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

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  • Aleksandra Parteka

    (Gdansk University of Technology, Faculty of Management and Economics)

  • Joanna Wolszczak-Derlacz

    (Gdansk University of Technology, Faculty of Management and Economics)

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.

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Bibliographic Info

Paper provided by National Bank of Poland, Economic Institute in its series National Bank of Poland Working Papers with number 82.

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Length: 36
Date of creation: 2011
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Handle: RePEc:nbp:nbpmis:82

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Keywords: labour productivity; trade; integration;

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Cited by:
  1. Aleksandra Parteka, 2013. "The Role of Trade in Intra-Industry Productivity Growth—the Case of Old and New European Union Countries," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 712-731, November.
  2. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2011. "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 Papers 82, National Bank of Poland, Economic Institute.
  3. Parteka, Aleksandra & Wolszczak-Derlacz, Joanna, 2013. "Integrated Sectors - Diversified Earnings: The (Missing) Impact of Offshoring on Wages and Wage Convergence in the EU27," Institute for Research on Labor and Employment, Working Paper Series qt3tm2935j, Institute of Industrial Relations, UC Berkeley.

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