Foreign Direct Investments in Poland - Report for the End of 2004 and New Facts

Abstract

Joining the European Union is regarded as a chance for Poland to improve its economic growth and to catch up the EU-15 wealth level. However, it is necessary to remember that this is going to be a difficult and long-lasting process, where success is possible only on the condition that suitable economic policy is implemented. Such policy should provide stable frameworks to support business development, attract foreign direct investments (FDI), keep the discipline in public finances and assure the right institutional ability and managerial skills to absorb the EU funds. In the study:- FDI inflows to Poland and other new EU member states have been evaluated from the viewpoint of the size of the economy represented by its GDP per capita;- The amount of FDI inward stock in Poland over the years 1993-2004 and its structure from the viewpoint of the investor's country of origin and sector of allocation have been evaluated (data published by PAIiIZ);- The activity of foreign capital in special economic zones (SEZ), entrepreneurship-supporting enclaves in the regions characterised by extremely difficult socio-economic conditions, has been identified;- FDI inflows to Poland in 2005-2007 (data published by NBP) have been presented.According to the estimates, appropriate economic transformation in Poland and keeping a 5% economic growth rate in Poland require approx. USD 10 billion of annual FDI inflow. With regard to those forecasts, the amount of FDI inflow to Poland seems to be insufficient to keep the desired economic growth rate, and the investment incentives in the form of special economic zones do not meet expectations.