Location Determinants of Portuguese FDI in Poland

Abstract In recent years, Poland has become one of the most attractive locations for foreign investment and has strengthened its position in Central and Eastern Europe (CEE) and throughout Europe. The aim of this paper is to analyse what makes Poland an attractive market for foreign investors, to offer a better understanding of reasons why Poland is a more attractive location compared to its neighbours in the CEE. After surveying Portuguese investors in Poland, our results indicate that the most significant factor determining locating a business in Poland is its large domestic market. Poland’s location is also appreciated by Portuguese investors while deciding on FDI. As indicated by Portuguese investors, the most important obstacles to investment in Poland are language barriers, cultural differences and bureaucracy. These results are relevant for companies who wish to invest in Poland and can also assist policymakers in designing policies to attract FDI.