Regional unemployment and investment incentives in Czechia

Abstract

Regional unemployment and investment incentives in CzechiaThe paper aims to verify whether setting up the system of investment incentives in Czechia has determined the over-proportional location of supported jobs to regions with an over-proportional size of unemployed and thus meets the declared objectives of regional policy. Concentration analysis on the territorial level of districts and regions NUTS III of the Czechia was used to fulfil this goal. Regions according to the concentration of unemployed and supported jobs can be divided into five basic types: T1 -regions where the support is well targeted and implemented (regions with high unemployment and job support), T2 -regions with inappropriately targeted support (regions with low unemployment and high support), T3 -regions that are not eligible for support and support is realised on low level (low unemployment and low support), T4 -regions where support is lacking (high unemployment and low support), T5regions that cannot be clearly classified (their position changes significantly over time). Regional policy objectives are achieved through support realised in regions with a large amount of unemployment. Setting up a system of investment incentives in Czechia does not ensure an above-proportional direction of supported investments to regions with a larger size of unemployment and thus does not meet the declared objectives of regional policy.