EconPapers    
Economics at your fingertips  
 

Foreign capital and its effects on investment outlays in Polish manufacturing in the first years of transition, 1993-1998

Dorota Ciołek () and Anna Golejewska ()

No 604, Working Papers of Economics of European Integration Division from The Univeristy of Gdansk, Faculty of Economics, Economics of European Integration Division

Abstract: Using panel data this paper examines the impact of firms with foreign capital on investment outlays in Poland. Since almost one half of FDI is concentrated in Polish manufacturing the empirical research focuses on that sector. The analysis is based on unpublished firm level data compiled by the Polish Central Statistical Office on an annual basis for 1993-1998. Data are aggregated up to the three-digit level of the EKD (103 industries) – the Polish correspondence to the NACE. During transition in Poland domestic manufacturing faces financial constrains. The role of foreign capital should be to provide external source of finance. Our analysis indicates that FDI has some positive short-run effects on investment outlays in Polish manufacturing. Current cash flow (approximated by net profits) and presence of firms with foreign capital seem to be alternative factors enhancing investment level in manufacturing. This may suggest that, on average, foreign investors reinvest - at least - a part of their net profits in Poland. However the results differ between industries.

Keywords: FDI; manufacturing; transition; Poland; industry (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2002-05
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://gnu.univ.gda.pl/~keie/ao10.doc First version, 2006

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gda:wpaper:0604

Access Statistics for this paper

More papers in Working Papers of Economics of European Integration Division from The Univeristy of Gdansk, Faculty of Economics, Economics of European Integration Division Univeristy of Gdansk, Faculty of Economics, ul. Armii Krajowej 119/121, 81-824 Sopot, Poland. Contact information at EDIRC.
Bibliographic data for series maintained by Tomasz Brodzicki ().

 
Page updated 2020-02-09
Handle: RePEc:gda:wpaper:0604