Original scientific paper
https://doi.org/10.1080/1331677X.2021.1948437
Institutions versus location of new firms: does distance matter? Evidence from the Polish economy
Renata Marks-Bielska
Jarosław M. Nazarczuk
Izabela Rogalska
Abstract
The research aim was to identify the effects of the institutional
environment-supporting business activity on new firms’ location.
Using a series of negative binomial models, coupled with
Hausman-Taylor estimations and Granger causality tests we
studied the role of quality of institutions and distances to various
types of institutions on the spatial distribution of new firms. The
analysis also takes into consideration other location criteria, arising from the geographical location and socio-economic conditions in Poland’s smallest administrative division unit, i.e., a
municipality. The results revealed a positive role in the quality of
institutions as firms’ location criteria. Furthermore, the distance of
firms to different institutions tended to be significant, albeit
depending on these institutions’ type. In this regard, the distance
of numerous local institutions performing a broader spectrum of
activities was a significant location criterion, while the distance to
institutions focusing on a narrow range of activities (e.g., supporting innovations, R&D), dedicated to selected or supra-regional
groups of clients, more frequently proved to be insignificant.
Implications arising from the research can help local authorities,
which take measures to improve the institutional environment
supporting firms.
Keywords
Location; institutions; location determinants; distance; quality of institutions
Hrčak ID:
302026
URI
Publication date:
31.3.2023.
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