FOREIGN DIRECT INVESTMENTS AS WELL AS SIGNIFICANT FACTOR IN THE ECONOMIC DEVELOPMENT

Investments are crucial for economic growth. In the contemporary environment of intensive international financial connections and with the expansion of transnational companies a substantial part of investments are made by foreign companies. Beneficial factors for foreign direct investments are natural resources, the geographical position, specifics of the labour force, technology level and other specific for certain countries conditions. The intensive globalization process in the last decades contributes for an easier movement of capital by cutting restrictions. Object of the research are investigating the nature of FDI in Serbia and Bulgaria and their role for economic growth and the effects they have local economies.