FDI through cross-border acquisitions and greenfield investment in Poland

This article looks at differences in the impact on Poland of cross-border acquisitions versus greenfield foreign direct investment activity. It starts with an analysis of the main determinants of foreign direct investment and the employment opportunities that can be created from such activity. The employment contribution of each entry mode is considered, and also the impact of the entry mode on local sourcing practices and the main reason behind the particular investment. The longterm versus the short nature of investment will also be considered. The findings compare the impact of firms at the time of their entry with the more recent situation. Evidence suggests that greenfield sites have much to offer with regards to employment opportunities and value-adding activities, though acquisitions have the benefit of better access to local knowledge