Impact of FDI Income Outflows for Czech Economy

The objective of this paper is to analyse the outflow of primary income from the Czech Republic in comparison with the inflow of foreign direct investment and to show the causes ofthis phenomenon and the need for active economic policy in the area of primary income outflows. We look at the impact of pension outflows in the form of dividends on our economy as well as on the external balance from the perspective of the current account of the balance of payments. Attention is also paid to comparing pension outflows with inflows from domestic FDI abroad. The intention is also to test the hypothesis of a relationship between economic growth and FDI inflows and to test the validity of the investment life cycle hypothesis. Data are available for the period 1993-2022, published by the Czech National Bank, and only the period 1998-2021 will be included in the analysis. The long period under study is justified in an attempt to capture the impact of significant milestones that occurred during this period on the behaviour of foreign investors.