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Foreign Direct Investment in the Czech Republic

Author

Listed:
  • Milan Damborský
  • Gabriela Říhová

Abstract

Th e theme of this article, foreign direct investments and its regional development dimension, can be included into fundamental themes of regional development. Authors present the impact of infl ow of foreign direct investments (FDI) on the regional disparities in the Czech Republic. Th e key question of the article is ?in which regions the foreign direct investments have caused the regional economic disparities?. Th e analyses of FDI are based on the regional statistic database which was made public by the Czech Nation Bank in March 2008. Th e regions are classifi ed in line with the project ?MasterCard Czech Centers of Commerce? in the article. Th e regions (NUTS III) are divided into fi ve basic groups. Th e most developed region in the Czech Republic is Hl. m. Praha (fi rst group). Středočeský kraj, Plzeňský kraj and Jihočeský kraj are included in the second group ?over average developed regions?. Th ird group is the group of ?average regions?, these are Liberecký kraj, Pardubický kraj, Jihomoravský kraj, Královehradecký kraj, Zlínský kraj and Vysočina. Th is group is followed up by the group of ?rather under average developed regions?, Olomoucký kraj, Moravskoslezský kraj, and the group of ?the weakest regions?, Karlovarský kraj, Ústecký kraj (Wokoun, 2008). Under the condition of that the infl ow FDI is very positive for the region and based on the socioeconomic analysis of development of the Czech regions is the impact of FDI on regional disparities ambiguous. FDI have increased the regional disparities in the regions Hl. m. Praha, Středočský kraj, Královéhradecký kraj, Zlínský kraj, Karlovarský kraj, Olomoucký kraj and Ústecký kraj and decreased the disparities in the regions Jihočeský kraj, Plzeňský kraj, Moravskoslezský kraj. Th e ambiguous situation is in the regions Liberecký kraj, Pardubický kraj, Jihomoravský kraj and Vysočina.

Suggested Citation

  • Milan Damborský & Gabriela Říhová, 2008. "Foreign Direct Investment in the Czech Republic," Regionální studia, University of Economics, Prague, vol. 2008(2), pages 22-28.
  • Handle: RePEc:prg:jnlrst:v:2008:y:2008:i:2:id:56:p:22-28
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