Direct and indirect effects of regional economic stimuli

Matěj Bělín () and Ondrej Buchel
Additional contact information
Matěj Bělín: Social Policy Institute, Ministry of Labour, Social Affairs and Family of the Slovak Republic
Ondrej Buchel: Social Policy Institute, Ministry of Labour, Social Affairs and Family of the Slovak Republic

Empirical Economics, 2024, vol. 66, issue 4, No 8, 1681 pages

Abstract: Abstract This paper estimates the impact of investment incentives in Slovakia on the unemployment rates in districts to which these incentives were targeted as well as potential spatial spillover effects. The results show that incentives directed to the least developed districts (LDDs) of the country are associated with a statistically significant reduction in unemployment rate growth in the targeted districts by about 0.1 percentage point per month over the course of three years following the intervention. By contrast, we estimated a precise zero effect of investment incentives targeted to non-LDDs. These findings are consistent with the standard economic argument of diminishing marginal returns. Estimates of the spillover effects are also centred around zero.

Keywords: Regional development; Regional inequality; Spatial spillovers; Differences in differences; Transitional economies (search for similar items in EconPapers)
JEL-codes: O18 O20 R58 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00181-023-02506-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:66:y:2024:i:4:d:10.1007_s00181-023-02506-7

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-023-02506-7

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().