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Location Of Foreign Firms And National Border Effects: The Case Of Poland

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  • ANDRZEJ CIEŚLIK

Abstract

This paper investigates the importance of border effects for the location of foreign firms within Poland using a regional data set for the 1990s. In contrast to previous studies the border effects are estimated for individual neighbouring countries that belong to two groups: EU member countries and EU non‐accessing countries. It is shown that border dummies for three EU non‐accessing countries: Belarus, Russia and Ukraine are negative and statistically significant. These results suggest that regions located along the Polish segment of the Eastern frontier of the enlarged European Union are less attractive to foreign investors compared to other Polish regions, having controlled for their economic and social characteristics. This finding has important implications for the conduct of regional policy as public aid or special economic status may be necessary for these disadvantaged regions to prevent uneven regional growth and widening of development disparities within Poland.

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  • Andrzej Cieślik, 2005. "Location Of Foreign Firms And National Border Effects: The Case Of Poland," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 96(3), pages 287-297, July.
    • Handle: RePEc:bla:tvecsg:v:96:y:2005:i:3:p:287-297
    DOI: 10.1111/j.1467-9663.2005.00460.x
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    1. Thierry Mayer & Keith Head, 2002. "Illusory Border Effects: Distance Mismeasurement Inflates Estimates of Home Bias in Trade," Working Papers 2002-01, CEPII research center.
    2. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
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    1. Andrzej Cieślik & Bartłomiej Rokicki, 2013. "Wpływ unijnej polityki spójności na wielkość produktu i zatrudnienia w polskich regionach," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 57-77.
    2. Chandra R. Bhat & Rajesh Paleti & Palvinder Singh, 2014. "A Spatial Multivariate Count Model For Firm Location Decisions," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 462-502, June.
    3. Josep‐Maria Arauzo‐Carod & Daniel Liviano‐Solis & Miguel Manjón‐Antolín, 2010. "Empirical Studies In Industrial Location: An Assessment Of Their Methods And Results," Journal of Regional Science, Wiley Blackwell, vol. 50(3), pages 685-711, August.
    4. Jutta Gunther & Gresa Latifi & Judyta Lubacha-Sember & Daniel Tobelmann, 2017. "Scientific Cooperation in a German-Polish Border Region in the Light of EU Enlargement," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(1), pages 42-53.
    5. Vermeulen, Wessel N., 2022. "Stuck outside the single market; Evidence from firms in central and eastern Europe," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 415-434.
    6. Yener Kandogan, 2006. "Falling Walls and Lifting Curtains: Analysis of Border Effects in Transition Countries," William Davidson Institute Working Papers Series 821, William Davidson Institute at the University of Michigan.
    7. Christian Hilber & Ioan Voicu, 2010. "Agglomeration Economies and the Location of Foreign Direct Investment: Empirical Evidence from Romania," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 355-371.
    8. Andrzej Cieślik & Bartłomiej Rokicki, 2016. "Individual wages and regional market potential," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(4), pages 661-682, October.
    9. Andrzej Cieslik & Bartlomiej Rokicki, 2013. "Regional Structure Of Wages In Poland Over The Period 1995-2009," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 8(3), pages 65-78, September.
    10. Chidlow, Agnieszka & Holmström-Lind, Christine & Holm, Ulf & Tallman, Steve, 2015. "Do I stay or do I go? Sub-national drivers for post-entry subsidiary development," International Business Review, Elsevier, vol. 24(2), pages 266-275.
    11. Fredrik Wilhelmsson, 2009. "Effects of the EU-Enlargement on Income Convergence in the Eastern Border Regions," CASE Network Studies and Analyses 0383, CASE-Center for Social and Economic Research.
    12. Arauzo Carod, Josep Maria & Liviano, Daniel, 2007. "Agglomeration and location: a nonparametric approach," Working Papers 2072/4288, Universitat Rovira i Virgili, Department of Economics.
    13. Simon Falck & Hans Westlund, 2013. "Regional Grants And Fdi Location: Evidence From Swedish Regional Policy Programs 2002-2009," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 7(1), pages 36-68, JUNE.
    14. Bartlomiej ROKICKI & Mieczyslaw W. SOCHA, 2008. "Effects of Poland's Integration with the EU: Structural Interventions and Economic Development in the Eastern Border Regions," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 4, pages 81-114, December.
    15. Rogers, Cynthia L. & Wu, Chen, 2012. "Employment by foreign firms in the U.S.: Do state incentives matter?," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 664-680.
    16. Götz, Marta & Jankowska, Barbara, 2022. "When reality diverges from expectations… Industry 4.0, FDI and post-transition economy," Technology in Society, Elsevier, vol. 68(C).
    17. Arauzo Carod, Josep Maria, 2007. "Industrial location at a local level: some comments about the territorial level of the analysis," Working Papers 2072/4178, Universitat Rovira i Virgili, Department of Economics.
    18. Svante Karlsson & Urban Lindgren, 2011. "From Manufacturing to Retail? - Cross-Border Shopping and Economic Restructuring in West Sweden," ERSA conference papers ersa10p992, European Regional Science Association.
    19. Andrzej CieŚlik, 2013. "Determinants of the Location of Foreign Firms in P olish Regions: Does Firm Size Matter?," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(2), pages 175-193, April.

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