FDI and Impacts of Country Risk – Factors affecting the Influx of FDI in Emerging Economies

The role of “Foreign Direct Investments” - (FDI)” is crucial for all the countries throughout the world but it is very important, specifically for the emerging Markets of Balkans and Black sea countries.tical factor of the overall economic growth for the countries of this region from the 1990s and onwards. is generally acceptable that the «foreign flows of capital» and the involving investment enterprises actions in foreign countries play today an essential and accelerative role in the industrial and economic growth of these states, which are also called as «Transition economies».for all countries of South-Eastern Europe and Black sea, it is underlined thus the vital importance of contribution of foreign investors in the area of finance, innovation and innovative action, that are crucial for the transformation of their economies into a viable and sustainable market economy. ese countries with economies in transition, it seems that the development rate has negative impacts due to a number of adverse factors derived from political and economic environment.These adverse factors are namely the state bureaucracy and political and social corruption, as phenomena of structural weaknesses of the society and economy that have as an impact a hostile environment encountering innovation and competitiveness process of any economy.