Influence of the corruption on the FDI level; case of Serbia.

In this text we will show a connection between the level of corruption and the level of the FDI entering an economy. We are focusing the institutional efficiency and institutions as regulating organisms. After presenting the theoretic approach, we will to approach our theoretic conclusions on the case study of Serbia. Principal results of the study are deeper understanding of the process by which the corruption transmits its effects thru the economy, in this case, on the FDI.