History and Origins and Economic Evolution of Poland
Introduction.
Poland a very punished country with wars, invasions, interventions, during the twentiedocument. The important thing is how this country was able to lift and become in a stable economy which has caused many companies to invest in this country. A country with a population of approximately 38 million inhabitants and an area of 312,680 km2 that has become in one of the strongest and most solid economies in Europe.
In this document we will deal with how Poland has become one of the most important countries in the world to make investments and how these investments have directly impacted the gross domestic product of the same. The importance of having highly prepared professionals, people with great win to learn and prepare to the fullest;Another important points will see the impact that the Poland’s school system has had on these direct foreign investments, how the stable government system has been the important points for this item.
Developing.
The impact that direct foreign investment in Poland has had and still has a very good percentage of that country’s GDP. But not only will we address how these investments in Poland represent one of the country’s largest sources of work, creating more than 100,000 annual jobs.
Within the behavior of foreign direct investment in Poland we will see how the contribution this one has in the GDP of this country fluctuates in each quarter, but following a variation parameter that returns in a tendency from year to year, that is, we will see how in theMONTHS OF NOVEMBER December and January The FDI delivers its greatest contribution to GDP year after year and the months of May, June and July provide the slightest contribution to GDP. An interesting phenomenon that was discovered and addressed in the analysis of quarterly data.
Foreign direct investment in Poland, during the last 5 years
Warsaw, a city of 1.7 million inhabitants in which skyscrapers multiply and dwarf the Palace of Culture of the Communist Era. Where global companies have established regional venues, taking advantage of a qualified workforce, lower costs and a favorable environment for business.
To the words of Brent Watson, executive director of Goldman Sanchs, if the skills of the people of Poland are analyzed, it is found that Polish people have an impressive talent, a high percentage of the population speaks more than two languages, additional to the quantityof professionals in engineering and banking with which they have. Specialties that in other regions need to cover several countries to have that number of professionals.
These words of Brent Watson are very important since much of the decision to invest in Poland derives from the number of professionals in the country and if we remember something similar it happened a few years ago in Central America, when Intel tried to place a plant ofProduction of integrated circuits in Guatemala and chose to install silver in Costa Rica since Guatemala did not have enough engineers and the percentage of Guatemalans who spoke two languages was almost null.
Poland, leader of the European Union in Foreign Direct Investment:
The Polish Investment and Commerce agency published that foreign investors contributed approximately 13,000 million euros in Poland the previous year. This tells us that Poland is the leader of the European Union in Foreign Direct Investment, this as a result of 335 foreign investments. (FDI) With this, 87,000 jobs were created, the best result throughout the European Union, according to FDI markets.
The economic movement of foreign investments in Poland has been very good in 2017, the projects carried out by these investors have increased from 272 to 335 in the year, this has represented an increase of more than 50% in direct foreign investments than toIn turn, it has caused a 48% increase in the number of jobs during this year.
With this we can affirm that direct foreign investment is really important for a country since it becomes one of the largest sources of jobs for the country, which in turn provides development for it, of course for a country to beAttractive for foreign investors it is necessary to provide the necessary conditions, safety and stability in the country.
In the number of projects in the report of the Polish-Spanish Chamber of Commerce, it mentions that the construction sector contributed 69 projects, followed by information technology companies with 39 projects and the automotive sector provides 21 projects of thisType. This is really important since these projects generated 86,000 additional jobs in 2017 in Poland, which is located in Poland in one of the highest growth countries in the European Union. It is expected that for this 2020, the number of projects will exceed 400 projects with a projection of 23,000 million euros and 110,000 new jobs in Poland.
At this point the doubt arises if permanent Poland in communism should these high investment levels have? And it is not that you have some kind of bias between capitalism or communism, it is the fact of how the rest of the world see a country with this type of government form. It can be seen that Poland’s boom arises approximately 25 years ago, a short time after this type of government is withdrawn and an increase in market competitiveness arises.
The relevant thing about this issue is that Poland increased its technical school qualities, its average schooling increase, which in turn caused the increase in the general average of the Poles’ salaries, that is to say increased foreign investment, caused greater positions of, largersalaries and better training at the schools of Poland.
This is a chain of related events, because this has also caused Poland to be among countries with the largest number of companies with quality processes in the European Union. These events resulted in Poland is one of the most stable economies in the face of the variations or problems of the distant environment of the market. (Polish Investment & Trade Agency, 2018)
First foreign investor in Poland:
A relevant fact is the first foreign investor in Poland since in 1998 Motorola placed a branch in Krakow with just 30 employees, nowadayYour computer systems and solutions.
The words of Jacek drabik general director of Motorola Poland were made a really attractive country due to the high level of teaching at the middle level, this country being a great producer of human talent, very qualified labor in its different areas. Being the first company to open offices in this country both the government and universities gave them exceptional support. This success obtained by Motorola in Poland led to other companies to lose the fear of investing in this country, which to date has helped Poland be the country with the highest growth in the European Union and one of the largest worldwide. (Hassan, 2016)
Foreign direct investment in Poland:
When talking about the impact of direct foreign investment on Poland’s economy, it is observed that this represents on average 2.66% of the nominal GDP of this country, having a standard deviation of this percentage located in 2.28%. But when reviewing the data of the FDI percentage on the PIB of Poland in the last 3 years it is observed that this tends to stay around 4%, however there are very strong falls such as those obtained in July 2017 where there was a fallof -0.786% of GDP, representing the worst measure in recent years. Strangely in July 2018 one of the worst measures with 1.537% and finally in July 2019 Poland obtained the worst of all with -1.349%. Strangely the 2nd quarter of the year have represented the worst measures or worse contributions to GDP in Poland.
When observing the following graph, it can be seen that FDI’s report on Poland’s gross domestic product remains around 4.X% being a very significant report on it, however, as mentioned in previous paragraphs, strangely in the second quarter of each year, foreign direct investment obtained the worst results, or in this quarter the slightest contribution was obtainedRegarding the rest of the quarter.
The best results were obtained, that is to say that the greatest contribution of direct foreign investment was obtained in the months of November, December, January, which coincides with the western traditions of the end of the year celebrations, which makes the demand for the demand forMost products increase, therefore income for companies also invested.
When reviewing the contribution behavior of foreign direct investment on GDP in the last 5 years, we obtain that the behavior reflecting in the previous graphs is maintained with respect to the largest crest in the quarter of January (November, December, January), January),and an abrupt fall into at minimum levels or even at negative levels. In the 2nd quarter of the year (July)
conclusion.
In the end, the important point is that Poland although it has up and down in the contribution of direct investment on GDP, the average remains in a positive value close to 2.5% of nominal GDP, being the country with the greatest development, greater growth, greater amount of creation of new jobs in the European Union.
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