Paths of Productivity Growth in Poland : A Firm-Level Perspective
After a long period of economic transformation that included introducing a series of market-oriented reforms and joining the European Union (EU), Poland was one of the fastest-growing economies in the world by 2020. This report investigates differe...
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099235002102240024/P17424902ef0460db083a002cec248affd7 http://hdl.handle.net/10986/37047 |
| Summary: | After a long period of economic
transformation that included introducing a series of
market-oriented reforms and joining the European Union (EU),
Poland was one of the fastest-growing economies in the world
by 2020. This report investigates differences in
productivity dynamics across economic segments and attempts
to derive policy recommendations to improve the Polish
economy’s productivity performance. First, the authors
estimate firm-level total factor productivity (TFP), compute
labor productivity indices, and analyze the main
productivity patterns between 2009 and 2019. Second, the
authors decompose aggregate productivity performance into
the within, between, and net entry components using the
Melitz Polanec decomposition method to understand the
underlying response behind the observed productivity growth
in Polish sectors and industries. The efficiency of resource
allocation (measured by the between effect) worsened over
time in manufacturing and was responsible for the sector’s
productivity slowdown while allocative efficiency gains
improved productivity performance in construction and
services. To boost Polish productivity, the empirical
evidence provided in the report indicates certain areas for
policy actions as well as a few directions for necessary
further investigation. |
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