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Determinants Of Potential Investment Attractiveness Of A Commune

Author

Listed:
  • Natalia Swidynska

    (Faculty of Economic Sciences, University of Warmia and Mazury in Olsztyn)

  • Ilisio Manuel De Jesus

    (Faculty of Economic Sciences, University of Warmia and Mazury in Olsztyn)

Abstract

The aim of the study was to indicate which of the determinants shaping the level of potential investment attractiveness of a commune affects its level to the highest degree. The elements which determine the attractiveness for investment, understood as an area’s ability to attract investors, were classified into five sections: labour resources, technical infrastructure, social infrastructure, administration and market. After the data were accumulated, which was necessary to create synthetic indices of the potential attractiveness of communes for investment and individual sections, they were verified statistically according to the two most important criteria: variance and correlation. Ultimately, selected indices were chosen for further analysis out of the original set of 39 indices. The Hellwig development pattern method was used to classify the communes into four classes depending on the level of potential attractiveness for investment and to determine which element had the greatest effect on the level of a commune’s potential attractiveness for investment. The average level of potential attractiveness for investment and the sections under analysis prevailed in the Warminsko-Mazurskie Voivodship communes in 2016. The results showed that the level of a commune’s potential attractiveness for investment is affected by the following factors: technical infrastructure, administration, social infrastructure, labour resources and market.

Suggested Citation

  • Natalia Swidynska & Ilisio Manuel De Jesus, 2020. "Determinants Of Potential Investment Attractiveness Of A Commune," OLSZTYN ECONOMIC JOURNAL, University of Warmia and Mazury in Olsztyn, Faculty of Economic Sciences, vol. 15(2), pages 129-140, August.
    • Handle: RePEc:ole:journl:v:15:y:2020:i:2:p:129-140
    DOI: https://doi.org/10.31648/oej.5836
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    More about this item

    Keywords

    potential attractiveness for investment; infrastructure; development; factors; investment climate;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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