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Verification of the Relationship between FDI and GDP in Poland

Author

Listed:
  • Aneta Kosztowniak

    (Faculty of Economics and Legal, Department of Economic Policy and Banking, Kazimierz Pulaski University of Technology and Humanities in Radom, Poland)

Abstract

The paper analyses the impact of the factors of production on economic growth in Poland in the years 1992–2012, with particular focus on the impact of foreign direct investment (FDI), and strives to verify whether a causality relationship occurred between GDP and FDI, i.e. whether high GDP dynamics attracted FDI inflows and whether this investment contributed to GDP growth. The Vector Error Correction Method impulse responses and variance decomposition analysis confirmed the bi-directional relationships between FDI and GDP in Poland. However, the impact of GDP on attracting FDI inflows to Poland is stronger than that of FDI on GDP growth. Polish developmental policy should concentrate on three essential determinants (pillars) of growth, namely employment growth, attracting FDI (with emphasis on improvement in the type of inflowing investment), and increasing the value and productivity of domestic investment.

Suggested Citation

  • Aneta Kosztowniak, 2016. "Verification of the Relationship between FDI and GDP in Poland," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(2), pages 307-332, June.
    • Handle: RePEc:aka:aoecon:v:66:y:2016:i:2:p:307-332
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    File URL: http://www.akademiai.com/doi/pdf/10.1556/032.2016.66.2.6
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    Citations

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    Cited by:

    1. Agnieszka Alińska & Beata Zofia Filipiak & Aneta Kosztowniak, 2018. "The Importance of the Public Sector in Sustainable Development in Poland," Sustainability, MDPI, vol. 10(9), pages 1-24, September.
    2. Magdolna Sass & Jana Vlčková, 2019. "Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 73-105, December.
    3. Ying Nie & Qingjie Liu & Rong Liu & Dexiao Ren & Yao Zhong & Feng Yu, 2022. "The Threshold Effect of FDI on CO 2 Emission in Belt and Road Countries," IJERPH, MDPI, vol. 19(6), pages 1-20, March.
    4. Bilas, Vlatka, 2019. "Foreign Direct Investment And Economic Growth Relationship In Croatia," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 10(2), pages 175-187.
    5. Natalia Iwaszczuk & Jacek Wolak & Aleksander Iwaszczuk, 2021. "Turkmenistan’s Gas Sector Development Scenarios Based on Econometric and SWOT Analysis," Energies, MDPI, vol. 14(10), pages 1-18, May.
    6. Yu Cheng Lin & Sang Do Park, 2023. "Effects of FDI, External Trade, and Human Capital of the ICT Industry on Sustainable Development in Taiwan," Sustainability, MDPI, vol. 15(14), pages 1-24, July.

    More about this item

    Keywords

    FDI; GDP; Poland; bilateral causality; VECM; the response function; variance decomposition;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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