IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v9y2022i3p10-23.html
   My bibliography  Save this article

Peculiarities of municipalities' investment activity: a case study of Eastern Poland

Author

Listed:
  • Anna Wichowska

    (University of Warmia and Mazury in Olsztyn, Poland)

  • Wiesława Lizińska

    (University of Warmia and Mazury in Olsztyn, Poland)

Abstract

Polish municipalities have the competence to initiate and guide own socio-economic development. Local public investment is a particularly important factor that supports the development of every municipality. However, local public investment depends on several conditions, including the current socio-economic status of a municipality, which in turn is influenced by the municipality’s investment activity. The investment activity pursued by municipalities, as suggested by many authors, is of special importance in the development of municipalities situated in both socially and economically less developed areas, such as Eastern Poland. The purpose of this study has been to identify the determinants of investment activity carried out by municipalities situated in the provinces of Eastern Poland, in the context of local socio-economic development and the efficiency of local governments, and to assess the strength and direction of relationships be-tween these determinants and the investment activity of municipalities. A multiple linear regression method was chosen to identify determinants of investment activity, as it enables the user to assess the presence of a relationship between a response (dependent) variable and explanatory (independent) variables as well as the strength and direction of such relationships. The time period for most of the analysed variables spanned the years from 2004 to 2020, and the territorial scope was composed of municipalities located in the Polish provinces: Lubelskie, Podkarpackie, Podlaskie, Świętokrzyskie and Warmińsko-Mazurskie. The study confirmed that the investment activity of municipalities depends on factors involved in local socio-economic development. Among these factors, the ones that play a significant role in the municipalities situated in Eastern Poland’s provinces are demographic issues, especially internal migrations, economic activity, unemployment and other budget expenses which are competitive to investment outlays, for example expenditure on education and upbringing, or on social welfare. The factors mentioned above implicate the areas worthy special attention of local authorities for the sake of attaining improved socio-economic development of a given area.

Suggested Citation

  • Anna Wichowska & Wiesława Lizińska, 2022. "Peculiarities of municipalities' investment activity: a case study of Eastern Poland," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(3), pages 10-23, March.
    • Handle: RePEc:ssi:jouesi:v:9:y:2022:i:3:p:10-23
    DOI: 10.9770/jesi.2022.9.3(1)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/35/Wichowska_Peculiarities_of_municipalities_investment_activity_a_case_study_of_Eastern_Poland.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/933
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2022.9.3(1)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Brooks,Chris, 2008. "RATS Handbook to Accompany Introductory Econometrics for Finance," Cambridge Books, Cambridge University Press, number 9780521896955, September.
    2. Wioletta Wierzbicka, 2020. "Socio-economic potential of cities belonging to the Polish National Cittaslow Network," Oeconomia Copernicana, Institute of Economic Research, vol. 11(1), pages 203-224, March.
    3. Aschauer, David Alan, 1989. "Does public capital crowd out private capital?," Journal of Monetary Economics, Elsevier, vol. 24(2), pages 171-188, September.
    4. Agenor, Pierre-Richard & Moreno-Dodson, Blanca, 2006. "Public infrastructure and growth : new channels and policy implications," Policy Research Working Paper Series 4064, The World Bank.
    5. Turnovsky, Stephen J., 2015. "Economic growth and inequality: The role of public investment," Journal of Economic Dynamics and Control, Elsevier, vol. 61(C), pages 204-221.
    6. Anna Wichowska, 2021. "Economic Aspects of Shrinking Cities in Poland in the Context of Regional Sustainable Development," Sustainability, MDPI, vol. 13(6), pages 1-12, March.
    7. Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Youze Lang & Qiuyi Yang, 2019. "Does Public Infrastructure Breed Consumption Downgrade and Overcapacity in China? A DSGE Approach on Macroeconomic Effects," Sustainability, MDPI, vol. 11(3), pages 1-23, February.
    2. Muhammad Javid, 2019. "Public and Private Infrastructure Investment and Economic Growth in Pakistan: An Aggregate and Disaggregate Analysis," Sustainability, MDPI, vol. 11(12), pages 1-22, June.
    3. Zúñiga, Jimena & Capello, Marcelo & Butler, Inés & Grión, Nester, 2013. "A Cycle-Adjusted Fiscal Rule for Sustainable and More Equitable Growth in Argentina," IDB Publications (Working Papers) 4638, Inter-American Development Bank.
    4. Agnieszka Stanowicka & Małgorzata Kobylińska & Anna Wichowska, 2023. "Awareness of the Cittaslow Brand among Polish Urban Dwellers and Its Impact on the Sustainable Development of Cities," Sustainability, MDPI, vol. 15(10), pages 1-13, May.
    5. Abbas, Aadil & Masih, Mansur, 2017. "Which investment (private or public) does contribute to economic growth more? a case study of South Africa," MPRA Paper 108919, University Library of Munich, Germany.
    6. Conrad, Klaus & Seitz, Helmut, 1997. "Infrastructure provision and international market share rivalry," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 715-734, November.
    7. Pierre Richard Agénor & Devrim Yilmaz, 2006. "The Tyranny of Rules: Fiscal Discipline, Productive Spending, and Growth," Economics Discussion Paper Series 0616, Economics, The University of Manchester.
    8. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 543-568, August.
    9. Zhou, Xiaoyan & Zhang, Jie & Li, Junpeng, 2013. "Industrial structural transformation and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 57(C), pages 43-51.
    10. Francesco Aiello & Alfonsina Iona & Leone Leonida, 2012. "Regional infrastructure and firm investment: theory and empirical evidence for Italy," Empirical Economics, Springer, vol. 42(3), pages 835-862, June.
    11. Fan, Chenguang & Bae, Seongho & Liu, Yu, 2024. "Can FinTech transform corporate liquidity? Evidence from China," Innovation and Green Development, Elsevier, vol. 3(2).
    12. Mathilde Le Moigne & Francesco Saraceno & Sébastien Villemot, 2016. "Probably Too Little, Certainly Too Late. An Assessment of the Juncker Investment Plan," PSE Working Papers hal-03459360, HAL.
    13. Pereira, Alfred M. & Roca-Sagales, Oriol, 2001. "Infrastructures and private sector performance in Spain," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 371-384, May.
    14. Panarello, Demetrio, 2021. "Economic insecurity, conservatism, and the crisis of environmentalism: 30 years of evidence," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).
    15. Daisuke Miyashita, 2023. "Public debt and income inequality in an endogenous growth model with elastic labor supply," International Journal of Economic Policy Studies, Springer, vol. 17(2), pages 447-472, August.
    16. Åsa Johansson, 2016. "Public Finance, Economic Growth and Inequality: A Survey of the Evidence," OECD Economics Department Working Papers 1346, OECD Publishing.
    17. Prelorentzos, Arsenios-Georgios N. & Konstantakis, Konstantinos N. & Michaelides, Panayotis G. & Xidonas, Panos & Goutte, Stephane & Thomakos, Dimitrios D., 2024. "Introducing the GVAR-GARCH model: Evidence from financial markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    18. Nikitopoulos, Christina Sklibosios & Thomas, Alice Carole & Wang, Jianxin, 2023. "The economic impact of daily volatility persistence on energy markets," Journal of Commodity Markets, Elsevier, vol. 30(C).
    19. Chiara DEL BO, 2009. "Recent advances in public investment, fiscal policy and growth," Departmental Working Papers 2009-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    20. Otto, Glenn & Voss, Graham, 1996. "Public Capital and Private Production in Australia," MPRA Paper 52110, University Library of Munich, Germany.

    More about this item

    Keywords

    local socio-economic development; Eastern Poland; investment activity; municipal investments;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:9:y:2022:i:3:p:10-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.