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Evolution of the Motives for Foreign Direct Investments in Poland between 1990 and 2018

Author

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  • Pawel Zasadzki
  • Damian Opalach

Abstract

Purpose: The main purpose of this study is to identify and evaluate changes in the motivation for making foreign direct investments in Poland between 1990 and 2018. Design/Methodology/Approach: The study was divided into two stages. The first stage covered the period from 1990 to 2008, for which our analysis of the motivation behind FDI in Poland was based on results of studies completed by other authors. The second research stage involved analyses based on our direct survey research conducted according to the CAWI method among 1,965 companies which started economic activity in Poland between 2009 and 2018. The research was conducted using a poll approach and a questionnaire designed by the research authors. Findings: The review of the studies conducted by other researchers suggests that the motives for undertaking FDI in Poland are relatively stable. The key reasons, both in 1990-2008 and 2008-2018, were motives connected with business efficiency (cost-related), market and resources. Significantly, factors within the categories of motives which determine investors’ decisions underwent certain modifications over the time period analysed. Practical Implication: Because of their impact on the socio-economic dimension of economy, foreign direct investments have been the subject of research for many years, in an effort to identify the reasons why FDI are made. Exploring the motives and factors which determine the location of FDI in a given country could provide the information necessary to design a policy whose aim is to shape the volume and structure of foreign direct investments. The goal is to achieve desired economic effects. Originality/Value: The social and economic development is determined by well prospering enterprises, including those with foreign capital. It is still necessary to conduct studies in the FDI motives and determinants area in the aspect of forming their value, especially in view of the fact that the current interest in this situation is still very important

Suggested Citation

  • Pawel Zasadzki & Damian Opalach, 2021. "Evolution of the Motives for Foreign Direct Investments in Poland between 1990 and 2018," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 271-283.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:3b:p:271-283
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    References listed on IDEAS

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    3. Chiara Franco & Francesco Rentocchini & Giuseppe Vittucci Marzetti, 2008. "Why do firms invest abroad? An analysis of the motives underlying Foreign Direct Investments," Department of Economics Working Papers 0817, Department of Economics, University of Trento, Italia.
    4. Lu, Jiangyong & Liu, Xiaohui & Wang, Hongling, 2011. "Motives for Outward FDI of Chinese Private Firms Firm Resources, Industry Dynamics, and Government Policies," Management and Organization Review, Cambridge University Press, vol. 7(2), pages 223-248, July.
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    7. Johnson, Andreas, 2006. "FDI inflows to the Transition Economies in Eastern Europe: Magnitude and Determinants," Working Paper Series in Economics and Institutions of Innovation 59, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Foreign direct capital; location factors; FDI motives; determinants of investment.;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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