POTENTIAL TRADE IMPLICATIONS OF JOINING THE EURO ZONE FOR THE POLISH AGRO-FOOD SECTOR

In the period of 1995-2013 the Polish agro-food export exhibited a very dynamic growth. It has happened under free-floating exchange rate system, which is believed to help stimulate exports when the Polish currency depreciates. Using some econometric procedures we have found that the exchange rate fluctuations played very little role in shaping the Polish agro-food trade. A comparison of relative prices of selected agricultural and food products in Poland and in the EU suggests that adoption of euro at a conversion rate close to the recent market levels should not have a significant impact on the Polish agro-food export.