Analysis of FDI Inflow & Outflow in Poland 08.04.2011 Bis

Analysis of FDI inflow & outflow in Poland

ABU SALHA Asem (33222143), BONDU Guillaume (7086850), CHAVET Laura (77086888), FOSTER Clémentine (77089130), GAILHOUSTE Anne (77086255)Multinational Enterprises - Oral presentationDoctor Smith

Level 6 - undergraduate elective module - Multinational Enterprise

1

Structure of the presentation

Introduction & Presentation of Poland

I.Analysis of the inward Foreign Direct Investment1. Data & statistics2. Sectors of investment

II.Analysis of the outward Foreign Direct Investment1. Data & statistics2. Industries and sectors of investments

III.Future of FDI in Poland

Conclusion – general pattern of FDIBibliography

2 Level 6 - undergraduate elective module - Multinational Enterprise

Introduction & Presentation of Poland


Situated in central Europe, east of Germany (CIA Word Factbook)

Population: 38.1 million in 2010 (Europa)

Republic & parliamentary democracy

Entered the European Union in 2004

GDP per capital: $18,880 (2010 – CIA World Factbook)

Eastern European country with the highest FDI

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 1990’s, Poland was an unattractive country for investors.

Deregulation mid 1990’s 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 Index)

FDI Confidence Index http://www.mamdom.com/polandproperty-fdi_confidence_index_2005.htm


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Analysis of the inward Foreign Direct Investment


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,

o In 2000, Poland was one of the largest recipient of FDI in the region,

o The couple of increase in foreign trade and inflow FDI, the Polish economy developed its openness and competitiveness,

o Multinational’s FDI mainly originate from Netherlands, France and Germany,

o Market & efficiency seekers (Dunning 1993 and 1998) FDI motives in Poland


Inward FDI stock (billion of US$) - country


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Source: National Bank of Poland (2008)

Data & Statistics


Source: National Bank of Poland (2003)

FDI inflow into Poland on the period 1990 - 2001

Data & Statistics


Entry in the EU

Financial crisis (subprime

2007 & financial 2008)

First fall of FDI inflow

Based on World Bank statistics (2010)

Data & Statistics


FDI repartition in CEE and per capital FDI

Source: Kopec (2002)

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

FDI stock represent the amount of investment already in the host country.(investor dictionary.com)

Sectors of investment in 2009


Source: OCDE – Extrait des statistiques

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)

Analysis of the outward Foreign Direct Investment


Data & Statistics – Poland (1990-2005)


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


Data & Statistics – general view

“90% of the biggest Polish manufacturing enterprises run business activities on international markets with internal push factors”

“55% co-operate with foreign partners”

“23% 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)


Growth rates of outward FDI stock

MARJAN and ANDREJA, 2006


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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


Future of Foreign Direct Investment in Poland


Sectors of investment “The future of Polish

enterprises depends largely on their international expansion” (Pawelek-Lubera, 2010)


Conclusion – general pattern Poland is Poland is Poland is Poland is


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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Analysis of FDI Inflow & Outflow in Poland 08.04.2011 Bis