Terms of Trade and Economic Growth in Poland in the period 1980-2009

The article aims to analyze the impact of changes in terms of trade and terms of trade volatility on economic growth in Poland in the period 1980-2009. The results of test using the vector autoregressive model (VAR) revealed that improved terms of trade in Poland led to increased growth of GDP per capita, while the increase in terms of trade volatility reduced the growth rate of GDP per capita in Poland. In addition, there was confirmed the greater impact of changes in terms of trade, than the terms of trade volatility on the dynamics of economic growth in Poland. It was also demonstrated that the changes in terms of trade and terms of trade volatility explained in a similar degree the variation of GDP per capita in Poland in the period 1980-2009.