Regional Localization of the Automotive Industry in the Czech Republic

The theoretical background of this paper presents localization theories. Classic location theory, models based on imperfect competition, theories aiming at the location of services, the polarization theory as well as the location theories based on institutionalism can be considered to be the key localization theories. Modern theories include, e.g., the theory of production and profit cycles and new economic geography. Foreign direct investment localization is a specific question of localization theory. In this context, the issue of localization of investments in the car industry is now being researched. The specific localization factors have been identified as a result of car industry regional distribution analysis across the Czech Republic. These factors include the tradition of the automotive branch, the strategic location of the region, the privatization process, large car factory proximity, etc.