Repository of University of Wroclaw

Object structure

click here to follow the link

Effects of the inflow of foreign investments in the economy of the host country

inflow of foreign investments economy host country effects of the inflow of foreign investments

The inflow of foreign investments to the host country has different effects on its economy. The aim of this paper is the analysis of direct and indirect economic effects. The most important are: increase in production and employment, the inflow of new technology and knowledge, the impact on external trade and the balance of payments and the growth of competitiveness of the local enterprises. The green field FDIs increase the number of new places of employment. The brown field FDIs cause negative effects — the increase in unemployment.Foreign investments cause growth through the branches of transnational corporations. But they cause the growth of import too, if the investors do not use the production of the local enterprises.The activity in the external trade influences the balance of payment’s equilibrium in the host country.The reaction of the local firms to foreign competition is positive. They try to modernize the process of production to decrease the costs and increase labour productivity.All this effects appear also in the Polish economy, which attracts more and more inflow of foreign investments.

Wydawnictwo Uniwersytetu Wrocławskiego

ISSN 0137-1134 ISSN 0239-6661

PAd P 101660 II

Acta Universitatis Wratislaviensis, ISSN 0239-6661, No 3515. Przegląd Prawa i Administracji 2013, 93, s. 129-141

Czasopismo Naukowe w Sieci (CNS)

The use of this material is allowed only with accordance of applicable rules of fair use or other exceptions provided by law, and any broader use requires the permission of the authorized entity

Making materials available on the basis of the agreement with the owner of the property copyrights

Copyright by Wydawnictwo Uniwersytetu Wrocławskiego Sp. z o.o.