FDI Impact on Trade in the Visegrad Group Countries
Leon Olszewski , Paweł Dobrzański
AbstractThe Visegrad Group countries (V4) made a relatively rapid transition to the market economy by introducing the package of reforms proposed by the International Monetary Fund (IMF) and the World Bank (WB). Poland applied a shock therapy, while Hungary, the Czech Republic and Slovakia went through a milder structural policy changes. As a result of 25 years of changes, the V4 countries have transformed the structure of its economy. Integration with the European Union created an institutional impulse for further system changes. The necessity of implementation of the European law, so-called aqui communautaire, forced V4 countries for timely initiation of the necessary reforms in political, economic and social areas. The main aim of this article is to present importance of FDI inflows to transitional economies. This paper provides an overview of macro-economic and structural changes in Visegrad group countries. Many studies emphasized a significant effect of FDI on host economy: the impact on growth and trade, productivity of firms, spillover effects, export behavior of domestic firms, improvement of the structure of host economy. For that reason the paper examines the relationship between foreign direct investments and trade in V4 countries. The paper gives a general review of FDI impact in V4 countries emphasizing positive correlation between FDI inflow and trade. Moreover, the hypothesis about positive impact of FDI inflow on high-tech export has been confirmed. The results of the research may be used by developing countries and V4 policymakers in aim to set up favorable conditions for further high-tech growth and FDI inflow. The article is based on critical review of the main literature of the subject and international instructions reports and analysis. The statistical data is sourced from the national and main international statistics
|Publication size in sheets||0.5|
|Book||International Scientific Conference EMAN 2017. Economics and Management: Globalization Challenges. Conference Proceedings, 2017, Association of Economists and Managers of the Balkans, ISBN 978-86-80194-06-6, 1140 p.|
|Keywords in English||FDI, international trade, transitional economies|
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