Acta Sci. Pol. Oeconomia 17 (4) 2018, 23–29 acta_oeconomia.sggw.pl ISSN 1644-0757 eISSN 2450-047X DOI: 10.22630/ASPE.2018.17.4.48 ORIGINAL PAPER Received: 04.12.2018 Accepted: 29.01.2019 THE IMPORTANCE OF TRANSPORT INFRASTRUCTURE INVESTMENTS IN REGIONAL DEVELOPMENT OF THE NORTE REGION IN PORTUGAL AND THE MASOVIAN VOIVODSHIP IN POLAND Marcin Chciałowski Warsaw University of Life Sciences – SGGW ABSTRACT The aim of the paper was to compare the directions of investments in communication and transport infrastruc- ture of the Norte Region in Portugal and the Masovian Voivodship in Poland. When analyzing the saturation of the infrastructure, particular attention has been paid to the investment aspect, since this factor has a major impact on the development of these regions. The conducted research has shown significant differences in the investment process itself. The Masovian Voivodship strongly diversifies the transport infrastructure invest- ments on various modes of transport. In turn, in the Norte region one can observe a strong transport orienta- tion geared towards an extensive network of expressways and a large access to local airports. The location of transport investments so understood in particular modes of transport is related to the different conditions of location of both regions. Key words: transport infrastructure, infrastructure investments, Masovian Voivodship (Poland), Norte Re- gion (Portugal) INTRODUCTION gions, resulting from the differences which existed at the moment of the accession to the European Union. A contribution to reflect on infrastructure and in- For the analysis were chosen the Masovian Voivod- vestment activities in Poland and Portugal has been ship, located in central Poland, and the Norte Region, a report published by the World Economic Forum located in northern Portugal. Both regions are placed presenting indicators of competitiveness in particular on NUTS 2 level. In the Norte Region, gross domestic fields. Both countries reached a very similar ranking product (GDP), measured in purchasing power pari- position: Poland – 39th, Portugal – 42nd. Despite the ties in 2018 has reached a lower value of EUR 54.5 closeness of the positions, the report components for billion, while in the Masovian Voivodship the indica- both countries are slightly different [World Economic tor reached the value of EUR 94.5 billion [Eurostat Forum 2018]. Looking at the individual indicators in 2018a]. On the other hand, gross domestic product per detail, a number of historical analogies can be noticed capita (GDP per capita) in current prices was respec- between the countries, in particular between the re- tively EUR 17,757.14 for the Masovian Voivodship Marcin Chciałowski https://orcid.org/0000-0002-0194-1748 [email protected] © Copyright by Wydawnictwo SGGW Chciałowski, M. (2018). The importance of transport infrastructure investments in regional development of the Norte region in Portugal and the Masovian Voivodship in Poland. Acta Sci. Pol. Oeconomia 17 (4) 2018, 23–29, DOI: 10.22630/ASPE.2018.17.4.48 and EUR 15,112.14 for the Norte Region. A further investments, the term benefit is completely different comparative analysis of the two regions will be con- importance than in the case of private investment. ducted taking into account the population and the land The purpose of local government investment is not area [Eurostat 2018b]. a monetary gain, but rather other categories of profit such as: infrastructure improvement, unemployment DATA AND METHODS decline, better education or improvement of social conditions. Because of its financial specification, it is When analysing the investment activity of local difficult to demonstrate the economic results of such government units an overview of the latest literature an investment, in particular profitability. However, was made as well as a research of the legislative acts this does not relieve the local government authorities relating to the functioning of the local authorities and from effective spending public funds, but significantly the infrastructure of transport. The statistical data impedes control [Misterek 2008]. of the Central Statistical Office (GUS) and Eurostat According to one of the simplest definitions of the on the level of development of road, railway and notion of investment in academic literature, it is any airport infrastructure have been used. On the other cash placement in tangible and intangible projects that hand, infrastructure for inland navigation as being will provide certain benefits comparable to the objec- of marginal importance for the development of the tive. A certain act of abandoning current consumption two regions has been omitted as well maritime sector and allocation of free resources for the realization of infrastructure, because of the lack of comparability the tasks that will benefit the future can be considered of these regions. an investment. This is the most general description of In the paper was used a monographic method, the notion of investment, matching both private and which uses information in qualitative descriptive public sector of investments. The main features of an form. In order to compare the two regions, was used investment are: a comparative method, which depends on analysing − Use of the current consumption for future potential the characteristics of the study’s subjects and the phe- benefits. nomena, with a view to establishing similarities and − The time necessary to implement the investment, differences in the field of transport and communication which means that an investor must wait for the infrastructure. In the context of empirical research, an benefits of his investment. analysis and evaluation of the investment activity in − Element of risk, which means that the benefits may the Masovian Voivodship and the Portuguese Norte not occur or even an investment may bring losses. Region was presented. Together with the definition of investment, two important aspects are often addressed – the inputs THEORETICAL APPROACH TO THE LOCAL and the benefits. Inputs are normally understood as GOVERNMENT INVESTMENTS expenditures concentrated in a fairly short period of time, usually at the beginning of an investment, In order to formulate the concept of infrastructure in- thanks to which making an investment is possible. vestment, it is best to look into legislative acts. The Benefits are the results that have been achieved Accounting Act defines investments as assets acquired through implementation of the investment task. They in order to achieve economic benefits arising from an can have measurable or, more often in the case of lo- increase in value, interest or dividends, i.e. financial cal government investments, non-measurable values assets, real estate, or intangible assets, which are not [Czampas 2013]. used by their owner, but held for profit [Accounting Infrastructure investments are the most common Act of 1994]. This means that an investment mast be group of investments in the Polish Government. Infra- understood as a project aimed to achieving benefits structure is a collection of equipment and institutions after a certain period of time. It should be remem- necessary for functioning of the economy and society bered, however, that in the case of local government [Sierak and Górniak 2011]. This means all the devices, 24 acta_oeconomia.sggw.pl Chciałowski, M. (2018). The importance of transport infrastructure investments in regional development of the Norte region in Portugal and the Masovian Voivodship in Poland. Acta Sci. Pol. Oeconomia 17 (4) 2018, 23–29, DOI: 10.22630/ASPE.2018.17.4.48 entities and investments designed to provide adequate tistical separation from the Warsaw Capital Region, living conditions for the population, and the oppor- the Masovian region will continue to benefit from Eu- tunities for developing the economy in a given area ropean Union funding. [Sierak and Górniak 2011]. They can be divided into Norte Region (Northern Portuguese region) ex- social infrastructure investments, covering: schools, tends to 21,300 km2 and has about 3.6 million inhabit- hospitals, libraries, local health centres, and invest- ants, representing 23% of the total area of the country ments in technical infrastructure, including: roads, and about 35% of the Portuguese population. The re- sewers, water pipelines [Sierak 2010]. gion can be divided into a coastal area, which is over- whelmingly urban and much more industrialized, and CHARACTERISTICS OF THE EXAMINED REGIONS the inland area, where agriculture still plays an im- portant role. The region is characterized by traditional The investment underdevelopment was an immense sectoral industries (including: textile industry, produc- problem for Polish local governments, which severe- tion of apparel, production of footwear, metals indus- ly influenced lowering of competitiveness against the try), but it also covers medium and high-tech sectors, Western European regions. The Masovian Voivode- in particular the industries of industrial equipment, au- ship features a complex transport system, which re- tomotive parts, pharmaceuticals, precision equipment, sults from its location in the heart of Poland as well communication equipment and computers. as in the centre of Europe. According to the strategy of Masovian Voivodeship until 2030, the transport TRANSPORT INFRASTRUCTURE system should be considered as a whole, covering not only infrastructure, but also the way it is used. Well-developed economic infrastructure is an impor- Transforming the quantitative