The role of exogenous and endogenous factors in the growth of regions in Central and Eastern Europe: the metropolitan/non-metropolitan divide in the pre- and post-crisis era

ABSTRACT

The aim of the paper is to analyse regional growth factors in Central and Eastern European Countries in the pre- and post-crisis era. The comparison is focused on core (metropolitan) and non-core (non-metropolitan) regions. The study found that the development processes of the analysed groups of regions were in many respects similar. Achieving a high level of development in the context of post-socialist transformation was possible mainly owing to exogenous factors such as the influx of foreign direct investment (FDI) and multimodal transport accessibility. In the case of endogenous factors, the number of small- and medium-sized enterprises per capita was of cardinal importance for a high level of development, but it was no guarantee of fast growth dynamics in non-core regions. The main differences between the core and non-core regions included the role of human capital and migrations as metropolitan regions represented growth poles which trained qualified specialists and served as destinations for migrants from non-core regions. However, the share of people with tertiary education played an important role in the development process of non-core regions. The crisis strengthened the role of exogenous growth factors, that is, the role of FDI inflow as well as the role of EU funds.

KEYWORDS:

• Regional economic development
• Central and Eastern European Countries (CEEC)
• growth factors
• metropolitan regions
• non-core regions

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 An alternative division of this group of regions into transition (GDP per capita 80–110% in comparison to the country’s average) and peripheral (GDP per capita less than 80% of country average) (see e.g. Smętkowski, 2014) does not significantly change the results of this analysis. Detailed results available upon request.

2 Detailed results available upon request.

Additional information

Funding

This paper was funded by European Commission under the FP7 project “Growth–Innovation–Competitiveness: Fostering Cohesion in Central and Eastern Europe (GRINCOH)” under the Programme SSH.2011.2.2-1: Addressing cohesion challenges in Central and Eastern Europe; Area 8.2.2 Regional, territorial and social cohesion. Project Nr. 290657.