Foreign Direct Investment in Poland

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Foreign Direct Investment in Poland Foreign direct investment, according to the OECD definition, means an investment made by a resident of one country (the direct investor) in order to achieve long-term benefits of capital employed in the company - a resident of another country (called the direct investment enterprise). Usually, foreign investment in many ways have a positive impact on the economy of the country in which they occur. The introduction of new technologies leads to the modernization of production and increase the level and the adaptation of new methods of management and organization improves the functioning of the company. Companies with foreign capital play an important role in the reconstruction and modernization of the…show more content…
In 2007, FDI reached a historical value 17.2 mld euro - These are illustrated in the table. FDI inflows into Polish in 1991 was characterized by volatility, both in the holder (industry) and the present (the structure of the investment). Throughout the period of foreign investors particularly interested in certain industries, which included, among others manufacturing, financial intermediation, trade, warehouse and logistics centers. Initially, most funds were located in entities engaged in industrial activity, including the processor (78% of FDI in 1993). Gradually, the share of FDI in industry decreased and in 1997 accounted for 62% (a significant share have large privatizations). In subsequent years, the direction of investments evolved, including to the trade and financial services, whose share in 2005 was respectively 18% and 20%. In 2005, the share of investment in the industry were already much lower than in previous years and was around 37%. The significance of FDI in transport, storage and communication. In the 90s the structure of FDI tends to occur: • an increase in foreign liabilities in the form of loans to businesses investing in their foreign partners, • an increase in income transfers to home countries investing entities, • lowering of reinvested profits (Reinvested earnings attributable to determine the direct investor 's share of profit, which is in the direct investment enterprise and it is devoted to the development of the
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