Economic Integration, Industrial Structure, and Catch-up Growth: Firm-Level Evidence from Poland

Paulo S. R. Bastos, Stefania Lovo, Gonzalo Varela and Jan Hagemejer

No 9988, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Date: 2022-03-29
New Economics Papers: this item is included in nep-bec, nep-int and nep-tra
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Journal Article: Economic integration, industrial structure, and catch‐up growth: Firm‐level evidence from Poland (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9988

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