Foreign direct investment dynamics in the Western Balkans: Assessing the effects of COVID-19 pandemic and the Russo-Ukrainian war

The paper aims to offer a comprehensive analysis of foreign direct investments (FDI) within the economies of the Western Balkan countries against the backdrop of the COVID-19 pandemic and the ongoing Russo-Ukrainian war. Central to this inquiry is the examination of FDI inflows into the Western Balkans amidst these extraordinary circumstances. Specifically, the study investigates the scope, positioning, and proportion of FDI inflows across individual economies within the Western Balkans in relation to the overall FDI inflows within the region, as well as changes in their dynamics caused by the crisis events. Bearing in mind the level of development and dependence on foreign capital, the economies of the Western Balkan region are intrinsically reliant on the stability and size of FDI for various economic imperatives. Consequently, these countries show increased sensitivity to fluctuations in FDI patterns, necessitating a continuous surveillance of FDI inflow trends. Remaining in an unfavorable and changing macroeconomic environment, the economies of the Western Balkans face permanent challenges that inevitably affect their FDI inflows, thus emphasizing the imperative for continuous vigilance and analysis of them.