Open AccessForeign direct investment in the post-communist member states of the European Union: who are the leaders?
Author(s) -
Grażyna Kozuń-Cieślak,
Ewa Markowska-Bzducha
Publication year - 2021
Publication title -
central european review of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 2082-8500
pISSN - 2083-4314
DOI - 10.24136/ceref.2021.005
Subject(s) - foreign direct investment , european union , communism , czech , economic policy , member states , political science , capital (architecture) , foreign capital , communist state , investment (military) , business , international trade , economy , economics , geography , politics , linguistics , philosophy , archaeology , law
Joining the European Union has been treated as a chance for Poland and other post-communist countries to improve their economic growth and development. It was clear from the beginning that it was going to be a long and demanding process in which success is only possible if appropriate economic policies are pursued. That policy should provide stable frameworks to support business development, attract foreign direct investments (FDI), keep the discipline in public finances and assure the right institutional ability and managerial skills to absorb the EU funds. According to forecasts by The McKinsey Quarterly from 2004, 5% Poland's economic growth rate was to require around USD 10 billion of annual FDI inflow! The aim of this study was identifying the leaders in attracting FDI among post-communist European Union member states in the period of 2004-2020. The research showed a huge variation in attracting foreign capital among eleven post-communist EU members. Estonia, the Czech Republic, Hungary, Slovakia seem to be winners in this race, leaving Poland far behind.