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EN
This paper examines the determinants of Foreign Direct Investment (FDI) in Poland and the Polish FDI experience since economic transition to a market economy began in late 1989 and some policy implications for similar economies. Using the ARIMA regression methodology, with a one year auto regressive lag for the independent variables, the model tested the dependency of FDI in Poland to a number of macro-economic variables for the period 1991 to 2006. This paper validates the positive linkage between market size and FDI in Poland. In addition, other factors i.e. exchange rate, corporate taxes, and accession to the European Union were found to be significant determinants. However, both the variables associated with openness to trade and rising wages were not significant determinants. This paper suggests that macroeconomic performance, the relative strength of the US dollar and regional economic integration are important factors in attractiveness of FDI in host countries. Additionally, existing tax rates may impact FDI, but experience and data suggest that foreign investors with long term planning horizons are attracted by expected future profitability and future rate declines. From a firm's perspective, this paper suggests that the additional risks of market entry via FDI are acceptable to decision makers when the host economy is growing and committed to economic liberalization, market determined currency valuation and regional integration, while labour costs per se are not significant barriers to FDI. The successful economic transformation and the ensuing positive experience of foreign investors in Poland provide evidence and confirmation that significant FDI opportunities may be realized in similar transition economies.
EN
The aim of this article is to present the factors fostering foreign direct investment in Ukraine. The gravity model was used in order to utilize the aim of the study. This model is based on the principle that the level of FDI between two countries is based on the level of GDP. Additionally if the distance between the countries is quite high, the cost of the foreign trade increases and this is the impulse of foreign direct investment increase. The gravity model was verified in market oriented countries, but there is lack of studies in the transformational economies.
EN
The aim of the paper is to indicate the factors which encourage foreign investors to invest and discourage them from investing in Central and Eastern European countries. The analysis included 8 countries: Czech Republic, Slovakia, Hungary, Poland, Lithuania, Latvia, Estonia and Slovenia - the countries which joined the EU on May 1, 2004 (the so called EU 8 countries ). The authoress analyses the factors of strategic importance for the inflow of direct foreign investment (DFI) to these countries. All Central and Eastern European countries aim to attract the most capital in the form of DFI. Despite their efforts, the inflow of DFI to specific countries varies. The question arises what possible reasons for this phenomenon are. The conducted analysis enables the authoress to claim that none of the countries in question has a considerable advantage over the others as regards their attractiveness for foreign investors. For each of these countries certain factors can be indicated which distinguish them in a positive way from the remaining ones.
EN
The paper develops a district-level gravity-type model of foreign direct investment (FDI) stock in Slovakia using Poisson Pseudo Maximum Likelihood estimation based on the most recent investment data compiled by the National Bank of Slovakia (NBS). Population and wages as well as distance from Bratislava, access to freeway and presence of universities are shown to be statistically significant determinants of FDI stock. The statistical significance of distance from regional capital and size of the largest city could not be established, which we believe is a result of the small size of Slovakia’s districts, dense network of public transportation and a low number of cities of the size required for agglomeration economies. The estimated single-core gravity-type model is robust to different specifications of distance, use of different estimation methods and omission of outliers.
EN
The aim of this article is to portray the population of foreign affiliates of transnational corporations in Poland. At the beginning there is a definition of foreign affiliates' category and description of their types. There is pointed out when entities with foreign capital can be perceived as foreign affiliates of transnational corporations. Then, the authoress shows quantitative characteristic of entities with foreign capital according to their numbers, share of foreign capital, organizational form, way of establishment, size, number of employees, capital origin, geographical distribution, and PKD sections. Banking and insurance sectors were analyzed in a limited scope. The research period is 1993-2007, however, information presented on figures and tables includes different time periods, dependent on data accessibility.
EN
This paper examines linkages among foreign direct investment (FDI) and economic growth in 11 countries from Central and Eastern Europe (CEE) for the period of 1997 – 2014. Findings from panel data analysis suggest that the relative size of economic growth indicators affect FDI of CEE countries. This result holds for both contemporaneous and lagged relationships. FDI has an impact on economic growth, and this effect is strengthened by financial market development. The efforts of CEE countries increase the economic growth and beneficial spill over effects from FDI to local economies should be concentrated on the support of the development of local financial markets.
EN
The aim of this article is the analysis of Foreign Direct Investment (FDI) theories, whether they include cultural factors as an explanation of this internationalization form. At the beginning FDI is defined, than the authoress overviews FDI theories. It was emphasized that the best analysis of cultural conditions is in the extended version of the international production concept and Uppsala model. Other theories ignore or only indirectly enable to incorporate cultural factors in order to explain FDI phenomena.
EN
The study was undertaken in an attempt to examine the fundamental determinants of foreign direct investment (FDI) to Sub-Saharan Africa. FDI is considered a positive phenomenon, particularly for developing countries. These countries face many barriers to development, including lack of capital and thus the lack of investment opportunities. Therefore, the question arises: how to attract more foreign capital, and what new and effective policy to apply? To answer this question, one must examine the determinants of FDI inflow to the test region. The paper focuses on determinants associated with management issues recommended by international institutions, namely: economic and political stability, corruption and administrative procedures, investment climate, as well as attractiveness and good governance in the field of foreign direct investment.
EN
EU enlargement has brought about geographical reorientation and the intensification of foreign trade among many new EU members, including the four new members of East Central Europe. Particularly, the importance of vertical and horizontal intra-industry trade has increased in these countries, as has the value of FDI. How FDI influences intra industry trade types in East-Central European countries is an interesting question that the paper tries to answer through the application of panel data models. Data from Eurostat about foreign direct investment, export and import in manufacturing industries in the years 2000–2008 are used in the research.
EN
The main purpose of this paper is to examine on theoretical grounds the influence of Foreign Direct Investment (FDI) on the current account of balance of payments. The article analyses: the relationship between the System of National Account and the balance of payments; the role of FDI in filling in domestic resources gap; FDI net effect in the balance of payments; and correlation between the structure of capital flow, FDI and financing domestic accumulation.
EN
Using panel data, this paper examines the impact of firms with foreign capital on the labour productivity of domestic firms in Poland. The econometric analysis is based on unpublished firm level data compiled by the Polish Central Statistical Office for 1993-2007. In order to examine productivity spillovers from foreign direct investment in Polish manufacturing the author makes use of the contagion and technology gap hypotheses. The former assumes that productivity spillovers from foreign firms to local ones increase in proportion to the growing share of foreign-owned firms in total production. The second hypothesis presumes that the greater are the technological gaps between foreign and local firms, the more intensive is the technology spillover. Estimated results indicate however that there were no productivity spillovers from foreign firms to local ones in manufacturing as a whole between 1993- 2007. The greater technology gap actually led to less intensive spillovers for different groups of industries according to various classifications, however the results differ between groups of industries.
EN
This article discusses the role of foreign direct investment in the evolution of Poland’s international economic relations in the period 2004–2009. Based on statistics on the balance of payments, the volume and basic forms of international cooperation are presented. The article analyses the theory behind how FDI inflow influences foreign trade turnover for the host country, then looks at the Polish economy in particular.
EN
The issue of externalities generated by the foreign direct investments (FDI) is widely discussed in world literature. Alongside analyses of national economies of the host countries a great deal of attention is focused on the strategies of domestic companies that are confronted with the results of activities pursued by foreign investors. The article contains a synthetic examination of literature dwelling on external effects of FDI, mainly from the standpoint of domestic firms and organizations. The authors present the results of their empirical study, conducted in 2004, that was centered on the external effects of activities of foreign investors in Poland. During the study the attention was directed toward the strategies of domestic firms attempting to adjust their behavior to the conditions that result when foreign investors invade the Polish market.
EN
Foreign direct investment plays a significant role in shaping social-economic development of the host country and its particular regions by influencing whole economy, i.e. in the field of finances, technologies, competitiveness, employment and natural environment. Regionally, the crucial meaning has direct and indirect impact on labour market, which is even more extended by multiplying effects. Specific impact depends on many factors, i.e. ability of the region to adopt these effects by creating regional and local linkages, and strategies of enterprises with the share of foreign capital. These enterprises in Warmia and Mazury region are operating mainly in production and trade sections and can cooperate with many other units operating in the region. Positive impact is extended by export, but reduced by import. Among surveyed group of entrepreneurs, every forth declared to export own products, and every third to import. Production companies took considerable part in regional export, but they also imported a lot, while trade companies contributed to the import increase by purchasing abroad commodities for sale.
EN
This paper examines the indirect effects of the foreign direct investment, commonly referred to as spillovers, in Slovakia. It provides a theoretical framework of this phenomenon reviewing existing literature on the topic that presents some experiences of the Slovak companies over the last decade regarding spillovers and describes qualitative research of spillovers in the Slovak automotive industry. The results show that spillovers are present only through backward linkage, which is related to the technology transfer from the foreign customer to the domestic supplier.
EN
The growing popularity of service offshoring is one of the most important manifestations of economic globalisation. Cooperation with offshoring partners is increasingly part of the activities of international corporations. Also research and development units are more and more often relocated. In addition, the Polish economy is becoming a vendor of R&D investment. Such a trend can significantly improve the efficiency of the Polish R&D sector, which in comparison to developed countries is still at a very low level of development. Offshoring of research services (mainly in the form of foreign investment) will include inflow of knowledge and technology from the parent company. Moreover, this kind of offshoring increases the value of human capital and, above all, serves as additional capital necessary for the proper development of the R&D sector.
EN
The article addresses the issue of the international technology transfer (ITT) process. For most of the countries the ITT remains the main mechanism supporting the technological progress of the economy. Along with the growing importance of knowledge in every economy, technology diffusion taking place due to the ITT takes on a great and potentially even greater economic significance. However, there is no unified complex index of the process, which would indicate its scope and dimension in particular economies. In order to investigate the size of the process, a row of the following single measures are usually applied: the value of the FDI inflow into particular economy, the volume of im-ports, the value of the acquired intellectual property, the number of the patent application forms sub-mitted by the foreign entities. Of the great importance is to analyse all aforementioned channels and estimate their value in different economies. To compare the process on the global scale, it is reasonable to evaluate the particular variables in relation to the GDP value in different countries individually. It would also allow to demonstrate the degree, to which the economy depends on the foreign technology.
EN
In this paper, we investigate whether the knowledge capital model (Carr Markusen and Maskus, 2001) is satisfied in Slovakia by applying the bootstrap rolling window subsample test to examine the causal relationship between foreign direct investment (FDI) and exports (EX). This method provides more accurate evidence of a connection between these two variables considering structural changes. The empirical results show a positive correlation between FDI and EX and support the vertical FDI in the knowledge capital model in most sample periods. When FDI rises, EX will increase accordingly and vice versa. In addition, FDI exerted a negative effect on EX in 2011, which is attributable to the relative state of the situation at home and abroad. The findings illustrate that FDI and EX benefit from the free economic institution reforms and inexpensive resources. Therefore, the Slovakian government should improve tax reforms and maintain the stability of legislation to achieve mutual promotion between FDI and EX.
EN
The positive effect of the foreign direct investments (FDI) on the economic growth is a generally accepted fact in Central and Eastern Europe. The aim of this article is to analyse this axiom on the set of eight new EU member states. The analysis is based on correlation analysis and regression analysis of the FDI inflow on the GDP growth in the time period 1993 - 2003. The results of the correlation analysis are mixed - definite positive correlation can be noted only in three countries. The regression analysis brought controversial results. Regression tests show that the inflow of FDI failed to support economic growth and large FDI inflows are accompanied by slow GDP growth. The main factor behind these results is possibly the nature of the FDI inflows - more than 70 % of the total FDI inflows came through privatisation and the short-term positive effect of these FDI are limited.
EN
The paper examines the relationship between all types of intra-industry trade and revealed comparative advantage (RCA) in Visegrad Group countries. To do so, it uses an econometric model which describes this relationship in terms of Vernon’s product cycle theory. Due to the panel nature of the data, the fixed effect estimator (FE) and the random effect estimator (RE) were used to estimate the model’s parameters. This enabled the author to analyse intra-industry trade intensity by commodity groups according to SITC classification. The research uses Eurostat data on exports and imports in Poland, Czech Republic, Slovakia, and Hungary in the years 2000–2009.
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