REGIONAL DETERMINANTS OF FOREIGN DIRECT INVESTMENTS IN CROATIA

The aim of this paper is to identify the factors that infuence the unequal distribution of FDI inflows and that foreign investors identify as significant in making investment decisions regarding Croatian regions. Panel data analysis was applied: static (random effects) and dynamic analysis. The results show that positive and significant influences on FDI have: education, infrastructure, the manufacturing industry, dum-my variables for areas of special state concern and capital city region, while negative statistically significant influences are: unemployment and dummy variable for border regions with the EU. The basic conclusion is that FDI inflows follow the development path of the Croatian regions (with the highlighted agglomeration effect) and that efforts in creating preconditions for economic growth will, at the same time, have an impact on attractiveness of a particular region for foreign investments.