Developments of FDI for Slovakia and Hungary
Developments of FDI for Slovakia and Hungary

Summary/Abstract: International buying and selling plays a key role in the development ofthe world economy and countries. There are several ways to boost a country’s economy,such as by the inflow of capital from abroad. In addition to increasing efficiency andcompetitiveness, it brings knowledge, competences and technologies that have notbeen present in the host country earlier, and they can add novel elements to the localeconomy, allowing them to move upwards in their development trajectory. At the timeof privatization, foreign investment was a key type of capital investment, as it played arole in issues referring to the structure of the market and in the development of a marketeconomy. As in many other economies, in the Slovak and Hungarian economies thatwere undergoing regime change, foreign investment has been significantly contributingto effective economic change. Through foreign capital investment, both countries haveembarked on the path of economic development and continued to reap the benefitsof incoming capital sources to this day. The aim of this study is to learn about thetheoretical background of the impact of FDI on countries. In addition, the paper aimsto compare the international perception of the economic situation of Slovakia andHungary and to examine how FDI inflow has changed in the recent period in bothcountries. Our research is based on secondary data obtained from the UnctadSTATdatabase and from the Fraser Institute comparison, plotting and analysing the obtaineddata through graphs. The analysis of data from a ten-year interval revealed somesurprising findings in the case of both countries, but the complexity of the studied arealeaves room for further questions to be answered.

• Details
• Contents