Spatial econometric analysis of the determinants of location of manufacturing industry and market services sectors in Poland

The paper comprises econometric analysis of location determinants of manufacturing industry and market services in Poland. A wide range of location determinants are analyzed taking into account exogenous and semi-endogenous region-specific aspects, sector-specific aspects (such as labor and capital intensity, economies of scale, intensity of forward and backward linkages, wage rates, knowledge intensity and technology level) as well as interactions between sector-specific and region-specific aspects. The analysis is carried out for an unbalanced data panel of manufacturing industry and market services sectors at the level of 3-digit NACE at the NUTS 2 level (16 voivodeships). The data cover the period from 1995 to 2006. We perform the estimation using Restricted Maximum Likelihood method (REML). The results point to positive spatial autocorrelation both for manufacturing industry and market services sectors. Sector-specific and region-specific effects as proxied by sectoral dummies are important.