ECONOMIC CONTEXT OF EUROPEAN SUBSIDIES AND THEIR IMPACT ON REGIONAL ECONOMIC DISPARITIES ON THE EXAMPLE OF THE CZECH REPUBLIC

This paper presents the theoretical perspectives of economic trends in view on subsidies to investment and ask whether the allocated subsidy of ESI, specifically in the Czech Republic, are substantiated in these economic theories. This article aims to show the relationship between the amounts drawn from the selected operational program of ESI funds and per capita income level in various regions NUTS 3 during 2007-2015 in the Czech Republic. For the purpose of achieving the set goals time series analysis of variables and correlation analysis using Pearson correlation coefficient have been used. Time series data has been controlled by Durbin-Watson test of autocorrelation. Results of theoretical research brought a positive response that subsidies should positively affect the economic level of the population and should help lagging EU Member States and regions within those Member States in their economic growth. The results of empirical research showed that the correlation relationship of the amount of EU subsidies paid to the regions in the Czech Republic and the level of income cannot be clearly demonstrated. Significant correlation has been found in few of regions. However, in most cases dependence has not been demonstrated, thus, correlation between income level and amount of ESI funds from EU is not submitted. It can be concluded that in the short term, the level of per capita income in the region is getting closer to the most developed region of the City of Prague and therefore lagging regions of the country get economically closer. However, this fact cannot be clearly attributed to the amounts allocated through ESI subsidies in various regions of the Czech Republic.