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Abstract

The aim is to identify differences in spillovers between regions within the economy of the Czech Republic. Based on the choice of spillover effect determinants and a shift-share analysis, a regional spillovers indicator has been constructed. It was discovered the differences in the sizes of spillovers between the regions are increasing over time, which indicates deepening economic disparities. The main contribution is the constructed indicator identifying the different effects of FDI in different regions in order to better identify the strengths and weaknesses of the regions and better model economic policies to set up more effective support for the FDI inflows.

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