Abstract
This paper investigates the effect of selected business environment indicators on FDI inflows in case of Visegrad countries for the period of 2005-2015. Based on correlation and regression analysis, it is concluded that the business environment matters significantly for FDI inflows, however the direction and strength of dependence differs according to analysed factors. On one hand we found that the better global competitiveness of the country the higher volume of inward FDI the country receives. On the other hand, economically more free country, which is more globalized, with better rating does not attract more FDI inflows, but rather the opposite. As expected, corruption of country is discouraging foreign investors from investing in Visegrad countries.
Highlights
Foreign direct investments are widely discussed topic from different points of view
The impact of globalization on economic conditions and growth of countries is examined in a number of studies, where the globalization is measured with Globalization Index published by KOF Swiss Economic Institute (e.g. Chang and Lee, 2011; Elmawazini et al 2013, Elsherif, 2016; Gurgul and Lach, 2014)
The aim of the paper is to identify, whether the quality of business environment is associated with more FDI inflows, and to test, how the key indicators influence the volume of FDI inflows
Summary
Foreign direct investments (hereinafter „FDI“) are widely discussed topic from different points of view. Countries at a similar level of economic development, attracting more FDI are considered more competitive. Important role in this respect is attributed to a quality of business environment of a particular country. The effect of globalization on economic growth of former communist countries, such as Hungary, the Czech Republic, Poland, and Slovakia, was found positive and statistically significant in study by Chang and Lee (2011). One of very few was a study by Yang, Lu, and Jiang (2016), who studied the speed of FDI and their effects on firm performance They found relationship between FDI and performance, which varied with the different level of globalization of industrial environment, in which the firms operated
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
