The Investigation into Determinants of Regional Exports Base: Panel Analysis for Spanish and Polish Regions

Abstract

We use the small open economy concept to identify the determinants of region's exports at a NUTS-2 level for Poland and Spain over the period 2005-2015. Research Design & Methods: We apply the Prais-Winsten method for Panel Corrected Standard Errors (PCSE) on a data panel allowing for heteroskedasticity and autocorrelation estimating a model of regional exports for a joint sample of Polish and Spanish NUTS-2 regions. Findings: We identify a number of factors which statistically significantly determine exports arising from Polish and Spanish regions. These factors are classified into the following main groups: factor conditions, FDI, infrastructure, market conditions, remoteness and geography, spatial agglomeration and technological knowledge base. Implications & Recommendations: By going beyond national trade statistics, we provide evidence which can be used at the regional level to increase participation of regions in the world economy. Political decisions which are taken at the regional level seem to matter. Contribution & Value Added: This paper combines scientific knowledge from several perspectives: international economics and international business, as well as regional science. We believe that an interdisciplinary approach is necessary to increase the knowledge which goes beyond nations, while not focusing on firms, as units of analysis.

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“…These results are in line with those of other papers, such as Artuc et al ( 2014), Brodzicki et al (2018), Matthee and Naudé (2008) or Tsekeris (2016). Krugman (1980) explained the relationship between these two variables (economic size and exports) through the concept of the home market effect, whereby production tends to become concentrated in larger regions as firms seek economies of scale and low transport costs.…”

“…Agglomeration then, increases real wages in that region and promotes better services and information spillovers, transforming it into a more attractive place to live and do business (Parr et al, 2002). The best representation of these dynamics is found in metropolitan areas that attract firms thanks to their competitiveness, leading to an agglomeration process (Brodzicki et al, 2018 andGarcía et al, 2020). Therefore, NEG framework motivates the decision to investigate location-related aspects of exporting firms since this theory proposes endogenous location decisions of firms that are determined by spatial disparities over space.…”

Influence of the geographical pattern of foreign trade on the inland distribution of maritime traffic

“…The variables commonly selected as proxies for attracting and deterrent factors are size and distance (see Brodzicki et al, 2018). According to this common approach, the variables considered here are the container port throughput (attractiveness factor) and the province-port travel time (repulsion factor).…”

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