SARIO as a Subject to the Foreign Economic Policy of SR
SARIO as a Subject to the Foreign Economic Policy of SR

Author(s): Tomáš Taraba
Subject(s): Politics, Economic policy, International relations/trade
Published by: Research Center of the Slovak Foreign Policy Association (RC SFPA)
Keywords: Slovakia; SARIO; economic policy; foreign economic policy;
Summary/Abstract: The importance of the foreign economic policy of state grows with the importance assigned to the direct foreign investments (DFI) within it. Decreasing of the capital under-dimension within transforming economies significantly is realized mainly through the influx of the DFI, which is why the primary aim of the foreign economic policy of market economies is based on creation of an environment which is in favor of the investments and support of influx of the DFI to the economy. A country which does not assign sufficient importance to such investments usually does not have an outstanding foreign economic policy. An undeniably positive correlation between the influx of the DFI and a growth of production of gross domestic fixed capital as a precondition for stable and sustainable economic growth contributed to the situation when also the countries remarkable for their relation to the DFI as well as to the isolation tendencies in the 1990s left the given path. Together with Bulgaria and Romania, Slovakia is definitely one of them. A membership of the country in the World Trade Organization, in the Organization for Economic Cooperation and Development, NATO and, primarily, in the European Union is the most basic precondition for competitiveness of Slovakia in the “struggle” for the DFI with neighboring countries. A cost structure of the production, level of wages, the infrastructure equipment, the qualification level of inhabitants, sufficient offer of completed industrial parks, an administratively flexible policy of providing the investors with individual state assistance and pro-investment macro-economic environment of the country belong to the main objective criteria positively affecting localization decisions of the investors about investments in the country and they can also be considered to be important determinants of execution of a successful pro investment policy.

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