Foreign direct investment influence on the international competitiveness change of selected developing countries Cover Image

Wpływ zagranicznych inwestycji bezpośrednich na zmiany konkurencyjności międzynarodowej wybranych krajów rozwijających się
Foreign direct investment influence on the international competitiveness change of selected developing countries

Author(s): Marcin Gryczka
Subject(s): Economic policy, International relations/trade, Methodology and research technology
Published by: Uniwersytet Ignatianum w Krakowie
Keywords: foreign direct investment; international competitiveness; developing countries;

Summary/Abstract: RESEARCH OBJECTIVE: Main goal of this article is to present the relation between foreign direct investment inflow and international competitiveness of selected developing countries. THE RESEARCH PROBLEM AND METHODS: The basic research problem of this publication is to show that foreign direct investment (FDI) inflow to selected developing countries has resulted in improvement of their international competitiveness measured by selected indicators. The analysis period is 1995‑2015, and countries selection was based on the most recent Human Development Index 2014 ranking. In the paper quantitative analysis methods have been used, including growth rate and composition analyses, as well data normalization method used for general ICT development index preparation. THE PROCESS OF ARGUMENTATION: The line of reasoning consists of three primary parts. First one is dedicated to presentation of developing countries’ share in global FDI flows. In second part the analysis of selected international competitiveness indicators has been conducted. Third part shows in turn the research result comparison and the analysis of relation between FDI inflow and competitiveness change of selected developing countries. Data used came from international organization (like World Bank, WIPO, UNCTAD, UNESCO, and ITU) databases. RESEARCH RESULTS: The research results are as follows: 1) in last two decades the importance of developing countries in the international FDI flows has increased; 2) major improvement of international competitiveness of newly industrialized Asian countries has been observed, especially of South‑East Asian countries, China and India; 3) other scrutinized countries’ achievements were much more meager than ones of above mentioned group; 4) Polish economy competitiveness improved significantly especially after accession to the European Union, but still is much closer to the competitiveness level of developing countries. CONCLUSIONS, INNOVATIONS AND RECOMMENDATIONS: Conducted research has confirmed the relation between foreign direct investment inflow and competitiveness of selected developing countries, but more detailed analysis of this phenomenon requires the access to the appropriate statistical data, inclusion of larger country group, considering both the host country peculiarity and foreign and domestic investors’ involvement in its competitiveness improvement, and analyzing the other, hardly measurable causes of developing countries’ competitiveness improvement or deterioration, for instance political, social, legal and institutional factors.

  • Issue Year: 8/2017
  • Issue No: 24
  • Page Range: 141-165
  • Page Count: 25
  • Language: Polish