IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/1054-en.html
   My bibliography  Save this paper

Challenges to Sustain Poland's Growth Model

Author

Listed:
  • Balázs Égert

    (OECD)

  • Rafal Kierzenkowski

    (OECD)

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 taux de chômage élevés pour les jeunes et les travailleurs peu qualifiés via des politiques actives du marché du travail plus étendues et plus efficaces. La productivité du travail pourrait être stimulée par un système fiscal plus favorable à la croissance, par la réduction de la réglementation des marchés de produits (y compris la forte implication du gouvernement dans l'économie, les coûts administratifs élevés de fonctionnement et de création d'entreprises, et en augmentant la concurrence dans les segments non compétitifs de l'économie). Investir dans le capital humain et encourager l'innovation sont également essentiels pour la croissance de la productivité à long terme.

Suggested Citation

  • Balázs Égert & Rafal Kierzenkowski, 2013. "Challenges to Sustain Poland's Growth Model," OECD Economics Department Working Papers 1054, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1054-en
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/5k452kltcxxq-en
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Balázs Égert & Antoine Goujard, 2014. "Strengthening Competition in Poland," OECD Economics Department Working Papers 1125, OECD Publishing.

    More about this item

    Keywords

    croissance potentielle; croissance économique; economic growth; Poland; Pologne; potential growth; réforme structurelle; structural reforms;

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:1054-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/edoecfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.