Analysis of FDI inflow & outflow in Poland

ABU SALHA Asem (33222143), BONDU Guillaume (7086850), CHAVET Laura (77086888), FOSTER Clmentine (77089130), GAILHOUSTE Anne

(77086255)

Multinational Enterprises - Oral presentation Doctor Smith

1 Level 6 - undergraduate elective module - Multinational Enterprise

Structure of the presentation

Introduction & Presentation of Poland I.Analysis of the inward Foreign Direct Investment 1. Data & statistics 2. Sectors of investment II.Analysis of the outward Foreign Direct Investment 1. Data & statistics 2. Industries and sectors of investments III.Future of FDI in Poland Conclusion general pattern of FDI Bibliography
2 Level 6 - undergraduate elective module - Multinational Enterprise

Introduction & Presentation of Poland

Situated in central Europe, Germany (CIA Word Factbook) Population: 38.1 million in 2010 east
(Europa)

of

Republic & parliamentary democracy Entered the European Union in 2004 GDP per capital: $18,880
Factbook) (2010 CIA World

Eastern European highest FDI

country

with

the

Level 6 - undergraduate elective module - Multinational Enterprise

Attracting foreign investment has become a key component of national strategies for Central and Eastern European (CEE) countries FDI is a tool in the development and modernization of economies Promotion of free movement of capital In 1990s, Poland was an unattractive country for investors. Deregulation mid 1990s and adherence to the EU mid 2004 has made Poland an interesting country and a stronger economic player In 2005, Poland was the 5th most preferred investment location worldwide (FDI Confidence FDI Confidence Index http://www.mamdom.com/polandpropertyIndex) fdi_confidence_index_2005.htm

Level 6 - undergraduate elective module - Multinational Enterprise

Analysis of the inward Foreign Direct Investment

Level 6 - undergraduate elective module - Multinational Enterprise

Data & Statistics general view of inflow

o

Inflow of FDI in Poland played a key role in the development of the country in the transformation of post-communist economies, In 2000, Poland was one of the largest recipient of FDI in the region, The couple of increase in foreign trade and inflow FDI, the Polish economy developed its openness and competitiveness, Multinationals FDI mainly originate from Netherlands, France and Germany, Market & efficiency seekers (Dunning 1993 and 1998) FDI motives in Poland
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Inward FDI stock (billion of US$) - country

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Source: National Bank of Poland (2008)

Data & Statistics

FDI inflow into Poland on the period 1990 - 2001

Source: National Bank of Poland (2003)

Level 6 - undergraduate elective module - Multinational Enterprise

Data & Statistics

Entry in the EU First fall of FDI inflow

Financial crisis (subprime 2007 & financial 2008)

Level 6 - undergraduate elective module - Multinational Enterprise

Based on World Bank statistics (2010)

Data & Statistics

FDI repartition in CEE and per capital FDI
FDI stock represent the amount of investment already in the host country.
(investor dictionary.com)

The entry in the EU would increase the competition for FDI.

Source: Kopec (2002)

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Sectors of investment in 2009

Source: OCDE Extrait des statistiques

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Level 6 - undergraduate elective module - Multinational Enterprise

Out of the 20 largest investors in the country (data from December 2001), four of them are from the service industries (banking, insurance, telecommunication, retail trade).

Source: Durka (Ed.) (2002)

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Analysis of the outward Foreign Direct Investment

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Data & Statistics Poland (1990-2005)

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Data & Statistics general view

Outward FDI enables firms to exploit the advantages of globalisation and to draw on factor endowment abroad MARJAN and ANDREJA, 2006 Every third company operates on the French, Russian and Hungarian market and the Belarusian, Lithuanian and British markets attracted one in four of the surveyed companies Outward FDI can be seen as a substitue for local investment

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Data & Statistics general view

90%

of the biggest Polish manufacturing enterprises run business activities on international markets with internal push factors
55% 23%

co-operate with foreign partners

of the enterprises established commercial branches abroad and 18% opened production facilities outside Poland.
Investments

in production facilities abroad : 1/5 companies takes such

actions
(Pawelek-Lubera,

2010)

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Growth rates of outward FDI stock

MARJAN and ANDREJA, 2006

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Level 6 - undergraduate elective module - Multinational Enterprise

Outward FDI stocks as a percentage of GDP

MARJAN and ANDREJA, 2006

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Sectors of investment

Accession to the European Union in 2004 was a real turning point in the field. EU membership is a great advantage for foreign investors in Poland but also for Polish companies seeking new destinations outside the country

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Future of Foreign Direct Investment in Poland

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Sectors of investment

The future of Polish enterprises depends largely on their international expansion

(Pawelek-Lubera, 2010)

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Conclusion general pattern

Poland is Poland is Poland is Poland is

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Bibliography
CIA World Factbook (2011), Poland, Available from < https://www.cia.gov/library/publications/the-world-factbook/geos/pl.html> [Internet], [accessed on the 10th March 2011] Europa Gateway to the European Union (2011), Poland, Available from < http://europa.eu/about-eu/member-countries/countries/member-states/poland/index_en.htm> [Internet], [accessed on the 15th March 2011] Poland is Poland is Poland is

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Level 6 - undergraduate elective module - Multinational Enterprise