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The Efficiency of Foreign Direct Investments in Poland – Does the Risk of Investing in Emerging Market Country Lead to a High Rate of Return?

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  • Zabolotnyy, Serhiy

Abstract

The goal of a research was to determine the efficiency of foreign direct investments (FDI) in Poland comparing to alternative forms of capital allocation. The analysis of Polish FDI according to economic activity and geographical zone was conducted. In 2000-2012 the inward position of FDI rose significantly due to a surge in equity capital and reinvested earnings as well as in other capital in form of various debt instruments. Generally the rate of return on FDI in Poland was higher than the Polish and US government bond yields that gave an evidence of a higher efficiency of FDI comparing to a low risk financial instruments.

Suggested Citation

  • Zabolotnyy, Serhiy, 2015. "The Efficiency of Foreign Direct Investments in Poland – Does the Risk of Investing in Emerging Market Country Lead to a High Rate of Return?," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2015(6), December.
    • Handle: RePEc:ags:paaero:233524
    DOI: 10.22004/ag.econ.233524
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    References listed on IDEAS

    as
    1. Zabolotnyy, Serhiy, 2014. "Polish Direct Investments Abroad as an Instrument of Value Creation for Investors," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2014(6).
    2. Miroslaw Wasilewski & Serhiy Zabolotnyy, 2013. "The Dependence Between Volatility of Share Prices and Shareholder Return of the Companies from WIG-Ukraine Index of Warsaw Stock Exchange," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 54-63, June.
    3. Peter Blair Henry & Prakash Kannan, 2008. "Growth and Returns in Emerging Markets," NBER Chapters, in: International Financial Issues in the Pacific Rim: Global Imbalances, Financial Liberalization, and Exchange Rate Policy, pages 241-265, National Bureau of Economic Research, Inc.
    4. Steven Globerman, 1979. "Foreign Direct Investment and `Spillover' Efficiency Benefits in Canadian Manufacturing Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 12(1), pages 42-56, February.
    Full references (including those not matched with items on IDEAS)

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