DOES THE SHADOW ECONOMY AFFECT FOREIGN DIRECT INVESTMENT? CASE STUDY OF POLAND AND POLISH REGIONS

Main Article Content

Andrzej Buszko


Keywords : shadow economy, foreign direct investments, regions, transformation, macroeconomic situation
Abstract
The main goal of the research was to identify the relationship between the level of shadow economy and Foreign Direct Investment. The research was carried in Poland and Polish regions during 1990-2020. MIMIC approach was employed to calculate the level of shadow economy as a % of Polish and regional GDP. Pearson correlation index and Kolmogrov-Smirnov test were applied as well. The study proved there is a sound negative correlation (-0,636) between the shadow economy and foreign direct investment in Poland, but regional associations between those two variables demonstrated different results. Unlike in other Polish provinces, in Opolskie and Podkarpackie the correlation index confirmed a positive association between the level of shadow economy and FDI flow.

Article Details

How to Cite
Buszko, A. (2021). DOES THE SHADOW ECONOMY AFFECT FOREIGN DIRECT INVESTMENT? CASE STUDY OF POLAND AND POLISH REGIONS. The Scientific Journal European Policies, Finance and Marketing, (26(75), 22–39. https://doi.org/10.22630/PEFIM.2021.26.75.10
References

Abotsi, A. (2016). Theory of foreign direct investment and corruption. International Journal of Asian Social Science 6(6), pp. 359–337 (Crossref)

Adair, Ph. (2017). Non-Observed Economy vs. the Shadow Economy in the EU: The Accuracy of Measurements Methods and Estimates revisited. 4 th OBEGEF Interdisciplinary Insights on Fraud and Corruption , Nov, Porto, Portugal

Aidt, T.S. ( 2009). Corruption, institutions, and economic development. Oxford Review of Economic Policy, 25(2), pp. 271- 291 (Crossref)

Aliber, R.Z. (1970). A theory of direct foreign investment. [in:] C. P. Kindleberger (ed.), The International Corporation. MIT Press, Cambridge, MA, United State

Balcerowicz, L. (1995). Capitalism, Socialism, Transformation. PWN, Warsaw & London (Crossref)

Buckley, P.J., M. Casson, M, (1976). The Future of the Multinational Enterprises. Macmillan, London (Crossref)

Buszko, A. (2021). Aksjologiczne szkice na temat szarej strefy. Wydawnictwo Uniwersytetu Warmińsko-Mazurskiego w Olsztynie

Caves, R.E. (1971). International corporations: The industrial economics of foreign investment. Economica, Vol. 38, No. 149 pp.71-73 (Crossref)

Daron A., Dell, M (2010). Productivity differences between and within countries. American Economic Journal: Macroeconomics 2 (1) pp/ 169-188 (Crossref)

Davidescu, A., Alecsandru, V. ( 2015). Shadow economy and foreign direct investment: An empirical analyses for the case of Romania. Ecoforum Volume 4, Issue 2 (7), pp. 110-119

Deilami, H. N. (2010). Relationships between shadow economy and foreign direct investment, growth and poverty. Retrieved from: http://psasir.upm.edu.my/id/ eprint/19471/1/FEP_2010_10_F.pdf pp. 22-28

Denisia, V. (2010). Foreign direct investment theories: an overview of the main FDI theories. European Journal of Interdisciplinary Studies No3, pp.53-59

Dixit, A., Stiglitz, J. (1977). Monopolistic Competition and Optimum Product Diversity. American Economic Review, No 67, pp. 297–308

Dreher, A., Gassebner, M. (2013). Greasing the wheel. The impact of regulations and corruption on firms entry. Public Choice, 155(3), pp. 412- 432. (Crossref)

Dunning, J. H., Lundan, S. M. (2008). Multinational enterprises and the global economy. Massachusetts: Edward Elgar Publishing Limited

Dunning J.H. (1988). The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, vol. 19, No. 1 pp.12-18 (Crossref)

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

Feige, E. (2015). Reflections on the meaning and measurement of Unobserved Economies: What do we really know about the “Shadow Economy”? University of Wisconsin-Madison pp.23-31 (Crossref)

Fichtenbaum, Ronald, (1989). The Productivity Slowdown and the Underground Economy. Quarterly Journal of Business and Economies, Vol. 28, No. 3, pp. 78–90

Folkerts-Landau, D. (2020). COVID-19: Crisis resilience made in Germany. Deutsche Bank Report, 10th June pp. 1-20

Goel, R., Ram, R., Schneider, F., Potempa, A. (2020). International movements of money and men: Impact on the informal economy. Journal of Economics and Finance, Vol. 44, Issue 1, No 9, pp. 179-197 (Crossref)

Graham, E.M. (1996). Global Corporations and National Governments. Institute of International Economics, Washington D.C.

GUS, (2021). Działalność gospodarcza podmiotów z kapitałem zagranicznym. Warszawa

Helpman, E., Melitz M., Yeaple, S.R. (2003). Export versus FDI. NBER Working Paper Series No. 9439. National Bureau of Economic Research, Cambridge, MA, United States. pp.41-45 (Crossref)

Huntington, S.P. (1968). Political order in changing societies. New Haven: Yale University Press

Hymer, S. (1976). The International Operations of National Firms: A Study of Direct Foreign Investment, Cambridge, MIT Press

Kemp, M.C. (1964). The Theory of International Trade. Prentice Hall, London

Kinoshita, Y., Campos, N. F. (2006) A Re-examination of Determinants of Foreign direct Investment in Transition Economies, Mimeo, IMF, Washington, DC

Krugman, P. (1998). What's new about the new economic geography? Oxford Review of Economic Policy, Volume 14, Issue 2, June 7–17, https://doi.org/10.1093/oxrep/14.2.7 pp.12-18 (Crossref)

Lee, M., Park, D. (2013). Intellectual property rights, quality of institutions, and foreign direct investment into developing Asia. Retrieved from: https://www.adb.org/sites/default/ files/publication/30301/ewp-354.pd pp.111-121 (Crossref)

Leff, N.H. (1964). Economic development through bureaucratic corruption. American Behavioral Scientist, 8(3): pp. 8-14 (Crossref)

Leys, C. (1965). What is the problem about corruption. Journal of Modern African Studies, 3(2): pp. 211-230 (Crossref)

Lianju, S., Luyan, P. (2011). Game theory analysis of the bribery behavior. International Journal of Business and Social Science, 2(8), pp. 104-107.

MacDougall, G.D.A. (1958). The benefits and cost of private foreign investment abroad: A theoretical approach. Economic Record, Vol. 36 pp.31-34

Mara, E. R. (2011). Causes and consequences of underground economy. Retrieved from: https://mpra.ub.uni-muenchen.de/36438/1/MPRA_paper_36438.pdf pp. 71-73

Markowitz, H. (1991). Foundations of Portfolio Theory. The Journal of Finance, 46(2), pp.469-477. doi:10.2307/2328831 (Crossref)

Mebratu, D. (1998). Sustainability and sustainable development: historical and conceptual review. Environmental Impact Assessment Review, 18, pp. 493-520. DOI: 10.1016/S0195-9255(98)00019-5 (Crossref)

Moosa, I. (2002). Foreign direct investment. Theory, evidence and practice. Hampshire - UK: Palgrave Publisher, Ltd. (formerly Macmillan Press, Ltd) (Crossref)

Navoi, A. (2008). Foreign Direct Investment an Indirect Path to the Economy. Problems of Economic Transition. Vol 51, No 4, pp. 81-96 (Crossref)

Neumayer, E. (2003). Weak versus strong sustainability: exploring the limits of two opposing paradigms. Northampton, Edward Elgar

Nikopour, H., Habibullah, M., Schneider, F., Law, S. (2009). Foreign Direct Investment and Shadow Economy: A Causality Analysis Using Panel Data. pp.31-36

Nomidis, D. (2016). A Revision of the Theory of Perfect Competition and of Value. SSRN Electronic Journal · November. doi: 10.2139/ssrn.2875582 pp.20-29 (Crossref)

Porto, G., Hoekman, B. (2010). Trade Adjustment Costs in Developing Countries: Impacts, Determinants and Policy Responses. The International Bank for Reconstruction and Development/The World Bank1818 H Street, NW, Washington, DC 20433, USA

Reinhart C.M., Rogoff K.S. (2009). This time is different. Eight Centuries of Financial Folly, Princeton University Press, Princeton and Oxford (Crossref)

Rocznik Statystyczny Rzeczypospolitej Polskiej. (2020). GUS. Warszawa

Rocznik Statystyczny Rzeczypospolitej Polskiej. (1992). GUS. Warszawa

Saravia, A., Canavire-Bacarrez, G., Rios-Avil, F. (2012). Intellectual property rights, foreign direct investment and the shadow economy. Economicas y Financieras. Universidad EAFIT No 12-33 pp. 3-19 (Crossref)

Schneider, F. (1998). Stellt das Anwachsen der Schwarzarbeit einewirtschaftspolitische Herausforderung dar? Einige Gedanken aus volkswirtschaftlicher Sicht. Linz, Mitteilungen des Instituts für angewandte Wirtschaftsforschung (IAW), I/98, pp. 4–13

Schneider, F., Medina, L. (2018). Shadow Economies Around the World: What Did We Learn Over the Last 20 Years? International Monetary Fund. IMF Working Paper Vol 18/17 pp. 2 – 76 (Crossref)

Schneider, F., Hametner, B. (2007). The shadow economy in Colombia: size and effects on economic growth, Working Paper, No. 0703, Johannes Kepler University of Linz, Department of Economics, Linz pp.25-26

Tanzi, V. (2002). The shadow economy, its causes and its consequences. Retrieved from:http://www.etco.org.br/user_file/shadowEconomy/03_Artigo_Tanzi_Shadow_Economy.pdf, pp. 7-11

Thomas, Jim J. (1992). Informal economic activity, LSE, Handbooks in Economics, London, Harvester Wheatsheaf

Vasyechko, O. (2012). A review of FDI theories: an application for transition economies. International Research Journal of Finance and Economics, pp.118-137

Westerlund, J., Edgerton, D. (2007). A panel bootstrap co integration test. Economics Letters, 97 (1), pp.185–190 (Crossref)

Williams, C., Schneider, F. (2016). Measuring the Global Shadow Economy, Edward Elgar Publishing. pp 26-31 (Crossref)

World Bank Data Retrieved https://databank.worldbank.org/reports.aspx? Source =2 & series = BX.KLT.DINV.CD.WD&country=POL date of access 2021/07/07

Statistics

Downloads

Download data is not yet available.