The article analyses German direct investments in Poland undertaken between 1989 and 2018 with quantitative analysis methods, using long time series data of German Bundesbank investment statistics. It asks about impacts of German FDI on economic development in Poland, providing insights into bilateral cooperation relations. Poland attracts continuously expanding German investments, which distribute over large numbers of regionally dispersed firms. Strongly increasing employment in German owned firms has large importance for the Polish labor market. Through business activities, companies with German FDI contribute considerably to Polish output development. For German FDI stocks in Poland estimation results show empirical evidence for medium impacts on employees numbers and large effects on annual turnovers of firms with German direct participation in 1989-2018. Within this context, adequate framework conditions for investments are decisive for economic growth in Poland.
Ukraine crisis affected Western economic relationship to Russia seriously by bilateral and multilateral sanctions. Trade volumes of goods between Germany and Russia decline since 2013, leading to shrinking economic integration of Russia as well in bilateral as in global trade. Trade restrictions induced an intensified quantitative disappearing of Russia in the German global trade, reducing this partnership to a minor role at the aggregated level. Nevertheless Russia remains an important partner in sectoral perspectives, especially in natural gas and oil, where Russia holds increasing dominant market positions in the German domestic market. According this both conflict parties reveal strong economic incentives for normalization processes in economic exchange. Long term perspectives depend on the capability of Russia to modernize its economic sector with respect to innovation what provides for Western economies new opportunities to engage in a sustainable partnership.
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