Croatia in the European Union: A Study on Foreign Direct Investment, Unemployment, and Infrastructure

Boland, Mary Grace (2014) Croatia in the European Union: A Study on Foreign Direct Investment, Unemployment, and Infrastructure. Undergraduate thesis, under the direction of Michael Harvey from Business Administration , University of Mississippi.

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Abstract

This study aims to determine the possible economic success or failure of Croatia in the European Union based on three economic indicators: foreign direct investment (FDI), unemployment, and infrastructure. It also seeks to compare other economic indicators such as GDP growth and inflation of Croatia to the other 27 member-states of the European Union. The goal of this paper is not to predict the future of Croatia, but to discover areas of potential reform and to support existing research on determinants of economic success in the EU. The three chapters that focus on FDI, unemployment, and infrastructure explore the respective sector in transition economies and specific issues regarding that sector in Croatia. The following chapters compare Croatia to other EU member states and provide managerial implications for global business. In general, FDI, unemployment, and infrastructure prove to be factors in Croatia’s future in the EU, while FDI and unemployment are found to be obstacles that need to be overcome before Croatia can make great strides in the EU market, while infrastructure results in more positive findings. In addition, Croatia is found to be the most similar to countries with the lowest GDP in the EU. This study concludes that an immediate entrance into the EU will not automatically improve the economy of Croatia.

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