THE INFLUENCE OF FOREIGN DIRECT INVESTMENTS ON MONTENEGRO PAYMENT BALANCE
Journal Title: UTMS Journal of Economics - Year 2013, Vol 4, Issue 3
Abstract
In this work, with help of econometric analysis we will answer the question to which extent up to date foreign direct investments influenced Montenegro current account. Regression analysis brings to conclusion that if foreign direct investments should increase for 1%, current account deficit will increase for 0.00024% after the first quarter and 0.000227% after the second quarter. More significant effects from the direct foreign investments on Montenegrin payment balance could be seen in some period in future, if it would concentrate on new "more quality" foreign direct investments that would be export oriented. Knowing that foreign direct investments were the main source of funding current account deficit in the previous period, and that absorption possibilities for the inflow of foreign direct investments still exist, it should be continued with attracting the same mentioned, because it can help in the change of production and export structure, because with current level of domestic savings and outside debt it is unimaginable.
Authors and Affiliations
Ana Gardasevic
Keywords
Related Articles
- EP ID EP273997
- DOI -
- Views 110
- Downloads 0
ENTREPRENEURSHIP DEVELOPMENT IN SERBIA: THE CHANCE FOR A WAY OUT OF ECONOMIC CRISIS
Neoliberal concept of serbian economic policy generated extremely poor results in all domains of economic and social trends, starting from low competitiveness on a world scale, high foreign indebtedness, deindustrializat...
THE PERFORMANCE OF MINIMUM VARIANCE PORTFOLIOS IN THE CROATIAN TOURISM SECTOR
Croatian economy is largely dependent on tourism, the direct contribution of travel and tourism to GDP is 10.7%, while total contribution amounts 24.7%, tourism has great impact on employment also. Since tourism is one o...
BUSINESS EXCELLENCE AS A CRUCIAL COMPONENT FOR ORGANIZATION COMPETITIVENESS
Background: Business excellence represents one of the most valuable management means of achieving competitive advantage of organizations. Modern and global market demands new organizational approaches for the long-term i...
BASIC DIRECTIONS OF TECHNOLOGY DEVELOPMENT IN TERM OF GLOBALIZATION: REVIEW OF MACEDONIA
There are many types of econometric models used in predicting the inflation rate, but in this study we used a the paper explores the possibilities of technology development in terms of globalization. In the beginning the...
PARAMETRIC YIELD CURVE MODELING IN AN ILLIQUID AND UNDEVELOPED FINANCIAL MARKET
This paper examines the possibility of applying two most popular parametric yield curve models (NelsonSiegel and Svensson) in the Croatian financial market. In such an illiquid and undeveloped financial market yield curv...