Proceedings of the 49th International Academic Conference, Dubrovnik

DOES INWARD FOREIGN DIRECT INVESTMENT INFLUENCE MACROECONOMIC PERFORMANCE? A CASE OF SLOVAKIA

ANETA BOBENIČ HINTOŠOVÁ

Abstract:

Foreign direct investments (FDI) are generally considered as key drivers of economic development of the country. However, studies confirming significant effects of inward FDI on macroeconomic performance especially in conditions of the Central European countries are rather scare. The present paper investigates effects of different types of inward FDI, namely cross-border mergers and acquisitions and greenfield investment projects on the macroeconomic performance measured by GDP per capita in conditions of Slovakia. The results of regression analysis for the period of 2003-2018 show rather negative impact of greenfield investments allocated in Slovakia as well as cross border sales of local companies on the level of GDP per capita of the host country.

Keywords: foreign direct investment, macroeconomic performance, mergers and acquisitions, greenfield projects

DOI: 10.20472/IAC.2019.049.007

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