Changes in comparative advantages of the Polish food sector in world trade

Abstract

Research background: The period after Poland's accession to the European Union is a period of systematic development of Polish foreign trade in food products. Positive changes were visible already in the first year, but trade turnover and the balance of food exchange were even more dynamic in the subsequent years of Poland's membership in the EU. Purpose of the article: One way to assess the competitiveness of Polish food sector is the analysis of comparative advantages (relative) in the trade of products of this sector. So the aim of the presented research is to assess the comparative ad-vantages of the Polish food sector (including its most important chapters). Methods: The analysis of comparative advantages was based on relative trade advantage index (RTA) and the Lafay trade balance index (TBI). The analyses cover the years 2004–2017. The data source was the WITS-Comtrade trading database, in which trade flows are expressed in USD. The analysis was carried out at the HS chapter level. Findings & Value added: The analysis of comparative advantages in the Polish trade in food products showed that during the membership in the European Union Poland had relative comparative advantages in the food trade on the world market. In the years 2004–2017 Polish export in agri-food products increased more than 4.5 times and the positive balance of trade in these products increased more than 9.0 times. Products in trade of which Poland had comparative advantages in 2017 accounted for 55.5% of trade of the Polish agri-food sector in the global market, i.e. by 12.8% more than in the year of accession of Poland to the EU. The dynamic development of trade in food products after Poland's accession to the EU, as well as significant comparative advantages in trade in these products, testify to the competitiveness and high importance of the Polish food sector for the national economy.