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The role of foreign direct investment in the economy of Slovakia

Author

Listed:
  • Judita Táncošová

    (Bratislava University of Economics and Management, 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.

Suggested Citation

  • Judita Táncošová, 2019. "The role of foreign direct investment in the economy of Slovakia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 2127-2135, June.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:4:p:2127-2135
    DOI: 10.9770/jesi.2019.6.4(40)
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    References listed on IDEAS

    as
    1. Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521677530, October.
    2. Michal Fabuš & Marek Csabay, 2018. "State aid and investment: case of Slovakia," Post-Print hal-02342826, HAL.
    3. Caves,Richard E., 2007. "Multinational Enterprise and Economic Analysis," Cambridge Books, Cambridge University Press, number 9780521860130, October.
    4. Michal Fabuš & Marek Csabay, 2018. "State aid and investment: case of Slovakia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(2), pages 480-488, December.
    5. Katarína Stachová & Zdenko Stacho, 2017. "Level of Focus of Organizations Operating in Slovakia on Flexible Organizational Structure," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 245-250.
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    More about this item

    Keywords

    Foreign Direct Investment; portfolio investment; economic growth; GDP; unemployment; regional development;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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