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Quantifying the effects of Special Economic Zones using spatial econometric models

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  • Zhaoying Lu

    (Graduate School of Economics, Osaka University)

Abstract

This paper evaluates the effects of a place-based program in China?Special Economic Zone (SEZ) program. It adds to the existing literature by introducing spatial proximity to understand the effects of SEZs on the local economy. Using a panel data set over the period from 2004 to 2007, the empirical results find that SEZs have positive spillover effects on regional productivity, most of which are from the neighborhood. Meanwhile, there exists a positive interdependence between local firms onregional productivity. The magnitude of spillover effects of SEZs is robust to changes in sample data, weight matrices selection, and alternative explanatory variables.

Suggested Citation

  • Zhaoying Lu, 2021. "Quantifying the effects of Special Economic Zones using spatial econometric models," Discussion Papers in Economics and Business 21-01, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:2101
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Special Economic Zone; Place-based Policy; Spatial Analysis; Productivity; Spillovers;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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