Abstract:

The massive inflow of foreign direct investment in newly transformed countries like the Czech Republic that started after the first economic transformations successes culminated in 1998-2002. The rise in stock of inward foreign direct investment was broken already in year 2006 and after the economic crisis never fully recovered to pre-crisis inflows. The reinvested profit stock has the still rising share in creating new FDI, it is expected the accumulated reinvested profit prevails capital inflow in 2017 or 2018. The majority of investment projects already moved into the second or third phase of FDI life-cycle, for which just the opposite net financial flows are characteristic. Rising share of dividends on total FDI profits changed the international capital flows due to repatriation to the home country. The skimming of investment profits is obvious and some countries tries to redesign and strictly regulate the biggest transition investment project mainly in infrastructure and banking sector.