Regional equalization policies may hinder economic growth, study finds.
The article explores how economic growth is connected to where businesses are located. It looks at different theories and studies on this topic, focusing on how economic growth and location are linked. The research suggests that when regions become more similar in terms of development, overall economic growth may slow down. New models that consider factors like different productivity levels in companies show promise, but they can be complex and not provide clear solutions for policymakers. A theoretical model that fits Polish conditions would need to be dynamic, cover multiple industries and regions, and consider factors like knowledge sharing and random productivity variations. However, creating a perfect model is unlikely, and it may not offer straightforward policy recommendations for regional development.