IMPACT OF THE FOREIGN DIRECT INVESTMENT INFLOW ON THE EXPORT GROWTH OF THE VISEGRAD GROUP COUNTRIES.

Abstract

The inflow of foreign direct investment (FDI) is one of the key factors leading to the economic growth and the introduction of high technologies, job creation, advanced training of the workforce. The role of FDI in international competitiveness growth of countries of the Visegrad Group (Poland, Czech Republic, Slovakia, Hungary) is evaluated in the article. Results of the empirical estimations fully confirm the positive impact of FDI inflow on exports growth of all the Visegrad Group countries. Moreover, the structure of exports of goods has changed; the share of capital-intensive engineering products has grown. At the same time, the level of innovation development of national economies is still comparatively low in the region. The share of mediumand high-tech goods in the structure of national production is below the EU average. That`s why the further growth of the international competitiveness of the Visegrad Group countries as well as the positive impact of FDI on the structure and dynamics of their international trade can only be achieved if the transition to a knowledge-based economy of the countries will be continued, which will lead to the increase in the share of high-tech industries in the national production.