REGIONAL COOPERATION AND ECONOMIC INTEGRATION

CEFTA-2006 TRADE COOPERATION
2. FDI inflows to CEFTA 2006 countries
The analysis of FDI inflows and outflows in CEFTA 2006 countries includes data before the
ratification of CEFTA 2006 Agreement in parliaments and full implementation at the end of
2007. Total amount of FDI in the region has increased in the last ten years approximately
8.7 times. In 2007 it amounted to 12.3 billion of current US dollars (Table 4).
Table 4: Foreign direct investment, net inflows (billion of current U.S. dollars)
Country 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Albania 0.05 0.05 0.04 0.14 0.21 0.14 0.18 0.34 0.26 0.33 0.48
Bosnia and
Herzegovina
0.00 0.07 0.18 0.15 0.12 0.27 0.38 0.71 0.61 0.72 2.11
Croatia 0.53 0.93 1.46 1.08 1.34 1.13 2.05 1.08 1.79 3.43 4.92
Macedonia,
FYR
0.02 0.13 0.03 0.17 0.44 0.08 0.10 0.16 0.10 0.35 0.32
Moldova 0.08 0.08 0.04 0.13 0.05 0.08 0.07 0.09 0.19 0.25 0.49
Montenegro 0.62 0.88
Serbia 0.74 0.11 0.11 0.03 0.17 0.14 1.36 0.97 1.61 4.50 3.11
CEFTA 2006 1.42 1.36 1.86 1.70 2.33 1.83 4.14 3.34 4.56 10.20 12.30
Bulgaria 0.50 0.54 0.82 1.00 0.81 0.90 2.10 2.66 4.31 7.51 8.97
Romania 1.22 2.03 1.04 1.04 1.16 1.14 1.84 6.52 6.48 11.39 9.49
Source: The World Bank
If the GDPs of CEFTA 2006 countries were added up together, the CEFTA 2006 GDP
would amounted to around 234.5 billion of current international dollars (2007). This means
that the average FDI share in the total CEFTA 2006 GDP is 5.25 percent, while the value
of FDI in each country ranges from 1.82 in Macedonia (the lowest) to 13.85 percent in
Montenegro (the highest). For comparison, the total EU-27 GDP based on purchasing
power parity (PPP) for 2007 amounted to 14762.11 billion of current international dollars,
whereas the total FDI (net inflows) in 2007 amounted to 1095.77 billion of current US
dollars. Thus, the share of FDI in the total EU GDP is 7.42 percent. If we extract twelve
newcomers 1 to the EU as the unique group, we will get the GDP of approximately 1719.6
billion of current US dollars. In the same year, the FDI inflows to 12 new EU countries
were around 102.91 billion of dollars or 5.98 percent of the GDP. That matches up the share
of CEFTA 2006 FDI inflows in its GDP.
As already mentioned before, total FDI inflow into the CEFTA 2006 countries in 2007 was
12.3 billion of current US dollars. Croatia had the largest share of total FDI inflow (39.96
percent or 4.92 billion of current US dollars), while Macedonia had the smallest share (2.6
percent or 0.32 billion) (Figure 3).
1 In 2004 ten countries entered EU: Estonia, Latvia, Lithuania, Poland, Czech Republic, Slovakia, Hungary,
Slovenia, Malta and Cyprus, whereas additional two countries became EU members in 2007: Bulgaria and Romania.
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