FACTORS AFFECTING ECONOMIC GROWTH - THE CASE STUDY FOR THE CZECH REPUBLIC

The relation between the economic development, and the critical factor of growth is that in many cases they are elaborated in economic literature nowadays. In many papers, there is a description and quantification of the different factors for research and development. However, these views are often combined, so the use of those models are only for whole economies. The effects within individual regions may be different, due to the decreasing countryside population. The approach for the solution is to build upon the classic Solow growth model. This progress helps to identify critical variables for the next solution. All calculations are examined within individual regions of the Czech Republic. The results are then compared. The sales of paper are the definition of the factors that affect economic growth in the Czech Republic. The paper is the primary focus of these factors (technology - research and development). Date set contains a comparison between regions in the Czech Republic, the results from some areas are different from the factor for the whole Czech Republic. Expenditure for research and development has no global effect for all of the regions, but this is the most important point. Other factors are not significant. The main computing method is the multiple regression analyses.