Foreign direct investments in the Czech Republic (with the emphasis on border regions)

Abstract

The role of the foreign direct investments in the economy is nowadays without dispute one of the most debated issues not only for the economic forum. However, most of the regionalists consider these investments to be one of the most effective methods of development, mainly of the regional economies. The purpose of this article is the assessment of the role of the foreign direct investments in the Czech Republic in the development of the Czech border regions after 1989. Although the incentive system preferred the regions with high unemployment rate, the foreign investors often located their financial means even in the economically less problematic regions; therefore the great regional differences in the situation on the job market in the Czech Republic have not been reduced so far. The regional differentiation can also be observed In the Czech border regions. The inflow of the foreign direct investments and the number of job opportunities In industrial companies with foreign capital interests are considerably higher in the regions bordering on Bavaria than for instance in the regions bordering on Poland or Slovakia