The OECD FDI Qualities Review of Croatia uses the OECD Policy Framework for Investment (PFI) and the OECD FDI Qualities Policy Toolkit and Indicators to provide policy recommendations on how to strengthen the sustainable development impact of foreign direct investment (FDI) in Croatia. The Review provides an assessment of how FDI contributes to productivity and innovation, job quality and skills development, decarbonisation and regional development, and examines the institutional and policy framework for investment promotion and facilitation at national and subnational levels. It also outlines Croatia’s investment incentives regime and provides recommendations for a more transparent and effective design and implementation of investment tax incentives. The findings and recommendations of this FDI Qualities Review aim to support the Government of the Republic of Croatia to develop a Strategic Framework for the Promotion and Facilitation of Private Investment, including a National Plan on Investment Promotion, a related Action Plan, and an amendment to the Investment Promotion Act. The reform is part of Croatia's National Recovery and Resilience Plan and is supported by the European Commission (EC).
The Review was prepared in close collaboration with the Ministry of Economy and Sustainable Development of the Republic of Croatia, in consultation with an inter-ministerial taskforce created for the Review. The report has also benefited from consultations with OECD Investment Committee Delegates, representatives from international organisations, the private sector, civil society and academia, whose experiences on Croatia’s business environment further enriched the Review.
The Review was prepared by Stratos Kamenis, Fares Al Hussami, Katharina Böhm and Katharina Längle from the OECD Investment Division, under the overall guidance of Martin Wermelinger, Head of Investment Qualities and Incentives Unit. The authors are also grateful to Stjepan Srhoj from the University of Split and Taufeeq Khan Marcos from the OECD Investment Division for their contribution to the analytical work undertaken for this project. Lucinda Pearson prepared the report for publication and Angèle N’Zinga provided administrative assistance. The report benefitted from comments and inputs from the following OECD colleagues: Ana Novik, Stephen Thomsen, Alexandre de Crombrugghe, Monika Sztajerowska, Sarah Dayan, Joachim Pohl, and Martin Wermelinger from the Investment Division; Tim Bulman and Timo Leidecker from the Economics Department; Supriya Trivedi and Paul Davidson from the Directorate for Public Governance; and Luisa Dressler and Alessandra Celani from the Centre for Tax Policy and Administration. Comments from Croatian ministries, implementing agencies and subnational governments were received with the assistance of the Internationalisation Directorate in the Ministry of Economy and Sustainable Development. This report was approved for publication by the OECD Investment Committee on 6 November 2023.
The action was funded by the European Union via the Technical Support Instrument, and implemented by the OECD, in co-operation with the Directorate-General for Structural Reform Support of the European Commission.