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1 Ekonomický časopis (Journal of Economics)

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REGIONAL STRUCTURE OF FOREIGN DIRECT INVESTMENT IN SLOVAKIA – A DISTRICT-LEVEL GRAVITY-TYPE MODEL 2009 – 2016

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Dudáš T. , Grančay M.

Ekonomický časopis (Journal of Economics)

2019

tom 67

nr 8

811 – 836

The paper develops a district-level gravity-type model of foreign direct investment (FDI) stock in Slovakia using Poisson Pseudo Maximum Likelihood estimation based on the most recent investment data compiled by the National Bank of Slovakia (NBS). Population and wages as well as distance from Bratislava, access to freeway and presence of universities are shown to be statistically significant determinants of FDI stock. The statistical significance of distance from regional capital and size of the largest city could not be established, which we believe is a result of the small size of Slovakia’s districts, dense network of public transportation and a low number of cities of the size required for agglomeration economies. The estimated single-core gravity-type model is robust to different specifications of distance, use of different estimation methods and omission of outliers.