FDI by Economic Activities and Investment Incentives in Bulgaria and Serbia

Since 2007, when Bulgaria became a full member of the EU and 2012, when Serbia was granted the status of candidate for EU membership, these countries have become very attractive investment destinations. The object of this research is the movements of FDI in the mentioned countries in 2013 and their structure by economic activities. The scientific problem is related to the positive effects of FDI on the host country, making an attractive investment environment, creating incentives for foreign investors and comparing the structure of FDI in Bulgaria and Serbia with simultaneous comparison with the European average. It may be noted that this is a current theoretical and empirical research that deals with modern state of the subject. The necessary quantitative data have been collected using the desk method and using the secondary data source and the method of description as well as the comparative method were used in the ensuing analysis. The aim of the study is to, by applying the above methods, determine the most attractive investment areas, analyze the current investment incentives and provide recommendations on adjustments to be made to improve the actual investment strategies and create attractive investment locations in Bulgaria and Serbia.