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Challenges to Sustain Poland’s Growth Model

Author

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  • Balazs Egert
  • Rafal Kierzenkowski

Abstract

Notwithstanding a very strong economic performance over the past decade or so, Poland’s per capita income is substantially lower in comparison with the United States and per capita income growth will be sharply slowing down over the coming decades under the scenario of gradual policy changes mostly because of population ageing. Bold structural reforms are needed to boost labour productivity and labour resource utilisation. This paper argues that in order to increase labour resource utilisation, policy action should focus on raising the effective retirement age, encourage childbearing and lower high unemployment rates for young people and the unskilled via increased and more efficient active labour market policies. Labour productivity could be boosted via rendering the tax system more growth friendly, reducing product market regulation (including heavy government involvement in the economy, high administrative costs of running and starting businesses and increasing competition in uncompetitive segments of the economy). Investing in human capital and encouraging innovation are also essential for long-term productivity growth. Les défis pour soutenir le modèle de croissance économique en Pologne En dépit d’une performance économique remarquable au cours de la dernière décennie, le PIB par habitant de la Pologne est nettement plus faible en comparaison avec les États-Unis et la croissance du PIB par tête va fortement ralentir au cours des prochaines décennies, selon un scénario de changements progressifs de politiques économiques essentiellement en raison du vieillissement de la population. Des réformes structurelles audacieuses sont nécessaires pour accroître la productivité du travail et l'utilisation des ressources du travail. Cet article soutient que pour augmenter l'utilisation des ressources du travail, l'action de politique économique devrait se concentrer sur l'augmentation de l'âge effectif du départ à la retraite, d'encourager la maternité et de diminuer les t
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Balazs Egert & Rafal Kierzenkowski, 2013. "Challenges to Sustain Poland’s Growth Model," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(01), pages 11-16, May.
  • Handle: RePEc:ces:ifofor:v:14:y:2013:i:01:p:11-16
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    Cited by:

    1. Magali Benichou & Claire Ollier, 2023. "Implementing Ecosystem-Based Management through Cooperation: Resorting to Citizen Participation to Move from Theorization to Concretization? [Implémenter la gestion écosystémique à travers la coopé," Post-Print hal-04331096, HAL.
    2. Balázs Égert & Antoine Goujard, 2014. "Strengthening Competition in Poland," OECD Economics Department Working Papers 1125, OECD Publishing.
    3. Adams, Carol A. & Potter, Brad & Singh, Prakash J. & York, Jodi, 2016. "Exploring the implications of integrated reporting for social investment (disclosures)," The British Accounting Review, Elsevier, vol. 48(3), pages 283-296.

    More about this item

    Keywords

    Wirtschaftswachstum; Wachstumstheorie; Polen;
    All these keywords.

    JEL classification:

    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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