Outward Foreign Direct Investment in Post-Transition Economy

Abstract

Recent two decades witnessed unprecedented changes in the economies of Central and Eastern Europe. Accelerated economic growth following systemic transformations, globalisation and liberalisation and EU integration visibly intensified international capital flows, including foreign direct investment (FDI). Intense internationalisation of an economy is usually perceived as a positive process, which – in general – gives an opportunity to accelerate growth and strengthen competitiveness. Therefore the authorities of an economy try to support FDI flows by implementing different incentives. The main goal of the chapter is to show the scale and scope of outward foreign direct investments (OFDI) of Polish companies in the light of economic transformation experience and authorities support. The chapter is organized as follows: first it presents Poland's path from centrally planned state to developed, competitive economy. Secondly, the focus is laid on support offered to companies undertaking OFDI ventures and finally on the scale and scope of Poland's outward investments.

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“…For Polish companies that have entered the process of internationalisation, it is very important to support the internationalisation process through a system of financial and nonfinancial incentives for investors implemented from both the central and regional level, which will fill the gap in the capital requirements of these companies (Dorożyński, 2018).…”