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Economies of Transition

C/E/91. Level and type of capital inflows into Poland. How have they responded as the financial and economic conditions in Poland changed?

WORDS:
2500
DATE:
2005
PRICE:
29.99 GBP

The deregulation of Polish market, as the Soviet Union was coming to an end, opened up an opportunity for capital flows to enter the country. There are a number of factors that attract capital into a country, such as high interest rates, stable economic policy, stable exchange rate, low inflation etc. However, the amount of capital may not be the most important factor, when the quality is low. The essay primarily looks at the economic factors that attracted capital into Poland, and then identifies the difference between hot money and FDI. It is argued that hot money does not bring long term benefits to the country, as it has an ability to leave quickly, possibly even causing financial crises. The impact of Polish EU membership is also considered. The essay is supported by numerous graphs and quotes from well known economists.

 

KEYWORDS: level, type, capital, inflows, poland, responded, financial, economic, conditions, poland, changed,

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