Determinants of FDI and Entry Modes of Polish Multinational Enterprises

Abstract

In this study we documents what determines the FDI and entry modes of emerging multinational enterprises from Poland across different sectors in the years 2003-2010. Using an original database on international acquisitions and greenfield foreign investments of Polish firms we find that market-seeking factors are important determinants of foreign investments regardless of the entry mode of the Polish companies. However, they seem to be more important for the industry sector including manufacturing than for investments in service sector. Moreover, we find that Polish multination’s prefer to invest in host countries that are close to their home countries. Again, the proximity between the home and host country have been especially relevant for greenfield investments and acquisitions in the industry sector including manufacturing than for investments in service sector abroad.