Relationships between Macroeconomics Indicators and Investments of Enterprises: Evidence from Poland

Abstract

Purpose: The paper aims to analyze the impact of macroeconomics factors, including their delay on investments of enterprises in Poland in the years 2005-2018. Design/Methodology/Approach: The authors use statistical analysis to verify the hypotheses. First, the test of KPSS was done to check the stationarity of the variables. The next step was to calculate coefficients of linear correlation of Pearson between two subgroups of variables. After that, the causality of Granger was done. Findings: There is a relationship between actual investment spending of enterprises and the value of economic growth and its components but only in some cases. Moreover, past investments have a negative impact on investment spending of medium and large-sized companies. However, there is no evidence that inventory investments influence the investment spending of enterprises, and fiscal preferences positively impact on changes in the value of actual investment spending of companies. Practical Implications: The findings could change the rules of preparing predictions for investment spending in Poland. Furthermore, it may affect the changes in fiscal preferences. Originality/Value: The paper contributes to the macroeconomics theory in the area of economic growth. Furthermore, it also makes insights into the theory of incentives, particularly in fiscal preferences.