THE SIGNIFICANCE OF FOREIGN DIRECT INVESTMENT IN COUNTRIES IN TRANSITION WITH THE PROJECTION OF FDI INFLOW IN SERBIA UNTIL 2020

Foreign direct investments (FDI) are the core and essence of every economic policy of any country, both in theory and in practice. In other words, we have fresh capital which is placed through foreign direct investment on the one hand and on the other hand, we have equity owners who use the opportunity to place it with the aim to make a profit. The inflow of foreign direct investments in countries in transition is analyzed in this paper, with a special emphasis on Serbia with the projection of inflow movement by the year 2020 (the statistical method of a linear growth trend was applied); problems the countries in transition are faced with, legislative regulations, tax incentive