Poland’s international connectivity – through trade, investment, migration, communications, and transport – is among the highest in Europe, which helps the country’s firms become more productive through knowledge and technology transfers, says a new World Bank report, “Critical Connections: Promoting Economic Growth and Resilience in Europe and Central Asia.”
Poland is listed among the most connected countries in Europe, mainly because of its strong infrastructure transport links, which spur international trade of goods and services. During its economic transition, Poland also boosted its links with Germany, the best connected country in Europe. Additionally, Poland leveraged its growing ties to Germany to develop connections with that country’s trading partners and expand trade to broader markets within Europe and beyond.
The new World Bank report measures connectivity by creating a new indicator, the Multidimensional Connectivity (MDC) index, that combines several channels of international connections, including: trade, FDI, migration, information and communication technology (ICT), and transport links. According to the report, the best connected sub-regions are Western Europe, followed by Northern, Central, and Southern Europe. The Western Balkans, Central Asia, and the South Caucasus have the lowest levels of overall connectivity.
To maximize their exposure to international knowledge flows and benefit from integration, countries should maintain low barriers to international transactions, keep minimal constraints on inward and outward FDI and participate in deep multilateral trade agreements that support integration of services markets. Adopting international best practice for standards governing product markets, worker protections, and the environment would also encourage international connectivity.