The investment development path of Poland: a current assessment

Abstract: This paper explores the concept of investment development path (IDP) as applied to Poland as the economy of Central and Eastern Europe (CEE). Specifically, the objective of the study is to evaluate Poland’s current positioning and, hence, stage of development. The paper begins with a brief literature review devoted to the concept of IDP. It is followed by a review of extant research applying the IDP model to CEE economies. Analysis of macroeconomic data indicating Poland’s IDP path follows. The main conclusion is that Poland is at the end of stage 2 of its IDP, i.e. it is behind the position that its GDP level would imply. This is mainly due to the pull of the large internal market, the still weak competitiveness of domestic firms in international markets and the reluctance of government to adopt more active, firm specific ownership advantage stimulating policies towards outward FDI.

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