BOOSTING REGIONAL LABOUR MARKET VIA FOREIGN INVESTMENT: EVIDENCE FROM THE LIBEREC REGION
BOOSTING REGIONAL LABOUR MARKET VIA FOREIGN INVESTMENT: EVIDENCE FROM THE LIBEREC REGION

Author(s): Sylvie Kotikova, RENATA ČUHLOVÁ
Subject(s): Economic history, Labor relations, Economic policy, International relations/trade, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: foreign direct investment; investment incentives; regional labour market;
Summary/Abstract: The paper evaluates the impact of primary jobs created in foreign direct investments localized in the Liberec region of the Czech Republic. The research sample includes 25 foreign direct investments that received investment incentive in the analyzed period 2002- 2014.With a choice of such a sample conclusions about the benefits from investment incentives can be drew. Based on comparative analysis of information from the annual reports of companies and Czech Statistical Office data and Czech Invest, the direct effect of jobs´ creation in foreign direct investment on unemployment in the region is quantified. The contribution of these investments to solution of the unemployment problem is illustrated in a hypothetical rate of unemployment. It displays the situation of the regional labour market in case of an absence of these investments. The comparative analysis of foreign direct investment´s data from the time period 2002-2014 shows reduction of the regional unemployment rate by about 3% annually on average. This quantified impact is caused by creation of 4.500 job positions on average.

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