Importance of the market economy investor principle in assessment of public investment efficiency

Abstract

The Market Economy Investor Principle (MEIP) is applied to assess if the public investment becomes public aid. Such assistance is essential for the success of the investment as it can completely or partially contest it. In Poland MEIP is still poorly recognized. The paper presents the concept and possibilities of using MEIP in assessing the effectiveness of public investment. The MEIP can be a versatile and effective tool especially useful for assessing the recapitalization of the broadly understood companies in terms of the market competition distortion. The paper also mentions the objections to MEIP.