Greenfield Investments in the Western Balkans: A Catalyst for Economic Growth and Development

Abstract

Greenfield investments are an important form of foreign direct investment (FDI) as they contribute to economic growth and development through the creation of new businesses, job creation and technology transfer. Over the last twenty years, Western Balkan countries have actively sought to attract foreign investors through various policy measures and incentives. Based on secondary data from official UNCTAD reports, this paper analyzes the characteristics and dynamics of FDI inflows to the Western Balkans and their impact on economic growth and development, with a special emphasis on new greenfield investments in the period 2015–2023. The results of the study show that the Republic of Serbia is the most attractive investment destination in the region and attracts the largest share of FDI. The Western Balkan countries can further improve their competitiveness in attracting these investments by reforming the institutional framework, improving the regulatory environment and implementing more efficient incentive measures. This analysis is particularly important for policy makers, investors and other economic actors seeking to improve the investment climate. It highlights the need for strategic reforms to maximize the impact of greenfield investments on the long-term and sustainable economic growth of the Western Balkans.