AD ALTA
JOURNAL OF INTERDISCIPLINARY RESEARCH
528 > 0.05 which further indicates that it is statistically non-
significant relationship, meaning there was no statistically significant
relationship between the FDI inflow and the unemployment rate
between 2003 and 2017, with a change in FDI inflows likely to result
in a change in the unemployment rate. We can assume that this was
mainly due to the fact that other economic factors are also affecting
the development of unemployment and FDI is only one of them.
Table 1 Result of correlation analysis between FDI and
unemployment rate 2003 - 2017
Source: Authors’ results
We examined the quality of variables - FDI and the change in the
rate of unemployment in Slovakia through regression analysis and /
or regression analysis. using the linear regression method, the time
series being 2003 to 2017. Figure 2 shows the result of the regression
analysis in which a very slightly decreasing trend line with the
equation can be observed: unemployment rate = 13.758 – 0.00007 *
FDI (ie unemployment rate of 13.758%, while FDI of EUR 1 million
causes only a slight reduction of unemployment by 0.00007). Also,
the view of data point distribution (data points are scattered unevenly
around the regression line) indicates that the relationship between the
variables being examined is very weak. In addition, the
determination coefficient r2 = 0.0313 (ie 3.13%) reaches a very low
value, which means that the test value of this test is very low (this
model explains only 3.13% of the relationship between the variables
examined).
Figure 2 The relationship between FDI inflow and
unemployment in Slovakia in 2003-2017
Source: Authors’ results
An important positive effect of foreign direct investment is the
economic growth expressed by the growth of gross domestic
product, where GDP represents the value of goods and services
expressed in monetary terms over a period of time in the territory
of the state. This indicator is also used as an indicator for
measuring the performance of the economy.
Figure 3 FDI inflow to Slovakia and GDP in 2003 – 2017
Source: Authors’ results
In the case of the dependence of GDP and FDI in Slovakia, the
correlation coefficient r = 0.9865, which indicates a strong,
positive, statistically significant correlation between FDI and
GDP variables in Slovakia in the period under review (p = 0.000
< 0.05), t. j. the inflow of investment from abroad has
significantly affected the GDP growth in Slovakia.
The results of the regression analysis refer to a significantly
increasing trend line with the GDP equation = 0.48269 +
0.00173 * FDI. The regression coefficient a0 = 0.48269 (the so-
called level constant) represents the GDP value at zero inflow of
FDI, the coefficient a1 (the so-called regression line directive)
indicates the change in GDP values corresponding to the unit
change of FDI (ie GDP increases by 0,00173 bil. EUR with the
inflow of 1 mil EUR = 1.73 mil. EUR).
It is also apparent from Figure 4 that the observation points are
evenly distributed around the regression line, suggesting that the
regression analysis's predictive power is high. Thus, we can say
that the regression analysis confirmed expectations about the
positive impact of FDI inflows on GDP growth in the period
under review. Also, the determination coefficient r2 = 0.9732 =
97.32% with a very high value confirms that the test value of
this test is very high.
Figure 4 The relationship of FDI inflow and GDP in Slovakia in
2003-2017
Source: Authors’ results
In the case of the last investigated dependence, the results of the
correlation analysis also confirmed a strong, positive,
statistically significant dependence between the examined pair of
FDI variables and the average nominal wage in Slovakia (r =
0.9901
→1; p = 0.0000 < 0.05). Thus, the inflow of foreign
investment into Slovakia was significantly affected by the
increase in the average nominal wage in the period under review.
Figure 5 FDI inflow to Slovakia and average wage in Slovakia in
2003 – 2017
Source: Authors’ results
The results of the regression analysis, respectively. linear
regression with regression line equation: average wage =
0,02009 * FDI - 14,49 speak of growing trend of average
nominal wage depending on inflow of foreign investment in
Slovakia (coefficient a1 = 0,02009, which represents increase of
average nominal wage by 0,02009 EUR for FDI of 1 mil EUR).
As further seen from Figure 5, the data points are equally spaced
around the regression line and point to the high repetition
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