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What drives productivity growth in the new EU member states? The case of Poland

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  • Kolasa, Marcin

Abstract

This paper considers productivity developments in the new EU member states and provides evidence on factors driving productivity growth in these countries, focusing on a panel of Polish manufacturing industries. Companies in Poland seem to benefit significantly from transfer of technologies that have been accumulated in more developed economies. By contrast, no strong evidence is found on immediate technology transfer. Another result is a significant effect of domestic innovation activity. There are signs that market reforms also boosted efficiency, whereas the role of reallocation of production factors towards more productive activities was marginal. Bearing in mind all methodological and data-related caveats, as well as cross-country diversity, caution is required while interpreting the findings and extrapolating them to other new member states. However, the results obtained provide some policy implications and make the case for taking into account domestic innovation activity while constructing endogenous growth models for the EU catching-up economies. JEL Classification: C23, O31, O47

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Bibliographic Info

Paper provided by European Central Bank in its series Working Paper Series with number 0486.

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Date of creation: May 2005
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Handle: RePEc:ecb:ecbwps:20050486

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Keywords: convergence; innovation; manufacturing; multi-factor productivity; new Member States;

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  1. Susanto Basu & John Fernald, 2000. "Why is productivity procyclical? Why do we care?," Working Paper Series WP-00-11, Federal Reserve Bank of Chicago.
  2. Stephen M. Miller & Mukti P. Upadhyay, 2002. "Total Factor Productivity, Human Capital and Outward Orientation: Differences by Stage of Ddevelopment and Geographic Regions," Working papers 2002-33, University of Connecticut, Department of Economics.
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Cited by:
  1. Kolasa Marcin, 2008. "How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(1), pages 155-173.
  2. Mohr, Matthias, 2005. "A trend-cycle(-season) filter," Working Paper Series 0499, European Central Bank.

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