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Country Risk and Common Drivers of FDI in Central Europe (Innovative Methodology Employed)

Common drivers of FDI in Hungary, Slovakia, Czech Republic, Slovenia, Croatia, Poland, and Lithuania are identified in this paper and relationships among financial variables are described that permit policymakers to create guidelines and strategies for a more profitable environment for economic growth. Statistics identify the drivers of FDI in the focus countries. And qualitative field studies for Slovenia, Slovakia, and Czech Republic corroborate the statistics while incorporating factors such as geography, legal and banking systems, social structure, and stages of economic and political development into the analysis.Purposes, Contributions, and Methodologies of This Study: The primary contributions of this research are twofold. One, the fresh look at the focus countries with current data and statistical methodology gives previous research a large measure of support in the correlations and provides new insights into cointegration of the variables. Two, the qualitative studies highlight original and primary sources resulting in the conclusions reached and ideas presented. Qualitative methodology may make the results of the research more accessible to those who know case and field study methodology but do not know international finance. Likewise, researchers who know the field of international finance may glean new insight into variables that affect foreign investment from a qualitative point of view.