Polish FDI in Germany – junior partner with any signs of rising strong?
Polish FDI in Germany – junior partner with any signs of rising strong?

Summary/Abstract: The economic ties between neighbours are always in thespotlight. Polish-German relations are no exception in this regard,especially given a particularly pronounced asymmetry in the level ofmutual direct investment – the flows and stocks of foreign directinvestments (FDI). This paper aims threefold: to analyse the recentdevelopment trends of Polish investment in Germany, to characterisethe profile of investing firms and identify possible patterns of PolishFDI in Germany and finally, based on the diagnosed challenges, toformulate some policy and managerial recommendations.Methodologically it draws on a descriptive analysis of investmentfigures and a qualitative approach in line with the grounded theorymethod (GTM) framed in classic FDI theories and concepts.Confrontation of previously (2012-2014) conducted projects with therecent reports or scholarly studies confirmed challenges identifiedearlier and demonstrated that not much has changed in this respect.Poland when it comes to outward foreign direct investment (OFDI)is still ‘punching below its weight’. Such reflection could beinterpreted ambiguously. On the one hand, Polish investments inGermany fluctuate considerably often subject to single one-timeinvestment decisions; on the other, more investments targetpromising niche sectors such as IT or urban mining. The stillunsatisfactory levels of Polish OFDI (development along theinvestment development path - IDP) can be hence explained‘pessimistically’ in terms of missing structural competitiveness butalso more on a positive note, as a result of the unabating potential andabsorptive capacity of the domestic market.

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