Development of the service sector in Poland compared to other European Union countries: an extended analysis

Economic Annals-ХХI: Volume 185, Issue 9-10, Pages: 15-26

Citation information:
Szczukocka, A. (2020). Development of the service sector in Poland compared to other European Union countries: an extended analysis. Economic Annals-XXI, 185(9-10), 15-26. doi: https://doi.org/10.21003/ea.V185-02

Agata Szczukocka
PhD (Economics),
Associate Professor,
Department of Statistical Methods,
University of Lodz
41 Rewolucji 1905 r. Str., Lodz, 90-214, Poland
agata.szczukocka@uni.lodz.pl
ORCID ID: https://orcid.org/0000-0003-3525-5604

Development of the service sector in Poland compared to other European Union countries: an extended analysis

Abstract. Introduction. In the recent years, many changes in the economic transformations that can be treated as evidences of the country’s economic development were observed in the European Union member states. The service sector also experienced many changes. The nature of services is constantly changing, new types of services keep appearing, but at the same time many of them suffer from lack of demand and disappear. The role of services is more and more significant in the socio-economic development as well as in individuals’ lives, hence, this is a relevant issue and should be studied extensively.

The purpose of the paper is to discuss the transformations taking place in the services sector in Poland against other European Union countries and to analyze internal changes within the sector.

Methods. Taken in this paper attempt to assess the development of the services sector is based on the analysis of the economic indicators, mainly the gross value added and employment rates. The study presents the results of the research on the development of the service sector in years 2009-2019. The directions and scope of changes taking place in particular services sector sections were analyzed.

The results of the conducted research show that the determinant of the level of the service sector development is not only its high share in the three-sector structures, but also internal changes observed in the sector itself. The individual sections contribution to the creation of the gross value added and the level of employment vary greatly. The dominant activity among service entities in terms of value added is commercial activity. Moreover, the analysis of the service sector identifies which sections have the greatest impact on the service sector development. These sections include: wholesale and retail trade, transport and warehouse management, as well as professional, scientific and technical activities.

Conclusion. Based on the research, it was found that the share of the service sector in the structures of economies of highly developed countries is prevailing. It is indicated by the increase in employment in this sector, the growing share in the creation of gross value added, as well as the number of service enterprises. The service sector stimulates the development of the economy, and its condition proves the dynamics of social and economic development.

Keywords: Service Sector; Gross Value Added; Employment in the Service Sector; Wholesale Trade; Retail Trade; Transport; Warehouse Management; Scientific And Technical Activity

JEL Classification: I00; A10; C40

Acknowledgements and Funding: The author received no direct funding for this research.

Contribution: The author contributed personally to this work.

DOI: https://doi.org/10.21003/ea.V185-02

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Received 2.09.2020
Received in revised form 2.10.2020
Accepted 26.10.2020
Available online 21.11.2020
Updated version of the paper as of 20.01.2021