Macro and Micro Features of Successful Economic Convergence
This paper examines the patterns of growth of Poland, and its transition into high-income status over the past two decades from a macro and micro perspective. It benchmarks Polish performance with that observed in established high-income countries, and with that of others that have been trapped in middle--income levels and examines the role that integration into the EU had on growth. The analysis reveals, first, that Poland’s growth process has been accompanied by a process of diversification of assets, including institutions, physical and human capital. Second, that the progressive integration into the EU bloc boosted growth and productivity because of three keyfactors: (i) increased openness to trade, investment and talent, (ii) increased domestic competition, and regulatory harmonization with EU, (iii) increased certainty in reforms, through a commitment to EU-institutions. Third, that for full convergence to high-income levels, Polish firms need to increase their innovative capacities. The paper extracts lessons applicable to other economies trapped in middle-income levels, as well as to Poland itself to consolidate growth looking forward.
| Main Authors: | , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019-01-09
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| Subjects: | ECONOMIC GROWTH, ECONOMIC CONVERGENCE, PRODUCTIVITY, STRUCTURAL TRANSFORMATION, MICROECONOMIC ANALYSIS, MACROECONOMIC POLICY, TOTAL FACTOR PRODUCTIVITY, REGIONAL INTEGRATION, EUROPEAN UNION, DIVERSIFICATION, |
| Online Access: | http://documents.worldbank.org/curated/en/704781547133350911/Macro-and-Micro-Features-of-Successful-Economic-Convergence-The-Case-of-Poland https://hdl.handle.net/10986/31207 |
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