Influence of FDI on the economy of the Czech Republic

Abstract

In the last decade, the Czech Republic has been one of the primary recipients of foreign direct investments (FDI) among central and eastern European countries. These FDI have been central to the development of the domestic economy and have had a significant influence on macroeconomic aggregates. This is a paper focused on the influence of the FDI and the economy of Czech Republic. The relationship between the FDI and its determinants: inflation, unemployment, balance of payment, and the rate of GDP growth are calculated using the regression model. It helped the readers to understand the current economic situation and economic development in Czech Republic.