Abstract:
Slovakia is still undersized economy in capital with large regional disparities in economic performance. FDI is considered one of the factors promoting its economic performance and balancing regional differences. The Žilina region is located in north-western Slovakia. Considering the amount of GDP, unemployment, employment and average wage, it belongs among the medium-performance regions in Slovakia. FDI began to increasingly flow to the Žilina region after 2004, in connection with the arrival of KIA Motors and establishing its subcontracting partners. The aim of this article is to point out the condition and development of economic performance and FDI in the Žilina region, and to demonstrate a causal relationship between FDI and the economic performance of the region. Using regression analysis, there has been confirmed the positive impact of FDI to GDP growth, the growth of the average wage and the decline in unemployment. However, a unique impact on employment growth has not been confirmed.
