Market Size, Competitiveness and Technological Frontier - The Impact of Trade Integration with the UE on Productivity in Polish Manufacturing Sectors

National Bank of Poland Working Paper No. 82

36 Pages Posted: 3 Jun 2011 Last revised: 8 Jul 2016

See all articles by Aleksandra Parteka

Aleksandra Parteka

Gdańsk University of Technology - Faculty of Management and Economics

Joanna Wolszczak‐Derlacz

Gdańsk University of Technology - Faculty of Management and Economics

Date Written: May 1, 2011

Abstract

This paper addresses the relationship between growth of relative productivity in Polish manufacturing sectors and forces stemming from trade integration with the EU. We look at the productivity growth from the perspective of relations between Polish manufacturing sectors and the foreign ones, focusing on partner countries from the enlarged EU. Empirical analysis is based on sector level bilateral data concerning both domestic (Polish) and foreign market characteristics and degree of openness in the period 1995-2006. Main results indicate that, both in the short and long run, growth in domestic openness (independently on the direction of trade flows) exert positive effect on growth of relative productivity in Poland, while the opposite impact is exhibited by foreign openness. In addition, expansion in relative size of Polish sectors versus foreign ones is also among positive determinants of domestic labour productivity growth. The results suggest that domestic openness and market size effects have stimulated movement of Polish sectors towards the technological frontier with respect to the partner countries from the EU.

Keywords: labour productivity, trade, integration

JEL Classification: F14, F15, F16

Suggested Citation

Parteka, Aleksandra and Wolszczak-Derlacz, Joanna, Market Size, Competitiveness and Technological Frontier - The Impact of Trade Integration with the UE on Productivity in Polish Manufacturing Sectors (May 1, 2011). National Bank of Poland Working Paper No. 82, Available at SSRN: https://ssrn.com/abstract=1856942 or http://dx.doi.org/10.2139/ssrn.1856942

Aleksandra Parteka (Contact Author)

Gdańsk University of Technology - Faculty of Management and Economics ( email )

Narutowicza 11/12
80-952 Gdansk
Poland

Joanna Wolszczak-Derlacz

Gdańsk University of Technology - Faculty of Management and Economics ( email )

Narutowicza 11/12
80-952 Gdansk
Poland

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