Polish FDI in Ukraine: analyzing location factors, investment trends and firm-level activity

Polish FDI in Ukraine: analyzing location factors, investment trends and firm-level activity

Jan Nowak, Łukasz Cywiński, Ulyana Dzyuma-Zaremba, Ruslan Harasym


Keywords: Outward foreign direct investment (FDI); Poland; FDI location factors; Ukraine


Summary: In the context of a theoretical framework and the literature review summarizing the empirical findings, the authors analyze Ukraine’s location advantages and disadvantages visà-vis FDI and present the major macro and meso-economic trends in Poland’s FDI flows to and stock in Ukraine. At the micro level, the paper presents the results of an analysis of a sample of 18 companies from the Warsaw Stock Exchange that have invested in Ukraine. One of the main findings reveals a discrepancy between the modest value of Polish FDI in Ukraine and the relatively large number of Polish firms’ subsidiaries and affiliates operating in the country. Analysis of the sample of units controlled by Polish parent companies in Ukraine allows for reaching conclusions about their assets, FDI motives and modes, types of FDI undertaken, and sales results. The authors wrap up the paper by drawing both policy implications for Ukraine and Poland, and the managerial implications for Polish direct investors in Ukraine.





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