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Competitiveness Report 2020.Pdf POLAND POLAND COMPETITIVENESS REPORT 2020 The global economy is witnessing dynamic changes related to the Fourth Industrial Revo- lution. The latest achievements in information and communication technologies (ICT) FOCUS ON SERVICE SECTOR have revolutionized manufacturing and services, as well as business practices. The use of new technologies allows an interactive network of products, machines and workforce to emerge, enhances linkages within the value chain, and affects the conditions of compe- tition. Therefore, the question arises about the traditional and new dimensions of competi- tiveness in the era of digital economy, and their significance for Poland. Seeking an an- swer to this question is the leitmotif of this monograph. Edited by COMPETITIVENESS REPO COMPETITIVENESS Digital transformation has important implications for the theoretical approach to competi- Arkadiusz Michał Kowalski tiveness, expanding it to include a new dimension related to digitalization. Moreover, Marzenna Anna Weresa the need arises to seek new ways of measuring the competitive ability and position. The analyses in this monograph refer both to theoretical issues concerning the competi- tiveness of economies in the context of the Fourth Industrial Revolution, and to empiri- cal ones, which consist in determining the competitive position of the Polish economy in 2018 compared with other EU member states, taking into consideration the level of advancement of Industry 4.0. R T 2020 ISBN 978-83-8030-400-0 SGH PUBLISHING HOUSE SGH WARSAW SCHOOL OF ECONOMICS www.wydawnictwo.sgh.waw.pl 9 788380 304000 WORLD ECONOMY RESEARCH INSTITUTE The World Economy Research Institute (WERI), a unit of the SGH Warsaw School of Econo- mics, conducts research on the global economy and on international economic and financial relations, analyzing their impact on the Polish economy. The institute’s research focuses on the global aspects of economic development, foreign trade and foreign direct investment, as well as innovation processes and their impact on competitiveness. Selected regions of the global economy are analyzed in depth, in particu- lar the economic development of Poland and other Central and Eastern European countries, Germany, the United States and East Asian states. Research results are published in numerous books and reports and in the Working Papers series in Polish and English, which is available online at: http://kolegia.sgh.waw.pl/pl/KGS/struktura/IGS-KGS/publikacje/ World Economy Research Institute SGH Warsaw School of Economics 24 Rakowiecka St. 02-521 Warsaw, Poland tel. +48 22 564 93 70 e-mail: [email protected] http://kolegia.sgh.waw.pl/en/KGS/structure/IGS-KGS/ POLAND COMPETITIVENESS REPORT 2020 FOCUS ON SERVICE SECTOR POLAND COMPETITIVENESS REPORT 2020 FOCUS ON SERVICE SECTOR Edited by Arkadiusz Michał Kowalski Marzenna Anna Weresa WARSAW 2020 Reviewers Edward Molendowski Jacek Tomkiewicz Proofreading RGR Ryszard Guz-Rudzki © Copyright by Szkoła Główna Handlowa w Warszawie, Warsaw 2020 All rights reserved. Copying, reprinting and dissemination of the whole text or its parts without permission of the publisher is prohibited. First edition ISBN 978-83-8030-400-0 Oficyna Wydawnicza SGH – Szkoła Główna Handlowa w Warszawie 02-554 Warszawa, al. Niepodległości 162 www.wydawnictwo.sgh.waw.pl e-mail: [email protected] Cover design Ad Depositum Layout and typesetting DM Quadro Printed and bound by QUICK-DRUK s.c. Order no. 105/X/20 Contents Preface ................................................................... 7 PART I. THE CONCEPT OF INTERNATIONAL COMPETITIVENESS AND THE SERVICE SECTOR Chapter 1. Competitiveness of the Service Sector – Concept Approach, Definition and Measurement Method ................................................... 13 Marzenna Anna Weresa, Arkadiusz Michał Kowalski Chapter 2. Changes in the EU Legal Framework on the Provision of Services in the Internal Market in the Past Decade ............... 29 Alina Szypulewska-Porczyńska PART II. COMPETITIVENESS OF THE POLISH ECONOMY IN 2010–2019, WITH A PARTICULAR FOCUS ON THE SERVICE SECTOR Chapter 3. Development of the Polish Economy in 2010–2019 Compared with Other EU Countries and Selected Emerging Markets, with a Particular Focus on the Service Sector ....................................................... 45 Ryszard Rapacki, Mariusz Próchniak Chapter 4. Income Convergence of Poland to the Average EU Level ................. 67 Mariusz Próchniak Chapter 5. Income Inequality and Poverty in Poland in 2010–2018 .................. 81 Patrycja Graca-Gelert Chapter 6. Competitiveness of the Polish Service Sector in Foreign Trade ............ 105 Mariusz Jan Radło Chapter 7. The Link between Foreign Direct Investment in Services and the Competitiveness of the Polish Economy in the Service Sector. A Comparative Analysis vis-à-vis the Visegrad Group Economies ................... 121 Tomasz M. Napiórkowski 6 Contents PART III. KEY FACTORS OF COMPETITIVENESS OF THE POLISH ECONOMY IN 2010–2019 IN THE CONTEXT OF THE CHALLENGES FOR THE DEVELOPMENT OF THE SERVICE SECTOR Chapter 8. Polish Economic Policy in the Context of the Development of the Service Sector ........................................................ 143 Adam Czerniak, Ryszard Rapacki Chapter 9. Investments and Financing the Development of the Service Sector in Poland ................................................................. 157 Piotr Maszczyk Chapter 10. Labor Market Challenges in the Context of Employment Shifts in the Service and Industrial Sectors ................................................ 171 Anna Maria Dzienis Chapter 11. Changes in Total Factor Productivity, with a Particular Focus on the Service Sector ....................................................... 183 Mariusz Próchniak PART IV. SERVICE SECTOR DEVELOPMENT TRENDS AND CHALLENGES Chapter 12. New Tendencies in International Service Flows ....................... 207 Andżelika Kuźnar Chapter 13. Service Sector Development Directions and Barriers in Poland ........... 225 Arkadiusz Michał Kowalski, Marta Mackiewicz, Marzenna Anna Weresa Chapter 14. Innovativeness of Service Sector Enterprises in Poland ................. 245 Małgorzata Stefania Lewandowska SUMMARY Competitive Position of Poland in 2019 (with a Focus on the Competitiveness of the Service Sector) ....................................................... 273 Marzenna Anna Weresa, Arkadiusz Michał Kowalski Preface For many years, macroeconomic research used to focus on the industrial sector, whose productivity was considered to be a cornerstone of economic development. Along with a growing share of services in the economy, the sector's competitiveness was becoming increasingly important. That said, it should be noted that services are one of those economic activities that undergo the most profound transforma- tions, linked to the introduction of innovations. While the increasing expansion of the service sector is seen to unfold with economic development, it is not only the development of the sector as a whole that plays a key role from the perspective of the competitiveness of the economy but also, and above all, the growth dynamics of certain types of services. One of the most dynamic segments of this sector con- sists of knowledge-intensive services, where knowledge is both the main factor of production and the essential good offered to customers. Among knowledge-inten- sive services, business services are a specific group engaging high-quality labor resources, while supporting the development of other industries in the manufac- turing and service sectors. Despite the growing economic and social importance of services, there is still a significant research gap regarding their importance for the international competi- tiveness of the economy. The question therefore arises: “How can the service sector contribute to increasing the competitive advantage in today’s global economy?” An answer to this question has been sought in carrying out the study presented in this monograph. Its main objectives are to: lay down the theoretical background of the issue of international competitiveness, taking into account the latest developments in research, identify the international competitive position of Poland compared to other Euro- pean Union member states and selected emerging economies; determine the degree of the service sector development in Poland, with a special focus on knowledge-based services, including, in particular, business services, and to assess their importance from the perspective of the competitiveness of the economy; identify the priorities of economic policy for the development of the service sec- tor in Poland. 8 Preface The monograph consists of four parts divided into chapters. Part I (Chapters 1 and 2), proposes a definition of the service sector, with a particular focus on knowl- edge-intensive services, including business services, and characterizes traditional and contemporary dimensions of competitiveness in the context of that sector. In addition, the legal framework for the provision of services in the EU internal mar- ket is described. Part II of the monograph focuses on determining the competitive position of the Polish economy compared with other European Union member states and selected emerging markets. The starting point is an outline of Poland's development tenden- cies in 2010–2019 (Chapter 3) and an analysis of the convergence of income in Poland with the average EU level in the long term (Chapter 4). In line with a modern, compre- hensive approach to the analysis
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