Impact of FDI in Economic Value Added: Empirical Study in Terms of Renewable Natural Resources Mining within Wood-processing Industry

Abstract

The traditional methods used in the past to assess the benefits of foreign direct investments (FDI) are no longer applicable. The presented study deals with the issue of increasing the potential of the renewable natural resources mining industries and increasing its efficiency and competitiveness through the specific methodology of industries performance measurement and diagnostic of the effects of FDI. The objective of the research was to analyse FDI in Slovakia and other countries of the Visegrad Four, identify significant measurable effects of the FDI impact on the development of the wood, paper and furniture sector in Slovakia as well as quantify the economic performance of given industries based on the EVA model. Appropriate mathematical and statistical methods were used in the research of interdependencies between quantitative variables. In two-dimensional inductive statistics, we applied correlation and linear regression analysis and analysis of variance (ANOVA). The results of the research should support investment decision-making in business and industry investment strategy to aim for the economic development of the renewable natural resources mining industries. Simultaneously, we offer a new methodology for evaluating the potential and economic performance of other Slovak mining industries, other post-communist European countries, and potential investors worldwide.