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Dynamic externalities and regional manufacturing development: An exploration of the Polish experience before and after 1989

  • Roger Bivand

    ()

  • Jon M. Steineke

    ()

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    The impact of localization and urbanization economies on regional manufacturing development in Poland 1976-96 is assessed in terms of employment and the regional convergence or divergence of the economy. We examine current research on the role of dynamic production externalities in regional manufacturing development, starting with a review of recent literature on the nature of such externalities in manufacturing location, and how positive externalities may influence the spatial clustering of manufacturing industries. While much of the current literature is focussed on US experience, we analyse manufacturing employment data for Poland, in order to explore to what extent conclusions drawn from US experience may illuminate a regional economy in transition. The analysis also pays attention to the integration of a number of different methods from differing traditions, from economic geography, regional science, and new economic geography, including location quotients, Gini indices, shift-share, analysis of variance, Poisson regression, and Poisson regression for panel data. We find that radical changes have occurred in patterns of Polish regional manufacturing employment, both with regard to sectors and regions. Transition is refocussing the regional economy on strong regional centres, and on sectors regarded with little favour in the planned economy, such as food processing and wood products, including furniture.

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    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa98/papers/271.pdf
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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa98p271.

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    Date of creation: Aug 1998
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    Handle: RePEc:wiw:wiwrsa:ersa98p271
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    1. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    2. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    3. J. Vernon Henderson, 1994. "Externalities and Industrial Development," NBER Working Papers 4730, National Bureau of Economic Research, Inc.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
    5. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
    6. R S Bivand, 1986. "The evaluation of Norwegian regional policy: parameter variation in regional shift models," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 4(1), pages 71-90, February.
    7. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
    8. David, Paul A. & Rosenbloom, Joshua L., 1990. "Marshallian factor market externalities and the dynamics of industrial localization," Journal of Urban Economics, Elsevier, vol. 28(3), pages 349-370, November.
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