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

  • Emil Adámek Department of National Economy, Faculty of Economics, Technical University of Ostrava, Sokolská třída 33, 701 21 Ostrava, Czech Republic
  • Lucie Rybková Department of National Economy, Faculty of Economics, Technical University of Ostrava, Sokolská třída 33, 701 21 Ostrava, Czech Republic
Keywords: regional unemployment, investment incentives, foreign direct investments, panel regression

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.

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Published
2015-11-11
Section
Articles