DETERMINANTS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIES OF REGIONS

Abstract

This paper aims to indicate the determinants of the impact of foreign direct investment on the region's economy. The benefits and negative effects of FDI influence on the region are presented. FDI distribution in geographical space is usually uneven and correlated with the regions' economic development level. FDI is generally concentrated in already well-developed regions, metropolitan areas and large cities. This situation further strengthens vital regions and leads to increased disparities between areas. It is essential to bear in mind the benefits resulting from foreign direct investment in the region and be aware of the threats it may cause.