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Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland

Monika Banaszewska (), Ivo Bischoff (), Aneta Kaczynska () and Eva Wolfschuetz ()
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Ivo Bischoff: University of Kassel
Aneta Kaczynska: Poznan University of Economics and Business
Eva Wolfschuetz: University of Kassel

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: This paper aims at testing whether inter-municipal cooperation (IMC) in policies to promote local business development has a positive impact on local economic performance. We apply two-way fixed effects as well as marginal structural models to a panel data set covering 1,849 Polish municipalities between 2007 and 2014. We use the unemployment rate and the rate of population growth as a proxy for local economic performance. Our results show a systematic effect of IMC on local economic performance. However, the results are contradictory. While IMC causes higher rates of population growth, they also cause higher rates of unemployment.

Keywords: Inter-municipal cooperation; local business development; population decline; marginal structural models; Poland (search for similar items in EconPapers)
JEL-codes: D72 H77 H80 O10 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2020
New Economics Papers: this item is included in nep-eur and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:202006

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