RESEARCH PAPER
Relationships between Foreign Trade and Foreign Direct Investment in Poland’s Manufacturing Industry
 
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Publish date: 2004-05-25
 
Gospodarka Narodowa 2004;192(5-6):1–28
ABSTRACT
Since the 1990s Poland has been seen as the main area for foreign direct investment inflow to Central and Eastern Europe. Capital concentration in two sectors of the economy, namely industry and trade, which has been continuing for several years is a characteristic feature of foreign investment in Poland. This article aims to evaluate the impact of foreign direct investment on the size and structure of Polish foreign trade in manufacturing industry products in the years 195-2002. Calculations which have been made indicate that, in general, foreign investment in Polish industry is complementary to foreign trade and does not contribute to improvement of the existing structure of exports. Progress in the systemic transition determines not only the nature of foreign investment but also its impact on foreign trade flows. The fall in the number of industries in which companies with foreign participation record trade deficits may point to a change in foreign investors’ approach. Namely, their activities become motivated by making use of the Polish manufacturing industry as an "export platform" for labour-intensive industries transferred from the home country of investors.
eISSN:2300-5238
ISSN:0867-0005