FOREIGN DIRECT INVESTMENTS AS A FORM OF FINANCING GLOBAL ECONOMY

Summary: Foreign direct investments are a very significant form of financing global economy. In comparison with other forms of the global capital movement, foreign direct investments are the most broadly present sources of financing of the national economies of developing countries and countries in transition. The analysis presented in this work, made at the level of the global world economy, shows that these investments are the ones that have financed all of the three sectors of the world economy, but their highest presence is to be found in the sector of services where the financial services have been especially and significantly financed from this source of capital inflow. The analysis was also conducted for Serbia showing that the financial sector, especially banking, was financed to a high extent by foreign direct investments, which have resulted in a substantial growth of the number of banks in foreign ownership on the banking market of Serbia and a predominant role of the foreign banks in the banking sector of Serbia.