By Arkadiusz Mironko (auth.)
This research offers an in depth exam of overseas direct funding (FDI) in Poland and explores the effect this has on international funding coverage. It analyzes and identifies place styles of FDI and strives to figure out the assisting explanations at the back of situation offerings of overseas companies.
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Extra resources for Determinants of FDI Flows within Emerging Economies: A Case Study of Poland
This concern emphasizes the dichotomy – enhancement versus depletion of capabilities in a subsidiary (also, Rugman and Verbeke, 2001; Birkinshaw and Hood, 1998) – which may result in an explicit change in the subsidiary’s business direction. Since not all firms have the same motivation and capability, a set of particular local economic factors will have a different effect on each participant (Cantwell, 2009). The question here is whether leading foreign firms present in Poland prefer to locate near existing industrial agglomerations or independently of them.
In studying the effect of activities by MNCs in Poland that lead to benefits in social and economic conditions, Chidlow and colleagues 24 Determinants of FDI Flows within Emerging Economies (2009), determined that four specific factors affect the formation of such relationship linkages: the foreign investor’s mode of entry, the subsidiary’s autonomy (including the availability of infrastructure and skills needed by foreign investors), protection of data and intellectual property rights, and government incentives.
In the framework proposed by Kojima (2000) through the flying geese model,3 he recognizes three aspects of catching-up by developing elements of: intra-industry, inter-industry, and international economies. Internal company strategies and interaction between regional advantages are also included in the framework. 4 The flying geese (FG) model intends to explain the catching-up process of industrialization of latecomer economies from the following three aspects: Intra-industry aspect: product development within a particular developing country, with a single industry growing over three time-series curves, that is, import (M), production (P), and export (E).