DETERMINANTS OF THE FDI INFLOW INTO THE VISEGRAD COUNTRIES

• Authors: Darmo Ľubomír , Novák Marcel , Kálovec Marek , Rybošová Petra
• Languages of publication: EN

Abstracts

EN

The FDI inflow represents an important part of the Visegrad economies. These countries have experienced a high rate of foreign direct investment since the 1990s. However, the flow of investment is different among these countries with a diverse peak of inflow into individual economies. Slovakia, Czech Republic, Hungary and Poland reformed their political and economic systems and were considered as transition economies. Just like other transition economies, the economic, social and political system of the Visegrad Group countries has some peculiarities. The inflow of foreign direct investment is determined by many factors that might influence the inflow of foreign direct investment positively, but also in a negative way. The paper identifies specific determinants of the inflow of foreign direct investment into the Visegrad Group countries. It assesses their impact on the investment inflow. We apply panel regression with the use of standardized variables. Based on the results, we may consider as determinants influencing the FDI inflow into the V4 countries the size of the economy, or its potential, labour productivity, corporate tax, wages, unit labour cost, inflation, education of workforce, openness of the economy, road and railway density, i.e., the quality or development of infrastructure, level of corruption in particular countries and membership of the Economic and Monetary Union.

Keywords

EN

FDI INFLOW; GDP; LABOUR PRODUCTIVITY; OPENNESS OF ECONOMY; VISEGRAD GROUP

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2020
• Volume: 68
• Issue: 10
• Pages: 1057 – 1080

Contributors

author

Darmo Ľubomír

• University of Economics in Bratislava, Faculty of National Economy, Dolnozemská cesta 1, 852 35 Bratislava 5, Slovak Republic

author

Novák Marcel

author

Kálovec Marek

author

Rybošová Petra

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2020.10.05