engleski

The Impact of EU Accession on the Perception of Political Risk in Croatia

Croatia represents a country that is faced with typical transition problems – economic instability, high rates of unemployment, low international competitiveness of companies, bad structure of exports and high potential inflation. To add to the aforementioned, high perception of present inherent corruption, relatively weak purchasing power of consumers, slow growth of market potential, quality of bureaucracy and perception of high political instability in the (Balkan) region mould the complete picture of Croatia as country for investment opportunities. However, most of the indicators steadily improved over the last years making the country a bit more desirable in terms of attracting foreign direct investments. One of the indicators that did not improve a lot is political risk which is still rated quite high by many specialized agencies. Even higher degrees of political risk are evident in some of its neighboring countries, which deters potential investors. Authors of the paper analyze what could be the potential influence of Croatian EU accession on the perceived level of political risk and what additional benefits could stem out of it.

political risk, emerging markets, FDI, Croatia, EU

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