Abstract

Promotion of foreign investment is a well-established practice in many countries with an inadequate capital base, and the benefits of this type of investment, particularly in the form of positive spillover effects on the domestic economic environment, have been repeatedly confirmed by numerous studies. However, still not enough attention is paid to the definition and actual content of the word "foreign" in the phrase foreign direct investment in the domestic environment. This methodological essay attempts to fill that deficit and, using the concepts of foreign and domestic roundabout investment, to propose a categorization of capital investment which would take into account both the actual origin of the investor and the actual place of production or provision of the service, as well as the perception of the product or service as foreign or local. The resulting categorisation matrix is then populated with concrete examples from Czech practice and commented on in detail. The matrix can close the gap in the current Czech literature, which concentrates on the terms "foreign" or "domestic" more than on their very substance and their material meaning.

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 call

Disclaimer: 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.