FOREIGN DIRECT INVESTMENTS IN AGRICULTURE

Foreign direct investments (FDIs) should have a significant positive influence on economic growth, export and competitiveness of host countries. Although agriculture is of fundamental importance for sustainable development and poverty reduction, FDIs in agriculture are modest, because they suffer from more risks than FDIs in other fields due to the impacts of water, climate and weakness of infrastructure, land and human resources. National policies are key for attracting FDIs, and increasing benefits from them. Because most of the FDIs in Serbia were market-seeking, privatization and services related FDIs, they had limited impact on agricultural production and export. To enhance its international competitiveness and export of agricultural products Serbia should attract more FDIs in agricultural greenfield and export oriented projects.