The collapse of central planning set in motion theThe countries that have benefited most from accession reintegration of the Central European countries into the are those that followed the path of radical liberal reform. world economy. The European Union, because of its Radical liberal reform, combined with preferential access proximity, economic weight, and policy-induced deep to EU markets, attracted foreign direct investment. integration, has shaped these countries' politics andThe European Union provided an outlet initially for economics. The process of accession to the EU-which Central European countries' unskilled-labor-intensive began with the signing of the European Association products and more recently for skilled-labor-intensive Agreements in 1991-has influenced their economic and technology-based products. institutions, policies, and performance.Knowledge-intensive imports from the European Kaminski traces the emerging architecture of Union have also contributed to industrial realignment in commercial relations in Europe and argues that the the Central European countries. The prospect of accession process had its greatest impact first on capital accession and, since 1998, unfettered access to EU flows and later on goods flows. markets for industrial products has given a boost to multinationals relocating production in these countries.
Technological progress has led to increasing importance of the international division of labour organized around global production and distribution networks. Multinational corporations have been a driving force behind these developments. This article studies the role of MNCs in integrating a host country into the international system of division of labour in the context of Poland. It provides evidence of Poland's increasing participation in global production and distribution networks that is taking place through FDI inflows. It concludes that, thanks to a large volume of FDI inflows, Poland's exports driven by production fragmentation will continue to expand at even faster rates than those observed in recent years.
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