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Public investment and municipalities: who receives EU and government subsidies and why?
Tolstoguzova, Ekaterina ; Janský, Petr (advisor) ; Šťastná, Lenka (referee)
The thesis analyzes the economic and political impact on the distribution of EU funds between municipalities with extended competence in the Czech Republic. The data collected covers the period from 2007 to 2020, which corresponds to the two programming periods of the EU Structural Funds. To estimate the coefficients in dynamic models, we performed a system GMM procedure. The significant results obtained demonstrate a positive effect between the tax revenues of the municipality and the subsidies received. This supports the hypothesis that politicians may allocate more funds to more developed municipalities to achieve greater efficiency. Also, we indicated a political influence on the EU funds allocation process. The size of transfers significantly increases in the election years. This suggests that politicians are channelling more financial support to municipalities ahead of elections in an effort to increase voter support.

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