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Economic Integration, Industrial Structure, and Catch-up Growth : Firm-Level Evidence from Poland

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  • Bastos,Paulo S. R.
  • Lovo,Stefania
  • Varela,Gonzalo J.
  • Hagemejer,Jan

Abstract

This paper examines if and how deeper economic integration with high-income nations impactsindustrial performance. It exploits Poland’s accession to the European Union in 2004 as a source of variation in thedegree of market integration with Germany. Using data on Polish manufacturing firms over 1995–2013, the paper findsthat EU accession was followed by significant within-firm growth in output and productivity, notably in industries inwhich Germany was more specialized at the moment of accession. Increased flows of German investment to thesesectors played an important role in shaping these effects.

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  • Bastos,Paulo S. R. & Lovo,Stefania & Varela,Gonzalo J. & Hagemejer,Jan, 2022. "Economic Integration, Industrial Structure, and Catch-up Growth : Firm-Level Evidence from Poland," Policy Research Working Paper Series 9988, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9988
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