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The EU Factor and Slovak International Integration: the Role of Foreign Direct Investment

Abstract

While the impact of EU conditionalities associated with recent EU-accession negotiations has been widely discussed, little attention has been given to the effect of post-1998 EU reforms on Slovakia's greater integration with the global economy. The convergence of Slovakia's institutions and policies with the EU's acquis communautaire has led to a dramatic increase in inflows of foreign direct investment into Slovakia in 2000/02. The available information suggests that the entry of foreign firms has been beneficial in inserting the Slovak economy firmly into the pan-European division of labor and raising the productivity of domestic firms.Europeanization; regional integration; foreign direct investment; spillovers

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This paper was published in Research Papers in Economics.

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