Changes in types of Poland’s intra-industry trade in the period 1995–2014 in comparison with the other Central and Eastern European countries – EU members: Conclusions for changes in the competitiveness of Polish foreign trade
Keywords:
intra-industry trade, vertical intra-industry trade, horizontal intra-industry trade, competitiveness, Poland’s foreign tradeAbstract
This article aims to identify the changes in Poland’s intra-industry trade (IIT) in the period 1995–2014 in comparison with the other 9 Central and Eastern European countries (CEECs) – the EU Member States (also referred to as the EU-9) – and to assess the resulting changes in the competitiveness of Polish foreign trade. We analyse the changes in Poland’s trade in the context of IIT for several reasons: (a) IIT is considered to be more beneficial than inter-industry specialisation, (b) IIT intensity is an important indication of the degree of convergence of the trading partners, (c) changes in IIT illustrate the evolution of trade competitiveness. The analysis covered Poland’s trade with 3 groups of trading partners: the EU-15, the EU-9 and other countries. In order to show the changes in the intensity and nature of intra-industry specialisation, the Grubel-Lloyd index was computed on the basis of the Comtrade database. The main conclusions are as follows: IIT was a vital driver of Poland’s trade integration with all three groups of trading partners under examination. Its development indicated a significant improvement in the commodity structure of trade, reflected in a marked rise in the share of vertical intra-industry trade in high-quality products in total trade.
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