FDI’s Impact on Transitional Countries, Serbia as a Rational Choice: The FIAT-ZASTAVA Case

Trifunović, Dejan; Ristić, Bojan; Ivković, Marko; Tanasković, Svetozar; Italiano, Leo; Tattoni, Stefania

doi:10.1007/s11300-009-0064-3

Cited by 4 publications

(4 citation statements)

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“…Table 1 presents income statement part related to income tax of this subsidiary, based on the Business Registers Agency of the RS (www.apr.gov.rs) data. Despite substantial tax incentives granted to studied subsidiary, it should be noted that the RS was not the only Balkan investment option for this MNC (Trifunović et al, 2009). As a result, Estrin & Uvalić (2016) argue that such incentives were necessary to motivate this investor to invest in the RS, indicating that the investment without incentives was not the most profitable option for foreign investor.…”

Section: Power Of Multinational Companies In the Republic Of Serbiamentioning

confidence: 97%

The Relation Between Multinational Companies and the Republic of Serbia: Income Taxation Context

Vržina

Janković

2019

FU Econ Org

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Host countries, especially developing countries, often grant tax incentives in order to attract foreign capital of multinational companies (MNCs), expecting positive effects of foreign direct investments on their economic development. Also, there is an opinion dominant in the literature that MNCs have enough power to achieve considerable tax incentives in negotiations with host country. Considering that one MNC was granted considerable tax incentives from the Republic of Serbia (RS), the paper examines whether subsidiaries of MNCs have more favorable tax treatment of recorded income than domestic companies in the RS. Statistical analysis outcomes show that subsidiaries of MNCs do not have significantly lower income tax burden than domestic companies suggesting that tax incentives granted to MNCs from the RS are an exception rather than a rule. In addition, research showed that subsidiaries of MNCs primarily use tax incentives that are equally available to domestic companies, such as tax incentives for investment in fixed assets. Research results are robust to changes of income tax burden measures.

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Section: Power Of Multinational Companies In the Republic Of Serbiamentioning

confidence: 97%

The Relation Between Multinational Companies and the Republic of Serbia: Income Taxation Context

Vržina

Janković

2019

FU Econ Org

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“…Firstly, the inflows of foreign direct investment in this particular case have mostly been placed the tertiary sector of (banking, insurance, telecommunications and retail trade) and privatization of state-owned enterprises (Popov 2004(Popov , 2010. Secondly, there has been increase in number of number of export-oriented projects by foreign investors (most notable example is the investment of new plant by Fiat, SpA while shifting its production from Italy) (Trifunović et al 2009) that have advanced domestic direct exports. Thirdly, unemployment is still lagging as in most of analyzed cases; nonetheless, increased investment and capital allocation will eventually reduce unemployment and improve the productivity structure of the labor market (Djankov and Hoekman 2000;Haskel et al 2007).…”

Section: Fig 4 Gdp Versus Fdi On Croatia and Macedoniamentioning

confidence: 98%

Cobb–Douglas production function on FDI in Southeast Europe

Apostolov

2016

Economic Structures

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“…Interventionism in industrial policy had already started in the period of populist macroeconomic policy, but there were no results until a car manufacturing deal with FIAT took place, based on massive subsidies (Trifunović et al, 2009). That increased car exports and reduced the balance of payments deficit to -5%.…”

Section: Macroeconomic Stabilitymentioning

confidence: 99%

Transition and post-conflict macroeconomic policies in Serbia

Labus

2020

EKON ANAL

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This paper evaluates the economic performance of the three distinct policy regimes that have been adopted in Serbia since the onset of transition in 2000. The conflict period from 1991 to 1999 determined the starting point of transition and its subsequent realisation. This pre-transition shock was more severe than the shock imposed by the Great Recession in 2008. Besides these shocks, the legacy of conflict, and unresolved privatisation issues, macroeconomic policies also substantially influenced the performance of the Serbian economy. Three distinct policies were implemented between 2000 and 2018 with clearly different approaches: neoliberal, populist, and interventionist. This paper evaluates these policies using quarterly data on 20 macroeconomic indicators classified in 5 groups: macroeconomic stability and domestic, foreign, financial, and labour markets. Regarding the achievements of the three macroeconomic policies, the neoliberal policy is usually blamed for all the deficiencies in the economy in the period between 2000Q1 and 2006Q2. To the contrary, our data indicates that this policy performed the best. The populist policy in the next period from 2006Q3 to 2012Q2 performed the worst. Finally, the interventionist policy, starting in 2012Q3 and evaluated up to 2018Q4, has been inferior to the neoliberal policy but superior to the populist policy. The analysis suggests that apart from macroeconomic policies the starting point of transition matters for a successful economic transition.

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FDI’s Impact on Transitional Countries, Serbia as a Rational Choice: The FIAT-ZASTAVA Case

Abstract: Mullins model of FDI, Serbian macroeconomic performances, Global competitiveness index, The announcement-timing puzzle, F21, P20,

Cited by 4 publications

References 5 publications

The Relation Between Multinational Companies and the Republic of Serbia: Income Taxation Context

The Relation Between Multinational Companies and the Republic of Serbia: Income Taxation Context

Cobb–Douglas production function on FDI in Southeast Europe

Transition and post-conflict macroeconomic policies in Serbia

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