Bilateralne łańcuchy wartości jako mechanizm integracji gospodarczej: przypadek Polski i Ukrainy
Bilateral value chains as a mechanism of economic integration: the case of Poland and Ukraine

Author(s): Oleksandr Patlatoi
Subject(s): Sociology
Published by: Wydawnictwa Uniwersytetu Warszawskiego
Keywords: value chains; global value chains (GVC); economic integration; Poland; Ukraine; upgrading
Summary/Abstract: The author analyses bilateral value chains between Poland and Ukraine as a mechanism of economic integration. The study employs data from OECD’s database Trade in Value Added (TiVA) and World Bank’s database World Integrated Trade Solution (WITS), combining gross trade analysis with the decomposition of domestic and foreign value added in exports and final demand. The research results indicate that, despite dynamic growth in trade turnover and Poland’s persistent trade surplus, actual production integration remains limited. The trade structure reveals clear asymmetry: Poland mainly exports final and processed goods, while Ukraine supplies raw materials and intermediate goods. The share of Polish value added in Ukrainian final demand (particularly in manufacturing and services) is significant, whereas the contribution of Ukrainian value added to Poland’s final demand is marginal and concentrated in resource-based sectors. Trade liberalisation (DCFTA, EU extraordinary measures) has not led to a substantial deepening of production fragmentation between these two countries. It is found that current model of bilateral linkages does not fully support the long-term upgrading of Ukraine’s economy and may also constrain Poland’s ability to develop its own value chains. The research outcomes are relevant for assessing the effects of trade integration and for shaping industrial and investment policies in both countries in the context of nearshoring and friendshoring.

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