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The Impact of Trade Integration with the European Union on Productivity in a Posttransition Economy: The Case of Polish Manufacturing Sectors

  • Aleksandra Parteka
  • Joanna Wolszczak-Derlacz

This paper addresses the relationship between productivity growth in Polish manufacturing sectors and forces stemming from trade integration with the European Union. Empirical analysis (1995-2006) is based on sector-level bilateral data concerning both domestic (Polish) and foreign (partner countries from the enlarged European Union) markets' characteristics and their degree of openness. The main results indicate that, both in the short run and the long run, an increase in domestic sectors' openness exerts a positive effect on productivity growth in Poland (the opposite effect is exhibited by foreign sectors' openness). In addition, expansion in relative size of Polish sectors versus foreign ones boosts domestic labor productivity growth.

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Article provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade.

Volume (Year): 49 (2013)
Issue (Month): 2 (March)
Pages: 84-104

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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:84-104
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