Foreign Direct Investment in the V4: Evaluation of the Determinants Influencing FDI Inflow into Countries of the V4 - Czech Republic, Hungary, Poland, and Slovak Republic

Martin Ferenc

Student thesis: Master thesis

Abstract

The inflow of foreign direct investment (FDI) to an economy is determined by a variety of factors. Regarding the context of V4 countries – the Czech Republic, Hungary, Poland, and Slovakia, the study investigates possible impacts of determinants divided into four categories – Policy framework, Economic determinants, Business facilitation, and others, on overall FDI inflow based on prior research and findings in academia. The analysis consists of two parts – quantitative, panel data analysis and qualitative comparison of the variables across the respective economies. Based on an econometric method – panel data analysis, statistically significant variables were determined as well as their statistical impact on the dependent variable – FDI inflow. In addition, qualitative assessment of countries’ specifics complements the empirical results. Analyses performed determines factors Institutions, Political Stability and Absence of Violence/Terrorism, Higher Education and Training, Labour Market Efficiency, and Control of Corruption to be statistically significant affecting the FDI inflow. In addition, country-specific recommendations provide a discussion regarding further areas/variables to be considered e.g. Macroeconomic Environment, Paying Taxes, Innovation Capability; and serve as starting points for further investigations and research.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2021
Number of pages110
SupervisorsBersant Hobdari