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The Clusters As A Factor Attracting Foreign Direct Investments In Less Developed Regions

  • Ewa Bojar

    (Lublin University of Technology Faculty of Management)

  • Matylda Bojar

    (Lublin University of Technology Faculty of Management)

  • Tomasz sminda

    (Lublin University of Technology Faculty of Management)

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    The role of cluster initiatives in economic and social development is becoming increasingly important. Low level of innovation, poor competitiveness, high levels of unemployment and emigration of qualified workforce are severe problems that less developed regions are facing. Therefore, various cluster initiatives could be a solution. Clusters stimulate innovations and contribute to the increase of competitiveness of local economy and individual businesses. They should also encourage foreign capital investments. Foreign direct investments are one of the most important factors stimulating economic growth. The present paper investigates concept and essence of clusters, the concept of foreign direct investments and Polish experiences in attracting foreign capital. The authors try to answer the questions: how do clusters impact regional attractiveness for foreign direct investments? Which are the reasons behind the locational choices of foreign direct investments near a cluster based environment? What is the role of foreign direct investment in clusters and, finally, what is the impact on regional development from both clusters and foreign direct investment?

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    Article provided by Romanian Regional Science Association in its journal Romanian Journal of Regional Science.

    Volume (Year): 2 (2008)
    Issue (Month): 1 (June)
    Pages: 54-67

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    Handle: RePEc:rrs:journl:v:2:y:2008:i:1:p:54-67
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    1. Etienne B. Yehoue, 2005. "Clusters As a Driving Engine for FDI," IMF Working Papers 05/193, International Monetary Fund.
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