DETERMINANTS OF THE FOREIGN DIRECT INVESTMENTS IN THE SLOVAK AND THE CZECH REPUBLIC

The aim of this paper is to analyze the relationship between the allocation of Foreign Direct Investment (FDI) in Slovak Republic and Czech Republic and chosen macroeconomic indicators. The aim of the paper is not to analyze the relationship between the Slovak and the Czech Republic; we will only compare the development trends of chosen economic indicators and their effect on FDI. We will further analyse whether there is a relationship between the level of FDI inflows into the countries and the work force supply or the average monthly wage in the countries or the density of roads on km(2) country area or the number of persons graduated from secondary vocational schools and universities. We will use year time series from 2002 till 2007. For financial indicators comparison, we will recount all this indicators on Euro. For the Slovak Republic we use the exchange rate of 30,126 SKK for Euro and for Czech Republic we use the exchange rate 26,465 CZK for Euro (Exchange rate of the Czech national bank as of 31st of December 2007). Correlation analysis will be used for this analysis.