Tocqueville in Poland Social Self-Organization Business Support Policies of Local Authorities and Entrepreneurship
WSIiZ Working Papers
The paper explores which elements of local authorities’ policies correlate positively with local entrepreneurship rates proxied by new firms’ registration per capita. Based on a survey of random sample of Polish communes we construct policy indicators and next merge this information with data on communes obtained from the Polish Statistical Office. We run OLS, multilevel, and quantile regressions with entry rates as dependent variable. Local policies supporting social and economic self-organisation stand apart as exhibiting the strongest positive correlation with entrepreneurship, and with entry in knowledge-intensive branches in particular. Specific policy measures have different impact according to sector of activity, and low versus high level of local entrepreneurship. Presence of foreign capital has complex pattern of associations with entrepreneurship, with positive spillover effects being stronger than negative effects of increased competition for resources.
Keywords: local entrepreneurship rates, economic self-organisation, positive spillover effects
JEL classification: H83, O12, O25