The effectiveness of investment incentives in certain foreign companies operating in the Czech Republic

Abstract

Since opening its borders, the Czech Republic has tried to attract foreign investors in order to become more competitive. A system of investment incentives was created and has been adapted to meet changing conditions. As in many countries, there are positive and negative opinions on the existence of investment incentives. Many agencies are trying to determine whether they are effective or not. The aim of this article is to find out if the investment incentives provided in the Czech Republic have been effective not only for companies but for the government as a provider as well. To do so, it provides a case study of firms that received investment incentives, charting the firm’s development and profitability.