Does the Economy Size Affect FDI ? – Evidence from Western Balkan Countries (2005-2014)
This study treats the relationship of economy size of Western Balkan countries with Foreign direct investment (FDI) for ten years’ period. Through knowing the FDI importance in economic development is measured the impact of economy size of Western Balkan countries in attracting foreign direct investments. Data to realize this study were taken from World Bank, in yearly frequence for 2005 to 2014 period. After using Pearson Correlation technique for empirical analysis which is realized with SPSS v. 21.0, statistical program. Results showed that there is a positive relationship that is not statistically important. From this result is clearly shown that factors for foreign direct investment attracting is not economy size, but FDI attraction is influenced more from specific policies of places and trade liberalization.
