This paper proposes a methodology for measuring the spatial effects of roads and the seats of local authorities on the diffusion of business activity, which usually follows distance decay patterns from core to periphery. Regional development policies, pursued by regional authorities, directed at local units and designed to support local economies, are implemented by means of a centrifugal diffusion process. This invisible flow of policy is modeled using a one-way spatial interaction model represented by a multinomial distance decay function for the integrated spatial dataset. The research results indicate that NUTS5 (Nomenclature of Territorial Units for Statistics) units (gminas) perform better in terms of saturation with business activity when NUTS4 seats of authority are established there than when they are established near international roads. The natural diffusion process from core cities to the periphery covers approximately 25-30 km, and the presence of international roads extends this range by 20 km. The results confirm the hypothesis of an endogenous growth pattern.
spatial spillover policy transfer range of local governments distance decay function