Business and Economic Horizons

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 10
Issue 4
Online publication date 2015-02-22
Title The role of local government units in attracting FDI. The case of the Lodz Region
Author Tomasz Dorozynski, Agnieszka Dorozynska, Wojciech Urbaniak
Abstract
The article focuses on the activities of local government units (LGUs) in the Lodz voivodeship (Poland). More importantly, it compares the activities of local authorities in selected EU Member States of Central and Eastern Europe. Despite the fact, that foreign investors consider Central and Eastern Europe one area, the countries in the region differ significantly with respect to economic achievements, foreign direct investment (FDI) absorption capacity, and the approach to investment incentives. 
In the literature some studies tried to identify some non-economic determinants of foreign direct investment. A consistent modelling of foreign direct investment flows needs to take account of not only the traditional determinants enumerated in literature, but also variables linked to the institutional environment, in which such investment takes place. Carlo Altomonte (2000) showed that an efficient institutional framework is a crucial determinant of foreign direct investment.
That is why it is worth assessing whether the activities of regional authorities may contribute to an increased investment attractiveness of a region in the eyes of foreign investors.  The aim is to evaluate local government’s efforts undertaken to attract FDI in view of a comparative analysis for regions in three countries: Hungary, Poland and Romania, and a direct research involving representatives of all counties and 36% of communes in the voivodeship of Lodz . 
The article centres around four aspects. First, it presents comparative analysis for selected Central and Eastern Europe (CEE) regions and it reviews instruments used by the LGUs to attract FDIs. Then, it provides the evaluation of communes and counties’ preferences when it comes to attracting FDIs. The third analysed aspect is the impact of FDIs on local economies. Finally, we also identify impediments to the inflow of FDIs to communes and counties.
The paper was prepared on the basis of the results of a questionnaire survey, the literature of the subject, analysis of national and EU legislation, regional data from the Central Statistical Office and other institutions.

Citation
References
Budnikowski, A., 2006. International economics. Warsaw: PWE
Central and Eastern Europe Economic Scorecard - a sustainable future in a great region, Report PricewaterhouseCoopers 2013

Checklist for foreign direct investment incentive policies. 2003. OECD, Paris

Churchill, G., 2002. Marketing research: methodological foundations. Warsaw: PWN Publishing House

Dunning, J., 1979. Explaining changing patterns of international production: In defense of the eclectic theory, Oxford Bulletin of Economic and Statistics, vol. 41, Issue 4: 269-295

Dunning, J. and Lundan, S., 2008. Theories of foreign direct investment. In John H. Dunning and Sarianna M. Lundan (org.), Multinational Enterprises and the Global Economy, Cheltenham: Edward Elgar Publishing Limited, pp. 79-115

Economic activities of entities with foreign capital in 2011, GUS, Warsaw 2012
European Attractiveness Survey, 2013. Ernst &Young.

European Competitiveness Report, 2012. Reaping the benefits of globalization. European Commision 2012

Eurostat, 2014. Newsrelease: Regional GDP, STAT/14/29 27 February 2014

Faeth, I., 2009. “Determinants of foreign direct investment - a tale of nine theoretical models”, Journal of Economic Surveys, 23 (1): 165-196, http://dx.doi.org/10.1111/j.1467-6419.2008.00560.x

Ferguson George A., Takane Yoshio.  2004. Statistical analysis in psychology and pedagogy, Warsaw: PWN Publishing House

Foreign direct investment in emerging market countries, 2003. Report of the Working Group of the Capital Market Consultative Group, International Monetary Fund, September 2003

Freitag - Mika, Eliza. 2006. Foreign capital in Poland in the globalisation era. Radom: Technical University of Radom

Gentry, B., 1999. FDI and the environment: Boon or bane? In FDI and the Environment, OECD. Paris, pp. 21-45

Gorynia, M. (Ed.), 2005. Strategies applied by Polish companies vis-a-vis the expansion of foreign investors. Warsaw: PWE

Godlewska-Majkowska, H. (Ed.), 2012. Investment attractiveness of the regions. Lodz Voivodeship. Warsaw: Centre of Regional and Local Analyses

Harding, T. and  Javorcik, B., 2011. Roll out the red carpet and they will come: Investment promotion and FDI inflows, The Economic Journal 121 (December),1445-1476

Homlong, N. and Springler, E., 2010. Economic development and foreign direct investment: How to create sustainable development. An analysis of the potential for sustainable development on the indian subcontinent. PANOECONOMICUS, 3, pp. 333-347, http://dx.doi.org/10.2298/ PAN1003333H

Hunya, G., 2014. Regional policy and FDI Location - an overview of the larger new EU member states, The Vienna Institute for International Economic Studies, Research Report 393

Karaszewski, W. (Ed.), 2005. FDI in Kujawy-Pomerania region (state-of-play, importance for regional economy, factors motivating and demotivating the inflow), Scientific study. Torun

Kłysik-Uryszek, A., 2010. Foreign direct investment in the region’s economy. Theory and practice. Warsaw: CeDeWu.Pl.

Kokko, A., Gustavsson, P., 2004. Regional integration, foreign direct investment, and regional development. EIB papers, Vol.9, Iss1:110-135

Kornecki, L., 2008. Foreign direct investment and macroeconomic changes in CEE integrating into the global market. Investment management and Financial Innovations, Volume 5, Isssue 4: 124-132 

Lipsey, R., Sjöholm, F., 2005. The impact of inward FDI on host countries: Why such different answers. In T.H. Moran, E. M. Graham, M. Blomström (eds.), Does Foreign Direct Investment Promote Development?, Washington: Institute for International Economics

Ministry of Economy, 2010. Wartość inwestycji w SSE wg kraju pochodzenia. December 2010. Warsaw

Morisset, J. and Pirnia, N., 2002. The impact of tax policy and incentives on FDI [in:] Foreign Direct Investment: Research Issues, Ed. by G. Bora, Routledge, London

Nowicki, M. (Ed.), 2010. Investment attractiveness of  the regions and the subregions of Poland 2010. Gdansk: Instytut Badań nad Gospodarką Rynkową

Noworól, A. (Ed.), 2008. Foreign investment in Malopolska. Kraków: Marshal Office of Malopolska Region

Orłowski, W., 2010. Economic growth in Central and Eastern Europe 1950-2030. Warsaw: PWE

Pietrzyk, Irena. 2002. Polityka regionalna Unii Europejskiej i regiony w państwach członkowskich, Warsaw: PWN Publishing House

World Investment Report, 2013. UNCTAD 2013

Report on state aid in Poland granted to entrepreneurs in 2011, UOKiK, Warsaw 2012

Różański, J., 2010. Multinational corporations in Poland. Growth, funding, assessment. Warsaw: PWE

Rymarczyk, J., 2006.  International economics. Warsaw: PWE

Special Economic Zones, 2012. KPMG Report. 2012 Edition

Statistical Yearbook of the Republic of Poland, 2012. Central Statistical Office, data as at 31 December 2011

Stawicka, M., 2008. Poland’s investment attractiveness. Warsaw: CeDeWu.Pl

Strzelecki, Z. (Ed.), 2008. Regional and local economy. Warsaw: PWN

Study on FDI and regional development, 2006. Final report, Copenhagen Economics in cooperation with Prof. M. Blomstrom, Copenhagen Economics 2006

Treaty on the functioning of the European Union, 2008, Official Journal of the European Union, C115/47

Świerkocki, J., 2004. The overview of international economics. Warsaw: PWE

Świerkocki, J. (Ed.). 2011. Foreign direct investment. The case of Lodz Region. Lodz: Science Society of Lodz

Tondl, G. and  Vuksic, G., 2008. What helps regions in Eastern Europe catch up? The role of foreign investment, human capital and geography, [in:] Regional Economic Policy in Europe, ed. by U. Stierle-von Schulz, M.H. Stierle, F.B. Jennings, Jr. and A.T.H. Kuah, Edward Elgar, Cheltenham

Wdowicka, M., 2005. FDI in Poznan agglomeration in the times of systemic transformation. Poznan: Bogucki Wydawnictwo Naukowe

World Investment Report, 2013. Global value chains: Investment and trade for development, United Nations Conference on Trade and Development, United  Nations, New York and Geneva

World Trade Report, 2006. Exploring the links between subsidies, trade and the WTO, WTO, Geneva

Wysokińska, Z. and Witkowska, J., 2004. International trade and sustainable development, Lodz: Publishing House of the University of Lodz

Keywords Regional Development, FDI, Lodz Region
DOI http://dx.doi.org/10.15208/beh.2014.23
Pages 281-304
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Share
Search in articles
Statistics
Journal Published articles
BEH 541
Journal Hits
BEH 980597
Journal Downloads
BEH 37747
Total users online -