EU EASTERN ENLARGEMENT AND THE CONFIGURATION OF GERMAN-POLISH INTER-FIRM LINKAGES

ABSTRACT This paper examines the spatial configuration of German‐Polish inter‐firm linkages based on foreign direct investment. The analysis highlights that most of the German‐Polish inter‐firm linkages are based in West German economic centres, so that East Germany and particularly the Eastern border regions are facing the threat of falling behind those economic regions which take advantage of the chances offered by EU Eastern enlargement. However, within East Germany the region of Berlin‐Brandenburg proves to be the strongest centre of advanced economic linkages to Poland. In comparison to the West German metropolitan regions, Berlin‐Brandenburg firms with direct investment in Poland are characterised by a qualitatively advanced profile of activity branches, in which the technology‐centred and R&D‐intensive industrial branches as well as the highly qualified producer services have a dominant share. The region thus has a potential to become a centre of competence in German‐Polish economic relations.