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by Certhas 43 days ago
Do you have any sources for the claim that a large part of growth is off-shoring?

Because that seems extremely implausible, and actually very insulting to the incredible success of Eastern Europe, before and after joining the EU, in closing the gap to Western Europe over the last 3 decades.

https://ourworldindata.org/grapher/gdp-per-capita-worldbank?...

2 comments

I’m so confused. At least in tech all the big companies I work with are hiring in Poland because it is about the same as India after losses around fake hiring and the quality averages better.

It is absolutely a huge offshoring target at least for the US.

Everywhere is an offshoring target for US tech. Tons of US tech companies have Canadian offices because Canadian rates are far below US rates.
What exactly is confusing to you?

Anecdotes from your bubble inside one particular industry, that represents a small fraction of the economy of a nation, do not adequately explain the post soviet transformation of economies containing hundreds of millions of people. That's all.

Specifically I asked for evidence that current GDP growth is significantly driven by this specific type of foreign investment, as claimed. None has been forthcoming.

The reason for the growth over different time frames can differ. Anecdotal, but most of the IT people I know from Poland worked for, as they call it, "big corpo" and generally it's offshoring either directly with companies such as DXC/Luxoft or n-ix, or through local offices (Akamai for example). If you look at the average salary in Poland (in general), and the average tech salary + the number of tech workers there, it's easy to say a large part of the GDP is tech.

Whether or not it's offshoring is a little less obvious, but I can't think of more than 2 or 3 successful Polish tech companies.

There are other countries in the world or even in the EU where salaries are lower than in Poland. Why don't they see the similar growth? I guess this is more nuanced than just lowered salaries can explain it. Surely, that's part of the equation but to develop highly innovative economy, one needs to start with something. That's how China started, how Korea started etc.
It's easy to say but it's also wrong. I had Claude look for actual sources.

https://emerging-europe.com/it-sector-in-focus-poland/

The IT sector is 4.4% of GDP. Poland has seen 3% of GDP growth year on year.

What is the average salary, the average tech worker salary, and the number of tech and other workers in Poland?