The main purpose of the article is an application of the panel data model inspired by the gravitational model to investigate the influence of foreign direct investments (FDI) on foreign trade in Poland. In the research there are used data about foreign direct investment, export and import in manufacturing industries in 2000-2007. For estimation of the gravitational model there used fixed-effect estimator and random effect estimator. Individual effect values enable a detailed analysis of the relationship between Polish foreign trade and FDI inflows by industry.
gravitational model, FE estimator foreign direct investment, international trade
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