Aleksandra Pavlović – Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovića 6, Serbia
Mladen Radišić – Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovića 6, Serbia
Andrea Ivanišević – Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovića 6, Serbia


5th International Conference – ERAZ 2019 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, Budapest – Hungary, May 23, 2019, CONFERENCE PROCEEDINGS

Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia;

ISBN 978-86-80194-20-2, ISSN 2683-5568, DOI:


Besides the well-known factors that affect entrepreneurship: economic and technological
development, culture and education, FDI should also be considered as an important factor for entrepreneurial
development of a host country. Having that in mind, the aim of this paper is to analyze how
FDI may affect the host country’s entrepreneurial activity, through a literature review. In some of the
analyzed papers foreign investors are seen as friends of the host country’s entrepreneurship thanks to
the capital inflows, know-how, managerial capacity and employment growth, but in some other papers
are seen as enemies, owing to increasing import competition and discouraging domestic entrepreneurs.
The main contribution of this paper is compressing into a single material an overview of the friendly
and unfriendly based effects of FDI on the host country’s entrepreneurship.

Key words

Foreign direct investments, entrepreneurship, employment.


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