Geografie 2005, 110, 46-61

Influence of foreign direct investments on foreign trade of Czechia

Vladislav Čadil

Katedra sociální geografie a regionálního rozvoje, Přírodovědecká fakulta UK, Albertov 6, 128 43 Praha 2, Czechia

Deep changes in territorial and commodity structure of foreign trade have arisen after 1989 in Czechia. Economically developed states, especially EU countries, have become significant trade partners of Czechia. On the one hand, export and import of machines and means of transport have increased, on the other hand, export of semi-finished products and materials has decreased. Intense qualitative changes in territorial and commodity structures as well as an increase of foreign trade would be inconceivable (or significantly delayed) without a positive effect of foreign direct investments. Foreign capital has sharpened differences between prospering foreign firms and weak, uncompetitive home enterprises. The aim of this contribution is: a) to deal with the effects of foreign direct investments on the development of foreign trade in Czechia; b) to delineate the main trends in development of foreign trade affected by foreign capital.