Received:
2018-12-10 | Accepted:
2019-04-15 | Published:
2019-06-30
Title
The role of foreign direct investment in the economy of Slovakia
Abstract
In the paper, we point out the role of FDI in the Slovak economy, analyze their status in the period from 2010 to 2015, suggest their regional and branch aspect. FDI is an effective form of international business that complements lack of internal resources and contributes to economic growth. As competition of FDI is very strong, it is important to create appropriate economic, political and legislative conditions that the economy is capable of creating for foreign investors. The state of FDI in the Slovak economy has been gradually increasing since 2010, but its large sectoral and regional imbalances appear to be unfavorable. The impact of FDI on GDP development indicates that each FDI unit contributes to economic growth, respectively GDP growth; it affects employment and contributes to the solution of unemployment. The problems of FDI in the Slovak economy are one-sided positioning in the automotive industry and at the same time their location in the developed regions, i.e. in the area of Western Slovakia.
Keywords
Foreign Direct Investment, portfolio investment, economic growth, GDP, unemployment, regional development
JEL classifications
E22
, F21
, F43
URI
http://jssidoi.org/jesi/article/343
DOI
Pages
2127-2135
Funding
The paper is the output of a scientific project IGA 3/2017 of a scientific project IGA no. 3/2017 "Development of international business and international management in the conditions of globalization" (Funder: VSEMvs IGA VSEMvs, i.e. School of Economics and Management in Public Administration)
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
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