Abstrakt:
The aim of this paper is to evaluate the impact of FDI along with domestic
physical investment and human capital on the regional income, and their role in the
regional income convergence within the Czech economy over the periods from 1998-99
to 2013-14. The paper considers 14 regions of the Czech Republic and uses panel fixed
effect regression and dynamic panel growth framework for the empirical analysis. The
result finds that the role of physical capital formation and FDI along with the human
capital are crucial for the regional disparity in income in the Czech Republic. There is
also evidence of the convergence of per capita income at the speed of 7.8 per cent among
the regions by conditioning physical investment and human capital along with FDI. This
paper suggests that regional disparity in income can be reduced by the equitable
allocation of investment and FDI, and equal development of human capital.