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Foreign direct investment and integration into global production and distribution networks : the case of Poland

Author

Listed:
  • Kaminski, Bartlomiej
  • Smarzynska, Beata K.

Abstract

Not until the end of the twentieth century, the"second globalization,"has the ratio of trade to Gross Domestic Product been comparable to that during the first globalization, which took place at the end of the nineteenth century and was interrupted by World War I. Technological progress has increased the importance of the international division of labor and of global production and distribution networks. Multinational corporatios have been a driving force behind these developments. As a transition economy, Poland provides an interesting case for study, as its sudden opening to foreign investment after a long period of isolation allows the process of integratio into global networks to be studies more clearly. Using Poland as a case study, the authors study multinational corporatios'role in integrating a host country into the increasingly international division of labor. They provide evidence that inflows of foreign direct investment are increasing Poland's participation in global production and distribution networks. They conclude that because of the large volume of foreign direct investment inflows expected in Poland in the near future, Poland's exports--driven by fragmented production production--will continue to expand at even faster rates than observed there recently.

Suggested Citation

  • Kaminski, Bartlomiej & Smarzynska, Beata K., 2001. "Foreign direct investment and integration into global production and distribution networks : the case of Poland," Policy Research Working Paper Series 2646, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2646
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    References listed on IDEAS

    as
    1. Smarzynska, Beata K., 2000. "Technological leadership and foreign investors'choice of entry mode," Policy Research Working Paper Series 2314, The World Bank.
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    Citations

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    Cited by:

    1. J. Caetano & A. Galego & E. Vaz & C. Vieira & I. Vieira, 2002. "The Eastward Enlargement of the Eurozone: Trade and FDI," Eastward Enlargement of the Euro-zone Working Papers wp07, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    2. Gianfranco Simone, 2007. "Specialisation, localisation, and trade value in the wake of cross-border production sharing. The Central Eastern European Countries' case," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(1), pages 106-128, March.
    3. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    4. World Bank, 2005. "Bosnia and Herzegovina : Country Economic Memorandum," World Bank Other Operational Studies 8676, The World Bank.

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