Abstract
Research background: The paper presents the issue of total factor productivity in the manufacturing industry in Poland. It has been assumed that total factor productivity (TFP) is a synthetic measure of efficiency of the production process and a measure of the impact of technical progress on the rate of economic growth.
 Purpose of the article: The main aim of the paper is to assess the differentiation in the level of total factor productivity (TFP) occurring among the Section C manufacturing divisions in Poland. In particular, the paper raises the issue of measuring and analysing the relationship between expenditure on research and development and the level of TFP in manufacturing divisions in Poland.
 Methods: In the presented research, the TFP level was determined by using the two-factor Cobb-Douglas production function, while econometric panel models were used to assess the studied relationship.
 Findings & Value added: The presented considerations show that manufacturing divisions in Poland are diversified in terms of total factor productivity. Generally, manufacturing divisions with high R&D intensity, i.e. divisions classified as so-called high-tech ones, are characterised by a high TFP level. The econometric analysis carried out allows us to conclude that expenditure on R&D incurred in manufacturing enterprises significantly affects the level of TFP.
Highlights
The results of the global crisis affected Poland to a much lesser extent than other countries of Central and Eastern Europe
The presented research used two most popular approaches to take into account the heterogeneity of studied objects: the fixed effects model (FEM) and the random effects model (REM)
The rate of technical progress in the sense of Hicks estimated on the REM basis is about 2.7%, and the elasticity of labour productivity relative to technical labour infrastructure is equal to ≈ 0.2986
Summary
The results of the global crisis affected Poland to a much lesser extent than other countries of Central and Eastern Europe. As in all of Europe, the economic growth rate in Poland decreased, the effects of the recession were less significant than in Hungary or the Baltic states. Prior to the global crisis, they recorded very rapid economic growth, which was difficult to explain by changes in labour and physical capital, which is why it was attributed to TFP. The results of the latest research covering the aforementioned time horizon indicate significant changes in the rankings of individual countries, and definitely show Poland’s favourable position, with the relative deterioration of the situation of the Baltic states
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