IMPACT OF FOREIGN DIRECT INVESTMENTS ON EMPLOYMENT IN THE REPUBLIC OF CROATIA

Abstract

Globalization has enabled "joining" the rest of the modernity project. Expressive values such as knowledge, information, symbols and communication have become an imperative. Planetary power has encouraged the movement of free international capital in the global village. Digital economy and networked politics are responsible for the freedom of movement of capital that has become the part of financial globalization. From the range of stimulating factors to the free movement of international capital, the thrust of foreign investment plays an important role. The intricacy of neoclassical theory and the neoliberal political economy have enabled stronger interconnectedness and deeper integration of national economies. Consequently, there have been changes in the way of thinking of the ruling elites in terms of importance of foreign direct investment (FDI). Such awareness has also come through to the ruling elites of the Republic of Croatia who apply the strategy of attracting FDI based on pragmatic nationalism. FDIs are incorporated into the "national box" in the Republic of Croatia as one of the tools to gain advantages. In the perspective of advantages and disadvantages, the work is focused on the employment category from the perspective of the Republic of Croatia as the recipient of FDI or political foreign direct investment (PFDI). Given the importance of attracting FDI in the Republic of Croatia, the subject of the research includes consideration of the essence of Croatian FDI and employment in the Republic of Croatia in terms of identifying the attracted investments and the correlation with the growth or decline in employment. The aim of the research is to identify and deepen the topic of FDI in Croatia and its impact on employment in the Republic of Croatia. In addition, the aim is to explore and identify key FDI providers and employment impacts.