Post-Transition Investment Behavior in Poland A Sectoral Panel Analysis

Analyzing and projecting the behavior of macroeconomic variables in new EU member states presents special challenges, owing to limited time series of the available data. This paper presents an analysis of investment in Poland based on an underexplored sectoral data set. The determinants of investmen...

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Bibliographic Details
Main Author: Murgasova, Zuzana
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2005
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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100 1 |a Murgasova, Zuzana 
245 0 0 |a Post-Transition Investment Behavior in Poland  |b A Sectoral Panel Analysis  |c Zuzana Murgasova 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2005 
300 |a 31 pages 
651 4 |a Poland, Republic of 
653 |a National Government Expenditures and Related Policies: Infrastructures 
653 |a Labor costs 
653 |a Investments, Foreign 
653 |a Investment 
653 |a Public investment spending 
653 |a Finance 
653 |a Labour; income economics 
653 |a Public finance & taxation 
653 |a Wages, Compensation, and Labor Costs: General 
653 |a Balance of payments 
653 |a Long-term Capital Movements 
653 |a Exports and Imports 
653 |a Other Public Investment and Capital Stock 
653 |a Intangible Capital 
653 |a Labor 
653 |a Expenditure 
653 |a Public investments 
653 |a Capacity 
653 |a Capital 
653 |a Public Finance 
653 |a Foreign direct investment 
653 |a International Investment 
653 |a Forecasting and Simulation: Models and Applications 
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989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
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082 0 |a 330 
520 |a Analyzing and projecting the behavior of macroeconomic variables in new EU member states presents special challenges, owing to limited time series of the available data. This paper presents an analysis of investment in Poland based on an underexplored sectoral data set. The determinants of investment are found to include lagged investment, lead production, relative unit labor costs, EU demand, corporate profitability, and greenfield FDI (foreign direct investment) inflows. Dynamic in-sample simulations indicate some overinvestment in 1997 compared with what the model would suggest, and a substantial underinvestment during 2000-2004. The model is then used to project future investment: while rapid investment growth is likely, it remains uncertain whether investment as a share of GDP will reach its peak levels on the late 1990s