<trans-abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>The paper consists of two parts. The first outlines determinants of international investment position (IIP); it also attempts to determine conditions of external balance of payments of a country with a negative net IIP. Ten the Laffer curve was used to determine a maximal economically justifed level of inviting foreign capital in order to support the country's economic development. This level determines equalization of net costs of the IIP income maintenance with an increase in the country's global product during a given period. When a national economy reaches this level, it creates a serious threat to its development. Similarly, failing to meet conditions of the external balance of payments usually results in serious economic crisis in the given country.</p><p>The second part is devoted to the presentation of the IIP of Poland. In the first decade of the current century, Poland supported its economic development by attracting significant amounts of foreign capital in the form of share and creditor capital. It led to a high negative net IIP, a situation which may threaten the stability of a country's external payment position and developmental perspectives. Nevertheless, the analysis of the IIP structure of Poland did not indicate the appearance of any extreme threats to its external payments position at the beginning of the second decade of the 21st century. However, excessive absorption of global product growth by IIP income maintenance may arouse some concern. This led to the conclusion that particular corrections in the country's economic policy are necessary.</p></trans-abstract>

The paper consists of two parts. The first outlines determinants of international investment position (IIP); it also attempts to determine conditions of external balance of payments of a country with a negative net IIP. Ten the Laffer curve was used to determine a maximal economically justifed level of inviting foreign capital in order to support the country's economic development. This level determines equalization of net costs of the IIP income maintenance with an increase in the country's global product during a given period. When a national economy reaches this level, it creates a serious threat to its development. Similarly, failing to meet conditions of the external balance of payments usually results in serious economic crisis in the given country.The second part is devoted to the presentation of the IIP of Poland. In the first decade of the current century, Poland supported its economic development by attracting significant amounts of foreign capital in the form of share and creditor capital. It led to a high negative net IIP, a situation which may threaten the stability of a country's external payment position and developmental perspectives. Nevertheless, the analysis of the IIP structure of Poland did not indicate the appearance of any extreme threats to its external payments position at the beginning of the second decade of the 21st century. However, excessive absorption of global product growth by IIP income maintenance may arouse some concern. This led to the conclusion that particular corrections in the country's economic policy are necessary.

Międzynarodowa Pozycja Inwestycyjna Polski i Wynikające z Niej Zagrożenia Dla Rozwoju Gospodarczego

Akademia Finansów i Biznesu Vistula w Warszawie

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The paper consists of two parts. The first outlines determinants of international investment position (IIP); it also attempts to determine conditions of...

Międzynarodowa Pozycja Inwestycyjna Polski i Wynikające z Niej Zagrożenia Dla Rozwoju Gospodarczego

Published Online: Oct 17, 2014

Page range: 190 - 213

DOI: https://doi.org/10.2478/ijme-2014-0010

Keywords
Lafer curve, international investment position, external balance of payments

© 2013 Andrzej Dorosz

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Międzynarodowa Pozycja Inwestycyjna Polski i Wynikające z Niej Zagrożenia Dla Rozwoju Gospodarczego

Published Online: Oct 17, 2014

Page range: 190 - 213

DOI: https://doi.org/10.2478/ijme-2014-0010

KeywordsLafer curve, international investment position, external balance of payments

© 2013 Andrzej Dorosz

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Lafer curve, international investment position, external balance of payments