Distribution of regional state aid in Slovakia: A focus on the least developed districts

Abstract

This paper examines the geographical distribution of regional state aid in Slovakia between 2004 and 2021, while focusing on projects realized in the least developed districts. The purpose is to answer the following research question: how much investment support is provided to areas with high rates of long-term unemployment to promote local economic activity? The investigation was conducted using a spatial distribution analysis and descriptive statistical methods. The findings demonstrate that the level of support in less developed districts is below the level of aid directed into more developed regions not only in terms of the number of supported projects, but also regarding the total amount of aid and the number of created jobs. Out of the 20 least developed districts we monitored, only the results for Košice-okolie significantly outperformed the results of the other districts. This article provides possible explanations for these findings and contributes to the literature by providing insights into the practical application of state aid in Slovakia.