An economic and institutional explanation of polarization processes in the centrally planned economies is presented. Conflicts between regions competing for resources and land lead through microeconomic and macroeconomic behaviour in a specific institutional framework to polarization in space in the centrally planned economies. Empirical evidence for the Polish case is provided.
The aim of this study is the analysis of the factors influencing regional production levels in Poland and of the impacts of the investment expenditure flows on the country's overall economic efficiency.Cross-regional estimates of production functions based on the concept of (spatially immobile) input potentials as well as the analysis of regional bottlenecks hampering production are conducted.Comparisons between the derived regional performance scores and the flows of investments are performed.The results show that not the regions which use production factors more efficiently, but those which dispose of stronger political influences receive most of the investment means; thus, economic and social polarization in space is increased.
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