POLISH GOVERNMENT IMPACT ON FOREIGN DIRECT INVESTMENTS - Polish Journal of Management Studies

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POLISH GOVERNMENT IMPACT ON FOREIGN DIRECT INVESTMENTS

Abstracts > Vol 6

POLISH GOVERNMENT IMPACT ON FOREIGN DIRECT INVESTMENTS
Ślusarczyk B., Kot S.


Abstract: In the economies of many countries, free competition is protected by antitrust laws and regulations in terms of unfair competition, whose recipients are entrepreneurs.
On one hand FDI facilitates an access to technologies, know-how and management skills, accelerating the integration of national economies with international markets, production and distribution networks, and strengthening the international competition of companies but on the other hand governments interfere to with competitions supporting  FDI actions. The state aid impact the country internal Foreign Direct Investment as well as support of external FDI of national corporations. The papers presents the government impact in those situations in Poland.

Introduction

Currently, investment capital in its various forms is probably one of the economic resources has the greatest ability for mobility. Capital flows can be observed not only internationally, but also the increased capital flows can be observed in national economies and cross-sectors and within the different sectors. The still growing economic, financial and social interdependencies which result from globalization have twofold consequences. On the one hand, these consequences are positive: influx of foreign capital, scientific and technological development, and expansion of potential customers
market, increasing effectiveness of economic activities, investment boom, and economic growth. On the other hand, a disadvantage of globalization is the fact that national economies have become very sensitive to economic fluctuations in geographically distant regions. This is especially noticeable in the sphere of finance.  In the economies of many countries, free competition is protected by antitrust laws and regulations in terms of unfair competition, whose recipients are entrepreneurs. The phenomenon of state aid, although it has a considerable impact on competition, does not concern the behaviors of entrepreneurs. Public authorities, with their public resources, are always a subject which disturbs or threatens competition through state aid that they grant to the entities. Therefore, regulations which define state aid are of essential importance. In fact, they constitute a self-limitation to the state in terms of allocation of public resources to public law entities. Existence of these regulations for state aid is proof of the maturity of legislature since it formulates legal barriers to free intervention of the state to limit free market [3].



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Summary

State aid for foreign direct investment in Poland has been realized in various ways including horizontal, sector and regional support, however comparing FDI value in Poland to GDP or population it is not sufficient. Analyzing the future trend of FDI in Poland, it should be noted that value of FDI inflow to Poland will probably be the highest compared to other countries in Central and Eastern Europe, however fast and effective activities should be used for labor costs reduction; simplifying and ensuring the stability of legal and tax systems; and development of transport and logistics infrastructure as well as education of skilled workers to increase the possibility of obtaining adequate FDI in relation to the size of the economy and the market.
Foreign investments are a natural stage in development of enterprises. Therefore, they are expected to be on the increase, though Polish companies are more selective in their decisions, especially because some initiatives (e.g. PKO BP in Ukraine or Orlen in Lithuania) were disappointing. The enterprises are aware that the investments abroad open up opportunities for increasing the area of operation and profits but they also generate higher risk and more intense managerial effort. Therefore, some action of governments are foreseen to help enterprises to research foreign markets and to invest minimizing the risks however despite of export support in case of FDI made by Polish companies the government aid is not sufficient [7].

WPŁYW POLSKIEGO RZĄDU NA BEZPOŚREDNIE INWESTYCJE ZAGRANICZNE

Streszczenie: W gospodarkach wielu krajów, wolna konkurencja jest chroniona przez prawa konkurencji i regulacji w zakresie nieuczciwej konkurencji, którego beneficjentami są przedsiębiorcy. Z jednej strony ułatwia FDI dostęp do technologii, know-how i umiejętności zarządzania, przyspieszanie integracji gospodarek narodowych z międzynarodowych rynków, produkcji i sieci dystrybucji oraz wzmocnienie międzynarodowej konkurencji firm, ale na innych rządów kolidują z konkursów do wspierania działania BIZ. Wpływ pomocy państwa, kraj wewnętrzny, bezpośrednie inwestycje zagraniczne, jak również wsparcie dla zewnętrznych BIZ narodowych korporacji. W referacie zaprezentowano wpływ rządu w takich sytuacjach w Polsce.

Słowa kluczowe
: pomoc stanowa, przepływ Bezpośrednich Inwestycji Zagranicznych, konkurencja rynkowa


References

[1]. Choroszczak J., Mikule M., Pomoc publiczna a rozwój firmy; szanse i zagrożenia. Warsaw: POLTEXT. 2009
[2]. Coll. Laws of 19 October No 190, pos. 1402 (in Polish: Rozporządzenie Rady Ministrów z dnia 13 października 2006 r. w sprawie ustalenia mapy pomocy regionalnej). 2006
[3]. Jankowski B., Pomoc publiczna w prawie Unii Europejskiej – implikacje dla Polski. Warsaw: Publishing of European Integration Committee Office. 2001
[4]. Koćwin J., Koćwin L., Konkurencja przedsiębiorstw a pomoc państwa w Unii Europejskiej i Polsce. In: Stankiewicz, J. (ed.) Gospodarka wobec wyzwań globalnych, Zielona Góra: Oficyna Wydawnicza Uniwersytetu Zielonogórskiego. 2003
[5]. Ministry Council Document on 23 September 2008
[6]. Ziopaja K., Pozorski Z., Garstecki A., Damage detection using thermal experiments and wavelet transformation, Inverse Problems in Science and Engineering, 19 (1), 2011
[7]. Pietrasienski P., The Evolutionary Character of Supporting the Internationalisation Processes - Recommended System Solutions. PJMS. Vol 4, 2011
[8]. Polskie inwestycje bezpośrednie za granicą, 2011, 2010, 2009, 2008, 2007, 2006, 2005, 2004, 2003, 2002, Narodowy Bank Polski , Departament Statystyki, http://www.nbp.pl/home.aspx?f=/publikacje/pib/pib.html

 
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