Abstract. The growth of foreign direct investments (FDI) in the world has been significant in recent years. Between 1990 and 2000 worldwide FDI inflows increased more than five times, and since 2000 they have declined. During the period of FDI expansion, growth was especially strong from 1997 onward. However, most of the FDI transactions were between the developed countries. The distribution of FDI is unequal and less-developing countries face difficulties in attracting FDI. Despite the fact that FDI is increasingly important to developing countries, over the past few years the share of the developing countries in worldwide FDI inflows has been declining. The paper analyses geographical and sector distribution of FDI in the Southeast European countries (SEEC) and compares its amount with that in Central East European countries. According to economic theory, FDI towards developing countries flows for labor-intensive and low-technology production, while towards developed states, it flows for high-technology production. Identification of determining factors of FDI is a complex problem which depends on several characteristics specific for each country, sectors, and companies. All those factors could be grouped in three broad categories: economic policy of host country, economic performance, and attractiveness of national economy. On the desegregated level, FDI depends on size and growth potential of a national economy, natural resources endowments and quality of workforce, openness to international trade and access to international markets, and quality of physical, financial, and technological infrastructure. An important question is how SEEC can attract more foreign investment. To find the answer, this paper uses data on FDI inflows to SEEC to determine the main host country determinants of FDI and provides regression-based estimation of determinants of FDI. Using a sample of SEEC and panel data techniques, the determinants of FDI in this part of Europe are investigated. The paper researches the relationship between FDI, GDP, GDP per capita, number of inhabitants, trade openness, inflation, external debt, and information and communication technology sectors. For SEEC, FDI inflows are largely dependent on the completion of the privatization process and in this paper we include the level of private sector and privatization as explanatory variables. Our findings suggest that certain variables such as privatization and trade regime, as well as the density of infrastructure, appear to be robust under different Transition Studies Review (2006) 13 (2): 359-377

This paper analyses the effects of emigration on emigrant countries' unemployment rates (short-term effect) in selected EU emigrant countries. The panel data analysis (fixed-effects model) covers the period from 2004 to 2015, and a total of nine EU countries: Bulgaria; Estonia; Greece; Croatia; Latvia; Lithuania; Poland; Portugal; and Romania. The obtained results show that emigration increases the unemployment rate in emigrant countries confirming that, besides generally expected positive effects in terms of a fall in unemployment, emigration could also have an adverse effect on emigrant countries' labour markets. Such results point to structural issues in the labour market caused by emigration, i.e., an increase in the labour supply and demand mismatch, which is discussed in the paper through the descriptive analysis of Job Vacancy Rate (JVR) data.

This article is envisioned as a first step in a comprehensive analysis of the European Union's (EU) industrial base, designed to inform the current debate, and future policy decisions regarding deindustrialisation and reindustrialisation in the EU. We focus on the study of deindustrialisation and productivity, to determine the causes of deindustrialisation and its relation to productivity in the EU, and whether it can be explained primarily as a natural process, or alternatively as a negative economic trend. Our results indicate that the main causes of deindustrialisation in the EU were shifting demand patterns caused by rising GDP per capita, followed by growing international trade which corroborates the hypothesis that the process is natural. In the second part we take a closer look at manufacturing productivity as an integral cause of deindustrialisation. We analyse the impact of market dynamics, concentration and firm size on manufacturing productivity, where we find evidence which supports the conclusion that a higher level of market dynamics increases productivity, while firm size and market concentration seem to decrease industry productivity.

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Croatia as a small country with GDP of 14.255 US $ per capita and 44.6 milliard Euro of gross external debt has a strong need for a development process and construction of production bases which, in the future, will be capable to generate revenue for the return of foreign debt. As a small country, with relatively low production potential, the service sector seems the only way for achieving the necessary income to servicing foreign debt, and to start new development cycle. In Croatia, tourism sector participates with approximately 3% in the structure of GDP, while revenues from tourism has been growing constantly, from 10.6% (1996) to 22% (2008) in GDP. This sector employs about 3.5 of total employees and has a significant multiplicative effect on the overall economy, where the multiplier of tourist consumption is around 2.5. According to statistics, tourism activity tends to grow faster than the total Croatian production. The high import dependence and the weak export propulsive of goods, in last decade, had a negative impact on external trade sector, furthermore, the trade deficit reached 7.3 billion Euros, while revenues from tourism amounted 6.4 billion Euros (2009). In the Mediterranean basin the most significant Croatian competitors are France, Spain and Italy, states that are also among the five most desirable destinations in the world, while Croatia with 11 million arrivals and 56.3 million overnights (2009), was ranked around 20th place. Tourism is a sector that involves a multiplicity of economic activities responding to differentiated demands with specific characteristics at the national and international levels. Identifying the main determinants of tourism demand is becoming imperative for the country whose development process depends heavily on tourist revenues. Tourism brings obvious economic benefits, with the two most important being the generation of foreign exchange and revenues as well as the creation of jobs. Therefore, it is no surprise that tourism is an important economic activity in many parts of the world, including Croatia. Given the importance of the tourism, the aim of this paper is to design the model of demand for Croatian tourist product.