Exporting activity in rural regions: does it differ from urban regions? Evidence from Poland
Abstract
Limited export potential can impede growth prospects. While core regions serve as hubs of globalization, the question remains as to how rural regions can increase their exports. By identifying the factors that enhance the export competitiveness of rural regions, particularly in comparison to urban regions, we can steer them towards sustainable development and overcome constraints related to remoteness. However, there is no simple or shortcut way of increasing exports in rural regions. It still requires long-term investments, improvements in human capital, inflows of foreign-owned entities, and advantageous operations of special economic zones. Social capital has a positive impact on exports at the regional level, but its effect could not be acknowledged in the subsets of regions. What should rural regions prioritise? Investing in human capital and promoting non-agricultural economic activities that have a greater impact on rural exports than urban ones.
First published online 05 March 2024
Keyword : international trade, rural regions, FDI, human capital, social capital, special economic zones
How to Cite
Nazarczuk, J. M., Umiński, S., & Márquez-Ramos, L. (2024). Exporting activity in rural regions: does it differ from urban regions? Evidence from Poland. Technological and Economic Development of Economy, 30(3), 712–732. https://doi.org/10.3846/tede.2024.20505
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Dunning, J. H., & Lundan, S. M. (2008). Multinational enterprises and the global economy (2nd ed.). Edward Elgar.
Eff, E. A., & Livingston, S. G. (2007). Is there a rural/urban export gap? Journal of Regional Science, 47(2), 339–363. https://doi.org/10.1111/j.1467-9787.2007.00512.x
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Evald, M. R., Klyver, K., & Christensen, P. R. (2011). The effect of human capital, social capital, and perceptual values on nascent entrepreneurs’ export intentions. Journal of International Entrepreneurship, 9(1), 1–19. https://doi.org/10.1007/s10843-010-0069-3
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Forsgren, M. (2008). Theories of the multinational firm: A multidimensional creature in the global economy. Edward Elgar.
Friedman, J. (1966). Regional development policy: A case study of Venezuela. The MIT Press.
Gajewski, P., & Tchorek, G. (2017). What drives export performance of firms in Eastern and Western Poland? European Planning Studies, 25(12), 2250–2271. https://doi.org/10.1080/09654313.2017.1355890
Ge, W. (1999). Special economic zones and the opening of the Chinese economy: Some lessons for economic liberalization. World Development, 27(7), 1267–1285. https://doi.org/10.1016/S0305-750X(99)00056-X
Gnangnon, S. K. (2021). Manufacturing exports and services export diversification. The International Trade Journal, 35(3), 221–242. https://doi.org/10.1080/08853908.2020.1779877
Hirschman, A. O. (1958). The strategy of economic development. Yale Studies in Economics: Vol. 10. Yale University Press.
Jensen, C. (2002). Foreign direct investment, industrial restructuring and the upgrading of Polish exports. Applied Economics, 34(2), 207–217. https://doi.org/10.1080/00036840010025641
Keeley, B. (2007). Human capital. How what you know shapes your life. OECD insights. OECD Publishing. https://doi.org/10.1787/9789264029095-en
Li, J., Ding, H., Hu, Y., & Wan, G. (2021). Dealing with dynamic endogeneity in international business research. Journal of International Business Studies, 52(3), 339–362. https://doi.org/10.1057/s41267-020-00398-8
Liu, X., Wang, C., & Wei, Y. (2001). Causal links between foreign direct investment and trade in China. China Economic Review, 12(2–3), 190–202. https://doi.org/10.1016/S1043-951X(01)00050-5
Loorbach, D., & Rotmans, J. (2010). The practice of transition management: Examples and lessons from four distinct cases. Futures, 42(3), 237–246. https://doi.org/10.1016/j.futures.2009.11.009
Manova, K., Wei, S. J., & Zhang, Z. (2015). Firm exports and multinational activity under credit constraints. Review of Economics and Statistics, 97(3), 574–588. https://doi.org/10.1162/REST_a_00480
Mayer, T., & Ottaviano, G. I. P. (2008). The happy few: The internationalisation of European firms. Intereconomics, 43(3), 135–148. https://doi.org/10.1007/s10272-008-0247-x
Melitz, M. J. (2003). The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71(6), 1695–1725. https://doi.org/10.1111/1468-0262.00467
Micek, G., Guzik, R., Gwosdz, K., & Domański, B. (2021). Newcomers from the periphery: The international expansion of Polish automotive companies. Energies, 14(9), Article 2617. https://doi.org/10.3390/en14092617
Michael, M. S., Saban, G., & Abdurahman, A. Z. A. (2016). Factors affecting non-exporting small and medium enterprises’ intention to export: Resource based approach. Procedia – Social and Behavioral Sciences, 224, 199–206. https://doi.org/10.1016/j.sbspro.2016.05.441
Muringani, J., Fitjar, R. D., & Rodríguez-Pose, A. (2021). Social capital and economic growth in the regions of Europe. Environment and Planning A: Economy and Space, 53(6), 1412–1434. https://doi.org/10.1177/0308518X211000059
Navaretti, G. B., & Markovic, B. M. (2021). Place-based policies and the foundations of productivity in the private sector. What are we building on? OECD-EC high-level expert workshop Productivity Policy for Places.
Nazarczuk, J. M., & Umiński, S. (2018). The geography of openness to foreign trade in Poland: The role of special economic zones and foreign-owned entities. Bulletin of Geography. Socio-Economic Series, 39, 97–111. https://doi.org/10.2478/bog-2018-0007
Nazarczuk, J. M., Umiński, S., & Brodzicki, T. (2020a). Determinants of the spatial distribution of exporters in regions: The role of ownership. The Annals of Regional Science, 64(3), 547–574. https://doi.org/10.1007/s00168-019-00947-6
Nazarczuk, J. M., Umiński, S., & Jurkiewicz, T. (2020b). Foreign ownership as a neglected factor in regions’ smart specialisation exports. Journal of Business Economics and Management, 21(3), 826–850. https://doi.org/10.3846/jbem.2020.12425
Nazarczuk, J. M., & Umiński, S. (2019). Foreign trade in special economic zones in Poland. UWM.
Nazarczuk, J. M., & Krajewska, A. (2018). Local determinants of foreign direct investment in Poland: The role of relative distance. Equilibrium, 13(1), 73–88. https://doi.org/10.24136/eq.2018.004
Nazarczuk, J. M., Umiński, S., & Gawlikowska-Hueckel, K. (2018). the role of specialization in the export success of polish counties in 2004–2015. Entrepreneurial Business and Economics Review, 6(2), 91–109. https://doi.org/10.15678/EBER.2018.060205
Nijkamp, P., van den Bergh, C. J. M., & Soeteman, F. J. (1990). Regional sustainable development and natural resource use. The World Bank Economic Review, 4(S1), 153–188. https://doi.org/10.1093/wber/4.suppl_1.153
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