What is it about?
This study is a synthesis of the authors' research on the application of the Investment Development Path (IDP) concept to Poland. The IDP is investigated from the point of view of its general trajectory as well as its geographic and industry/sector idiosyncrasies. Collected data cover a time span ranging from the beginning of the country's transition to a market-led system until 2006. The general IDP analysis approach followed by geographic and industry/sector patterns provide grounds for specific economic policy recommendations. The major challenge for the economic policy is to sustain substantial Foreign Direct Investment (FDI) inflows while, at the same time, spurring faster growth of FDI outflows.
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Why is it important?
The main premise of this paper is that an analysis of the overall IDP of a country should be supplemented by specific studies focusing on the geographic and sectoral/industrial patterns of FDI to reveal the relationships between the overall NOIP and NOIPs with respect to individual countries or groups of countries, as well as within individual sectors and industries of the said country. Such a holistic treatment of the IDP issue allows for a deeper understanding of the underpinnings of a given IDP trajectory and allows for the formulation of more meaningful and workable policy recommendations. Thus, the purpose of this synthesis is to provide findings and conclusions based on a multifaceted analysis of Poland’s FDI situation, within the framework of Dunning’s IDP paradigm, and to use those findings and conclusions to both refine Dunning’s model and offer policy recommendations.
Perspectives
The main explanatory factors behind Poland’s IDP can be identified as the size of her internal market, her evolving macroeconomic condition and her economic policy choices. These choices have been generally positioned in a neo-liberal, open door approach towards FDI, which thus implies little involvement designed to stimulate outward FDI. But, the hereby proposed role of economic policy in the IDP model, as applied to Poland, lies not in expecting or having the growth of inward FDI slow down, or even in decreasing the inward FDI stock, but rather in sustaining growth in the said inward FDI and, at the same time, securing faster growth and higher absolute levels of outward FDI. This appears to be one of the main and most challenging tasks facing Poland’s economic policy-makers today and in the years to come in the domain of FDI.
Marian Gorynia
Uniwersytet Ekonomiczny w Poznaniu
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This page is a summary of: Poland's Investment Development Path: in search of a synthesis, International Journal of Economic Policy in Emerging Economies, January 2009, Inderscience Publishers,
DOI: 10.1504/ijepee.2009.027635.
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