Foreign direct investment: Explaining the regional location determinants in south-eastern European countries

Abstract

The regional development and convergence of the countries and regions of the enlarged European Union has been one of the main objectives of the European development strategy, focusing on achieving regionally balanced development levels particularly in in South-Eastern European Countries. Lagging countries and regions pursue policies to promote economic development, using a variety of means, including assistance for technology and innovation, help for restructuring industries facing difficulties, support for entrepreneurial activities and incentives to inward investment. Foreign Direct Investment (FDI) is a category of international investment involving a long-term relationship and reflecting a lasting interest in and control by a resident entity in one economy. Foreign direct investment is considered to be an important feature of economic growth. Strengthening regional attractiveness and competitiveness throughout the countries and helping them fulfill their potential will benefit the growth potential of the economies to the common benefit of the South-Eastern European region.