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Influence of Investment Incentives on Development of Regional Unemployment in the Czech Republic

Author

Listed:
  • Emil Adámek

    (Technical University of Ostrava, Czech Republic)

  • Lucie Rybková

    (Mendel University in Brno, Czech Republic)

Abstract

The aim of this paper is to assess the influence of investment incentives on development of regional unemployment in the Czech Republic and with proposal of recommendations related to utilization of investment incentives as an instrument for promoting employment and development of regions as well as for reduction of differences in economic activity of regions. Time series from 1998 to 2014 were used to solve the problem when regional unemployment was chosen as a dependent variable, for which econometric model was created using panel regression and including investment incentives. Results of testing prove that investment incentives have positive and statistically significant influence on regional employment.

Suggested Citation

  • Emil Adámek & Lucie Rybková, 2015. "Influence of Investment Incentives on Development of Regional Unemployment in the Czech Republic," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 1(1), pages 5-14.
    • Handle: RePEc:men:journl:v:1:y:2015:i:1:p:5-14
    DOI: 10.11118/ejobsat.v1i1.33
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    References listed on IDEAS

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    1. Adam P. Balcerzak & Miroslawa Zurek, 2011. "Foreign Direct Investment and Unemployment: VAR Analysis for Poland in the Years 1995-2009," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 3-14.
    2. Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, Stockholm School of Economics, The European Institute of Japanese Studies.
    3. Gerhard Untiedt & Hans Joachim Schalk, 2000. "Regional investment incentives in Germany: Impacts on factor demand and growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(2), pages 173-195.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    regional unemployment; investment incentives; foreign direct investments; panel regression;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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