THE PRIORITY DIRECTIONS OF NATIONAL ECONOMY DEVELOPMENT
DYNAMIC INTERACTION OF INTERNATIONAL TRADE AND CAPITAL FLOWS – THEORETIC AND EMPRICAL ANALYSIS
Vesna Petrović, Ivan Mirović
Abstract: International trade and foreign direct investments are considered to be important catalysts of economic growth in developing countries. In the literature dealing with the topic of the impact of international trade and capital flows on economic growth and development there is no unique conclusions, and consequently on the role of economic and institutional prerequisites for promoting international trade and investment. The analysis in this paper is based on the consideration of the mutual interaction of international trade and FDIs, and the question whether the function of the impact on economic growth is achieved together in a way that these two factors jointly enhance growth, i.e., are they complementary and what is their interdependence, or are they mutually exclusive and, therefore, represent substitutes.
Keywords: international complements, substitutes
Published: p. 47-56
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