Historical Legacies and Foreign Direct Investment in Bosnia and Herzegovina

• Authors: Joel Deichmann
• Languages of publication: EN

Abstracts

EN

This paper examines the origins of foreign direct investment (FDI) in Bosnia and Herzegovina (BiH) with special reference to historical legacies. BiH is a very interesting case because of its position on the frontier of Europe, a region with a rich cultural history marked by alternating periods of coexistence and violence. Because the country has spent time under the Ottoman, Austro-Hungarian, and Yugoslav flags, particular attention is paid to the role of history in impacting inflows of FDI. Five models are specified using various dependent variables to measure FDI, and all uphold the importance of historical legacies and cultural proximity. Equally interesting is the absence of significance among traditional gravity variables in this unique investment landscape. Policy implications include the need for government to assist firms in overcoming concern about instability, corruption, and a complex permitting process. As little has been published on FDI in BiH, future research suggestions are presented.

Keywords

EN

foreign direct investment; origin effects; Bosnia and Herzegovina

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2012
• Volume: 7
• Issue: 1
• Pages: 7-18

Dates

published

2012-04-01

online

2012-07-26

Contributors

author

Joel Deichmann

• Global Studies Department Bentley University

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Identifiers

DOI

10.2478/v10033-012-0001-y