Direct foreign investments and their impact upon the economy of the Czech Republic

FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON THE ECONOMY OF CZECH REPUBLIC This work deals with foreign direct investments (FDI) and investment incentives in the Czech Republic. Investment incentives are very often presented as instrument of economic policy for stimulation of investment activity as well as job creation. Almost every country in former socialistic block exploits it for attracting foreign direct investment. It evokes many disputes about thein efficiency. Protagonists of these "classical investment incentives" defend them as way for solving structural problems in affected regions. The others claim, that it is very often only waste of public expenditures. The Czech Repulic started to use them in 1998 to support an inflow of foreign direct investments. The Czech Republc expected from FDI restructuring of an industry, new technologies and know-how, higher productvity and economic grow. As started, Investment incentives were accessible mainly to big foreign enterprises and therefore they distrub free market functioning, because they privilege reduced quantity of subjects against the rest, which contribute greatly to incentives through their taxes. In the Czech Republic FDI offer higher level of wages and produktivity of labour than the Czech firms. Onthe other hand FDI are directed mainly..