This study aims to investigate the impact of savings and foreign direct investment
on economic growth in Poland. Savings play an important role in achieving
sustainable growth. High saving rates are also an important tool to increase resilience
to financial shocks. The economic climate that emerged following the financial crisis
revealed problems with the economy of Poland to obtain foreign financing. The decrease
in foreign direct investment has led to an unpredictable economic environment
for developing countries such as Poland. The decrease in foreign direct investment has
led to lower growth rates for an emerging market such as the economy of Poland. The
relationship economic growth rate, saving and foreign direct investment are examined
for Poland over the period 1992-2016 by using the Autoregressive Distributed Lag
(ARDL) bounds testing approach. According to this approach there is a cointegration
relationship between the series and a 1% increase in savings which leads to a 0.81% increase
on economic growth rate. Also a 1% increase in foreign direct investment (FDI)
leads to a 1.52% increase in the economic growth rate.
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