Open AccessDOES THE SHADOW ECONOMY AFFECT FOREIGN DIRECT INVESTMENT? CASE STUDY OF POLAND AND POLISH REGIONS
Author(s) -
Andrzej Buszko
Publication year - 2021
Publication title -
polityki europejskie, finanse i marketing/zeszyty naukowe szkoły głównej gospodarstwa wiejskiego w warszawie. polityki europejskie, finanse i marketing
Language(s) - English
Resource type - Journals
eISSN - 2544-0640
pISSN - 2081-3430
DOI - 10.22630/pefim.2021.26.75.10
Subject(s) - shadow (psychology) , foreign direct investment , index (typography) , economy , affect (linguistics) , investment (military) , economics , positive correlation , political science , macroeconomics , psychology , medicine , communication , politics , world wide web , computer science , law , psychotherapist
The main goal of the research was to identify the relationship between the level of shadow economy and Foreign Direct Investment. The research was carried in Poland and Polish regions during 1990-2020. MIMIC approach was employed to calculate the level of shadow economy as a % of Polish and regional GDP. Pearson correlation index and Kolmogrov-Smirnov test were applied as well. The study proved there is a sound negative correlation (-0,636) between the shadow economy and foreign direct investment in Poland, but regional associations between those two variables demonstrated different results. Unlike in other Polish provinces, in Opolskie and Podkarpackie the correlation index confirmed a positive association between the level of shadow economy and FDI flow.