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The competitiveness of Polish furniture exports

Augustyniak D., Mińska-Struzik E.

Drewno : prace naukowe, doniesienia, komunikaty

2018

vol. 61, nr 202

21--38

This paper examines the competitiveness of Polish exports of furniture using data on value added in exports. Based on the OECD/Eurostat TEC and TiVA databases, we assess the propensity and intensity of exporting by different types of Polish furniture producers. Then we examine the domestic and foreign contributions to gross exports and analyse the participation of the Polish furniture industry in global value chains. Our analysis covers the years 2002-2011 and includes comparisons with other CEE countries (Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Lithuania, Latvia, Romania, Slovakia and Slovenia) and leading European exporters of furniture (Italy and Germany). The results indicate that the patterns of gross trade in furniture differ from value added trade patterns, and that Polish furniture exports are not as competitive in value added terms as in gross terms. Furthermore, the share of foreign value added in gross exports increases along with the proportion of those exports accounted for by exports of intermediate products. The data indicate that the countries’ backward participation in GVCs increased in the years 2002-2011. This may generate both opportunities and risks, which are discussed in the paper.