LEGAL ASPECTS OF FOREIGN DIRECT INVESTMENT IN THE REPUBLIC OF SRPSKA

Boro Krstić

Boro Krstić University of Bijeljina, Faculty of Agriculture, Bijeljina

Abstract

Foreign direct investment is in the function of the growth and development of a national economy. After the economic crisis that hit the whole world, Bosnia and Herzegovina and other countries in the Region were looking for ways for fast economic recovery and opportunities for intensive business cooperation with partners from around the world. Foreign investments contribute to the improvement of the existing investment environment because fresh capital motivates new investors. The paper analyzes the important characteristics and features of foreign investment. In the Republic of Srpska there are a limited number of research papers and significant practices that deal with this issue and therefore this paper point out to some arguments in favor of positive impact of FDI. The paper aims to clarify the role and importance of foreign direct investment from the legal aspects. Comparative analysis of the structure of foreign direct investment in the region and in Bosnia and Herzegovina makes it possible to determine the degree and extent of direct foreign investments in various industries including, among others, investments in the development of tourism in the Republic of Srpska in recent years and point out the existing constraints and future prospects.

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