Foreign direct investments in the czech republic: Selected macroeconomic issues

The paper deals with the relationships between the inflow of FDI in the Czech economy and the Czech labour market. First part is focused on general issues related to the FDI inflows and to the analysis of the penetration of the foreign controlled companies into domestic economy. Special attendance is devoted to the scope and developments of the duality in the Czech economy, in particular in its key segment - manufacturing industry. The findings indicate gradual and differentiated diminishing of the scope of duality in the Czech manufacturing. The necessary conditions for positive spillovers of FDI into the domestic economy have been outlined, with flexible and qualified labour force being a very important channel of the transfer of technology. Therefore the impacts of FDI on the Czech labour market have been analyzed from the regional and industrial viewpoint. Low flexibility of the Czech labour market has been one of the reasons behind still considerable scope of duality in the Czech manufacturing.