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Urban and regional dynamics in Poland

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Author Info

  • Deichmann, Uwe
  • Henderson, Vernon

Abstract

In this exploration of urban and regional dynamics in Poland after the transition, the authors find that the degree of urbanization, and primacy remains low in Poland. The largest cities are not growing at the rate that would be expected if post-transition adjustments were operating freely. As a result, Poland is not fully realizing external economies from urban agglomeration. Internal migration decreased significantly in the 1990s, with rural-to-urban migration declining dramatically. Current population levels everywhere seem frozen at a degree of urbanization that is low by international standards. Migration levels do not respond to unemployment differentials, perhaps because Poland's continuing housing shortage, deters migration. Housing construction, which was already low, fell by half in the 1990s, and has only recently begun a slight recovery. A significant number of mostly young, and educated temporary migrants leave Poland annually, many to find employment abroad. This may reduce pressure on the Polish labor market, but also keeps dynamic actors our of the domestic labor force, reducing growth in urban businesses and industry. Employment in manufacturing and agriculture is relatively concentrated, but specialization seems to have declined in recent years, perhaps reflecting barriers to labor mobility - which could limit growth. That employment in the manufacturing sector is quite concentrated, is to be expected in a formerly planned economy. But employment in the service sector, is also quite concentrated. A geographic divergence of service activities is not explained by dominant growth in specialized financial, and business services in the capital alone. Poland's policymakers should find a way to provide housing, thereby reducing barriers to labor mobility, and growth.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2457.

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Date of creation: 30 Sep 2000
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Handle: RePEc:wbk:wbrwps:2457

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Related research

Keywords: Health Monitoring&Evaluation; Municipal Financial Management; Housing&Human Habitats; Public Health Promotion; Banks&Banking Reform; National Urban Development Policies&Strategies; Urban Housing and Land Settlements; Municipal Financial Management; Health Monitoring&Evaluation; Housing&Human Habitats;

References

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  1. J. Vernon Henderson, 2000. "The Effects of Urban Concentration on Economic Growth," NBER Working Papers 7503, National Bureau of Economic Research, Inc.
  2. Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from France and Japan," NBER Working Papers 4612, National Bureau of Economic Research, Inc.
  3. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Mayo, Stephen K. & Stein, James I. & INU, 1988. "Housing and labor market distortions in Poland : linkages and policy implications," Policy Research Working Paper Series 361, The World Bank.
  5. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August.
  6. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  7. Duncan Black & Vernon Henderson, 2003. "Urban evolution in the USA," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 343-372, October.
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Citations

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Cited by:
  1. Danilo Camargo Igliori, 2006. "Deforestation, Growth And Agglomeration Effects: Evidence From Agriculture In The Brazilian Amazon," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 102, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. Junior Davis & Dirk Bezemer, 2005. "Key emerging and conceptual issues in the development of the rural non-farm economy in developing countries and transition economies," Development and Comp Systems 0510017, EconWPA.
  3. Resmini, Laura, 2003. "Economic integration, industry location and frontier economies in transition countries," Economic Systems, Elsevier, vol. 27(2), pages 205-221, June.
  4. Walsh, Patrick Paul, 2003. "The cyclical pattern of regional unemployment flows in Poland," Economic Systems, Elsevier, vol. 27(2), pages 155-169, June.
  5. Silaghi, Monica Ioana & Ghatak, Subrata, 2011. "Why do not They Move from Rural to Urban Areas? Inter-Regional Migration in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 143-158, March.
  6. Chor-ching Goh & Beata S. Javorcik, 2007. "Trade Protection and Industry Wage Structure in Poland," NBER Chapters, in: Globalization and Poverty, pages 337-372 National Bureau of Economic Research, Inc.
  7. Dirk Bezemer & Junior Davis, 2005. "The rural non-agricultural economy in transition countries: Enterprise level findings from Armenia," Development and Comp Systems 0510020, EconWPA.
  8. Laura Resmini, 2003. "Economic integration and regional patterns of industry location in transition countries," ERSA conference papers ersa03p399, European Regional Science Association.
  9. BOURDEAU-LEPAGE, Lise, 2001. "Marchés du travail et disparités régionales en Pologne," LATEC - Document de travail - Economie (1991-2003) 2001-08, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
  10. Duebel, Hans-Joachim & Brzeski, W. Jan & Hamilton, Ellen, 2006. "Rental choice and housing policy realignment in transition : post-privatization challenges in the Europe and Central Asia region," Policy Research Working Paper Series 3884, The World Bank.

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