Post-Transition Investment Behavior in Poland: A Sectoral Panel Analysis

 
Author/Editor: Murgasova, Zuzana
 
Publication Date: September 01, 2005
 
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Summary: Analyzing and projecting the behavior of macroeconomic variables in new EU member states presents special challenges, owing to limited time series of the available data. This paper presents an analysis of investment in Poland based on an underexplored sectoral data set. The determinants of investment are found to include lagged investment, lead production, relative unit labor costs, EU demand, corporate profitability, and greenfield FDI (foreign direct investment) inflows. Dynamic in-sample simulations indicate some overinvestment in 1997 compared with what the model would suggest, and a substantial underinvestment during 2000-2004. The model is then used to project future investment: while rapid investment growth is likely, it remains uncertain whether investment as a share of GDP will reach its peak levels on the late 1990s.
 
Series: Working Paper No. 05/184
Subject(s): Investment | Poland | Data analysis

Author's Keyword(s): Poland | sectoral panel analysis | determinants of investment
 
English
Publication Date: September 01, 2005
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2005184 Pages: 31
Price:
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