Attracting Foreign Investments in the Western Balkans Region and State Aid : Race to the Bottom or Necessity?

The aim of this study is to consider the current situation with the development of public policies for the state aid to countries in the Western Balkans region in the context of attracting foreign investments and identifying possible implications for regional economies from stimulus-based policies. The study provides an overview of the placement and status of the state aid to foreign investments in the countries of the region; understanding the place and significance in context of building a functioning market economy according to EU standards and emphasizing shortcomings and opportunities through such policies. This study is also trying to determine connection between the inflow of foreign investment and the impact of state aid. The study gives conclusions and recommendations for improvement in this area, which in turn are addressed to both decision makers and the general public