Aneta Bobenič Hintošová

Department of Management, University of Economics in Bratislava

Slovak Republic

aneta.bobenic-hintosova@euke.sk

Determinants of foreign direct investment inflows: A case of the Visegrad countries

Michaela Bruothová

Department of Economics, University of Economics in Bratislava

Slovak Republic

michaela.bruothova@euke.sk

Zuzana Kubíková

Department of Management, University of Economics in Bratislava

Slovak Republic

zuzana.kubikova@student.euke.sk

Rastislav Ručinský

Department of Corporate Financial Management, University of Economics in Bratislava

Slovak Republic

rastislav.rucinsky@euke.sk

Abstract. This study identifies the determinants of foreign direct investment inflows into Visegrad countries using the country level data from the year 1989 to the year 2016. Based on correlation and regression analyses (OLS and fixed-effect model), we have identified the level of gross wages and the share of educated labour force as the most significant determinants with positive effect on FDI inflows. On the other hand, corporate income tax rate, trade openness and expenditures on research and development have been detected as the determinants with negative impact on FDI. Our study has not brought any evidence on inflation rate, unemployment rate, GDP per capita and the innovation output, as the sum of patents and trademarks, influencing FDI inflows in the case of Visegrad countries.

Received: November, 2017

1st Revision: January, 2018

Accepted: April, 2018

DOI: 10.14254/2071-8330.2018/11-2/15

JEL Classification: F21, M16, P33

Keywords: foreign direct investment, inflows, location advantage, determinants, Visegrad countries