FOREIGN DIRECT INVESTMENT IN SLOVAKIA AND ITS IMPACT ON THE LABOR MARKET

Foreign direct investment is considered to be the initiator and catalyst of change in industrial structures. In the short term, countries can perceive changes in industrial structure, initiated by foreign investment as a negative phenomenon leading to structural or regional unemployment. In order to evaluate the real economic consequences of these processes and the most probable changes in the industrial structure in the long term, it is necessary to analyze the effects of foreign direct investment. Investors' decisions on the allocation of production capacity to another country are influenced macroeconomic situation of the country as well as the political developments and the existing investment incentives. The paper is structured as follows: first, it is presented the development of foreign direct investment in the period 1993-2015. Then analyzes the motivations and strategies of companies investing in Slovakia. Finally, they explored the effects of FDI on the Slovak labor market.