What is it about?
The paper analyses the impact of the factors of production on economic growth in Poland in the years 1992–2012, with particular focus on the impact of foreign direct investment (FDI), and strives to verify whether a causality relationship occurred between GDP and FDI.
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Why is it important?
Whether high GDP dynamics attracted FDI inflows and whether this investment contributed to GDP growth. The Vec-tor Error Correction Method impulse responses and variance decomposition analysis confirmed the bi-directional relationships between FDI and GDP in Poland. However, the impact of GDP on at-tracting FDI inflows to Poland is stronger than that of FDI on GDP growth. The weaker, FDI impact on economic growth results from the structure of inflowing FDI, in which, unfortunately, debt secu-rities prevail. Polish developmental policy should concentrate on three essential determinants (pil-lars) of growth, namely employment growth, attracting FDI (with emphasis on improvement in the type of inflowing investment), and increasing the value and productivity of domestic investment.
Perspectives
I am planning performing examinations for the long term, that is from 1992 to 2016. Findings have important meaning for the economic practice. These examinations can be useful in conducting the strategy of the economic policy of Poland.
ANETA KOSZTOWNIAK
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This page is a summary of: Verification of the relationship between FDI and GDP in Poland, Acta Oeconomica, June 2016, Akademiai Kiado,
DOI: 10.1556/032.2016.66.2.6.
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