The Influence of Foreign Direct Investment and Public Incentives on the Socio-Economic Development of Regions: An Empirical Study from the Czech Republic

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dc.contributor.authorHlaváček, Petr
dc.contributor.authorJanáček, Julius
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2019-09-16T08:54:19Z
dc.date.available2019-09-16T08:54:19Z
dc.description.abstractThis article investigates the impact of foreign direct investment, government financial incentives as well as science and research expenditures on different socio-economic development processes in the Czech Republic. These financial flows are important for economic growth of regions and constitute a substantial part of financial flows within national economies. We focus on the effect of these aspects on various indicators concerning the business environment, labor market, population growth and construction activity. The analysis is conducted using OLS regression models. Results indicate that it takes about two years for foreign direct investment to take effect and its influence is relevant for approximately 13 years. We found that foreign direct investment has a considerable influence on the number of small firms in the region, on the number of buildings permits in the region and on the value of residential estates. Our analysis further shows that government investment incentives have an impact on similar areas as foreign direct investment, which is in accordance with the general theory of the functioning of the economy. Science and research expenditures, on the other hand, seem not to have any effect in the first seven years after the expense has been realized. In this case, science and research expenditures show a longer time to respond as far as the studied indicators are concerned. The concrete effects of foreign direct investment and government financial incentives in terms of numerical values have been calculated using the structure of our models. The magnitude and reasons for these effects are discussed. The results of these calculations indicate that foreign direct investment and government investment incentives have significant positive effect on the development processes of regions but in specific areas only.en
dc.formattext
dc.identifier.doi10.15240/tul/001/2019-3-001
dc.identifier.eissn2336-5604
dc.identifier.issn1212-3609
dc.identifier.orcid0000-0002-3922-5739 Hlaváček, Petr
dc.identifier.orcid0000-0002-0267-0126 Janáček, Julius
dc.identifier.urihttps://dspace.tul.cz/handle/15240/153570
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
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dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectinvestment incentivesen
dc.subjectforeign direct investmenten
dc.subjectregionen
dc.subjectCzech Republicen
dc.subject.classificationR12
dc.subject.classificationR53
dc.titleThe Influence of Foreign Direct Investment and Public Incentives on the Socio-Economic Development of Regions: An Empirical Study from the Czech Republicen
dc.typeArticleen
local.accessopen
local.citation.epage19
local.citation.spage4
local.facultyFaculty of Economics
local.filenameEM_3_2019_01
local.fulltextyes
local.relation.abbreviationE+Mcs
local.relation.abbreviationE&Men
local.relation.issue3
local.relation.volume22
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