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Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland

Author

Listed:
  • Monika Banaszewska

    (Poznan University of Economics and Business)

  • Ivo Bischoff

    (University of Kassel)

  • Aneta Kaczynska

    (Poznan University of Economics and Business)

  • Eva Wolfschuetz

    (University of Kassel)

Abstract

This paper aims at testing whether inter-municipal cooperation (IMC) in policies to promote local business development has a positive impact on local economic performance. We apply two-way fixed effects as well as marginal structural models to a panel data set covering 1,849 Polish municipalities between 2007 and 2014. We use the unemployment rate and the rate of population growth as a proxy for local economic performance. Our results show a systematic effect of IMC on local economic performance. However, the results are contradictory. While IMC causes higher rates of population growth, they also cause higher rates of unemployment.

Suggested Citation

  • Monika Banaszewska & Ivo Bischoff & Aneta Kaczynska & Eva Wolfschuetz, 2020. "Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland," MAGKS Papers on Economics 202006, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:202006
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    1. Giuseppe Liddo & Michele G. Giuranno, 2020. "The political economy of municipal consortia and municipal mergers," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 105-135, April.

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    More about this item

    Keywords

    Inter-municipal cooperation; local business development; population decline; marginal structural models; Poland;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H80 - Public Economics - - Miscellaneous Issues - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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