Macroeconomic Determinants of Investment Decisions for Medium and Large Enterprises in Poland’s Manufacturing Sector
Macroeconomic Determinants of Investment Decisions for Medium and Large Enterprises in Poland’s Manufacturing Sector

Summary/Abstract: This article examines how fluctuations in macroeconomic indicators influence com-panies’ propensity to invest, gauged by the investment intensity index – defined asthe ratio of investment expenditures to total revenue. The analysis focuses on thefive most revenue-generating sectors within Poland’s manufacturing industry, asdefined in the Polish Classification of Activities (PKD). Using unpublished Statis-tics Poland (GUS) quarterly panel data from 2008 to 2022, sourced from the F-01and F-02 reports, the research targets medium and large companies. Cointegrationanalysis and the Vector Error Correction Model (VECM) are employed to iden-tify macroeconomic indicators that consistently impact the propensity to investin specific sectors, while also assessing the presence of investment seasonality. Thefindings reveal a strong long-term correlation between corporate investmentsand macroeconomic indicators, capturing both enduring equilibria and transientfluctuations. Significantly, the research uncovers varied macroeconomic impactson investment decisions, with GDP and SP emerging as pivotal in the chemicalsector (PKD-20), and temporal and inter-sectoral dynamics notably influencingthe computer and electronics sector (PKD-26). These insights highlight the com-plexity of macroeconomic effects on investment strategies within Poland’s indus-trial landscape.

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