Business Environment and Foreign Direct Investments in Visegrad Countries
Business Environment and Foreign Direct Investments in Visegrad Countries

Author(s): Aneta Bobenič Hintošová, Zuzana Kubíková
Subject(s): Supranational / Global Economy, Economic policy, International relations/trade, Economic development, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: Business environment; foreign direct investments; ease of doing business; global competitiveness; economic freedom;
Summary/Abstract: This paper investigates the effect of selected business environment indicators on FDI inflows in case of Visegrad countries for the period of 2005-2014. Based on correlation and regression analysis, it is concluded that the business environment matters significantly for FDI inflows, however the direction and strength of dependence differs according to analysed factors. On one hand we found that the better global competitiveness of the country the higher volume of inward FDI the country receives. On the other hand, economically more free country; with better rating and easier conditions for doing business does not attract more FDI inflows, but rather the opposite. In case of Visegrad countries, the availability of free working forces (higher unemployment rate) is more likely, what leads to higher FDI inflows.

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