New Cohesion Policy of the European Union in Poland: How It Will Influence the Investment Attractiveness of Regions in 2014-2020

144 Pages·2014·2.255 MB·English

by  Adam A. Ambroziak (eds.)

Contributions to Economics
Adam A. Ambroziak Editor
New Cohesion
Policy of the
European Union
in Poland
How It Will Infl uence the Investment
Attractiveness of Regions in 2014-2020
Contributions to Economics
For furthervolumes:
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ThiSisaFMBlankPage
Adam A. Ambroziak
Editor
New Cohesion Policy of the
European Union in Poland
How It Will Influence the Investment
Attractiveness of Regions in 2014-2020
Editor
AdamA.Ambroziak
JeanMonnetChairofEuropeanIntegration
CollegiumofWorldEconomy
WarsawSchoolofEconomics
Warsaw,Poland
Reviewer:JacekSzlachta,CollegiumofEconomicAnalyses,WarsawSchoolofEconomics
Translations:GrzegorzSiwicki(chapters4and7)
Languageeditor:JamesHartzell
This book is a result of statutory research of the Collegium of World Economy, Warsaw
School of Economics, conducted by the Jean Monnet Chair of European Integration and
co-financedwithfundsprovidedbytheMinistryofScienceandHigherEducation.
ISSN1431-1933 ISSN2197-7178(electronic)
ISBN978-3-319-05334-9 ISBN978-3-319-05335-6(eBook)
DOI10.1007/978-3-319-05335-6
SpringerChamHeidelbergNewYorkDordrechtLondon
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Preface
Thisbook,entitled“NewCohesionPolicyoftheEuropeanUnioninPoland:HowIt
Will Influence the Investment Attractiveness of Regions in 2014–2020”, has been
preparedwithintheframeworkofaresearchprojectconductedbytheJeanMonnet
ChairofEuropeanIntegrationintheCollegiumofWorldEconomyattheWarsaw
School of Economics. The main objective of the research was to identify and
evaluate the major changes in the Cohesion Policy of the European Union and
their effects on Polish regions for the period of 2014–2020. These changes result
from the successful agreement on the Multiannual Financial Framework for the
period2014–2020andimplementationoftheEurope2020strategy.
The years 2013–2014 are crucial and constitute milestones for the Cohesion
Policy of the European Union. First of all, the Multiannual Financial Framework
wasagreedandacceptedbytheCouncilandtheEuropeanParliamentinNovember
andDecember2013.ItprovidesguidelinesnotonlyforEuropeanfunds,butalsofor
theeconomicpolicyoftheEU,conductedbyMemberStatesatcentralandregional
levels.Secondly,someextremelyimportantchangestocertainspheresofCohesion
Policy were either initiated or already introduced, e.g. modernization of state aid
rules,industrialpolicypackage,continuationofdiscussionsonclimatechangesand
energy, improvement of human capital, and last but not least, new rules deriving
fromthenewparadigmoftheregionalpolicyoftheEuropeanUnion.
The main change in the Cohesion Policy is the renewed focus on competitive-
ness, i.e. on entrepreneurs’ opportunities and skills to compete within the EU
internal market and the global market as well. The territorial approach taken by
the EU with respect to entrepreneurial competitiveness is directly linked to the
locationattractivenessofregions.Theenlargementin2004and2007createdmuch
wider differentiation in economic development at regional level within the Euro-
pean Union. It is worth underlining that, despite the regional policy conducted
within the EU from the late 1980s, the existence of divergence processes is still
strong enough to maintain wide development disparities between regions of the
EU-28.
The book consists of the most interesting, valuable, reliable, and relevant
research concerning countries faced with fundamental long-term structural
v
vi Preface
problems(notthoseMemberStateswhichareexperiencingproblemsderivingonly
fromthefinancialcrisis).Theso-definedgroupofMemberStatesconsistsmainlyof
countriesrepresentingyoungmarketeconomies,i.e.thosewhichjoinedtheEUin
2004,2007,and2013.Inanalysingtheneedfortheresearchthemessetoutinthis
book, it should firstly be taken into account that Poland will be the biggest net
beneficiaryofEUfundsfortheperiod2014–2020,whichmeanstherewillbealot
of EU financial sources available to entrepreneurs located in Poland. However,
according to recent research financial incentives, including EU funds, are not
always the most important factors to investors in making their location decisions.
Moreover, their impact on the economy and internationalization of companies is
weak.Henceitisextremelyimportanttoanalyseeachofthevariousfinancialtools
whichwillbeaccessibleinPoland.Inordertowidenthescopeofthisresearchthe
book goes beyond traditional incentive tools in the form of state aid and extends
thescopeofitsinquirytocoversomeotherselectedaspects,i.e.improvementofthe
quality of human capital, innovation strategies, and environmental, climate, and
energyrequirements.
In order to meet the above-mentioned goals and identification of economic
problems and challenges the book consists of nine chapters. It begins with the
chapter“ReviewoftheLiteratureonDeterminantsoftheLocationAttractivenessof
Regions” (Adam A. Ambroziak). This chapter is a review of the literature of
distinguished researchers on location factors, supplemented by the author’s very
short critical remarks and opinions, aimed at ensuring clarity and thematic unity.
This approach allows for the presentation of original ideas, elaborated over
100 years, arranged in a new structure, which in turn helps other authors of this
bookrefertothespecificfactorsintheirchapters.Theprimarygoalofthischapter
is to identify the most important relevant location theories. The first part of the
chapterpresentstheclassicaltheoriesconcerningthelocationofbusinessactivities
inregions,rangingfromHumeandWeberthroughtoMarshall,Alonso,Isard,and
Lo¨sch,andconcludingwithMyrdalandKaldor.Thenthechapterfocusescrucially
on an examination of the theory of agglomeration economies, as developed by
Krugmanandothers,includingCastells’spaceofflows.Moreovertransportinfra-
structure and issues concerning other factors of production, including innovations
andnewtechnologiesaswellaslabourmarketissues,arealsodiscussed.Thenext
partofthechapterisdedicatedtoinstitutionalaspectsandbehaviouralperspectives,
whichareofhighimportancetoentrepreneursseekingoptimalinvestmentlocation.
Chapter “Results of the Cohesion Policy in Poland’s Regions in the Period of
2007–2013” (Stanisław Bienias, Tomasz Gapski) presents the net effects of the
Cohesion Policy in Polish regions at both the macro and the micro levels in the
period of 2007–2013 and formulates some conclusions and recommendations for
public policies aimed at regional development for the period of 2014–2020. It
begins with the macro-level analysis, focused on the impact of the main socio-
economic indicators at the regional level. In the second part, the authors try to
identify the most important and interesting issues concerning the effectiveness of
the EU’s Cohesion Policy in Poland. The empirical background for the analysis
weretheevaluationreports.
Preface vii
Chapter“RegionalDimensionoftheEU’sNewCohesionPolicyfor2014–2020”
(Elz˙bieta Kawecka-Wyrzykowska) presents changes in the Cohesion Policy
addressed to regions for the period 2014–2020, as compared with the years 2007–
2013.Thesechangescoversuchareasastheamountofmoneytobespentonregional
policy,mainprioritiesandcriteriafordistributionoffunds,legaldocumentsunder-
lyingthepolicy,theperformanceframework,formsoffinancialsupport,andthenew
paradigmofregionalpolicyascomparedtopreviousyears.Theconclusionsdrawn
focusonthemostsignificantideascharacterizingtheCohesionPolicyin2014–2020.
Chapter“TheLegalFrameworkforRegionalStateAidintheEuropeanUnionin
2014–2020andItsImpactontheAttractivenessofPoland’sRegionstoInvestors”
(AdamA.Ambroziak)outlinesthelatestchangesintherulesforgrantingregional
stateaidaswellastheconditionsunderwhichthisaidcanbeofferedtoentrepre-
neurs in the period of 2014–2020, with special focus on how the new rules will
directlyinfluencetheinvestmentattractivenessofallEUregions,includingthosein
Poland.ThisisespeciallyimportanttoPolandduetothefactthatthenewRegional
State Aid Guidelines form the conditions for granting support in the form of EU
fundswithintheframeworkoftheCohesionPolicy.
Themainaimofchapter“PoliciesSupportingRegionalInnovationsinPolandin
2014–2020:TheEuropeanandNationalPerspective”(MarzennaAnnaWeresa)is
to discuss European and Polish innovation policy and find out if the measures
employed address the crucial challenges of restructuring the regional innovation
systemintheperiodof2014–2020.IncreasingtheinnovativenessofPolishregions
isextremelyimportantfortheirinvestmentattractiveness,sincetheircompetitive-
ness,whichwaspreviouslybasedonlowerlabourcostsinrelationtotheaverageof
theEU-15countries,hasbeengraduallydeteriorating.
Chapter“HumancapitalinthePolishRegions:ImplicationsfortheEUFinan-
cial Perspective 2014–2020” (Michał Szwabe) addresses the problem of differ-
ences in the level of human capital in Polish regions. The research results reveal
differencesinthehumancapitallevelsinPolishregionsattheendofthe2007–2013
EU Financial Framework.ThissnapshotofPolishregions isaimedatprovidinga
deeperunderstandingoftheregionaldisparitiesinPolandintermsofhumancapital
levels,andtheirconsequences.
Chapter “Climate and Energy Policy and the Investment Attractiveness of
Poland’s Regions” (Graz˙yna Wojtkowska-Łodej) concerns the impact of the
EU’s climate and energy policy on the development opportunities in the Polish
economy.ThechapterbeginswithapresentationofPolishactivitiesinclimateand
energypolicyinthecontextofEuropeanlawsandisfollowedbyananalysisofthe
amount and structure of renewable energy sources, together with their special
regional locations. Then the evaluation of the current and future use of different
energy sources is presented, supplemented by enumeration of conditions for
attracting investment in the analysed regions in the period of 2014–2020. As a
result of the research, regions with valuable natural resources and high levels of
entrepreneurshiporothersupportingconditionsarehighlighted.
Thekeyaimofchapter“TheExpectedInflowofForeignDirectInvestmentsin
Poland:FocusonRegions”(TomaszNapio´rkowski)isanassessmentofthefuture
viii Preface
inflow of foreign direct investment (FDI) to Poland, at both the national and
regional levels. This latter aspect has not been reported on yet in the existing
literature on the topic. To achieve the first goal, an Autoregressive Integrated
Moving Average (ARIMA) model was built using the Ordinary Least Squares
(OLS) method of estimation of the data on FDI inflows to Poland in 1990–2004.
Afterhavingpositivelyevaluatedtheobtainedresultsbasedonanexpostforecast
(for 2005–2011), the model was then used for an ex ante forecast for the years
2012–2020.Duetothewidevarianceofthenumberofinvestors,fourdeterminants
ofFDI(i.e.grossdomesticproduct,itspercapitapermutation,unitlabourcost,and
unemployment)werecorrelatedwiththedependentvariablesinordertoassessthe
strength,direction,andstatisticalvalidityofapossiblelinearrelationship.
AsaneditorIwishtothankthereferee,ProfessorJacekSzlachta,Collegiumof
Economic Analysis, Warsaw School of Economics, for his helpful comments,
constructivecriticisms,andsuggestions,whichhaveimprovedthevolumeoverall.
IalsowishtoexpressmygratitudetoProfessorElz˙bietaKawecka-Wyrzykowska,
Jean Monnet Chair of European Integration, Collegium of World Economy,
WarsawSchoolofEconomics,forhervaluableassistanceinbringingtheresearch
andbooktofruition.
Warsaw,Poland AdamA.Ambroziak
January31,2014
Contents
ReviewoftheLiteratureonDeterminantsoftheLocational
AttractivenessofRegions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
AdamA.Ambroziak
EffectsofCohesionPolicyinRegionsinPoland. . . . . . . . . . . . . . . . . . . . 29
StanisławBieniasandTomaszGapski
RegionalDimensionoftheNewEUCohesionPolicyfor2014–2020. . .. . 45
Elz˙bietaKawecka-Wyrzykowska
TheLegalFrameworkforRegionalStateAidintheEuropeanUnion
in2014–2020andItsImpactontheAttractivenessofPoland’sRegions
toInvestors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
AdamA.Ambroziak
PoliciesSupportingRegionalInnovationinPolandin2014–2020:
TheEuropeanandNationalPerspective. . . . . . . . . . . . . . . . . . . . . . . . . 77
MarzennaAnnaWeresa
HumanCapitalinthePolishRegionsImplicationsfortheEU
FinancialPerspective2014–2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
MichałSzwabe
ClimateandEnergyPolicyandInvestmentAttractiveness
ofPoland’sRegions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Graz˙ynaWojtkowska-Łodej
TheExpectedInflowofForeignDirectInvestmentsinPoland:
FocusonRegions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
TomaszM.Napio´rkowski
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
AdamA.Ambroziak
ix