Competitiveness of Polish service exports in the EU: A focus on specialisation in the years 2010-2022
DOI:
https://doi.org/10.15678/IER.2024.1004.10Abstract
Objective: The objective of the article is to assess the competitiveness of Polish service exports to the EU by EBOPS categories and its changes in 2010-2022 and to compare the structure of Poland’s competitive advantages in the exchange of services with the main EU trade partners (Germany, France, and the Netherlands).
Research Design & Methods: Research methods include a critical analysis of the subject literature and a ratio analysis of export competitiveness using the RSCA and TBI indices. On their basis, we developed a matrix to allow for a synthetic assessment of the competitiveness of Polish services exports and the mapping of service branches in the markets of selected EU member states. The analysis also considered a third indicator, i.e., the export share index.
Findings: The most competitive branches of Polish service exports include mainly traditional branches (i.e., goods-related and manufacturing services, transport, travel and construction services) as well as telecommunications and IT services and personal, cultural, and recreational services. During the period under study, the composition of competitive advantages of Polish exports of services to the EU did not change significantly. The only branches of Polish service exports whose competitive advantages increased in the period under study were transport, construction, telecommunications, computer, information, and personal, cultural, and recreational services. Based on traditional service industries, the pattern of competitive advantages in Polish service exports was characterised by relatively little differentiation across the main EU export markets. In exporting traditional branches of services, the greatest advantage occurs in the German market and in exporting other service industries in the Dutch market.
Implications & Recommendations: The obtained research results can be a starting point for verifying the industry structure and partly also the geographical structure of Polish service exports to the EU. On their basis, it is possible to indicate the categories of services with the best prospects for the development of exports to the EU market and the surveyed member states.
Contribution & Value Added: Relatively few studies of Polish service exports concerned their competitiveness in the EU market, most of them analysed the total value of exports. Furthermore, among studies assessing competitiveness in the EU market, researchers’ attention generally focused on specific service categories and the EU market was treated as a homogeneous whole. Therefore, the issue of diversification of the competitive position of Polish service exports on the markets of individual EU member states was not taken into account. This article is an attempt to fill this research gap.
Keywords
Trade in services, export competitiveness, Poland, intra-EU trade, competitive advantage, trade specialisation
Author Biography
Elżbieta Bombińska
Associate Professor at Krakow University of Economics (Poland). Post-Doc Degree of Habilitated Doctor in economics and finance (2022), PhD in economics. Her research interests include international economics, international trade in services, foreign direct investments and multinational corporations.
References
- Ambroziak, A.A. (2018). Manufacturing vs services: changes in intra-EU trade. The case of the Visegrád Countries. In M. Staníčková, L. Melecký, E. Kovářová & K. Dvoroková (Eds.), Proceedings of the 4th International Conference on European Integration 2018 (pp. 59-66). VŠB – Technical University of Ostrava.
- Ambroziak, A.A., & Stefaniak, J. (2022). The position of China in trade in services within the European Union. Oeconomia Copernicana, 13(2), 335-354. https://doi.org/10.24136/oc.2022.010
- Ambroziak, Ł. (2013). Konkurencyjność eksportu rolno-spożywczego Polski i wybranych nowych państw członkowskich na rynku UE-15. Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu, 15(3), 21-26. Retrieved from http://bazekon.icm.edu.pl/bazekon/element/bwmeta1.element.ekon-element-000171338599 on July 4, 2024.
- Ambroziak, Ł. (2016). Konkurencyjność cenowo-jakościowa polskich producentów żywności na rynku niemieckim. Zeszyty Naukowe SGGW w Warszawie. Problemy Rolnictwa Światowego, 16(31), 7-24. https://doi.org/10.22630/PRS.2016.16.1.1
- Antimiani, A., & Cernat, L. (2018). Liberalizing Global Trade in Mode 5 Services: How Much Is It Worth?. Journal of World Trade, 52(1), 65-83. https://doi.org/10.54648/TRAD2018004
- Balassa, B. (1965). Trade Liberalisation and ‘Revealed’ Comparative Advantage. Manchester School of Economics and Social Studies, 33. 99-123. https://doi.org/10.1111/j.1467-9957.1965.tb00050.x
- Baldwin, R., Freeman, R., & Theodorakopoulos, A. (2024). Deconstructing deglobalization: The future of trade is in intermediate services. Asian Economic Policy Review, 19(1), 18-37. https://doi.org/10.1111/aepr.12440
- Blázquez, L., Díaz-Mora, C., & González-Díaz, B. (2023). Hubs of embodied business services in a GVC world. International Economics, 174(C), 28-43. https://doi.org/10.1016/j.inteco.2023.02.004
- Bombińska, E. (2021). Modele świadczenia usług w handlu międzynarodowym. Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie.
- Bossak, J.W., & Bieńkowski, W. (2004). Międzynarodowa zdolność konkurencyjna kraju i przedsiębiorstw. Wyzwania dla Polski na progu XXI wieku. SGH, Warszawa.
- Cadestin, C., & Miroudot, S. (2020). Services Exported Together with Goods. OECD Trade Policy Papers, No 236, OECD Publishing, Paris. https://doi.org/10.1787/275e520a-en
- Caporale, G.M., Spagnolo, F., & Spagnolo, N. (2018). Exchange rates and macro news in emerging markets. Research in International Business and Finance, 46(16), 516-527. https://doi.org/10.1016/j.ribaf.2018.06.007
- Cernat, L., & Kutlina-Dimitrova, Z. (2014). Thinking in a box: A ‘mode 5’approach to service trade. Journal of World Trade, 48(6), 1109-1126. https://doi.org/10.54648/trad2014039
- Cieślik, E. (2021). Mapowanie produktów polskiego eksportu produktów rolno-spożywczych kierowanego do wybranych krajów Unii Europejskiej w 2020 roku. Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego, 21(4), 37-53. https://doi.org/10.22630/PRS.2021.21.4.15
- Cieślik, E. (2022). A New Era Is Beginning in Central and Eastern Europe: Information and Communication Technology Services Exceed Manufacturing in the Global Production Chain. Journal of the Knowledge Economy 13, 2607-2639. https://doi.org/10.1007/s13132-021-00814-w
- Cunha, N., & Forte, R. (2017). The Comparative advantages in the services sector of developing economies. Global Economy Journal, 17(4), 1-24. https://doi.org/10.1515/gej-2017-0063
- Dalum, B., Laursen, K., & Villumsen, G. (1998). Structural change in OECD export specialization patterns: de-specialization and ’stickiness’. International Review of Applied Economics, 12(3), 423-443. https://doi.org/10.1080/02692179800000017
- Dhiman, R., Kumar, V., & Rana, S. (2020). Why export competitiveness differs within Indian textile industry? Determinants and empirical evidence. Review of International Business and Strategy, 20(3), 375-397. https://doi.org/10.1108/RIBS-03-2020-0021
- Durand, M., Simon, J., & Webb, C. (1992). OECD’s Indicators of International Trade and Competitiveness. OECD Economics Department Working Papers, No. 120, OECD Publishing, Paris. https://doi.org/10.1787/708306180711
- Eurostat (2024). Services trade by modes of supply. Retrieved from https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Services_trade_statistics_by_modes_of_supply#Services_and_goods_exports_competitiveness on January 18, 2024.
- Fischer, C., & Schornberg, S. (2007). Assessing the competitiveness situation of EU food and drink manufacturing industries: An index-based approach. Agribusiness, 23(4), 473-495. https://doi.org/10.1002/agr.20139
- Gnangnon, S.K. (2019). Effect of multilateral trade liberalization on export performance in developing countries: does aid for trade matter?. Review of International Business and Strategy, 29(2), 117-138. https://doi.org/10.1108/RIBS-09-2018-0079
- Gorynia, M. (2009). Teoretyczne aspekty konkurencyjności. In M. Gorynia, & E. Łaźniewska (Eds.), Kompendium wiedzy o konkurencyjności (pp. 48-66). Wydawnictwo Naukowe PWN, Warszawa.
- GUS (2024). Statistical Yearbook of the Republic of Poland 2023. GUS.
- Islam, S. (2021). Competitiveness: Bangladesh’s Trade in Services. Journal of Business Studies, XLII(2), 161-182. https://doi.org/10.3329/dujbst.v42i2.59720
- Jagiełło, M. (2003). Wskaźniki międzynarodowej konkurencyjności gospodarki. Studia i Materiały, 80, Instytut Koniunktur i Cen Handlu Zagranicznego.
- Jayadi, A., & Aziz, H. (2017). Comparative advantage analysis and products mapping of Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam export products. Journal of Developing Economies, 2(1), 14-26. https://doi.org/10.20473/jde.v2i1.5119
- Jiang, L., & Lin, C. (2020). Analysis on the international competitiveness of China’s trade in services. Emerging Markets Finance and Trade, 56(13), 3033-3043. https://doi.org/10.1080/1540496X.2019.1611558
- Kąkol, M. (2018). Poland’s Competitiveness in Services Trade on the European Union Internal Market. In M. Staníčková, L. Melecký, E. Kovářová & K. Dvoroková (Eds.), Proceedings of the 4th International Conference on European Integration 2018 (pp. 627-641). VŠB – Technical University of Ostrava.
- Khachaturian, T., & Oliver, S. (2023). Intangible trade: Understanding the relationship between trade barriers and mode of supply in services sectors. The World Economy, 46(5), 1189-1234. https://doi.org/10.1111/twec.13346
- Kordalska, A., & Olczyk, M. (2021). Linkages between services and manufacturing as a new channel for GVC development: Evidence from CEE countries. Structural Change and Economic Dynamics, 58, 125-137. https://doi.org/10.1016/j.strueco.2021.05.003
- Kuźnar, A. (2016). Poland’s Trade in Services with Germany – EU Membership Experience. Problems of World Agriculture, 16(4), 8-32. https://doi.org/10.22004/ag.econ.253037
- Lafay, G. (1992). The measurement of revealed comparative advantages. In M.G. Dagenais & P.A. Muet (Eds.), International Trade Modeling (pp. 209-234). Chapman & Hill, London.
- Mann, M., & Cheung, D. (2019). Measuring trade in services by mode of supply – 2019 Edition. Eurostat Statistical Working Paper. https://doi.org/10.2785/965438
- Misala, J. (2011). Międzynarodowa konkurencyjność gospodarki narodowej. PWE, Warszawa.
- Odrobina, A., & Folfas, P. (2020). Poland’s Participation in Global Value Chains: the Case of R&D Activity. Ekonomista 4, 555-572. https://doi.org/10.52335/dvqp.te180
- Olczyk, M. (2008). Konkurencyjność. Teoria i praktyka. Warszawa: CeDeWu.
- Paul, J., & Dhiman, R. (2021). Three decades of export competitiveness literature: systematic review, synthesis and future research agenda. International Marketing Review, 38(5), 1082-1111. https://doi.org/10.1108/IMR-12-2020-0295
- Pawlak, K., & Smutka, L. (2022). Does Poland’s agri-food industry gain comparative advantage in trade with non-EU countries? Evidence from the transatlantic market. Plos One, 17(9), e0274692. https://doi.org/10.1371/journal.pone.0274692
- Rueda-Cantuche, J.M., Kerner, R., Cernat, L., & Ritola, V. (2016). Trade in services by GATS modes of supply: Statistical concepts and first EU estimates. Chief Economist Note, 3, 1-27.
- Sharples, J., & Milham, N. (1990). Long-run competitiveness of Australian agriculture. Working Paper 147996, United States Department of Agriculture, Economic Research Service, New York.
- Siggel, E. (2006). International Competitiveness and Comparative Advantage: A Survey and a Proposal for Measurement. Journal of Industry Competition and Trade, 6(2), 137-159. https://doi.org/10.1007/s10842-006-8430-x
- Stefaniak, J., & Ambroziak, A.A. (2021). Intra-EU vs. extra-EU trade in ICT services. International Journal of Management and Economics, 57(1), 34-43. https://doi.org/10.2478/ijme-2021-0001
- Stefaniak, J., & Bąk, I. (2018). Assessment of competitiveness of the EU export in services. European Journal of Service Management, 25(1), 303-310. https://doi.org/10.18276/ejsm.2018.25-37
- Talar, S. (2016). The Trade Position of Poland in the ICT Services Sector. Contemporary Economy, 7(3), 13-26. Retrieved from https://www.semanticscholar.org/paper/THE-TRADE-POSITION-OF-POLAND-IN-THE-ICT-SERVICES-Talar/cc6fd5440e6d587bf31285c8d99853e59da576da on July 1, 2024.
- Tysson, L.D. (1992). Who’s bashing whom?: Trade Conflict in High Technology Industries. Institute for International Economics, Washington.
- UNCTAD (2024). UNCTADstat, Retrieved from https://unctadstat.unctad.org/datacentre/ on January 18, 2024.
- Weresa, M.A. (2008). Definicje, determinanty oraz sposoby pomiaru konkurencyjności krajów. Prace i Materiały, 284, 98-108.
- Wettstein, S., Liberatore, A., Magdeleine, J., & Maurer, A. (2019). A global trade in services data set by sector and by mode of supply (TISMOS). Conference papers 333058, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
- Widodo, T. (2009). Comparative advantage: theory, empirical measures and case studies. Review of Economic and Business Studies, 2(2), 57-81. Retrieved from https://core.ac.uk/download/pdf/6605435.pdf on January 18, 2024.
- Wosiek, R. (2016). Międzynarodowa konkurencyjność gospodarki – ujęcie teoretyczne. Studia Ekonomiczne Zeszyty Naukowe UE w Katowicach, 269, 235-244. Retrieved from Microsoft Word – 00_strony_red_spis on July 3, 2023.
- Wosiek, R., & Visvizi, A. (2021). The VWRCA Index: Measuring a Country’s Comparative Advantage and Specialization in Services. The Case of Poland. Economies, 9(48), https://doi.org/10.3390/economies9020048
- Wysokińska, Z. (2001). Konkurencyjność w międzynarodowym i globalnym handlu technologiami. Warszawa–Łódź: Wydawnictwo Naukowe PWN.
- Wyszkowska-Kuna, J. (2014). Competitiveness in International Trade in Knowledge-Intensive Services – The Case of Poland. Comparative Economic Research, 17(2), 79-100. https://doi.org/10.2478/cer-2014-0015
- Wyszkowska-Kuna, J. (2016). Competitiveness of the New European Union Member States in International Trade in Knowledge-intensive Business Services. Comparative Economic Research, 19(3), 5-26. https://doi.org/10.1515/cer-2016-0018
- Wziątek-Kubiak, A. (2001). Międzynarodowa specjalizacja a konkurencyjność. Ekonomista, 4, 471-491. Retrieved from https://bazekon.uek.krakow.pl/rekord/113120 on July 2, 2024.
- Zaharieva, G.B. (2020). International Services Trade Competitiveness of EU-27 Countries. Izvestiya Journal of Varna University of Economics, 64(3), 273-296. https://doi.org/10.36997/IJUEV2020.64.3.273
- Zielińska-Głębocka, A. (2000). Podstawowe koncepcje i determinanty konkurencyjności. In A. Zielińska-Głębocka (Ed.), Konkurencyjność przemysłowa Polski w procesie integracji z Unią Europejską. Teoria, praktyka, polityka (pp. 11-18). Wydawnictwo Uniwersytetu Gdańskiego.