Poland’s investment development path: Going beyond conventional explanations

Objective: This article examines several critical factors influencing the progression of a nation’s investment development path (IDP), using Poland’s post-transition economy as a case study. Research Design & Methods: Alongside the conventional analysis of foreign direct investment (FDI) as a correlation between economic development, indicated by GDP/GNP growth, and the net outward investment position (NOIP), we examined the influence of institutional factors, particularly government policies, the significance of the domestic and foreign markets, as well as the effects of recent external factors: the COVID-19 pandemic and the conflict in Ukraine. Consequently, we incorporated diverse viewpoints, including those of international business, economic policy, institutional theory, and political economy. Findings: The primary conclusion of this study is that Poland remains firmly embedded at the end of Stage 2 of its IDP, with no tangible indication of progressing, as per the theoretical model, to the more advanced and recommended Stage 3. Implications & Recommendations: One explanation for this seemingly paradoxical scenario of remaining in Stage 2 may reside in the country’s peculiarities, partly due to foreign investors’ persistent perception of Poland as a moderately developed economy, characterised by a substantial internal market and promising GDP growth potential. Contribution & Value Added: In the analysis of Poland’s IDP, we go beyond the variables of the original IDP model. Thus, we significantly contribute to its theoretical development and practical applications.