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Shallow determinants of growth of Polish regions. Empirical analysis with panel data methods

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  • Tomasz Brodzicki

    (University of Gdansk)

Abstract

We derive and then estimate an augmented neoclassical growth model to identify major shallow determinants of growth of Polish NUTS-2 regions and the existence of macroeconomic education and infrastructure-related externalities. The empirical model for 16 NUTS-2 regions over the period 1999–2009 is estimated with various panel data techniques. The simple model explains around 90 per cent of variation in real GDP per capita. Most of results are in line with theoretical predictions. Overall, the return to accumulation of human capital through education and experience for Polish regions is statistically significant, robust and positive. The magnitude of the impact is higher for experience. The macroeconomic infrastructure externality is positive however statistically insignificant. When we separate the impact of quality of roads (iqm) and railway (iqr), only the second term seems to have a statistically significant effect on the dependent variable. Taken at face value, this result could have significant policy implications. Overriding priority should be given to fostering further accumulation of human capital over investments in the transport infrastructure or at least more emphasis should be placed on complementarity between the two.

Suggested Citation

  • Tomasz Brodzicki, 2015. "Shallow determinants of growth of Polish regions. Empirical analysis with panel data methods," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 25-40.
    • Handle: RePEc:sgh:annals:i:39:y:2015:p:25-40
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    Cited by:

    1. Dorota Ciołek & Tomasz Brodzicki, 2016. "Determinanty produktywności polskich powiatów," Bank i Kredyt, Narodowy Bank Polski, vol. 47(5), pages 463-494.
    2. repec:nbp:nbpbik:v:47:y:2016:i:6:p:463-494 is not listed on IDEAS
    3. Tomasz Brodzicki, 2017. "The Role of Openness in Regional Economic Growth. The Case of Polish and Spanish NUTS-2 Regions," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 47, pages 43-64.

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    More about this item

    Keywords

    regional development; economic growth; panel data analysis;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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