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The effects of special economic zones on employment and investment: spatial panel modelling perspective

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  • Piotr Ciżkowicz
  • Magda Ciżkowicz-Pękała
  • Piotr Pękała
  • Andrzej Rzońca

Abstract

We estimate the set of panel and spatial panel data models of employment and investments for 379 Polish counties over the period 2003-2012. We take advantage of a unique firm-level dataset for Polish Special Economic Zones (SSEs), which includes about 30,000 observations. We find that SSEs have substantial positive effects on employment: jobs in a given SSE create jobs outside the SSE in hosting county and even more jobs in neighbouring counties. Effect of SSEs on investments is weaker, but still positive. Investments in a given SSE neither crowd out nor crowd in investments outside the SSE. Thereby, they add one to one to capital stock in hosting county. Our findings are robust to changes in estimation methods, sample composition, set of explanatory variables and selection of spatial weight matrix.

Suggested Citation

  • Piotr Ciżkowicz & Magda Ciżkowicz-Pękała & Piotr Pękała & Andrzej Rzońca, 2015. "The effects of special economic zones on employment and investment: spatial panel modelling perspective," NBP Working Papers 208, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpmis:208
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    4. Susanne A. Frick & Andrés Rodríguez-Pose, 2022. "Special Economic Zones and Sourcing Linkages with the Local Economy: Reality or Pipedream?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 655-676, April.
    5. 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.
    6. Richard Chauke & Thobeka Ncanywa, 2021. "Infrastructure development and economic complexity in South Africa. Running title: Can infrastructure development influence economic complexity?," Technium Social Sciences Journal, Technium Science, vol. 26(1), pages 488-501, Decembrie.
    7. Miquel‐Àngel Garcia–Lopez & Rosella Nicolini & José Luis Roig, 2020. "Segregation and urban spatial structure in Barcelona," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 749-772, June.
    8. Aziz Ahmed & Syed Munawar Shah, 2022. "Skills Mapping for Selected Industries of Special Economic Zones: Job Creation for Unemployed Youth of Balochistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(3), pages 445-461.
    9. Zehong Wang & Shaojian Wang & Jieyu Wang & Yuqu Wang, 2022. "Development zones and urban economic performance in China: Direct impact and channel effects," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1762-1782, December.
    10. Federica Rossi & Magdalena Dej, 2020. "Where do firms relocate? Location optimisation within and between Polish metropolitan areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 615-640, June.
    11. Ayesha KHAN & Hans-Dietrich HAASIS, 2020. "Spatially Induced Effects And Sustainability For Special Economic Zones: Implications For Zones In Pakistan Under China Pakistan Economic Corridor," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 179-194, June.
    12. Banaszewska, Monika & Bischoff, Ivo & Bode, Eva & Chodakowska, Aneta, 2022. "Does inter-municipal cooperation help improve local economic performance? – Evidence from Poland," Regional Science and Urban Economics, Elsevier, vol. 92(C).
    13. Nebojša Stojčić & Korneliusz Pylak & Dubravka Jurlina Alibegović, 2022. "The spatial impact of entrepreneurial zones: firm, city and inter-city evidence," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2164-2176, December.
    14. M. Kakaulina O. & М. Какаулина О., 2018. "Территории опережающего социально-экономического развития: эффективность функционирования и роль в формировании оптимальной налоговой нагрузки // Priority Socio-Economic Development Areas: Their Effec," Экономика. Налоги. Право // Economics, taxes & law, ФГОБУ "Финансовый университет при Правительстве Российской Федерации" // Financial University under The Government of Russian Federation, vol. 11(4), pages 78-89.
    15. Elena Matushevskaya, 2018. "An Integrated Approach to Evaluating the Effectiveness of Functioning of Free Economic Zone," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 870-883.
    16. Antonio Accetturo & Giuseppe Albanese & Alessio D'Ignazio, 2020. "A new phoenix? Large plants regeneration policies in Italy," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 878-902, November.

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    More about this item

    Keywords

    special economic zones; regional economic development; economic policy tools; panel data models; spatial panel data models;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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