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Globalization and the Polish economy: stylized facts and simulations using a Computable General Equilibrium Model

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Author Info

  • Gradzewicz, Michał
  • Hagemejer, Jan
  • Zbigniew, Żółkiewski

Abstract

The aim of the paper is to quantitatively assess the impact of globalization on the economy of Poland in the medium term. Four channels of the impact of globalization are distinguished: (i) trade openness, (ii) productivity improvement, (iii) labour migrations, (iv) liberalization of the services sector. We employ a computable general equilibrium model with multiple industries and households and imperfect competition features. Our results show positive and quite significant effects of globalization on the performance of the Polish economy, stemming mainly from productivity improvements and liberalization of services. The sizeable expected migrations result in negative effects of globalization by decreasing growth potential and causing upward pressure on wages. At the sectoral level, globalization is particularly beneficial to some exporting sectors and skilled segments of the labour market.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28228.

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Date of creation: 08 Nov 2007
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Publication status: Published in Bank i Kredyt 7/2008.39(2008): pp. 3-13
Handle: RePEc:pra:mprapa:28228

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Keywords: globalization; computable general equilibrium; labour migrations; trade liberalization;

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  1. George R G Clarke, 2004. "Effect of Enterprise Ownership and Foreign Competition on Internet Diffusion in the Transition Economies," Comparative Economic Studies, Palgrave Macmillan, vol. 46(2), pages 341-370, June.
  2. Piatkowski, Marcin & Bart, van Ark, 2005. "ICT and Productivity Growth in Transition Economies: Two-Phase Convergence and Structural Reforms," MPRA Paper 29398, University Library of Munich, Germany.
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