IMPACT OF SECURITY INTEGRATIONS ON FOREIGN DIRECT INVESTMENT

Abstract

It is known that investment of capital requires safety and before making a decision any potential investor wishes to have a clear idea about safety of his investment; it is one of essential and determining facts for investment. Foreign direct investments take a very important position in the development strategy of Southeast Europe countries, and also in the development strategy of Bosnia and Herzegovina. After a decade of conflicts, stagnation and collapse of economy, these countries need economic increase which will make possible to catch up with the most progressive transition countries, as well as a quicker economic integration into contemporary global flows. Central and East European countries present direct competitors for Bosnia and Herzegovina in attracting the foreign capital, and thus the knowledge and keeping up with their previous experience are very important for establishing the right investment frame within domestic conditions. All-inclusive knowledge of accession and membership of the transition countries in contemporary system of the global security, first of all in NATO Partnership Programs and full membership in this organization, provides better understanding of influence that process has to influx of foreign direct investments in Bosnia and Herzegovina.