IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN THE ZILINA REGION.

Research background: Foreign direct investment (FDI) is usually considered as a factor that can positively influence the economy growth, but not just directly through accumulation of the capital, job opportunities, and increase of export, but also through technological improvement. Purpose of the article: Many studies have focused on the verification of the relationship of FDI and economic growth, therefore, this article is also aimed at the verification of the impact of FDI on the economic growth of a selected region of the Slovak Republic - Zilina Region - measured by the value of the gross domestic product (GDP) created in this region, labour productivity and unemployment. Methods: The analysis uses data gathered from the Statistical Office of the Slovak Republic and the National Bank of Slovakia through the years 2008-2019. The verification of the impact of FDI on economic growth is provided by correlation and regression analysis using the independent variable represented by foreign direct investment that came into the Zilina Region and the dependent variable represented by the value of the gross domestic product (expressing economic growth) of the Zilina region, the labour productivity per employed person (reflecting the efficiency of selected resource consumption) and the unemployment rate. Findings & Value Added: The results of the analysis confirm that FDI have a strong influence on economic growth as well as other indicators in this region; therefore, it is necessary to prepare policies that can enhance the arrival of other foreign investors into this region. [ABSTRACT FROM AUTHOR]