Skip to main navigation menu Skip to main content Skip to site footer

The Investigation into Determinants of Regional Exports Base: Panel Analysis for Spanish and Polish Regions



Objective: We use the small open economy concept to identify the determinants of region’s exports at a NUTS-2 level for Poland and Spain over the period 2005-2015.

Research Design & Methods:We apply the Prais-Winsten method for Panel Corrected Standard Errors (PCSE) on a data panel allowing for heteroskedasticity and autocorrelation estimating a model of regional exports for a joint sample of Polish and Spanish NUTS-2 regions.

Findings:We identify a number of factors which statistically significantly determine exports arising from Polish and Spanish regions. These factors are classified into the following main groups: factor conditions, FDI, infrastructure, market conditions, remoteness and geography, spatial agglomeration and technological knowledge base.

Implications & Recommendations:By going beyond national trade statistics, we provide evidence which can be used at the regional level to increase participation of regions in the world economy. Political decisions which are taken at the regional level seem to matter.

Contribution & Value Added:This paper combines scientific knowledge from several perspectives: international economics and international business, as well as regional science. We believe that an interdisciplinary approach is necessary to increase the knowledge which goes beyond nations, while not focusing on firms, as units of analysis.


exports, region, Poland, Spain, panel-data, PCSE, determinants


Supplementary File(s)



  1. Andersson, M., & Johansson, S. (2010). Human capital and the structure of regional export flows. Technology in Society, 32(3), 230-240.
  2. Becchetti, L., Panizza, A. de, & Oropallo, F. (2007). Role of Industrial District Externalities in Export and Value-added Performance: Evidence from the Population of Italian Firms. Regional Stud-ies, 41(5), 601-621.
  3. Beck, N., & Katz, J.N. (1995). What To Do (and Not to Do) with Time-Series Cross-Section Data. American Political Science Review, 89(03), 634-647.
  4. Bensassi, S., Márquez-Ramos, L., Martínez-Zarzoso, I., & Suárez-Burguet, C. (2015). Relationship between logistics infrastructure and trade: Evidence from Spanish regional exports. Transpor-tation Research Part A: Policy and Practice, 72, 47-61.
  5. Berube, A., & Parilla, J. (2012). Metro Trade. Cities Return to their Roots in the Global Economy. Washington: The Brookings Institution.
  6. Beugelsdijk, S., Klasing, M.J., & Milionis, P. (2017). Regional economic development in Europe: the role of total factor productivity. Regional Studies, 52(4), 1-16.
  7. Brakman, S., & van Marrewijk, C. (2013). Lumpy countries, urbanization, and trade. Journal of International Economics, 89(1), 252-261.
  8. Boschma, R. (2005). Proximity and Innovation: A Critical Assessment. Regional Studies, 39(1), 61-74.
  9. Boschma, R., & Frenken, K. (2011). The emerging empirics of evolutionary economic geography. Journal of Economic Geography, 11(2), 295-307.
  10. Brodzicki, T., & Umiński, S. (2018). A gravity panel data analysis of foreign trade by regions: The role of metropolises and history. Regional Studies, 52(2), 261-273.
  11. Cassey, A.J. (2011). State foreign export patterns. Southern Economic Journal, 78(2), 308-329.
  12. Charron, N., Dahlberg, S., Holmberg, S., Rothstein, B., Khomenko, A., & Svensson, R. (2016). The Quality of Government EU Regional Dataset (version Sep16). Gothenburg, University of Gothenburg: The Quality of Government Institute.
  13. Chasco, C., Lopez, A., & Guillain, R. (2012). The Influence of Geography on the Spatial Agglomera-tion of Production in the European Union. Spatial Economic Analysis, 7(2), 247-263.
  14. Cieślik, A. (2017a). Determinanty bezpośrednich inwestycji zagranicznych w Polsce: Czy integracja europejska ma znaczenie?. Collegium of Economic Analysis Annals, (47), 65-82.
  15. Cieślik, A. (2017b). Determinants of MNE Activity in Poland: The Case of Firms from EU-15. Entre-preneurial Business and Economics Review, 5(1), 151.
  16. Ciołek, D., & Brodzicki, T. (2016). Determinanty produktywności polskich powiatów. Bank i Kredyt, 47(5), 463-494.
  17. Ciżkowicz, P., Rzońca, A., & Umiński, S. (2013). The determinants of regional exports in Poland – a panel data analysis. Post-Communist Economies, 25(2), 206-224.
  18. Courant, P.N., & Deardorff, A.V. (1992). International Trade with Lumpy Countries. Journal of Po-litical Economy, 100(1), 198-210
  19. Dühr, S. (2005). Potentials for polycentric development in Europe: The ESPON 1.1.1 project report. Planning Practice and Research, 20(2), 235-239. /10.1080/02697450500414728
  20. Dunning, J.H., & Lundan, S.M. (2008). Multinational enterprises and the global economy (2nd ed.). Cheltenham, UK, Northampton, MA: Edward Elgar.
  21. Duranton, G., & Puga, D. (2004). Micro-foundations of urban agglomeration economies. In J.V. Henderson & J.F. Thisse (Eds.), Handbook of Regional and Urban Economics, 4 (pp. 2063-2117). Cities and Geography Elsevier.
  22. Easterly, W., & Levine, R. (2001). What have we learned from a decade of empirical research on growth? It’s not factor accumulation: Stylized facts and growth Models. The World Bank Eco-nomic Review, 15(2), 177-219.
  23. Estrin, S., Meyer, K.E., Wright, M., & Foliano, F. (2008). Export propensity and intensity of subsidi-aries in emerging economies. International Business Review, 17(5), 574-586.
  24. Feenstra, R.C., Inklaar, R., & Timmer, M.P. (2015). The Next Generation of the Penn World Table. American Economic Review, 105(10), 3150-3182.
  25. Forsgren, M. (2008). Theories of the Multinational Firm: A Multidimensional Creature in the Global Economy. Cheltenham, UK, Northampton, MA, USA: Edward Elgar.
  26. Gradzewicz, M., & Kolasa, M. (2005). Napływ bezpośrednich inwestycji zagranicznych a wzrost gospodarczy w Polsce. Ekonomista, (4), 515-527.
  27. Guerrieri, P., & Iammarino, S. (2006). Euro-Commentary: The Rise Of ‘Many Mezzogiorni’. Euro-pean Urban and Regional Studies, 13(2), 167-178.
  28. Ha, S.J., & Swales, J.K. (2012). The export-base model with a supply-side stimulus to the export sector. The Annals of Regional Science, 49(2), 323-353.
  29. Johansson, S., & Karlsson, C. (2007). R&D accessibility and regional export diversity. The Annals of Regional Science, 41(3), 501-523.
  30. Kolasa, M. (2008). How does FDI inflow affect productivity of domestic firms? The role of horizon-tal and vertical spillovers, absorptive capacity and competition. The Journal of International Trade & Economic Development, 17(1), 155-173.
  31. Márquez-Ramos, L. (2016a). The Role of Institutional Environment in International Trade. The Case of Spanish Regions. REGION, 3(2), 125.
  32. Márquez-Ramos, L. (2016b). Port facilities, regional spillovers and exports: Empirical evidence from Spain. Papers in Regional Science, 95(2), 329-351.
  33. Matthee, M., & Naudé, W. (2008). The Determinants of Regional Manufactured Exports from a Developing Country. International Regional Science Review, 31(4), 343-358.
  34. Mayer, T., & Ottaviano, G.I.P. (2008). The Happy Few: The Internationalisation of European Firms. Intereconomics, 43(3), 135-148.
  35. Melitz, M.J. (2003). The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica, 71(6), 1695-1725.
  36. Naudé, W., & Gries, T. (2009). Explaining Regional Export Performance in a Developing Country: The Role of Geography and Relative Factor Endowments. Regional Studies, 43(7), 967-979.
  37. Nicolini, R. (2003). On the Determinants of Regional Trade Flows. International Regional Science Review, 26(4), 447-465.
  38. North, D.C. (1955). Location Theory and Regional Economic Growth. Journal of Political Economy, 63(3), 243-258.
  39. Ottaviano, G.I.P. (2011). ‘New’ new economic geography: Firm heterogeneity and agglomeration economies. Journal of Economic Geography, 11(2), 231-240.
  40. Parr, J.B., Hewings, G.J.D., Sohn, J., & Nazara, S. (2002). Agglomeration and Trade: Some Additional Perspectives. Regional Studies, 36(6), 675-684.
  41. Pradhan, J.P., & Das, K. (2015). Regional export advantage of rising power SMEs. Critical perspec-tives on International Business, 11(3/4), 236-258.
  42. Pradhan, J.P., & Zohair, M. (2016). Subnational Export Performance and Determinants. Review of Market Integration, 7(2), 133-174.
  43. Rodriguez, X.A., & Pallas, J. (2008). Determinants of foreign direct investment in Spain. Applied Economics, 40(19), 2443-2450.
  44. Simmie, J. (2002). Trading Places: Competitive Cities in the Global Economy. European Planning Studies, 10(2), 201-214.
  45. Simmie, J. (2003). Innovation and Urban Regions as National and International Nodes for the Transfer and Sharing of Knowledge. Regional Studies, 37(6-7), 607-620.
  46. Sirkin, G. (1959). The Theory of the Regional Economic Base. The Review of Economics and Statis-tics, 41(4), 426-429.
  47. Sun, H. (2001). Foreign Direct Investment and Regional Export Performance in China. Journal of Regional Science, 41(2), 317-336.
  48. Umiński, S. (2016). The regionalisation of commercial policy and of export-related analyses. In K. Gawlikowska-Hueckel & S. Umiński (Eds.), An analysis of Poland’s foreign trade in the light of the latest theoretical concepts. Implications for economic policy at a time of crisis (pp. 212-231). Warsaw: Scholar Publishing House.
  49. Wahl, F. (2016). Does medieval trade still matter? Historical trade centers, agglomeration and contemporary economic development. Regional Science and Urban Economics, 60, 50-60.
  50. Villaverde, J., & Maza, A. (2012). Foreign direct investment in Spain: Regional distribution and determinants. International Business Review, 21(4), 722-733.


Download data is not yet available.