The Moderating Role of Geographical Diversification among the Nexus of Institutional, Power and Space Factor on Economic Geography

Ola Aleksandra

doi:10.33094/26410265.2021.33.70.83

Abstract

The present paper aims to explore the relationships among the institutional factor, power factor, space factor and economic geography in Poland. The goal of the study also consists of the examination of the moderating role of geographical diversification among the nexus of institutional factor, power factor, space factor and economic geography in Poland. The data has been gathered by using primary data collection methods and used survey questionnaires for data collection along with simple random sampling to select the respondents and PLS-SEM for data analysis. The results revealed that institutional factor, power factor, space factor have a positive association with economic geography in Poland. The outcomes also concluded that the geographical diversification is moderating among the nexus of institutional factor, power factor, space factor and economic geography in Poland. These findings are suitable for the regulators that they should focus on institutional power and space factor that would improve the economic geography in Poland.

Highlights

In recent years, economic geographers used ideas from structural economics and economic sociology to explain regional growth mechanisms in an increasingly globalized economy
The findings of the study have indicated that geographical diversification is a significant moderator between institutional factors and economic geography as it strengthens their mutual association in the context of Poland
In short, the paper concludes that the institutional factors are in positive link with economic geography

Summary

Introduction

Economic geographers used ideas from structural economics and economic sociology to explain regional growth mechanisms in an increasingly globalized economy. Institutional economics illustrates the social background of urban existence and the complex evolutionary essence of economic growth, offering geographers interested in the form of regional development viewpoints in social and institutional conditions. It is beneficial in moving away from the atomist, and logical vision of the neoclassical economy, which on the one side restricts economic decision-making to the answers of utility-maximizers and on the other hand reduces and determinists the tenor of a great deal of Marxist thinking in which there is no meaning of agency. This method is best classified as geographic economy following the recommendation of literature (Kamal & Sundaram, 2019; Sandoval, Robertsdotter, & Paredes, 2017)

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Conclusion