Globalization of a Transitional Economy

Abstract

The paper examines Poland's integration with the global economy over the last decade, using international trade and foreign direct investment (FDI) as the dimensions of this integration. First, the authors focus on the evolution of world trade and assess Poland's position in that trade. Then, they examine world-wide trends in FDI and compare FDI inflows into Poland with those into major country groups, including Central and Eastern Europe. The subsequent section of the paper investigates Poland's external economic equilibrium. The main conclusion of the paper is that between 1990 and 2000, the Polish economy was rapidly integrating with the world economy. However, Poland's participation in the globalization process was somewhat unbalanced, with imports and FDI inflows growing much faster than exports. Consequently, the policy implications and recommendations put forward in the last part of the paper concentrate on the issue of improving the competitive potential and export performance of Polish industries and firms.