Small and medium enterprises: Drivers of greenfield investment in Montenegro
A necessary condition for achieving positive impact of foreign capital inflows in one country is optimally access and opening of domestic markets to international capital markets. The hypothesis is as follows: The key problems of small economies is basing economic growth on foreign direct investment...
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| Format: | Article |
| Language: | English |
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University of Pristina in Kosovska Mitrovica, Faculty of Economics
2016-01-01
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| Series: | Ekonomski Pogledi |
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| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/1450-7951/2016/1450-79511602047J.pdf |
| Summary: | A necessary condition for achieving positive impact of foreign capital inflows in one country is optimally access and opening of domestic markets to international capital markets. The hypothesis is as follows: The key problems of small economies is basing economic growth on foreign direct investment as the primary determinants of economic growth and development. It is especially dangerous in periods when their level fall, as is the case during the current global economic crisis. In these situations, small economies, such as Montenegro, are forced to borrow abroad and because they are vulnerable to external shocks quickly reach a limit fast-growing fiscal policy, and for a short time reach from small to large public debt. The paper analyzes the impact of greenfield investment of small and medium enterprises to increase production and employability. The aim is to show the importance of small and medium enterprises through greenfield investment as a key engine of economic development of Montenegro. The first part of the article refers to the importance of international capital movements and FDI, as their most important form of global trends and the impact of FDI on macroeconomic indicators of Montenegro's growth. The second part analyzes the small and medium enterprises as factors of competitiveness of the Montenegrin economy. |
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| ISSN: | 1450-7951 2334-7570 |