FDI in Central and Eastern Europe: Business Environment and Current FDI Trends in Poland

Abstract

The Central and Eastern European Countries (CEEC) acknowledge foreign direct investment (FDI) as an essential tool in the development and modernization of their economies. The first part of this paper centers on economic stability and FDI inflows in the CEE indicating the Polish leadership in inward FDI inflow. The section of this study focuses on Poland and provides a description of business environment and current FDI trends in Poland. It analyzes the factors influencing the inward FDI in Poland, such as: economic stability, cost of labor, EU membership, regulatory framework. It presents the current FDI trends in Poland, such as: number of foreign firms, geographic origin of inward FDI, inward vs. outward FDI. The future research will focus on the impact of inward FDI stock on economic growth in Poland. To analyze the impact of the FDI stock on output growth in the Polish economy, a model of the economic growth based on the production function will be used