Foreign investors' fear of expropriation led to the emergence of the idea of new ways of protection and adequate treatment of foreign investments on the international level. Primarily, the home ...countries wanted to protect their interests and became the main proponents of the creation of bilateral investment agreements. Developing countries that aspire to become and remain part of international economic flows, had to provide additional protection to investors, as investment host countries. They saw bilateral investment agreements as an opportunity to attract foreign direct investment. They provide a certain standard in the treatment and protection of investments and thus influence the creation of an environment that favors the transfer of capital from one country to another. In modern economic conditions, there are almost no entities that are absolutely risk-averse. For this reason, bilateral investment agreements are counted on to play one of the key roles in minimizing the risks of investing in developing countries.
Serbia has been following a policy of subsidizing foreign direct investments since 2006 and it pays great attention to this type of investment capital in the field of development of our economy. ...Whether this can be considered as justified is a question to which this paper aims to provide an answer. Do the positive aspects of foreign direct investment necessarily come to the leading position in the country importing capital? The analysis of the positive effects of foreign direct investments on the economy of the host country shows that the multiple benefits of such attracted capital certainly exist, but that their manifestation is not unconditional and will depend on numerous factors. Due to the fact that the subsidy policy is current, the criteria for granting state incentives defined by the current regulation should be set so as to contribute to the manifestation of positive effects of foreign direct investments on the Serbian economy. However, their analysis shows that this is not the case. In addition, the impact that foreign direct investment has had on the Serbian economy indicates that the subsidy policy has not given the expected results. Having this in mind, the impact that the treatment of foreign direct investments in domestic legislation has on the economic development of the Republic of Serbia cannot be assessed as satisfactory.
Financial derivatives are, in the last forty years, the most important financial innovation that influence the creation of new, very deep and broad financial markets. Their number is constantly ...increasing. There is a creation of new variants of existing derivative contracts and therefore the subjects have the opportunity to differently manage risk. Although their controversial legal nature, generally accepted view is that they were contracts. Swap is the youngest of all financial derivatives and represents a financial innovation of a later date. Market swaps recorded one of the fastest growth rate among global financial markets. Swap represents a private agreement between the two parties regarding exchange cash flow of the fixed time in the future in accordance with a predetermined pattern. The most common users of swaps are non-financial corporations, which want to receive variable, and to pay a fixed interest rate in order to limit interest expenses on bank loans or bond issues with variable interest rate, as well as banks, the governments of some supranational institutions such as the World Bank. In economic theory emphasized is the view that the comparative advantage is the basis for swaps functioning. Options are contracts in which one party has the exclusive right, while the other contracting party assumes only the obligation to buy or sell assets to which the option is created. In the nationa legislation the option contract is transferable standardized contract binding the buyer has the right to, including the payment obligation of the agreed premium on the day or days of maturity specified in the contract.
Intellectual property is directly connected with competition law. On the other side, it should be noted that innovation as a part of intellectual property rights make significant element of ...companies’ activities if they want to be competitive at the market. This is the reason why it is possible to say that competition law belongs to rules of economic relationships. Law is important for companies in sense to promote economic efficiency. The competitiveness is the ability of a region to export more in value added terms than it imports. That definition is very important for companies and for investors at the same time. Due to that, governments have to pay attention on all possible so-called discounts, including an artificially low currency, suppressed wages in export sectors, artificially low taxes on traded sector firms and direct subsidies to exports. Governments, but the legislators also should control barriers and obstacles, in order to improve measurements to eliminate them. It could be very important sign for investor. Finally, intellectual property rights will show their significance through the companies’ competition policy. The whole Europe develops research and development area, focusing on major competitors. Due to that task participants are interested especially in the share of private investment in a field of research.
The negotiation act between Serbia and the European Union began on the basis of Article 49 of the EU Contract. The act and development of negotiations will be led by Serbia’s progress in the ...accession preparation, especially within the frame of economic and social convergence. The progress will be measured especially in meeting the Copenhagen criteria, as well as the requirements defined by the Stabilization and Association Agreement. Also, the accession implies accepting the institutional framework of the Union, known as acquis. Acquis special importance for Serbia as a candidate country have regarding economic issues and its jurisdiction. In this sense, it is of great importance to have an overview of facts presented in the paper, which relate to certain economic categories, primarily the movement of Gross domestic product and rate of (un)employment, as well as the steps that Serbia took on their way to the Union.
Intellectual property is directly connected with the competition law. On the other hand, it should be noted that innovation as a part of intellectual property rights makes a significant element of ...companies’ activities if they want to be competitive in the market. This is the reason why it is possible to say that competition law belongs to rules of economic relationships. Law is important for companies in the sense of promoting economic efficiency. The competitiveness is the ability of a region to export more in value added terms than it imports. That definition is very important for companies and for investors at the same time. Due to that, governments have to pay attention to all possible so-called discounts, including an artificially low currency, suppressed wages in export sectors, artificially low taxes on traded sector firms and direct subsidies to exports. Governments, but also the legislators should control barriers and obstacles, in order to improve measurements to eliminate them. It could be a very important sign for the investor. Finally, intellectual property rights will show their significance through the companies’ competition policy. The whole Europe develops research and development area, focusing on major competitors. Due to that task, participants are interested especially in the share of private investment in the field of research.
Many municipalities and cities face certain problems in attracting local and foreign investors and one of them is ineffective local administration, as well as the lack of transparency of rules and ...procedures start-ups and enterprises, branches and the like. Many local governments are not even aware of what is causing the problem and the lack of investment and investor preferences for other municipalities and cities. To be able to clearly state the causes of the problem, a program of certification of cities and municipalities has been initiated in many countries, including Serbia. This program involves evaluating the quality of services of municipalities and cities in terms of those elements that are particularly relevant to existing and potential investors. On the basis of the data on the level of quality of certain elements, one can realize what the local government of a city or municipality must change in order to be a convenient area for investment, and that would provide a friendly environment for potential investors. In addition, the program ends with a certification in case the municipality or city meets the minimum requirements in each of the elements of assessment. Since the evaluation of the conditions represents the basis for gaining the certificate confirming that the city or municipality is a favorable environment for investors, a very important issue is to determine the significance of the elements, and appropriate criteria, bearing in mind that not all elements are equally important from the perspective of investors. The aim of this paper is to establish a link between the level of fulfillment of the criteria in the process of certification of cities and municipalities and the ability to attract investors, and the acceleration of investment activity at the local level. The paper presents the current way of conducting the procedure of certification of cities and municipalities, and based on the results of the correlation analysis and DEA (Data Envelopment Analysis) method an insufficient influence on the fulfillment of these criteria to attract and activate investments at the local level was found.
Many municipalities and cities face certain problems in attracting local and foreign investors and one of them is ineffective local administration, as well as the lack of transparency of rules and ...procedures start-ups and enterprises, branches and the like. Many local governments are not even aware of what is causing the problem and the lack of investment and investor preferences for other municipalities and cities. To be able to clearly state the causes of the problem, a program of certification of cities and municipalities has been initiated in many countries, including Serbia. This program involves evaluating the quality of services of municipalities and cities in terms of those elements that are particularly relevant to existing and potential investors. On the basis of the data on the level of quality of certain elements, one can realize what the local government of a city or municipality must change in order to be a convenient area for investment, and that would provide a friendly environment for potential investors. In addition, the program ends with a certification in case the municipality or city meets the minimum requirements in each of the elements of assessment. Since the evaluation of the conditions represents the basis for gaining the certificate confirming that the city or municipality is a favorable environment for investors, a very important issue is to determine the significance of the elements, and appropriate criteria, bearing in mind that not all elements are equally important from the perspective of investors. The aim of this paper is to establish a link between the level of fulfillment of the criteria in the process of certification of cities and municipalities and the ability to attract investors, and the acceleration of investment activity at the local level. The paper presents the current way of conducting the procedure of certification of cities and municipalities, and based on the results of the correlation analysis and DEA (Data Envelopment Analysis) method an insufficient influence on the fulfillment of these criteria to attract and activate investments at the local level was found..
The authors present the issues and challenges related to the changes in status of a company and its impact on competitiveness. Status changes of companies, mostly mergers and acquisitions of ...companies, are one of the ways in which capital owners and management direct economic activities with the aim of maximizing profits. In order to make the right and justified decision, in terms of achieving the economic interests of the company, it is essential to know the laws and regulations in this area. This paper should provide answers on various questions which will be presented to decision makers in every company, considering status changes. Bearing in mind that the question of status changes often associated with an international element, the authors will pay special attention on the EU legislation and current legal framework in the Republic of Serbia.
The aim of this paper is to emphasize the importance of university educated workers in improving innovativeness of large companies in Serbia. Specifically, Serbia, as a country that has belatedly ...embarked on a process of economic transition, has lost its large companies. Large companies create over 65 % of gross domestic product in modern market economies. The backbone of the growth of large enterprises is made of innovation in respect of products, processes, organization, and marketing. The paper is based on the data obtained from a sample of 188 large companies in Serbia that implemented any innovative activity in 2012. Based on this data, we constructed a regression model in which the determinant of innovativeness was the percentage share of university educated employees, while the control variable was the data on the age of installed equipment. The constructed model was fully applicable to 56 % of large companies in the sample, and such a high coefficient of determination clearly shows that a high share of university educated employees fosters innovativeness, and thus growth and development of large companies in Serbia.
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