The “EU Factor” and Slovak International Integration: the Role of Foreign Direct Investment

While the impact of EU "conditionalities" associated with recent EU-accession negotiations has been widely discussed, little attention has been given to the effect of post-1998 EU reforms on Slovakia's greater integration with the global economy. The convergence of Slovakia's institutions and policies with the EU's acquis communautaire has led to a dramatic increase in inflows of foreign direct investment into Slovakia in 2000/02. The available information suggests that the entry of foreign firms has been beneficial in inserting the Slovak economy firmly into the pan-European division of labor and raising the productivity of domestic firms.