Innovations for a Sustainable Future,
Volume1
SectionImpact of FDI on GDP and Unemployment in Macedonia Compared to Albania and Bosnia and Herzegovina
Publication Languageeng
AuthorsMamuti, A, Ganić, M
PublisherSpringer
Place PublishedNature Switzerland AG
Keywordsdeveloping countries, employment, FDI, financial crisis, GDP
Abstract

The main aim of this research is to investigate whether Foreign Direct Investment (FDI) affects economic growth and employment rate in the selected countries of Western Balkan region (Albania, Macedonia and Bosnia and Herzegovina). The hypothesized relationship between FDI and economic growth and unemployment rate was investigated using real and official data of FDI inflows as well as GDP for period between 2005 and 2015. Methodology used in the study is a multiple regression. Findings indicated that considering three countries of Western Balkans, FDI has considerable influence over their economic growth, except for the case of Bosnia and Herzegovina (B&H) where hypothesis has been rejected meaning that FDI has no considerable influence over economic growth in this country. On the other hand, when it comes to Albania and Macedonia, hypothesis was accepted which proved that FDI is significant contributor to economic growth of these two countries. In the last two decades, Macedonia has been one of the leading receivers of FDI, compared to other countries from Balkans, mainly compared to Albania and Bosnia and Herzegovina.