engleski

FDI flows in economic crisis

The FDI flows had an upward trend since the beginning of 1980s. Since then many countries opened up their capital accounts which seeded up the flows of FDI. Also, global trade flows increased also, keeping up with the FDI flows. However, first serious warning came with the Asian crisis in the late 1990s. The FDI flows, along with the trade flows, were disrupted as one of the consequences of the crisis. The next major flow disruption came at the beginning of 2000s, however, recovery was swift. However, the major structural disruption seen on an unprecedented scale came with the crisis that started in 2007/2008. Peculiarity of this crisis that not only did the flows dramatically fall, but it seems that direction of flow was significantly changed as well, which was not characteristic of previously mentioned events. Once safe havens for capital in the EU or the US, changed its course towards Asia and to lesser extent Africa. This structural change in the FDI flows may be a braking point in future FDI flows even after the end of current crisis. This paper analyses and gives insight in possible future developments in this area not from historical date but from current and possible future shift in the FDI flows.

FDI ; Croatia ; economic crisis

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