Economic Integration, Industrial Structure, and Catch-up Growth : Firm-Level Evidence from Poland
This paper examines if and how deeper economic integration with high-income nations impacts industrial performance. It exploits Poland’s accession to the European Union in 2004 as a source of variation in the degree of market integration with Germa...
| Main Authors: | , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099527203292220454/IDU096ee3289044ff0431a0a1e60455172913d3a http://hdl.handle.net/10986/37252 |
| Summary: | This paper examines if and how deeper
economic integration with high-income nations impacts
industrial performance. It exploits Poland’s accession to
the European Union in 2004 as a source of variation in the
degree of market integration with Germany. Using data on
Polish manufacturing firms over 1995–2013, the paper finds
that EU accession was followed by significant within-firm
growth in output and productivity, notably in industries in
which Germany was more specialized at the moment of
accession. Increased flows of German investment to these
sectors played an important role in shaping these effects. |
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