Differences in Economic Competitiveness between Small Towns in Poland

Purpose: The purpose of this paper is to assess the economic competitiveness of small Polish towns. Design/Methodology/Approach: The study spanned over four periods (2004-2006, 2011-2013, 2017-2019, 2020-2021), and relied on the TOPSIS method which allowed to structure a synthetic metric for small towns and order them linearly. Quantitative data retrieved from the Local Data Bank of the Central Statistical Office were used in structuring the metric. Findings: While small towns witnessed an improvement in economic competitiveness, they also became more heterogeneous in that respect. The study found differences between regions, including small towns from the eastern part of Poland being poorly competitive compared to their peers from other parts the country. Practical implications: The above studies may provide some guidance for local governments and public aid managers in Poland. This allows to draw an important conclusion on future measures to be taken in small towns. If they are supposed to fully perform their key functions, a dedicated development policy for the smallest Polish towns must be put in place. This is of particular importance in view of the situation of small towns in Eastern Poland and of small towns located far away from large cities. Originality value: Small towns should improve their competitive position, but without increasing their economic scale beyond a certain size that is within the limits of environmental feasibility.