Eastern Promise? Foreign Investment in Poland

Abstract

Provides a critical overview of the role of foreign direct investment in the transition to market economies in Eastern Europe, and Poland in particular. Patterns of investment are examined in the wider context of changes in the global pattern of international trade and production, taking into account the specific nature of the Polish economy in terms of industrial structure and institutions. The industrial legacy of the Communist period and the low level of savings makes foreign investment critical for updating obsolete capital and bringing Western business expertise. It is suggested that firms have been attracted by low costs, new markets and, in particular, market domination. However, political instability and embryonic market structures suggest that firms have found other means of accessing markets and only large transnational companies in a limited number of sectors have undertaken investment of any significance.

Citation

Hardy, J. (1994), "Eastern Promise? Foreign Investment in Poland", European Business Review, Vol. 94 No. 5, pp. 28-37. https://doi.org/10.1108/09555349410068867