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ISSN: 2306-3483 (Online), 2071-8330 (Print)

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The Hicksian Effects and FDI after Poland’s Accession to the European Union

Vol. 7, No 3, 2014


Teresa Kamińska

University of Gdańsk


THe Hicksian effects and FDI after Poland’s accession to the European Union

Elżbieta Babula

University of Gdańsk



ABSTRACT.  The empirical examination is made in order to distinguish between the creation and diversion effects of the foreign direct investment within the European Union after the numerous enlargement in 2004. The study case is Poland, the largest new-entrant, attributed with the highest and stable percentage share of FDI in inflow to the EU-10 (roughly 1/3 over the surveyed period). Even more significant is Poland’s percentage share of outflow from the EU-10 which almost tripled from 2004 till 2010 (22,7% and 60,0%, respectively).

     The objective is to verify whether Poland’s accession to the EU has brought about FDI both creation and diversion effects as the welfare measure of integration. The method is statistical analysis based on multistage description of streams of FDI inflows and outflows as well as cumulative FDI (stocks) using the cross-section point of view, by means of statistical tests if necessary.


Received: June, 2014

1st Revision: September, 2014

Accepted: October, 2014

DOI: 10.14254/2071-8330.2014/7-3/2

JEL Classification:F21, F15

KeywordsFDI, Hicksian welfare effects, creation effect, diversion effect, EU enlargement, Poland