The role of investment incentives in regional FDI reallocation: a regression-discontinuity approach

Abstract

This paper analyzes the causal effect of investment incentives on regional allocation of foreign direct investment (FDI) in the Czech Republic during 2001-2007. Investment incentives institutional setup provided foreign investors with financial incentives depending on the particular district unemployment rate.

Keywords

• foreign direct investment
• government expenditures
• public incentives