Duration of Trade Relationships of Polish Enterprises on the Intra-Community Market: The Case of Vehicles and Automotive Parts Trade

ABSTRACT

International trade allows for wider access to goods and services in domestic markets. It contributes to socio-economic development, and it is an important factor in raising living standards. The aim of the study is to provide a duration analysis of trade relationships of Polish enterprises on the intra-community market and determine the influence of selected factors on the length of time the relationships last. We employ survival analysis methods to study the duration of Polish enterprises on the intra-community market (the case of 87 CN chapter—vehicles and parts and accessories thereof), separately for intra-community supplies (ICS) and intra-community acquisitions (ICA). Our research covers trade relationships at a level close to individual transactions—the data unit relates to a specific domestic company, a specific product group (combined nomenclature heading), a specific direction of the transaction (ICS/ICA) and exchange with a specific country. Differences in duration curves for ICS and ICA are statistically significant, and export (ICS) relationships are more durable over time than import relationships (ICA). The most durable relationships of Polish enterprises are with business partners from countries such as the United Kingdom, France, Sweden, Spain, Portugal and the Czech Republic.