Journal of Security and Sustainability Issues

The Žilina region is located in north-western Slovakia. Considering the amount of GDP, unemployment, employment and average wage, it belongs among the medium-performance regions in Slovakia. FDI is considered one of the factors promoting its sustainable development, economic performance and balancing regional differences. A positive aspect of FDI in terms of regional development is the fact that they contribute to an efficient allocation of resources, as investors are directing their investments in those regions where they expect the achievement of economies of scale. FDI began to increasingly flow to the Žilina region after 2004, in connection with the arrival of KIA Motors and establishing its subcontracting partners. The aim of this article is to point out the condition and development of economic performance and FDI in the Žilina region, and to demonstrate a causal relationship between FDI and the sustainable development of the region.