Produktivita práce a odměňování v duální ekonomice: role zahraničních investic v České republice
Labour Productivity and Remuneration in a Dual Economy: The Role of Foreign Investment in the Czech Republic

Summary/Abstract: Foreign investment has been an important source of capital formation in transition countries but has caused the division of economies into foreign- and domestic-owned sectors. This paper explores the persistence of dual economy in the Czech Republic as well as the relationship between labour productivity and components used in the income approach to GDP calculation. Analysing the dataset of 20,900 firms operating in the Czech Republic in 2015, the paper presents evidence that higher levels of foreign investment are associated with significant labour productivity and wage differentials. Lower unit labour costs in foreign enterprises are consistent with higher level of investment of foreign-owned firms. Our model shows that differences in the degree of capital intensity are the driving force for the level of unit labour costs (i.e. factors are substitutes concerning the factor payments).

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