The Foreign Direct Investments Entrance and its Impact into Countries in Transition (Case of Bosnia and Herzegovina)

FDIs are very often the most glorified way of high and rapid economic development into transitional countries. Bosnia and Herzegovina has to catch up the significant higher level of real economic convergence before its entrance into European Union membership. So, in that way Bosnia and Herzegovina will be able to meet with a foreign competition on a huge common market of EU. The neoclassical concept of economic growth (famous as ''Washington Consensus'') which has been applying into Bosnia and Herzegovina emphasizes the FDIs entrance as the main actuator of B&H economic development. That concept supposes that FDIs entrance and comparative advantages could bring the optimal economic growth and development for all countries in the conditions of foreign trade and capital movement’s liberalization, monetary stability (without inflation and with stable exchange rate) and fiscal stability (balance of budget). The subject of this paper is the analysis of theoretical vindication of such macroeconomic policy and real role of FDIs in economic development concerning existing economic and political situation in Bosnia and Herzegovina and historical experiences of today developed economies.