Abstract
The phenomenon of globalization had resulted in strengthening of the international capital movement in the 1990s, which led to an intensive retraction of small and open economies into the globalization process. The foreign direct investment (FDI) has since gained its importance, especially in the area of local and regional development. Its positive impact is reflected at the local, as well as at the national level. FDI is the means of ensuring technology transfer, increasing employment, as well as improving the quality of the workforce.The aim of this article is to assess the stock of foreign direct investment and its localization in the Slovak regions at NUTS III level. From the content perspective, the article analyzes the economic development of the Slovak region by region, based on the stock of FDI, by using models from neoclassical theory of regional development for the period from 1999 to 2009. We assumed that the different regional stock of foreign direct investment would have a significant impact on the economic differentiation of the regions in the Slovak Republic. This analysis confirmed our assumption.
Highlights
The international capital movement has the same drivers as the movement of capital within the local economy or economic region
The exports are maximal and the foreign enterprise competes with other companies in the global market, which usually leads to the fact that the foreign enterprise expands production and invests in new technologies and innovations, resulting in a higher quality of goods and services (Kadeřábková, 2000)
Through an assessment of the state of foreign direct investment, on the basis of cluster analysis, it was possible to point that the Bratislava region had a strong dominance during the period of analysis
Summary
The international capital movement has the same drivers as the movement of capital within the local economy or economic region. The foreign investors consider the relationship of the current account deficit to gross domestic product of the country as an important indicator of economic stability. They seek to have either domestic (local) market or the global market share. In the former case, the exports are minimal and the foreign enterprise competes only in the domestic market It would probably end up creating a monopoly, which has known disadvantages for the economy of the host country. The exports are maximal and the foreign enterprise competes with other companies in the global market, which usually leads to the fact that the foreign enterprise expands production and invests in new technologies and innovations, resulting in a higher quality of goods and services (Kadeřábková, 2000)
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