IDEAS home Printed from https://ideas.repec.org/a/vrs/finiqu/v13y2017i2p36-44n2.html
   My bibliography  Save this article

Tax incentives as an instrument attracting investors to Special Economic Zones

Author

Listed:
  • Jasiniak Magdalena

    (University of LodzFaculty of Economics and Sociology Corporate Finance Department)

  • Koziński Jakub

Abstract

Special Economic Zones have been operating in Poland since 1994 and are still growing. Tax incentives being offered in these Zones, as good infrastructure and administration support, are supposed to be attractions for newly established companies. The purpose of this article is to investigate whether tax incentives have an impact on the decision process of locating the investments in Special Economic Zones in Poland. The article presents a preliminary study, based on results of a questionnaire survey conducted among companies located in SEZ in Poland and presents subjective opinions of the investors about tax policy in SEZs. Results show that tax incentives are an important instrument attracting investors to Special Economic Zones. As the following analysis presents, tax reliefs seem to be an important investment incentive, however, the importance of income taxes is greater than the local costs to doing business. There are also some differences in evaluating tax support depending on a company’s size and the level of support in a particular region.

Suggested Citation

  • Jasiniak Magdalena & Koziński Jakub, 2017. "Tax incentives as an instrument attracting investors to Special Economic Zones," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(2), pages 36-44, December.
    • Handle: RePEc:vrs:finiqu:v:13:y:2017:i:2:p:36-44:n:2
    DOI: 10.1515/fiqf-2016-0021
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/fiqf-2016-0021
    Download Restriction: no
    File URL: https://libkey.io/10.1515/fiqf-2016-0021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wang, Jin, 2013. "The economic impact of Special Economic Zones: Evidence from Chinese municipalities," Journal of Development Economics, Elsevier, vol. 101(C), pages 133-147.
    2. Zee, Howell H. & Stotsky, Janet G. & Ley, Eduardo, 2002. "Tax Incentives for Business Investment: A Primer for Policy Makers in Developing Countries," World Development, Elsevier, vol. 30(9), pages 1497-1516, September.
    3. Bondonio, Daniele & Greenbaum, Robert T., 2007. "Do local tax incentives affect economic growth? What mean impacts miss in the analysis of enterprise zone policies," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 121-136, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexander Klemm & Stefan Parys, 2012. "Empirical evidence on the effects of tax incentives," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(3), pages 393-423, June.
    2. Anthony Briant & Miren Lafourcade & Benoît Schmutz, 2015. "Can Tax Breaks Beat Geography? Lessons from the French Enterprise Zone Experience," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 88-124, May.
    3. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1197-1287, Elsevier.
    4. Garsous, Grégoire & Corderi, David & Velasco, Mercedes, 2015. "Tax Incentives and Job Creation in the Tourism Industry of Brazil," IDB Publications (Working Papers) 7324, Inter-American Development Bank.
    5. Behaghel, Luc & Lorenceau, Adrien & Quantin, Simon, 2015. "Replacing churches and mason lodges? Tax exemptions and rural development," Journal of Public Economics, Elsevier, vol. 125(C), pages 1-15.
    6. World Bank Group, 2017. "Special Economic Zones," World Bank Publications - Reports 29054, The World Bank Group.
    7. Blakeslee, David & Chaurey, Ritam & Fishman, Ram & Malik, Samreen, 2018. "Structural Transformation and Spillovers from Industrial Areas," IZA Discussion Papers 11886, Institute of Labor Economics (IZA).
    8. Wu, Weixiao & Hong, Chang & Muhammad, Andrew, 2020. "The Spillover effect of export processing zones," China Economic Review, Elsevier, vol. 63(C).
    9. Chaurey, Ritam, 2017. "Location-based tax incentives: Evidence from India," Journal of Public Economics, Elsevier, vol. 156(C), pages 101-120.
    10. Olga A. Sinenko, 2016. "Methods of assessing of tax incentives effectiveness in special economic zones: An analytical overview," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 2(3), pages 168-178.
    11. Sun, Yifan & Ma, Anbing & Su, Haorui & Su, Shiliang & Chen, Fei & Wang, Wen & Weng, Min, 2020. "Does the establishment of development zones really improve industrial land use efficiency? Implications for China’s high-quality development policy," Land Use Policy, Elsevier, vol. 90(C).
    12. Chaurey, Ritam & Le, Duong Trung, 2018. "Infrastructure Grants and the Performance of Microenterprises," IZA Discussion Papers 11749, Institute of Labor Economics (IZA).
    13. Garsous, Grégoire & Corderi, David & Velasco, Mercedes & Colombo, Andrea, 2017. "Tax Incentives and Job Creation in the Tourism Sector of Brazil’s SUDENE Area," World Development, Elsevier, vol. 96(C), pages 87-101.
    14. Sokolovskyi, Dmytro, 2018. "Factors for the formation of inefficient states when using tax incentive regimes," MPRA Paper 89141, University Library of Munich, Germany.
    15. Qiangmin, XI & Peng, JI, 2023. "Does the development zone promote population urbanization? Evidence from China," Land Use Policy, Elsevier, vol. 131(C).
    16. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Public support to clusters: A firm level study of French "Local Productive Systems"," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 108-123, March.
    17. Laiqun Jin & Xiuyan Liu & Sam Hak Kan Tang, 2021. "High-Technology Zones, Misallocation of Resources among Cities and Aggregate Productivity: Evidence from China," Economics Discussion / Working Papers 21-11, The University of Western Australia, Department of Economics.
    18. Paolo Di Caro & Roberta Arbolino & Ugo Marani, 2018. "A note on the effects of human capital policies in Italy during the Great Recession," Economics Bulletin, AccessEcon, vol. 38(3), pages 1302-1312.
    19. Kopczewska Katarzyna, 2019. "Can public intervention improve local public sector economic performance? The analysis of Special Economic Zones in Poland," Central European Economic Journal, Sciendo, vol. 6(53), pages 221-245, January.
    20. Picarelli, Nathalie, 2016. "Who really benefits from export processing zones? Evidence from Nicaraguan municipalities," Labour Economics, Elsevier, vol. 41(C), pages 318-332.

    More about this item

    Keywords

    Special Economic Zones; tax incentives; regional development; investment attractiveness;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:finiqu:v:13:y:2017:i:2:p:36-44:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.