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2014 | Book

Location Choice and Clustering of Foreign Subsidiaries on the Economic Sustainability and Competitiveness of the Host Regions Read chapter Read first chapter

Determinants of FDI Flows within Emerging Economies

A Case Study of Poland

Author: Arkadiusz Mironko

Publisher: Palgrave Macmillan UK

Book Series : Studies in Economic Transition

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

This study provides a detailed examination of foreign direct investment (FDI) in Poland and explores the impact this has on foreign investment policy. It analyzes and identifies location patterns of FDI and strives to determine the supporting motives behind location choices of foreign companies.

Table of Contents

Frontmatter
1. Location Choice and Clustering of Foreign Subsidiaries on the Economic Sustainability and Competitiveness of the Host Regions
Abstract
In the last two decades many countries in Central and Eastern Europe have ventured onto the road of economic development via privatization economic reorganization and opening their doors to foreign investors while adopting the rules of the free market economy. For most countries of Central Europe (CE), this journey has by now culminated in their joining the free economic trade and movement of people in different zones of the European Union (EU). Included in that group is Poland, the country whose economic environment and attractiveness to foreign investors is the subject of this study.
Arkadiusz Mironko
2. Heterogeneity of Economic Space: Introduction of the Problem
Abstract
Although there is a common understanding that almost all industries are somewhat localized, a number of studies measure the localization levels of FDI and its influence on host economies. That relationship between collocating firms and the formation of centers of economic activity within a country influence the location choices of future entrants into that country (von Thünen, 1826, trans, of 1966; Marshall, 1920; Krugman, 1991). Also, so-called “Marshallian factor” market externalities (David and Rosenbloom, 1990), which include capital stock and size of the labor force and markets, strongly contribute to the growth and competitiveness of urban-industrial agglomerations, thereby enhancing the attractiveness of a region to potential foreign investors. Even earlier than Marshall, Adam Smith (1776) spoke of trade impacts on location decisions, suggesting that trade and location are interrelated and have a significant role in regional economic geography.
Arkadiusz Mironko
3. Local Strengths and Foreign Firms’ Location Choice: The Research Design, Data, and Methodology
Abstract
To determine the location patterns of FDI in Poland, the following data set on foreign investors in the country will be used, including their country-of-origin and industrial classification and their location within Poland — down to the level of sub-region of Polish administration. The goal of this study will be to measure the degree of geographic concentration of foreign firms across the voivodships (and, where warranted by the scale of intensity, also across powiats,1 sub-regions) and attempt to determine causes of concentration of FDI according to both industrial activity class and country-of-origin of the investment, while investigating their potential for future ability to attract foreign investment into the regions. A further goal would be to examine the existence and development of industrial trajectories and the level of proximity between the leading firms and small and medium enterprises (SMEs) investing in Poland.
Arkadiusz Mironko
4. Concentration of Foreign Firms in Poland based on Industrial Specialization and Country-of-Origin Criteria: The Results and Summary of the Evidence
Abstract
Spaces are generally explicitly or implicitly divided and polarized by a number of intrinsic and extrinsic forces that influence their development. This research identifies and reveals the existing location strengths within Poland — applying proposed index measures RLAis-Hl and RLAco-H2 — and seeks to determine specific geographic advantages and heterogeneity of the regions. Further, analysis is made based on the existing industrial development path and local factor endowments supporting the investment in them — H3s. Also, further strategic location choices between leading industry firms and followers will be revealed from the results.
Arkadiusz Mironko
5. The Results of the Effects of Location Choices by Industry Leading Firms Investing in Poland on the Location Choices of Small and Medium-Size Foreign Investors
Abstract
This chapter examines the effect of the presence in Poland of leading companies (i.e., Fortune 500 firms) on the presence of other leading investors and of non-leading firms, by measuring the change in the level of presence of both types of firms in the participating regions (H4s). For the purpose of testing these hypotheses, H4a and H4b, a cross-sectional result for the years 2000 and 2006 is used in order to reflect the relationship between different types of firms in Poland during this period.
Arkadiusz Mironko
6. Final Analysis of FDI Patterns Across Regions in Poland and Policy Recommendations
Abstract
This research identifies and reveals the existing preferred location choices for FDI within Poland and determines specific geographic advantages and heterogeneity of its regions. The results may be found relevant to future investors in determining preferred locations for establishing their subsidiaries in Poland. This research also provides a framework for the analysis of location decisions by multinational firms in the regions within developing economies by addressing the questions raised.
Arkadiusz Mironko
7. Afterword
Abstract
Since the end of the period of the study covered in this book, Poland keeps moving steadily towards being an attractive destination for FDI in Central Europe. In fact, according to the latest available information, mainly from media reports,1 Poland has established itself as a leader in FDI-related job creation over the last few years, and not only in Central Europe but in Europe as a whole. According to the same report, only the UK and Russia were better. Poland came in third (having been seventh last year), with a 67.3 percent increase in foreign investment related jobs.
Arkadiusz Mironko
Backmatter
Metadata
Title
Determinants of FDI Flows within Emerging Economies
Author
Arkadiusz Mironko
Copyright Year
2014
Publisher
Palgrave Macmillan UK
Electronic ISBN
978-1-137-37216-1
Print ISBN
978-1-349-47601-5
DOI
https://doi.org/10.1057/9781137372161