CONTEMPORARY APPROACHES IN THE ANALYSIS OF ECONOMIC PERFORMANCES
THE EFFECTS OF FOREIGN DIRECT INVESTMENT ON SOCIAL DIMENSION OF SUSTAINABLE DEVELOPMENT
Marko Janaćković, Marija Petrović Ranđelović, Snežana Radukić
Abstract: The social effects of foreign direct investment on the host country can be analyzed from two viewpoints. The first viewpoint is their impact on the labor market in the host country. The second viewpoint is the impact on a more equitable distribution of income and a reduction in poverty in the host country. A significant issue for those who do not pay much attention in the past is determining the impact of foreign direct investment on inequality in the distribution of income. The assumption is that an increase in the inflow of foreign direct incident in developing countries leads to a reduction in inequality of income. Within the framework of the social dimension of sustainable development, the concept of poverty reduction is based on dynamic economic growth and development, with an emphasis on job creation and the development of programs, measures and activities targeting the poorest and particularly vulnerable categories. The aim of the paper is to research the impact of foreign direct investment on the social dimension of sustainable development, as well as to describe the commitment of foreign investor to the realization of the goals of sustainable development on the example of Titan Cementara Kosjeric.
Keywords: foreign direct investment (FDI), sustainable development, employment, poverty, economic inequality
Published: p. 263-274
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