Changes and Comparisons in Pattern of Polish Chinese Trade within the “16+1” Format

Dominika Choros-Mrozowska
European Research Studies Journal, Volume XXIII, Issue 2, 327-342, 2020
DOI: 10.35808/ersj/1596


Purpose: The CEE trade deficit with China has been persistent for a number of years and mechanisms have not yet been established to reverse the pattern. The aim of the research is to identify the most important bilateral trade advantages Poland’s turnover with China in contrast to other countries of the "16 + 1" format. Design/Methodology/Approach: This study examines Poland’s comparative advantage and that of other selected CEE countries via the application of the normalized revealed comparative advantage index (NRCA). The research includes Chebyshev's inequality measurement to determine outstanding NRCA values for +/-3 standard deviations of the mean. Findings: Perspective sectors where an intensification of Poland's exports to the Chinese market is possible, are those that possess a normalized comparative advantage (sector XVI - metals). Polish exporters to China should also seize the opportunity offered by changing the profile of Chinese consumers. Practical Implications: This research, by identifying potential comparative advantages, can therefore provide further arguments relevant in determining Poland's trade policy, thus affecting change in negative trade patterns with China. Originality/Value: This study provides a comprehensive analysis of Chinese trade patterns with the 16 CEE countries using NRCA and Chebyshev's inequality index that has so far not been investigated in any study.

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