ABSTRACT
This chapter analyzes what impact the accession to the Single Market has had on the competitiveness of Poland's economy based on the example of Polish-German economic relations. It recalls the main concepts of national competitiveness and describing the Polish model of growth within the framework of the Single Market. The chapter examines main stages in the development of economic relations between Poland and Germany. It emphasizes on the intra-industry trade and supply chains. The chapter also analyzes the impact of trade and investments flows between Poland and Germany on the competitiveness of specific sector using categories of low and medium-low goods and medium-high and high goods. The economic model implemented in Poland was not without consequences for the social situation. It has to be stressed that the model of transition implemented in Poland has brought steady wage increases, which have been for the most part lower than productivity gains.
