Foreign Investment Boosts Local Productivity and Competition in Polish Economy
FDI from foreign companies can boost productivity of local firms in Poland. Domestic companies benefit when foreign firms are in the same industry or downstream. The ability of local firms to learn from foreign companies is crucial for these benefits. Competition helps local firms learn from foreign companies in the past, while having market power helps them learn from foreign companies in the future. When the host country has a stake in foreign firms, local firms benefit more.