Investigating the impact of foreign direct investment and export on the economic growth of the Republic of Serbia

Abstract

Given that foreign direct investment and exports are one of the primary drivers of global economic integration, numerous authors have studied them. According to the findings of numerous empirical research, foreign direct investment and exports have a positive impact on economic growth. However, little research sheds light on this relationship in the Republic of Serbia. Therefore, the objective of this paper is precisely to analyze the relationship between foreign direct investments and exports on the economic growth in Serbia. We use multiple linear regression to examine the relationship between economic growth, foreign direct investment, and exports from 2001 to 2020. According to the results, both foreign direct investments and exports positively impact economic growth in Serbia. The study's findings can be used to design and improve numerous strategies and policies for Serbia's future economic growth and development.

Exporting decision of agricultural firms: The role of foreign direct investment

“…Namely, export effects appear to be strongly positive in developing countries (Ahmad et al, 2018;Asirvatham et al, 2017;Mijiyawa, 2017;Sahoo & Dash, 2022). The existing macro-level studies focusing on Serbia are in line with these findings, indicating a significant positive correlation between foreign direct investment and exports of moderate intensity (Kastratović, 2016;Obradović et al, 2021). In contrast, the effects are mainly insignificant in developed countries (Acaravci & Ozturk, 2012;Popovici, 2018).…”

Application of the matrix method in economic modeling

“…The number of sectors should be such that it enables the quantification of the essential interdependencies in the economy that we want to look at. Therefore, the purpose of the table is to determine the number of sectors (Obradović, Dmitrović, & Mitić, 2021).…”