Year-end Sale % OFF 
Abstract
In the last two decades, Poland became an important recipient of foreign direct investment most of which comes from the developed West European countries. This study uses panel data analysis to empirically examine the determinants of multinational activity of firms from the OECD member states in Poland during the period 1996–2015. The model’s estimated empirical specification is based on the modified knowledge-capital model of the multinational enterprise that includes two types of capital: human and physical. Our empirical evidence points to the vertical motive as the primary reason for undertaking foreign direct investment in Poland by multinational firms based in the OECD member states.
Highlights
Multinational enterprises (MNEs) are important actors in the ongoing process of globalization
We used standard panel data analysis to empirically investigate various reasons for inward foreign direct investment (FDI) originating from the OECD member states in Poland during the period 1996–2015
Our empirical evidence for the full sample period pointed to efficiency seeking rather than market seeking as the main reason for FDI in Poland which favored the pure vertically-integrated model of multinational enterprise over the knowledge capital model and the pure horizontal model
Summary
Multinational enterprises (MNEs) are important actors in the ongoing process of globalization. The majority of foreign capital stock invested in Poland in 2017 originated from the other OECD countries—$227.6 billions (95.4%), and mostly from the other EU member states—$220.0 billions (92.3%). Foreign direct investment undertaken to serve local markets is often called horizontal FDI. It refers to producing abroad roughly the same goods and services as in the home country. Foreign direct investment aiming at cost reductions is called vertical FDI. It involves fragmenting production processes and locating various stages in different countries where the factors used intensively in particular stages are relatively cheap. The paper concludes with final remarks, policy guidelines and directions for future studies
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
