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Politická ekonomie investičních pobídek
[Political economics of investment incentives]


  • Miroslav Plojhar
  • Martin Srholec


The paper focuses on selective investment incentives, which are aimed primarily to attract foreign direct investment, in the context of the new EU Member States, namely the Czech Republic, Hungary, Poland and Slovakia. We discuss the issue within three closely related dimensions. We point to a potential conflict of interests between host country governments and multinational companies in promoting technology spillovers from foreign direct investment in the host economies. We examine the prisoner dilemma of the host governments in mutual competition for mobile direct investment and a room to achieve multilateral or strengthening regional agreement on investment to reduce a possible wealth reducing content of such policies. Finally, we discuss national context of the investment incentives with regards to the rent-seeking behaviour of various interest groups and contradictory role of the investment promotion agency in the process of decision-making about investment promotion policies. We conclude with brief implications for development policy.

Suggested Citation

  • Miroslav Plojhar & Martin Srholec, 2004. "Politická ekonomie investičních pobídek
    [Political economics of investment incentives]
    ," Politická ekonomie, University of Economics, Prague, vol. 2004(4), pages 451-466.
  • Handle: RePEc:prg:jnlpol:v:2004:y:2004:i:4:id:469:p:451-466

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    References listed on IDEAS

    1. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Income and Savings," NBER Books, National Bureau of Economic Research, Inc, number kuzn53-1, January.
    2. Christian Dustmann & Bernd Fitzenberger & Uta Sch?nberg & Alexandra Spitz-Oener, 2014. "From Sick Man of Europe to Economic Superstar: Germany's Resurgent Economy," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 167-188, Winter.
    3. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Savings," NBER Chapters,in: Shares of Upper Income Groups in Income and Savings, pages 171-218 National Bureau of Economic Research, Inc.
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    Cited by:

    1. Peter Bolcha & Alena Zemplinerová, 2012. "Dopad investičních pobídek na objem investic v České republice
      [The Effect of Investment Incentives on Investment in Czech Republic]
      ," Politická ekonomie, University of Economics, Prague, vol. 2012(1), pages 81-100.

    More about this item


    foreign direct investment; investment incentives; state aid; multilateral agreement on investment; partial interest groups;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy


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