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The paper provides analysis of foreign direct investment (FDI) dynamics and its determinants for the group of countries lately referred to as Western Balkans (non-EU ex-Yugoslavia countries plus Albania). Due to vulnerable external positions and enhanced funding requirements related to the EU accession and catching-up, FDI is often highly welcomed by government officials in the South East European (SEE) countries. The notion that FDI is frequently accompanied by knowledge and know-how transferdoi:10.2298/eka1087007b fatcat:hbdtb25p7fhfdfhfiiloxrta3m