The causes and consequences of sector-level job flows in Poland

Author: Warzynski F.

Source: Economics of Transition, Volume 11, Number 2, June 2003 , pp. 357-381(25)

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Abstract:

We look at the determinants and consequences of job reallocation in the 22 2-digit sectors of the manufacturing industry in Poland over the period 1995–99. We find that import competition and a competitive market structure (weak concentration) have a positive and significant effect on job reallocation. Moreover, higher job reallocation is associated with higher labour productivity growth in some specifications. This confirms implications from neo-Schumpeterian growth models: one channel through which competition might positively affect growth is through the reallocation of scarce resources from declining firms to rising ones.

JEL Classifications: F16, J24, J6, O3, P3.

Keywords: Schumpeterian growth; job flows; competition; trade

Document Type: Research article

DOI: http://dx.doi.org/10.1111/1468-0351.00150

Affiliations: 1: IDEI (Institut D’Economie Industrielle), and LICOS Centre for Transition Economics Manufacture des Tabacs, 21, Allée de Brienne, 31000 Toulouse, France., Email: warzynsk@cict.fr

Publication date: 2003-06-01