Customers who bought this item also bought

• PESTLE Analysis of Slovakia 2013
• Lafferty Cards and Consumer Finance in Slovakia 2009
• Construction Sector in Slovakia 2011 - Development Forecasts for 2011-2013
• A Profile Of The Central & Eastern European Paint Industry, 3rd Edition
• Transport industry in Slovakia: Business Report 2012
• Slovakia Real Estate Report Q1 2013
• Slovakian Electronics Manufacturing Markets
• Nuclear Power in Slovakia, Market Outlook to 2025, 2012 Update - Capacity, Generation, Regulations, Power Plants, Companies
• Construction Sector in the Czech Republic and Slovakia 2010: Market Analysis and Development Forecasts for 2010-2012
• The Future of Retailing in Slovakia to 2015

Foreign Direct Investment - The Ticket to Global Markets and Future Prosperity?. Edition No. 1

VDM Publishing House, July 2008, Pages: 88

When two people do the same thing, the outcome is often different. This is the main argument presented in this book that compares the effects of foreign direct investment (FDI) in Hungary and Slovakia during the 1990s and early 2000s. The book shows that FDI cannot fully benefit the host economy unless three conditions are met by the investors: (1) the initial static comparative advantage is overcome, (2) a shift towards more complex and sophisticated production occurs, and (3) subsidiary networks are established. Whether these three conditions will be met depends, in turn, on the institutional framework and macroeconomic policies of the host country. Arbitrary and non-transparent macroeconomic policies provide incentives for entrepreneurs and foreign investors to pursue short-term goals of quickly maximizing their own profits (Slovakia). Conversely, sound institutions and clear rules for all market players provide secure environment for long-term investment strategies and for overall development (Hungary). The book can help the students of political economy of transition economies and to policymakers designing reforms aiming at opening the economy to foreign investments.

Renata Kralikova.
As student activist, Ms. Kralikova was directly involved in education reforms during the transition from communism to democracy in her native Slovakia. At the Central European University she studied the political economy of transitions in post-communist countries, specifically focusing on the impact of foreign investment on post-communist economy.