Affiliation:
1. Tomas Bata University in Zlín
Abstract
Abstract
This study aimed to investigate the potential relationship between inward foreign direct investment (FDI) as a percentage of GDP and several selected variables, including the inflation rate, GDP growth rate, exchange rate, corruption perception index, trade as a percentage of GDP, and corporate income tax rate in the Czech Republic from 1995 to 2018. Using correlation analysis and regression analysis with SPSS, we determined that inbound FDI as a percentage of GDP does not have a significant link with the rate of corporate income tax, trade as a percentage of GDP, inflation rate, or GDP growth rate. However, the study revealed a moderate yet significant relationship between inward FDI and the exchange rate and the corruption perception index. As a result, the study concluded that inward foreign direct investment in the Czech Republic is closely linked to the institutional quality of the host country, as evidenced by the observed relationship between inward FDI as a percentage of GDP and the corruption perception index.
Publisher
Research Square Platform LLC
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