Abstract
The core of this article is to study the impact of the last world economic crisis and world foreign direct investment fluctuations in the same period. The empirical study was based on data published by UNCTAD in annual reports, called World Investment Report. The research concerning the Polish economy was based on data of Polish National Bank. For measuring the relation between studied phenomena, the analysis of correlation was used, as well as the structure rate and the rate of growth. For the evolution of GDP fluctuations in Poland in the years 1990-2012, both the method of statistical analysis and the descriptive method were used. In the latest World Investment Report (WIR 2012) one can find the current world financial crisis involved in the drop of foreign direct investment flows. That was characteristic for the Polish economy, too. The main reasons for that are the descending investment capability of corporations, because of poorer profits level and higher costs of bank credits. The important argument for corporation investment slump is that the prospects of world economic growth are unfavourable.
Highlights
Business cycle fluctuations that are inherent in a market economy cover most areas of economic life
The analysis of international capital flows in the form of foreign direct investment (FDI) shows that, just as domestic investment, they are subject to cyclical changes
This is evidenced by the recent global economic crisis, which caused a decline in global FDI flows, including the reduction of inflow into the Polish economy
Summary
Business cycle fluctuations that are inherent in a market economy cover most areas of economic life. The analysis of international capital flows in the form of FDI shows that, just as domestic investment, they are subject to cyclical changes This is evidenced by the recent global economic crisis, which caused a decline in global FDI flows, including the reduction of inflow into the Polish economy. This is caused by the reduction in the ability of companies to invest mainly because of limited access to the financial resources of their own (reduced profits) as well as foreign ones (higher cost of capital loans), and a decrease in the willingness to invest, resulting from the negative economic growth forecast In these circumstances, in order to stimulate further inflows of FDI into the Polish economy, it is important to carry out an appropriate policy of attracting foreign direct investment.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
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.
