INVESTMENT CLIMATE – NECESSARY AND SUFFICIENT CONDITIONS DETERMINING FOREIGN DIRECT INVESTMENT FLOW TO POLAND
DOI:
https://doi.org/10.12775/EiP.2006.020Abstract
Since 2001 there has been a considerable decline in foreign direct investment in Poland. Although the downward trend stalled in 2004, experience shows that the leading market position is something to constantly struggle for, and its retaining consists in raising the country’s attractiveness for potential investors. Decisions about FDI location understandably depend on political, social, economic, legislative factors, which either encourage or discourage foreign investment in a given country.
The aim of the article is an attempt at defining business climate in Poland from 1990 to 2004 as a factor attracting FDI. It focuses on analyzing legislative and economic factors classified as indispensable and satisfactory for stimulating foreign investment. The former relate to laws and regulations concerning business entity whereas the latter comprise the location country’s economic situation which either directly or indirectly affects the effectiveness of a particular investment.
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