Banaszewska, Monika Bischoff, Ivo Kaczynska, Aneta Wolfschütz, Eva
Year of Publication:
Joint Discussion Paper Series in Economics 06-2020
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.
Inter-municipal cooperation local business development population decline marginal structural models Poland