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Due to the lack of their own financial resources, attracting the foreign direct investment (FDI) is the main prerequisite for transitional economies in order to increase production and employment, so that they can ensure the long term sustainable economic growth. In addition, the foreign direct investment is an important instrument for the economy restructuring, based on market principles. However, achieving this goal is not simple at all. In order to attract foreign investors, it is necessary to create a favorable business environment in transition countries, which requires a number of economic, institutional, political and other reforms. The aim of this paper is to point out the main factors attracting foreign direct investment and, by using the multi-criteria approach, to rank the Balkan’s transition economies depending on the preferences of investors taking into account certain components of the business environment.

Analysis of business environment using the multi-criteria approach: Case of Balkan's transition economies