IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiiiy2020ispecial1p201-214.html
   My bibliography  Save this article

Foreign Direct Investment in Poland and Changes in the Branch Structure

Author

Listed:
  • Wiesława Lizinska
  • Roman Kisiel
  • Alina Zrobek-Rozanska

Abstract

Purpose: The aim of the work is to present changes in the inflow of foreign direct investments (FDI) to Poland, taking into account the structure of the industry. An additional goal is also to indicate the variation in the inflow of capital to industries with a specific degree of technological advancement. Design/Methodology/Approach: The analysis covered the years 2005-2017 to capture, among others the impact of the economic crisis. The analysis for the indicated period was based on data from the National Bank of Poland. Findings: The value of the foreign direct investments flow to Poland varied in 2005-2017. The value of FDI flows in 2008-2010 was similar to that recorded in the years 2014-2016. Three sectors appear to be dominant in cumulative value industrial processing (38.1%), wholesale and retail trade (19.6%) and financial and insurance services (11.7%). The value of foreign capital flow in 2005-2017 into particular types of business activities changed in both absolute and relative terms. The aggregated value of liabilities due to FDI in the sector of high and medium-high tech tended to rise up to a point where it was higher in 2017 than the value in the low-tech sector. Practical Implications: The results of the research indicate which sectors attract foreign capital the most and to what extent the inflow of capital to a given country reflects the behavior of investors on the global market. Originality/Value: The study confirms the need to monitor FDI in individual sectors. It is possible, based on forecasts of changes in the economic situation in the world, to predict the behavior of investors in individual markets.

Suggested Citation

  • Wiesława Lizinska & Roman Kisiel & Alina Zrobek-Rozanska, 2020. "Foreign Direct Investment in Poland and Changes in the Branch Structure," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 201-214.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special1:p:201-214
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/1755/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Groh, Maximilian, 2014. "Strategic Management in Times of Crisis," MPRA Paper 57032, University Library of Munich, Germany, revised 14 Jun 2014.
    2. Piteli, Eleni E.N., 2009. "Foreign Direct Investment in Developed Economies: A Comparison between European and non - European Countries," Papers DYNREG44, Economic and Social Research Institute (ESRI).
    3. Keeley, Alexander Ryota & Matsumoto, Ken’ichi, 2018. "Relative significance of determinants of foreign direct investment in wind and solar energy in developing countries – AHP analysis," Energy Policy, Elsevier, vol. 123(C), pages 337-348.
    4. Hirsch, Cornelius & Krisztin, Tamás & See, Linda, 2020. "Water Resources as Determinants for Foreign Direct Investments in Land - A Gravity Analysis of Foreign Land Acquisitions," Ecological Economics, Elsevier, vol. 170(C).
    5. Vivoda, Vlado, 2011. "Determinants of foreign direct investment in the mining sector in Asia: A comparison between China and India," Resources Policy, Elsevier, vol. 36(1), pages 49-59, March.
    6. Andrzej Cieslik & Giang Hien Tran, 2019. "Determinants of outward FDI from emerging economies," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(2), pages 209-231, June.
    7. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
    8. Alfalih, Abdullah Abdulmohsen & Bel Hadj, Tarek, 2020. "Foreign direct investment determinants in an oil abundant host country: Short and long-run approach for Saudi Arabia," Resources Policy, Elsevier, vol. 66(C).
    9. Jovanka Damoska Sekuloska, 2018. "Causality between foreign direct investment in the automotive sector and export performance of Macedonian economy," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 13(3), pages 427-443, September.
    10. Joshua Aizenman & Yothin Jinjarak & Donghyun Park, 2013. "Capital Flows and Economic Growth in the Era of Financial Integration and Crisis, 1990–2010," Open Economies Review, Springer, vol. 24(3), pages 371-396, July.
    11. Maria Markhaichuk & Irina Zhuckovskaya, 2019. "The spread of the regional intellectual capital: the case of the Russian Federation," Oeconomia Copernicana, Institute of Economic Research, vol. 10(1), pages 89-111, March.
    12. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    13. Katarzyna Cheba & Katarzyna Szopik-Depczynska, 2017. "Multidimensional Comparative Analysis of the Competitiveness of the European Union Countries’ Economies," Working Papers 125/2017, Institute of Economic Research, revised May 2017.
    14. A. Gauselmann & M. Knell & J. Stephan, 2011. "What drives FDI in Central-Eastern Europe? Evidence from the IWH-FDI-Micro database," Post-Communist Economies, Taylor & Francis Journals, vol. 23(3), pages 343-357.
    15. Dunning, John H. & Pak, Yong Suhk & Beldona, Sam, 2007. "Foreign ownership strategies of UK and US international franchisors: An exploratory application of Dunning's envelope paradigm," International Business Review, Elsevier, vol. 16(5), pages 531-548, October.
    16. Jacek Pietrucha & Rafal Zelazny & Magdalena Kozlowska & Oliwia Sojka, 2018. "Import and FDI as channels of international TFP spillovers," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 13(1), pages 55-72, March.
    17. Huay Lee & Hui Tan, 2006. "Technology Transfer, FDI and Economic Growth in the ASEAN Region," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 11(4), pages 394-410.
    18. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    19. Jaroslaw Michal Nazarczuk & Anna Krajewska, 2018. "Local determinants of foreign direct investment in Poland: the role of relative distance," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 13(1), pages 73-88, March.
    20. Jensen, Nathan M., 2003. "Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment," International Organization, Cambridge University Press, vol. 57(3), pages 587-616, July.
    21. Laura Alfaro, 2017. "Gains from Foreign Direct Investment: Macro and Micro Approaches," The World Bank Economic Review, World Bank, vol. 30(Supplemen), pages 2-15.
    22. Seung‐Hyun Lee & Sangcheol Song, 2012. "Host country uncertainty, intra‐MNC production shifts, and subsidiary performance," Strategic Management Journal, Wiley Blackwell, vol. 33(11), pages 1331-1340, November.
    23. Chen, Jiyong & Liu, Yishuang & Liu, Wei, 2020. "Investment facilitation and China's outward foreign direct investment along the belt and road," China Economic Review, Elsevier, vol. 61(C).
    24. Katarzyna Cheba & Katarzyna Szopik-Depczyñska, 2017. "Multidimensional comparative analysis of the competitive capacity of the European Union countries and geographical regions," Oeconomia Copernicana, Institute of Economic Research, vol. 8(4), pages 487-504, December.
    25. Maximilian Groh, 2014. "Strategic Management In Times Of Crisis," American Journal of Economics and Business Administration, Science Publications, vol. 6(2), pages 49-57, June.
    26. Sultana, Nasrin & Turkina, Ekaterina, 2020. "Foreign direct investment, technological advancement, and absorptive capacity: A network analysis," International Business Review, Elsevier, vol. 29(2).
    27. Osei, Michael J. & Kim, Jaebeom, 2020. "Foreign direct investment and economic growth: Is more financial development better?," Economic Modelling, Elsevier, vol. 93(C), pages 154-161.
    28. John H. Dunning & Peter Robson, 1987. "Multinational Corporate Integration and Regional Economic Integration," Journal of Common Market Studies, Wiley Blackwell, vol. 26(2), pages 103-125, December.
    29. Aleksandra Zygmunt, 2019. "External linkages and intellectual assets as indicators of firms’ innovation activities: results from the Czech Republic and Poland," Oeconomia Copernicana, Institute of Economic Research, vol. 10(2), pages 291-308, June.
    30. Karima Kourtit & Yuyuan Wen & Peter Nijkamp & Qichun Zhang & Ming Zhu & Yuan Yuan, 2014. "FDI penetration and manufacturing agglomeration: an analysis based on empirical evidence from 21 industries (2004–2010)," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(4), pages 349-360, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Scalamonti, Francesco, 2024. "The foreign investments-growth nexus in underdeveloped countries: the state-of-art of research analysing a selected and recent empirical literature (2020-2022)," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michal Fabuš & Marek Csabay, 2018. "State aid and investment: case of Slovakia," Post-Print hal-02342826, HAL.
    2. Michal Fabuš & Marek Csabay, 2018. "State aid and investment: case of Slovakia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(2), pages 480-488, December.
    3. Amendolagine, Vito & De Pascale, Gianluigi & Faccilongo, Nicola, 2021. "International capital mobility and corporate tax revenues: How do controlled foreign company rules and innovation shape this relationship?," Economic Modelling, Elsevier, vol. 101(C).
    4. Hsieh, Hui-Ching & Boarelli, Sofia & Vu, Thi Huyen Chi, 2019. "The effects of economic policy uncertainty on outward foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 377-392.
    5. Shi, Buchao & Huang, Liangxiong & Wei, Shengmin & Geng, Xinyue, 2022. "Overseas industrial parks and China's outward foreign direct investment," Journal of Asian Economics, Elsevier, vol. 83(C).
    6. Jaewon Jung, 2022. "The Nexus between Institutional Quality and Global Market Structure: Export versus FDI," Mathematics, MDPI, vol. 10(24), pages 1-14, December.
    7. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    8. Philipp Harms & Pierre-Guillaume Méon, 2013. "The Growth Effects of Greenfield Investment and Mergers and Acquisitions: Econometric Investigation and Implication for MENA Countries," Working Papers 794, Economic Research Forum, revised Nov 2013.
    9. Karam M. Ghazi, 2017. "The Impact of Strategic Planning on Crisis Management Styles in the 5- star Hotels," Tourism Research Institute, Journal of Tourism Research, vol. 18(1), pages 148-164, November.
    10. Arnold, Jens Matthias & Javorcik, Beata Smarzynska, 2005. "Gifted kids or pushy parents? Foreign acquisitions and plant performance in Indonesia," Policy Research Working Paper Series 3597, The World Bank.
    11. Pick-Soon Ling & Ming K. Lim & Ming-Lang Tseng, 2020. "Assessing Sustainable Foreign Direct Investment Performance in Malaysia: A Comparison on Policy Makers and Investor Perceptions," Sustainability, MDPI, vol. 12(20), pages 1-38, October.
    12. Argentino Pessoa, 2008. "Multinational Corporations, Foreign Investment, and Royalties and License Fees: Effects on Host-Country Total Factor Productivity," Notas Económicas, Faculty of Economics, University of Coimbra, issue 28, pages 6-31, December.
    13. Lammertjan Dam & Bert Scholtens & Elmer Sterken, 2007. "Corporate Governance and International Location Decisions of Multinational Enterprises," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1330-1347, November.
    14. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    15. Burger, Martijn & Ianchovichina, Elena & Rijkers, Bob, 2013. "Risky business : political instability and greenfield foreign direct investment in the Arab world," Policy Research Working Paper Series 6716, The World Bank.
    16. Ergun Dogan & Koi Nyen Wong, 2020. "Sources and Channels of International Knowledge Spillovers in ASEAN‐5: The Role of Institutional Quality," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(4), pages 470-486, May.
    17. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    18. Lim, King Yoong, 2019. "Industrial Transformation With Heterogeneous Labor And Foreign Experts," Macroeconomic Dynamics, Cambridge University Press, vol. 23(8), pages 3225-3266, December.
    19. Schiffbauer, Marc & Siedschlag, Iulia & Ruane, Frances, 2017. "Do foreign mergers and acquisitions boost firm productivity?," International Business Review, Elsevier, vol. 26(6), pages 1124-1140.
    20. Linda S. Goldberg, 2007. "Financial sector FDI and host countries: new and old lessons," Economic Policy Review, Federal Reserve Bank of New York, vol. 13(Mar), pages 1-17.

    More about this item

    Keywords

    Foreign Direct Investment; investment structure; FDI distribution.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiii:y:2020:i:special1:p:201-214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.