Changes in the Structure, Quality and Economic Impact of FDI in the Western Balkans

Client/Funding Institution

The World Bank

Abstract

This project assesses whether the structure and quality of FDI in the Western Balkans have evolved over time, focusing on capital intensity, sectoral composition, functional specialisation and the skill content of FDI-related employment. It also examines the role and performance of foreign-owned firms in the region and how these have changed over time, with particular attention to whether there is evidence of upgrading relative to domestic firms. The analysis covers the six Western Balkan economies – Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia – over the period 2010–2025, subject to data availability. It combines project-level FDI data, firm-level financial statement data and official macro-level FDI statistics.

Duration

March 2026 - June 2026

wiiw team Leader

Branimir Jovanović

wiiw Staff

Virág Bittó, Beata Borosak, Alexandra Bykova, Chiara Castelli, Corinna Covi, Doris Hanzl-Weiss

Countries covered: Western Balkans

Research Areas: International Trade, Competitiveness and FDI

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