Poland’s Integration into the EU Division of Labour: A Benchmark for the Ukraine?

The paper focuses on the Polish transformation process as well as on the struc-tural adjustments in its trade patterns in the course of transition and integration into the European Union. The Polish “road to Brussels” might serve as a bench-mark for institutional transformation and economic development of a Ukraine willing to integrate into the EU division of labour even though the EU does not grant an explicit accession perspective. Regarding systemic transformation Poland has undergone a thorough process of institutional change to create a functioning market economy and to adjust to the acquis communautaire. The statistical analysis and a gravity model of Polish trade relations show that the country has been successfully integrated into the EU Common Market although the degree of integration with the other EU members varies substantially, notably for Polish exports. The sectoral analysis of Polish trade flows reveals that the technology content has increased significantly indicating the participation in advanced production networks.