Investment Incentives in the Environment of the Czech Republic

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F22%3A00009637" target="_blank" >RIV/46747885:24310/22:00009637 - isvavai.cz</a>

Výsledek na webu

<a href="https://dspace.tul.cz/bitstream/handle/15240/163512/EM_1_2022_01.pdf?sequence=1&isAllowed=y" target="_blank" >https://dspace.tul.cz/bitstream/handle/15240/163512/EM_1_2022_01.pdf?sequence=1&isAllowed=y</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2022-1-001" target="_blank" >10.15240/tul/001/2022-1-001</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Investment Incentives in the Environment of the Czech Republic

Popis výsledku v původním jazyce

nvestment incentives were originally created particularly to support the inflow of foreign capital into transforming economies. Today, they are also available in the developed countries of Western Europe, where they no longer fulfil their primary function but have become a standard and popular economic policy tool allowing the government to emphasise its impact on the country’s positive economic development (e.g., falling unemployment and reductions in unemployment benefits or recovery of public finance). Like any comprehensive system, the system of investment incentives has its supporters and opponents who cannot agree on their justification. The question is, whether they are efficient from the point of view of the government, as their provider. This is even more prevalent if the given investment was realised without investment support. Using the data of investment incentives provided by CzechInvest and selected macroeconomic indicators (Czech Statistical Office), as well as regression analysis of time series dependences, the aim of this paper is to verify the impact of investment supported by incentives (independent variables) on the macroeconomic climate of the Czech Republic (dependent variables) from 1998 to 2019. Based on the research findings, investment incentives cannot be described as an effective economic policy tool that clearly leads to the regions’ economic development. They contribute to an inflow of investments into (not only) structurally problematic regions (i.e., with higher unemployment or a lower economic level), but the positive impact of these investments on the macroeconomic climate is statistically negligible – not only at the regional level (NUTS 3), but also at the level of the whole economy (NUTS 1). In addition, the question remains as to whether or not the supported investments in the given region would have been implemented without the possibility of using incentives.

Název v anglickém jazyce

Investment Incentives in the Environment of the Czech Republic

Popis výsledku anglicky

nvestment incentives were originally created particularly to support the inflow of foreign capital into transforming economies. Today, they are also available in the developed countries of Western Europe, where they no longer fulfil their primary function but have become a standard and popular economic policy tool allowing the government to emphasise its impact on the country’s positive economic development (e.g., falling unemployment and reductions in unemployment benefits or recovery of public finance). Like any comprehensive system, the system of investment incentives has its supporters and opponents who cannot agree on their justification. The question is, whether they are efficient from the point of view of the government, as their provider. This is even more prevalent if the given investment was realised without investment support. Using the data of investment incentives provided by CzechInvest and selected macroeconomic indicators (Czech Statistical Office), as well as regression analysis of time series dependences, the aim of this paper is to verify the impact of investment supported by incentives (independent variables) on the macroeconomic climate of the Czech Republic (dependent variables) from 1998 to 2019. Based on the research findings, investment incentives cannot be described as an effective economic policy tool that clearly leads to the regions’ economic development. They contribute to an inflow of investments into (not only) structurally problematic regions (i.e., with higher unemployment or a lower economic level), but the positive impact of these investments on the macroeconomic climate is statistically negligible – not only at the regional level (NUTS 3), but also at the level of the whole economy (NUTS 1). In addition, the question remains as to whether or not the supported investments in the given region would have been implemented without the possibility of using incentives.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50201 - Economic Theory

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

E M Ekonomie a Management

ISSN

1212-3609

e-ISSN

—

Svazek periodika

25

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

20

Strana od-do

4-23

Kód UT WoS článku

000782805800001

EID výsledku v databázi Scopus

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