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In this paper, the authoress shows that during past two decades foreign direct investments (FDI) became significant form of capital investment in the world, and that relative importance of state investments and bank untied loans to states declines. She points out the fact that nowadays the EU is the biggest provider and receiver of FDI, because capital mobility has been strongly enlarged by formation of economic integration of 15 – countries members. In the period 1997 to 1999, the EU invested 386 milliard FDI yearly on anaverage, the inflow was USD 227 milliard, so the yearly FDI balance amounted to USD 159 milliard. A special attention has been paid to Central and Eastern European countries especially analyzing FDI inflows into them. She comes upon large differences in amounts which have been accepted by particular regions so far, what indicates the fact that foreign investors had, to a large extent, their preferences toward countries with more stable political circumstances and to those with economically flexible economic systems coordinated with the EU regulations.
Croatian Economic Association