The Spatial Structure and Ethnic Determinants of Hungarian Foreign Direct Investment in Slovakia

Abstract

This study examines the spatial patterns, determinants, and ethnic embeddedness of Hungarian foreign direct investment (FDI) in Slovakia. The theoretical framework is based on the concepts of social capital, ethnic relational capital, and economic ethnocentrism, which provide an interpretative perspective for understanding cross-border economic interactions. The paper reviews the evolution of Slovakia’s FDI attractiveness from the period following independence to the present day, with particular attention to the impacts of European integration, global economic crises, and the country’s export-oriented development model. The empirical analysis applies Hoover index calculations, a gravity potential model, and correlation and regression techniques to investigate both the territorial concentration of FDI and the relationship between the Hungarian minority population and the spatial distribution of Hungarian capital. The results reveal a highly concentrated pattern of foreign direct investment in the Bratislava region, while eastern and central parts of Slovakia remain structurally underinvested. At the same time, the findings demonstrate a significant positive relationship between the proportion of the Hungarian minority and the presence of Hungarian FDI in non-metropolitan regions, highlighting the economic relevance of ethnic networks, trust-based relationships, and cross-border social capital. The study argues that the spatial distribution of Hungarian investment is influenced not only by market conditions and macroeconomic factors, but also by historical, cultural, and linguistic ties embedded in ethnic relational networks. The results contribute to a better understanding of cross-border economic cooperation and the development potential of minority communities, while also EMPHASIZING the importance of targeted regional development and network-building policies for strengthening economic integration within the Carpathian Basin.