engleski

The role and importance of foreign portfolio investments in the Republic of Croatia

In this paper capital movement as a necessary factor of economic development and especially foreign portfolio and direct investments in Croatia will be discussed. Even this has been of prior importance for involving Croatia in the world of economic system, results are not on a satisfactory level and foreign investments didn't give the required impulse to the domestic economy. In the focus of this research will be primarily portfolio investments in Croatia and other transtional countries, for example Slovenia. A comparative analysis will be carried out by calculating volume, structure and share of foreign portfolio investments in total foreign investments in selected transitional cultures. Importance of foreign portfolio investments will also be pointed by calculating all data as percentages of GDP. In comparison to other leading transitional countries the importance of foreign portfolio investments could be much higher. Therefore an analysis will be done on the main resons for such a trend. One of the factors involved in insufficient development of Croatia's financial market and especially deficient breadth and depth of the secondary capital market. Also, the privatization process didn't meet all the expectations and it was delayed compared to other transitional countries.

economic development; foreign portfolio investments; capital market; Croatia

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