Abstract

This article focuses on the development and impact of foreign direct investment (hereinafter referred to as “FDI“) in the V4 countries and in particular Slovakia, with a primary focus on the automotive and electronics industries. A detailed analysis is carried out in the Žilina Region, where the positive impact of FDI on the economic growth of the region and its stability is documented through regression analysis. In the following part, the influence of both foreign and domestic investment on transport serviceability and transport infrastructure development is analysed on the basis of the example of the Region of South Bohemia.

Highlights

  • The OECD defines foreign direct investment (FDI) as a category of investment that reflects the continuous interest of an enterprise in an enterprise residing in a different economy from that of the direct investor

  • The negative covariance coefficient value indicates the inverse proportionality between the variables. This means that the rate of unemployment in the Žilina Region decreases with the growing volume of FDI

  • The result can be considered to be positive because an increase in foreign direct investment results in a decrease in the rate of unemployment by 3.39%

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Summary

Introduction

The OECD defines foreign direct investment (FDI) as a category of investment that reflects the continuous interest of an enterprise (direct investor) in an enterprise (direct investment enterprise) residing in a different economy from that of the direct investor. The ownership of 10% or more of the voting rights of the enterprise residing in a different country from that of the direct investor is considered as proof of such a relationship. There can be many reasons for investing abroad These reasons include the search for new business opportunities oriented towards customersspecific needs, efforts to acquire new natural and human resources at a price which would be lower than in the domestic economy, and the search for new market opportunities for products. What it comes down is the desire for a growth in production efficiency and an increase in yields [1]. Identifying the determinants of the inflow of foreign direct investments depends on the specific conditions of a country or region

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