A causal relationship between foreign direct investment, economic growth and export for Slovakia

The aim of this paper is to analyse the relation between foreign direct investment, economic growth and export in Slovakia. Estimation of effects on economic growth was performed for Slovakia in the period 2001-2010. The co-integration method and vector error correction model were applied on quarterly data. The results confirm the existence of long-term causal links between variables studied in Slovakia. We reveal a positive impact of foreign direct investment and positive impact of export on gross domestic product. On the basis of the research method and by means of available time series, the generally accepted opinion about the foreign direct investment positive effect on economic growth of a country was proved. (C) 2014 The Authors. Published by Elsevier B. V.