The influence of export orientation on industrial production in Poland: External effects or differences in productivity?

Using panel data on the level of the 3-digit EKD group in this article we investigate the relation between industrial production and export in Poland and we carry out a decomposition of the sources of production growth. The obtained empirical results suggest that at the basis of this relation lie both differences in the productivity between firms of export orientation and domestic orientation as well as external effects generated by the export sector. Decomposition of the sources of growth reveals that the differences in productivity contribute in a greater degree to the growth of industrial production than external effects.