Serbian Development Path of FDIs: Navigating Between the EU and China

Zakić, Katarina (2024) Serbian Development Path of FDIs: Navigating Between the EU and China. In: The 4rd “Dialogues on China” International Academic Conference: Harvesting the winds of change: China and the global actors. Institute of International Politics and Economics, Belgrade, pp. 421-458. ISBN 978-86-7067-339-7

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Abstract

Foreign direct investments have been a crucial element of Serbian economic development since 2001. Various domestic governments had positive attitudes towards attracting FDI, which resulted in legal changes and favourable business conditions to encourage the inflow of investment. As a result, Serbia has become a leading destination for FDI in the Western Balkan region in recent years. While EU countries were previously the largest investors in Serbia, China has recently surpassed them. The main objective of the research was to analyse the results, trends, perspectives, and risks associated with FDI from both the EU and China in Serbia. Statistical data was primarily sourced from the National Bank of Serbia, supplemented by the UNCTAD database. The origins of FDI are shifting, and the long-term implications of this trend remain uncertain. EU investments are more diversified than Chinese investments, reflecting the differences in their respective investment histories. While the impact of FDI from the EU and China has been positive, there are associated risks, including labour rights, environmental pollution, sector-specific investments, and repatriation of profits. However, political risks related to Serbia’s foreign partnerships have recently affected the results of FDI inflows and changed the trajectory of Serbian economic development.

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