Investment and employment in the European Union

The Diploma Thesis is divided into the theoretical basis and the practical part that is further divided into descriptive part and analytical part. The theoretical part is proceeding from book publications and websites. The aim of this Diploma Thesis is to determine how foreign direct investments affect labour market in selected countries of the European Union, further to compare and evaluate this influence in these states, and develop recommendations for the Czech Republic how to improve the situation on the labour market through foreign direct investments and other researched variables. These issues were solved in the analytical part of the own work, where were created two single-equation econometric models and on the basis of them was investigated whether foreign direct investment and the average gross monthly wage have an influence on the number of employed in the Czech Republic and Austria. The partial aim of the thesis is to analyze the development of foreign direct investment in the Czech Republic from many different perspectives and also to analyze the development of selected indicators of the labour market. Another aim is to evaluate current condition of the Czech Republic in selected spheres of foreign direct investments and the labour market. These issues were solved in the descriptive part of the practical part. A simple summary of the results of this thesis is that foreign direct investment should not be required with the aim of increase employment