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A study by Magdolna Sass in WIIW Monthly Report – Special Issue: 30th Anniversary of the Visegrád Agreement

WIIW Monthly Report No. 2/2021 - February 2021 - 52 pages including 30 Figures - Special Issue: 30th Anniversary of the Visegrád Agreement - Wiener Institut für Internationale Wirtschaftsvergleiche /The Vienna Institute for International Economic Studies/

FDI-based models and what the future may have in store for them

by Magdolna Sass

The economic strategy of the Visegrád countries has largely been based on attracting foreign direct investment (FDI). Although it showed some vulnerability during the global financial crisis, prompting governments to place greater emphasis on domestic economic players in certain sectors, the general reliance on foreign capital was left intact – and on some measures even increased. The trend towards de-globalisation, Industry 4.0-related developments, lack of viable powerful domestic economic growth engines and the COVID-19 pandemic may herald a renaissance in FDI-based growth (in a more inward-looking EU). And that is the most likely scenario for the Visegrád countries in the near future.

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