Foreign Direct Investments and International Trade in Services in Poland, Czech Republic and Hungary
Foreign Direct Investments and International Trade in Services in Poland, Czech Republic and Hungary

Summary/Abstract: The majority of research concerning international trade in services of Poland, Czech Republic and Hungary is based on the statistics of the balance of payments – on the data presented in the current account as Services. This means that most of the analyses omit completely the trade volume provided in a form of commercial presence (GATS-3), connected with the flows of FDI located in service branches. The aim of the article is the evaluation of all the main modes of service supply as listed by GATS. The following research hypothesis is verified in the paper: the flows of foreign direct investments in Poland, Czech Republic and Hungary significantly modify the valueof their trade in services. Commercial presence is the dominant form of importing services of the studied countries, while cross border supply remains the main mode of their service exports.In the research the analytical-descriptive method was employed. The paper has been divided into two parts: theoretical and empirical one. In the first of them, the over view of the main problems undertaken in the literature concerning the effect of FDI on the international trade in services was made. The empirical part focuses on the index analysis of the statistical data illustrating the volume of trade in services of the studied countries executedas the commercial presence on foreign markets and as cross-border supplies. Providing services with commercial presence (GATS-3 mode), which is a consequence of the flow of FDI, so far has played a marginal role in the exports of Polish, Czech and Hungarian enterprises. At the same time, this type of services has been dominating as a form of trade expansion of the service enterprises in the markets of the studied countries. After the inclusion of the GATS-3 mode in the study, it turns out that all the studied countries are characterised with a deficit of the service exchange which contradicts the conclusions concerning their trade balances based on the analysis of the statistics of the balance of payments.The different types of internationalization strategies used by service enterprises from Poland, Czech Republic and Hungary, as opposed to the service enterprises of the highly developed countries, indicate that the governments of the studied countries should prioritise.

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