Shallow determinants of growth of Polish regions. Empirical analysis with panel data methods

Collegium of Economic Analysis Annals, 2015, issue 39, 25-40

Abstract: We derive and then estimate an augmented neoclassical growth model to identify major shallow determinants of growth of Polish NUTS-2 regions and the existence of macroeconomic education and infrastructure-related externalities. The empirical model for 16 NUTS-2 regions over the period 1999–2009 is estimated with various panel data techniques. The simple model explains around 90 per cent of variation in real GDP per capita. Most of results are in line with theoretical predictions. Overall, the return to accumulation of human capital through education and experience for Polish regions is statistically significant, robust and positive. The magnitude of the impact is higher for experience. The macroeconomic infrastructure externality is positive however statistically insignificant. When we separate the impact of quality of roads (iqm) and railway (iqr), only the second term seems to have a statistically significant effect on the dependent variable. Taken at face value, this result could have significant policy implications. Overriding priority should be given to fostering further accumulation of human capital over investments in the transport infrastructure or at least more emphasis should be placed on complementarity between the two.

Keywords: regional development; economic growth; panel data analysis (search for similar items in EconPapers)
JEL-codes: C23 O41 R10 R11 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Working Paper: Shallow determinants of growth of Polish regions. Empirical analysis with panel data methods (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:sgh:annals:i:39:y:2015:p:25-40

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