Foreign Direct Investment vs. Development of Social Rental Housing

Abstract:

The article is focused on examining the relationship, possible impact and correlation between Foreign Direct Investment (FDI) with is possible impact and the Social Housing development in Slovak Republic. Since foreign multinational and transnational enterprises have a large direct and indirect effect through FDI on individual companies´ performance, it is often assumed that they automatically contribute to the economic growth of the host country and thus indirectly to the social housing development as well.  The trend of housing development including social housing has significantly changed over the past twenty years not only in Slovak Republic but in the Central and Eastern European (CEE) countries in general. This trend was heavily influenced by the change of real estate ownership, liberalization and privatisation linked to the economic and social transformation during the post-communist development while forming into a market economy. Social housing demand is a prerequisite for labor mobility, and the opportunity for employment in the labor market.