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Territorial capital and Polish regional development. A neoclassical approach

Author

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  • Tomasz Brodzicki

    (University of Gdansk, Faculty of Economics, Gdansk, Poland; Institute for Development, Sopot, Poland)

  • Dorota Ciolek

    (Author-Workplace-Name: University of Gdansk, Faculty of Management, Department of Econometrics, Sopot, Poland; Institute for Development, Sopot, Poland)

Abstract

The interaction between space (location) and the processes of accumulation (growth) is one of the most interesting and at the same time the most difficult areas of modern economic theory. The theoretical and empirical results to date are however largely unsatisfactory. In our analysis we proposed the way how to implement the space into the neoclassical Solow-Swan growth model. Territorial capital, as a specific carrier of the concept of territorial cohesion, is significantly different from the classical factors of production such as physical capital or labor input. It cannot be considered as a factor directly responsible for changes in the volume of production. However, territorial capital can have an impact on the productivity of basic factors of production such as capital and labor. Thus, when defining the function of production, we assume that territorial capital does not affect production directly, but it affects total factor productivity (TFP) indirectly, contributing to an increase in the production. In this paper we present our research findings on the contribution of various elements of territorial capital to regional growth in Poland. The study adopts a highly spatially disaggregated NUTS-4 level, i.e. counties, for which interactions and relationships of a spatial and territorial nature are particularly relevant.

Suggested Citation

  • Tomasz Brodzicki & Dorota Ciolek, 2015. "Territorial capital and Polish regional development. A neoclassical approach," Working Papers 1511, Instytut Rozwoju, Institute for Development.
  • Handle: RePEc:iro:wpaper:1511
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    More about this item

    Keywords

    regional development; TFP determinants; territorial capital; spatial econometrics;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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