Foreign Direct Investment and its Employment Effects in Polish Manufacturing During Transition

The paper presents potential effects of FDI on the quantity, quality and location of employment in a host country. Empirical analysis shows direct impact of FDI on employment creation/preservation in Polish manufacturing during transition. In 1993-2000 employment growth in foreign investment enterprises did not compensate for the decline in domestic controlled employment. However, the effects differ between industries. Foreign presence has a positive impact on performance of domestic industry as a whole in terms of both usage of capital-intensive technologies and labour productivity. Further econometrical research and more data are necessary to show indirect and spillover-effects of FDI in this area. These effects can have an impact equal or even higher than the direct creation of jobs in foreign firms.FDI, Transition, Employment, Poland