STRUCTURAL CHANGE PATH AND ECONOMIC GROWTH PERFORMANCE OF POLISH ECONOMY

In 1990, Poland and later other Eastern European countries moved away from the centrally planned economy system by implementing a package of stabilization and structural reforms IMF and WB (SAPs). Poland with strong political support from the Solidarity Movement has decided for a radical break with the old system. The first half of the 90's was marked by economic stabilization policies. High inflation, inefficient public enterprises sector, external debt threatened social explosion and chaos difficult to control. The political determination of the Solidarity movement and the strong desire of the society to break communism have contributed to the application of shock therapy to change the system. In our paper we present analysis of systemic changes in the first period of implementation of the principles of the Washington Consensus. We focus on structural policy aimed at modernizing the economic structure and creating competitive capacity on international markets in the ongoing globalization process. We consider changes taking place in the structures of economy in the period 1992-2008. Transition period can be divided into three periods. This first period till 1995 was stabilization phase. In the second period form 1996 till 2003 the elements of aqui communautaire set in the EU accession were consistently implemented. The third period contains years after accession 2004-2008. The aim of our analysis is to answer the question: what effects resulted from the implementation of a shock therapy in the sphere of productivity. The paper presents changes in labour productivity caused by structural changes and those that were the result of modernization of production technology. Authors used Shift-Share Analysis and decomposition equation for labour productivity growth. Labour productivity growth in an economy can be achieved by technological change, improvement of production process etc. (pure labour productivity growth) or by moving labour from low productivity sectors to high-productivity sectors (structural labour productivity growth). The analysis shows that Poland improved both pure labour and structural productivity growth thanks to the changes and modernization of economic structures. In analysed period productivity increased in all sectors, however the most significant rise was noted in financial intermediation; real estate, renting and business activities. Simultaneously employment decreased the most in agriculture, hunting and forestry; fishing -the sector with the lowest productivity. In all analysed years pure productivity indicator was positive. However, structural productivity indicator was negative after first years after transition, that obtain the highest value after accession to EU. The research can be used by the Government agencies for industrial development policies.