Determinants of total factor productivity of Polish districts. The impact of territorial capital

In contrast to most previous analyzes in the present study we have adopted a highly spatially disaggregated NUTS-4 level, or districts, which is particularly relevant for analysis of spatial and territorial interactions and relationships. At this level of aggregation presence of various externalities and spillovers in development processes can be detected. Territorial capital, as a specific carrier concept of territorial cohesion is significantly different from the classical factors of production. We thus can assume that the territorial capital does not affect directly the production, but indirectly through the impact on TFP. The analysis uses different specifications of an econometric model with TFP as the dependent variable. We attempt to identify potential interactions between spatial districts. This requires, however, determination of the value of GDP per capita of Polish districts and, secondly, estimation of TFP for counties. The results are very interesting and to a large extent in line with theoretical postulates. On the basis of in-depth discussion of the results obtained we have developed a series of recommendations for economic policy. The paper uses the results of the project financed by the Polish National Science Centre “Concept of the territorial cohesion in cohesion policy. Implications for Economic Growth" (no. 2012/05/B/HS4/04212).