Impact of foreign direct investment on unemployment development in selected regions of Slovak Republic

Economic Annals-ХХI: Volume 155, Issue 11-12, Pages: 63-66

Citation information:
Fabus, M. (2015). Impact of foreign direct investment on unemployment development in selected regions of Slovak Republic. Economic Annals-XXI, 155(11-12), 63-66. https://ea21journal.world/index.php/ea-v155-14/

Michal Fabus
PhD (Economics),
Assistant Professor,
Deputy Head of Department of Economics and Finance,
School of Economics and Management in Public Administration in Bratislava
16 Furdekova Str., Bratislava, 851 04, Slovak Republic
michal.fabus@vsemvs.sk

Impact of foreign direct investment on unemployment development in selected regions of Slovak Republic

Abstract. Foreign direct investment (FDI) was an important factor which ensured to Slovakia greater competitiveness, as it has introduced new technologies, created jobs, brought know-how as well as managerial and entrepreneurial culture. The paper presents an empirical analysis of an impact of foreign direct investment on selected regions between 1998 and 2013. The analysis was first conducted as a correlation analysis, examining an impact of the FDI inflow on unemployment development in selected regions of the Slovak Republic (Bratislava, Zilina, Presov and Kosice). Subsequently, interdependencies between the aforementioned variables were examined by means of a regression analysis. As a result, the indirect dependence between the examined variables has been confirmed. Moderate indirect dependence was recorded in the region of Bratislava, and a significant one in the regions of Trencin and Presov.

Keywords: Foreign Direct Investment; Economic Growth; Employment; Correlation Analysis; Slovakia; Regional Development

JEL Classification: E22; F21; F43

References

1. Bevan, A., & Estrin, S. (2000, October). The Determinants of Foreign Direct Investment in Transition Economies. Centre for New and Emerging Markets, London Business School 2001.
   Retrieved from http://deepblue.lib.umich.edu/bitstream/handle/2027.42/39726/wp342.pdf?sequence=3
2. Bevan, A., Estrin, S., & Meyer, K. (2004, February). Foreign investment location and institutional development in transition economies. International Busi­ness Review, 13(1), 43-64.
   Retrieved from http://www.sciencedirect.com/science/article/pii/S0969593103001082
3. Brakman, S., & Garretsen, H. (2008). Foreign direct investment and the multinational enterprise. Association for evolutionary economics.
   Retrieved from http://mitpress.mit.edu/sites/default/files/titles/content/9780262026451_sch_0001.pdf
4. Dudas, T. (2004, March). Stav politickeho prostredia ako faktor investicnej atraktivnosti v statoch strednej a vychodnej Europy. Journal of Intenational Relations, 2(2), 68-74.
   Retrieved from http://econpapers.repec.org/-article/brvjournl/v_3a2_3ay_3a2004_3ai_3a2_3ap_3a68-74.htm (in Slovak)
5. Dudas, T. (2010). Priame zahranicne investicie v slovenskej ekonomike. Bratislava: Vydavatelstvo EKONOM (in Slovak).
6. Ferencikova, S., & Dudas, T. (2005, April). Vplyv prilevu priamych zahranicnych investicii na hospodarsky rast v novych clenskych statoch Europskej unie zo strednej a vychodnej Europy. Journal of Economics, 53(3), 261-272.
   Retrieved from http://www.sav.sk/index.php?lang=sk&charset=&doc=journal-list&part=list_articles&journal_issue_no=1175 (in Slovak)
7. Fabus, M. (2014). Foreign direct investment and its impact on the Slovak Republic’s economy. Economic Annals-XXI, 9-10(1), 42-45.
   Retrieved from https://ea21journal.world/index.php/ea-v144-10/
8. Fabus, M. (2011, March). Priame zahranicne investicie a ich vplyv pocas hospodarskej krizy. Economics and Business, 1, 147-154.
   Retrieved from http://www.pauenrouni.com/sk/pevs/casopisy/vedecky-casopis-fep/ (in Slovak)
9. Fabus, M. (2012, March). Vyuzitie korelacnej analyzy pri skumaniza vislosti prilevu PZI a hospodarskeho rastu na urovniregionov Slovenska. Economics and Business, 2, 23-30.
   Retrieved from http://www.pauenrouni.com/sk/pevs/casopisy/… (in Slovak)
10. Fabus, M., & Prno, I. (2014). Investicie a inovacie v podnikani. Vysoka skola ekonomie a manazmentu verejnej spravy (in Slovak).
11. Dunning, J. H. (1979, November). Explaining changing patterns of international production: in defence of the eclectic theory. Oxford Bulletin of Economics and Statistics, 41(4), 269-295.
    doi: https://doi.org/10.1111/j.1468-0084.1979.mp41004003.x
12. Dunning, J. H. (2001, March). The Eclectic (OLI) Paradigm of International Production: Past, Present and Future. International Journal of the Economics of Business, 8(2), 173-190.
    doi: https://doi.org/10.1080/13571510110051441
13. Tancosova, J., & Svecova, S. (2012, March). Investment Attractiveness in the SR and the Effect on Foreign Investors. Elektronicky zbornik vedeckych stati a posterov (pp. 1484-1488). Gyongyos: Karoly Robert Foiskola (in Slovak).
14. Tancosova, J. (2013). Foreign direct investments and their influence on the economic development of Slovakia. Economic Annals-XXI, 3-4(1), 31-34.
    Retrieved from https://ea21journal.world/index.php/ea-v127-09/
15. Tancosova, J. (2014). Investment attractiveness of Slovak republic and its determinants. Economic Annals-XXI, 3-4(1), 8-11.
    Retrieved from https://ea21journal.world/index.php/ea-v139-02/
16. Tancosova, J., & Cornejova Aradyova, A. (2007, September). Kvalita podnikatelskeho prostredia ako determinant investicnej atraktivnosti ekonomik na prikladestatov V4. Economy and Management, III(3), 59-70.
    Retrieved from https://www.vsemvs.sk/en-us/vedaav%C3%BDskum/vedeck%C3%BD%C4%8Dasopis/2007.aspx (in Slovak)
17. Belanova, K. (2014, January). Kvalita podnikatelskeho prostredia v krajinach Vysehradskejstvorky a osobitnym akcentom na dostupnost financnych zdrojov. Biatec.
    Retrieved from http://www.nbs.sk/_img/Documents/_PUBLIK_NBS_FSR/Biatec/Rok2014/01-2014/03_biatec14-1_belanova.pdf (in Slovak)
18. Hindls, R. et al. (2007). Statistics for Economists. Praha: Professional Pubishing (in Czech).
19. Gozora, V. et al. (2013). Regionalne disparity v malom a strednom podnikani. Riesenie regionalnych disparit. Bratislava: Vydavatelstvo Merkury (in Slovak).
20. Urbancova, H., & Hudakova, M. (2015). Employee development in small and medium enterprises in the light of demographic evolution. Acta universitatis agriclturae et silviculturae Mendeleianae Brunensis.
21. Ministry of Finance of the Slovak Republic (2015). Statistical Data.
    Retrieved from www.finance.gov.sk (in Slovak)
22. Statistical Office of Slovak Republic (2015). Statistical Data.
    Retrieved from http://portal.statistics.sk
23. World Bank Group (2015). Statistical Data.
    Retrieved from www.worldbank.org
24. United Nations Conference on Trade and Development (2015). Statistical Data.
    Retrieved from http://unctad.org/

Received 22.10.2015