cover vol. 16 no. 3

Abstracts

Łukasz Cywiński

The Relationship between Foreign Direct Investments and EU Funding During the 2007–2013 Programming Period

(article in English)
The review of economic literature indicates that the 2007–2013 programming period has not yet been completely analyzed in terms of the EU funds and stock of FDI. Moreover, previous studies omitted most of the EU funds because they focused mainly on structural funds and cohesion funds. The main question of this paper is organized around whether there is a positive relationship between the stock of FDI and specific EU funds. We use a panel of 27 EU countries to analyze fifty policy variables from the 2007–2013 programming period with panel linear regression models. In contrast to analysis of previous programming periods, the results did not indicate that there was a statistically significant relationship between structural or cohesion funds and the stock of FDI. The results indicate instead that ceteris paribus FDI stock is influenced by EU funds for preservation and management of natural resources and the media 2007 programme. And more specifically that EUR 100 million increase of funds for preservation and management of natural resources increased FDI stock by 1,01%–2,02%. A one million increase of funds for media 2007 related programs increased FDI stock by 3,36%–4,29%. Additionally, the results indicate that there is an interaction between GDP per capita and funds for the preservation of animal and plant health, and GDP per capita with funds for solidarity and management of migration flows. This research is a pilot study. According to the author’s knowledge this is the first analysis that takes into account all EU policy variables, and not just a selected few as well as the first study that analyses FDI and all EU funds during the 2007–2013 programming period.

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Keywords: EU funds, Foreign Direct Investments, 2007–2013 programming period
JEL: F2, F36

Małgorzata Januszewska, Daria Jaremen, Elżbieta Nawrocka

Diagnosis of the Travel and Tourism Competitiveness Index Methodology
on the Example of Poland’s Position on the Tourist Market

(article in English)
The purpose of the article is to assess Poland’s position on the international tourist market taking a comparative approach, in the light of the Travel and Tourism Competitiveness Index (TTCI) developed by the World Economic Forum (WEF), and also critical analysis of the TTCI methodology used in the years 2009–2016. The countries (Czech Republic, Slovak Republic, Hungary, Lithuania, Latvia and Estonia) indicated by the Polish Tourism Organization as the most important competitors were selected for the comparative analysis of Poland’s position on the tourist market. The research proved that in the analyzed period the position of Polish tourism against the background of competitors is growing as a result of the significant improvement of the Travel & Tourism regulatory framework and infrastructure. The WEF methodology is not yet perfect due to the selection and number of respondents, whereas the modification of competition factors, consistent with the evolution of theoretical concepts and also keeping up with the progress in business practice, deserves a positive assessment.

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Keywords: competitiveness, tourism, travel and tourism competitiveness index
JEL: O57, Z32

Maria Sahakyan, Arzik Suvaryan

Conceptual Model of a Tourism Cluster in Armenia

(article in English)
Nowadays, the cluster approach is also applicable in the sphere of services, especially in tourism. Clustering allows the increase of competitiveness of a national or regional tourism product, productivity and profitability of the industry. In addition, clusters stimulate innovativeness and cooperation between the main stakeholders of the industry. The article analyzes the theoretical basis and practical approaches in this area. Additionally, it describes different models of clustering in tourism and tries to propose a conceptual model for clustering in tourism in Armenia taking into account its peculiarities.

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Keywords: clustering models, tourism cluster, competitiveness and development
JEL: Z3

Agata Niemczyk

The City Assessed by Residents and Tourists a Year after
a Religious Mega-Event (Study Case: World Youth Day in Cracow, Poland)

(article in English)
The purpose of this article is to recognize the assessment of Cracow from the perspective of the residents and tourists a year after a religious event, the 2016 World Youth Day (2016WYD). Bearing in mind that the image of a city is created by an individual and their socio-demographic features, ones that differentiate the assessment of the city were identified and their direction and strength were highlighted. It was also checked whether the assessment of the city declared by tourists (the experimental group) was different from the assessment of the residents (the control group). Analogically, significant differences were recognized between the tourists and residents who took part in 2016WYD; tourists who participated and did not participate in 2016WYD, and also the residents who participated and did not participate in 2016WYD. Theoretical considerations relating to the city, its recipients and mega-events were conducted on the basis of subject literature review. In the statistical part non-parametric tests and Spearman’s rank correlation coefficient were used in order to achieve the assumed objectives. The results allowed us to observe how the improvement of the city image a year after the mega-event is more often declared by the inhabitants than by tourists and out of socio-demographic features of an individual, gender (both in the case of inhabitants and tourists) determines the assessment of the city image to the greatest extent.

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Keywords: World Youth Day in Cracow, survey, image of the city
JEL: Z12, Z32

Sebastian Bernat

Sustainable Development of Health Resorts in Poland

(article in English)
The objective of this article is to prove the legitimacy of implementing sustainable development in health resorts. The main focus is on health resorts in Poland, but the European context was also taken into account. Particular attention is devoted to public space and landscape that have been changing in recent years primarily as a result of measures described as revitalization or regeneration. Furthermore, examples of pro-environmental initiatives conducted in Polish health resorts over the last five years are presented. With the responsible use of the considerable natural, cultural and landscape assets health they are usually “equipped” with, health resorts can be a model for sustainable development. The article is based on an analysis of literature, source documents (legislation, reports, revitalization programmes, development plans) and websites as well as field observations (direct inventory). It is important, however, to implement remedial measures and build and maintain the image of health resorts as tranquil places with unique landscapes of therapeutic value and attractive public spaces.

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Keywords: health resort, sustainable development, landscape, public space, revitalization, tourism
JEL: I19, O22, O39, Q01

Elżbieta Strzelecka

Network Model of Revitalization in the Cittaslow Cities of
the Warmińsko-Mazurskie Voivodship

(article in English)
The aim of this article is to present a network model of a revitalization of small towns unique in Poland and even in Europe . Fourteen small towns in the Warmińsko-Mazurskie Voivodship, thanks to their membership in the Cittaslow City network and the establishment of the Polish Cittaslow Association, received significant funds for their development under the Supralocal Revitalization Program of the Network of Cittaslow Cities for 2014–2020. This program is based on a hybrid model of urban development, which was created from the overlap of financial models (ERDF, ESF funds, own funds) and the so-called “social” revitalization model on developing in Poland Cittaslow model oriented to a good quality of life. This is an example of the efficient use by the network of cooperating cities of economies of scale in competing with other urban centers for development measures. Thanks to the unified diagnosis of existing problems in the physical, economic and social space of these cities (delimitation areas, delimitation indicators: unemployment rate and share of people using social assistance in the area revitalized in relation to the entire city), differentiated urban activities were undertaken in integrated financial projects that concerned the restriction of various social dysfunctions, including the problem of unemployment.

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Keywords: network model of small cities revitalization, regional and local development, Cittaslow network, social revitalization
JEL: R11

Izabela Michalska-Dudek

The Loyalty of Travel Agency Clients. An Empirical Study

(article in English)
The article presents a client loyalty model which may be used in the process of managing an optimum portfolio of clients by means of identifying and selecting key clients of a tourist enterprise. There are also described results of the author’s own research allowing us to identify the key factors determining the occurrence of behavioral loyalty of travel agency clients. The analysis covered real data from the booking system of one of the Polish nationwide franchise networks consolidating 44 travel agencies, referring to 3 923 tourist services reservations. In the study of the occurring relationships a non-parametric method of MLP (Multi-Layer Perceptron) neural networks was applied. The following variables turned out to be the most important determinants of behavioral loyalty: duration of the tourist event, number of purchased offers and time between the booking date and the date of tourist event commencement. The customer loyalty prediction model was used to carry out in-depth customer segmentation which, in turn, allowed the development of a loyal customer portrait. A loyal client of travel services is a family-oriented client, travelling for a period of two weeks or longer, accompanied by the family, very often with children under 14, planning and booking holidays well in advance, attached to the place of making the booking (i.e., the travel agent).

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Keywords: key client, behavioral loyalty, model of travel agency client loyalty, MLP (Multi-Layer Perceptron) neural network method
JEL: D12, M31

Marcin Janusz

Differences in the Standard of Living among the Populations of
the Cittaslow Network Towns in Poland

(article in English)
The purpose of this study has been to analyze differences in standard of living among residents of the towns which implement the Cittaslow concept in Poland. The research covered two years: 2006 (the year when first Polish towns joined the Cittaslow network) and 2016 and comprised 28 Polish towns involved in this initiative. Hellwig’s development pattern method (a multi-dimensional analytical approach) was employed in these investigations. In addition, similarities in standard of living in the above towns were assessed using Ward’s method. The research showed relatively large changes between the two years in the rankings of the towns based on a synthetic standard of living level measure, although the top-ranking towns remained in quite stable positions. The highest standard of living among the analyzed towns was detected in Rzgów, Murowana Goślina, Pasym and Olsztynek. The results may inspire further studies into the living conditions of inhabitants living in Cittaslow towns, with a focus on quality parameters.

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Keywords: town, Cittaslow, level of living
JEL: D63, I31, R11

Natalia Latuszek, Monika Dembińska

Cooperation between Convention Bureaus in Light of Empirical Research

(article in English)
The stakeholders’ cooperation in region (micro level) is recognized the basic source of cities’ competitive advantage in the meetings market. Though the cooperation also occurs between destinations (at the mezzo level), the existing studies rarely present it from this perspective. Cities on the meetings market are represented by specialized organizations, namely convention bureaus (CBs), whose function is to build and develop relations. The article aims to identify the significance of this function in the CBs operation, in face of progressive competitive processes. To achieve the research goal, an internet survey was conducted, addressed to the managers of the convention bureaus. The obtained data has been analyzed applying the Importance-Performance Analysis (IPA) method. The results of the study indicate a low priority for cooperation with other convention bureaus.

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Keywords: convention bureau, meetings industry, competitiveness, cooperation, cities, destinations
JEL: L83

Szczepan Kościółek, Karolina Nessel, Ewa Wszendybył-Skulska,
Sebastian Kopera

Who Are the Tourists Booking Their Accommodations Online?
A Segmentation Study of the Cracow Market

(article in English)
Internet and related technologies have revolutionized the distribution process in the accommodation sector, giving priority to big, online intermediaries, often at the expense of the direct booking channels of small and medium independent hotels. In order to regain their independency and flexibility in distribution strategy, hotel managers need to learn more about the profiles of contemporary online bookers visiting their region. This paper aims to contribute to the understanding of similarities and differences between consumers choosing among various online distribution channels for their tourist accommodations, and therefore help accommodation providers better manage their distribution and marketing strategies. The study is based on primary data that were collected among tourists in Cracow using a convenience sampling. The collected data was sorted, grouped and analyzed using basic statistical tools. The analysis led to determination of the size, as well as socio-demographic, and consumption features of four groups of tourists according to the online accommodation channel they used: booking.com, airbnb.com, other online channels, or online directly. The findings confirm the important role played by OTAs in the distribution of accommodation services, whereas the rate of direct online bookings recorded was lower than expected. Given the predominance of Booking.com in the market, its clients represent the typical customer in Cracow. Nevertheless, some differences among the four groups are observed in terms of age, travel party composition, first vs. repeat visitors, country of residence, length of stay, daily accommodation expenditure, and type of accommodation.

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Keywords: online booking, accommodation sectors, customer hotels segmentation
JEL: M31, Z33

Ada Domańska, Beata Żukowska, Robert Zajkowski

Importance of Individual Characteristics of Entrepreneurs and Perception of Factors Determining the Start-Up of a Business in the Lubelskie Voivodship

(article in English)
Businesses are an important part of economic development in a region. Through business activity, new innovations are created which accelerate economic growth and structural change. It should also be said that entrepreneurship has a strong influence on the competitiveness of the area in which it operates and shapes the professional activity of the population. In addition, entrepreneurship absorbs development factors that are specific to the region such as natural resources, human resources, etc. Hence, it is important to build entrepreneurial attitudes that influence the establishment of enterprises. The main goal of this paper is to express the importance of creating an entrepreneurial attitude in the Lubelskie Voivodship. In the paper, we discuss how this attitude can be beneficial for creating businesses and thus for regional development. To achieve the main goal, we used data collected in April and May 2016 among small and medium enterprises operating in the Lubelskie Voivodship. After rejecting the large enterprises, incomplete responses, and those that did not respond, the research sample consisted of 186 entities. Using statistical methods, such as regression models and statistical tests we found out that features such as creativity, ambition, hard work and self-confidence are the ones that were recognized by entrepreneurs in the Lubelskie Voivodship as the most desirable. In order to improve the situation of the region by boosting the number of established enterprises, the authorities should take steps to build an entrepreneurial attitude based on these characteristics. Results indicate that self-discipline is not a desirable feature among potential entrepreneurs. It turns out that according to the opinion of entrepreneurs, the ability to control oneself is not a useful feature when you want to run your business. Likewise, risk-taking propensity is also an undesirable characteristic. It should be noted, however, that the research made for the purpose of the paper was conducted among entrepreneurs who decided to start their own company. Their answers give a better picture of the traits which a potential entrepreneur should have. So, the results of these studies are an interesting starting point for further in-depth research.

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Keywords: features of entrepreneur, entrepreneurship development, regional development
JEL: C20, O20, R11

Tomasz Pilewicz, Niki Derlukiewicz, Anna Mempel-Śnieżyk,
Małgorzata Zdon-Korzeniowska

Entrepreneurial Activity, Market Orientation, Investment Attractiveness
and Transaction Costs for Enterprises in Local Development Context

(article in English)
The goal of the paper is to explore phenomena of entrepreneurial activities and market orientation of local governments, and also to identify a relation between these phenomena and investment attractiveness of local units and transaction costs for entrepreneurs and investors that authorities of local units might impact. We performed Boolean key word and subject term searches of selected scholar databases between 21 and 24 July 2017. It enabled us to identify less proliferated aspects of local development, which we deepened our knowledge of through systematic literature review aiming to reach the purpose of the paper. Entrepreneurial activities and the market approach of local units are widely explored in scientific research literature, but investment attractiveness of local units and their impact on transaction costs for enterprises are less represented. We present relations between investment attractiveness and transaction costs for enterprises with entrepreneurial activities and market orientation. There are actions local governments can undertake to impact investment attractiveness of local units and transaction costs for enterprises to stimulate the local development process. This work indicates the importance of increasing investment attractiveness of local units by local governments and lowering transaction costs for enterprises in the local development process.

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Keywords: entrepreneurial activities, market orientation, investment attractiveness, transaction cost, local government
JEL: D23, H11, R11

Elżbieta Strzelecka

Concept of Resilience and Development of Small Towns and Rural Area

(article in English)
The aim of this article is to use a new research concept, referred to as resilience, in rural development (rural resilience) in the context of the often discussed concept of urban resilience. The concept of urban resilience is recognized as a tool for strategic diagnosis and monitoring of cities. In studies of urban resilience for cities of various sizes, quantitative research is most often used. The author, on the basis of literature discussions and own research, presents the use of qualitative research in the assessment of urban resilience for the national network of Cittaslow cities. The concept of urban resilience refers to “a resilient city”, especially in the case of a collective criterion (i.e., urban quality policy). Seven groups of criteria in the matrix of urban development self-assessment are the basis for the evolutionary changes in the resilience of individual cities and the entire network. In the case of Cape Clear Island in Ireland, qualitative research of rural resilience was based on global indicators of economic, social and environmental capital proposed by Wilson. Despite the subjectivism of respondents, results of qualitative research allow for making strategic decisions for the purposes of obtaining specific development balance points and selecting specific paths for the Island’s development. Both quantitative and qualitative research — their practical dimension — should be used to build community resilience.

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Keywords: urban resilience, rural resilience, local and regional development, revitalization, Cittaslow city network
JEL: R11

Anna Dudzińska, Barbara Szpakowska

Using Airborne Laser Scanning Data to Assess the State Historical Garden Complexes

(article in English)
The aim of the study was to assess the possibility of applying GIS analysis for investigations into the state of preservation of a baroque garden complex. The article presents a method based on Airborne Laser Scanning data (LIDAR) which can be used for analysis of revalorization of historical garden complexes. The research was conducted in a rural park in Siemczyno, Zachodniopomorskie Voivodship, Poland. The analysis was made by means of the ENVI and ArcMap programs. The article presents an analysis of the terrain microstructure, which was used for assessment of changes in the terrain. It is a significant element used for planning public space. The research results were compared with the park inventory data of 1973. The research proved that LIDAR data analysis could be used for assessment of the state of preservation of historical garden complexes. It might also be used for preparation of park registration documentation or revalorization plans.

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Keywords: GIS analysis, historical parks, Siemczyno, Poland
JEL: Q24, R14

Agnieszka Strzelecka, Danuta Zawadzka, Agnieszka Kurdyś-Kujawska

Production Potential and Income of Agricultural Holdings in Poland

(article in English)
The aim of this article is to assess the impact of production potential on the income obtained by agricultural holdings in Poland. The Farm Accountancy Data Network FADN data from 2015 was used to achieve this aim. Empirical verification of factors determining the production potential and their impact on agricultural holding income was carried out using the logistic regression model. The dependent variable was taken to be the probability that the agricultural holding would achieve annual family farm income exceeding the median value of PLN 46149,18. It was established that four variables had a statistically significant positive effect on the studied phenomenon: area of agricultural land, share of leased land in the agricultural land area, total labor expenditure and technical labor infrastructure. This means that an increase in the level of these factors increases the probability of obtaining an above median value of income by agricultural holdings.

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Keywords: family farm income, production potential, agricultural holdings, logistic regression
JEL: Q1, Q12, Q14

Janina Kotlińska, Grzegorz Kotliński

The Expansion of a Company’s Activity and the Interests of
Local Government Units and Financial Institutions

(article in English)
The development of business operations requires coordination of many activities undertaken by entities from various sectors of the economy. Among them, financial institutions and local governments play a significant role. The implementation of development plans of enterprises requires coordination of cooperation with them. During this process, the interests of all parties are reconciled so that the implementation of the plans becomes possible and beneficial. The aim of the study is to identify potential barriers and to set out possible levels of cooperation between companies that declare their intention to expand and their financial institutions and local government authorities, competent for the aims of development plans. The study contains observations and considerations of the authors, supported by a literature query in the field of the undertaken topic.

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Keywords: entrepreneurship development, financial services, local development, cooperation
JEL: D81, G21, H72, M21, O23, R53

Wojciech Orłowski

Representation of Local Government Interests and the Legislative Process

(article in English)
The basic principle of the functioning of local self-government is its independence, which is limited by the applicable law created in accordance with the principle of subsidiarity. The article analyzes the normative acts concerning the participation of local self-government bodies in the law-making process. Observation of the practice of their application leads to the conclusion that these solutions are not effective, and they do not correspond to the constitutional guarantees of the territorial self-government system position. The conclusions propose a new mode of selecting the Polish Senate and Self-Government Commission as well as the Polish delegation to the EU Committee of the Regions, which could improve the influence of territorial self-government bodies and the quality of solutions adopted in legal acts.

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Keywords: representation of Self-Government, Advisory Body, Joint Government and Self-Government Commission, Senate of the Polish Republic, EU Committee of the Regions, the legislative process in Poland
JEL: K49