Foreign Direct Investment in Poland and Changes in the Branch Structure

Wiesława Lizinska, Roman Kisiel, Alina Zrobek-Rozanska
European Research Studies Journal, Volume XXIII, Special Issue 1, 201-214, 2020
DOI: 10.35808/ersj/1755


Purpose: The aim of the work is to present changes in the inflow of foreign direct investments (FDI) to Poland, taking into account the structure of the industry. An additional goal is also to indicate the variation in the inflow of capital to industries with a specific degree of technological advancement. Design/Methodology/Approach: The analysis covered the years 2005-2017 to capture, among others the impact of the economic crisis. The analysis for the indicated period was based on data from the National Bank of Poland. Findings: The value of the foreign direct investments flow to Poland varied in 2005-2017. The value of FDI flows in 2008-2010 was similar to that recorded in the years 2014-2016. Three sectors appear to be dominant in cumulative value industrial processing (38.1%), wholesale and retail trade (19.6%) and financial and insurance services (11.7%). The value of foreign capital flow in 2005-2017 into particular types of business activities changed in both absolute and relative terms. The aggregated value of liabilities due to FDI in the sector of high and medium-high tech tended to rise up to a point where it was higher in 2017 than the value in the low-tech sector. Practical Implications: The results of the research indicate which sectors attract foreign capital the most and to what extent the inflow of capital to a given country reflects the behavior of investors on the global market. Originality/Value: The study confirms the need to monitor FDI in individual sectors. It is possible, based on forecasts of changes in the economic situation in the world, to predict the behavior of investors in individual markets.

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