IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/mf2n6_v2.html

Do Special Economic Zones Boost Employment? Evidence from a Meta-Analysis

Author

Listed:
  • Limosani, Michele
  • Millemaci, Emanuele
  • Monteforte, Fabio
  • Mustica, Paolo Fabrizio

Abstract

This paper investigates whether Special Economic Zones (SEZs) effectively foster em- ployment through a comprehensive meta-analysis. While numerous country-level studies have examined SEZ policies, their results remain fragmented and potentially biased by methodological and publication-related factors. To address this gap, we compile a meta- regression dataset of 851 estimates from 33 empirical studies that quantify the impact of SEZs on employment. Once corrected for publication bias, the average effect of SEZ programs on employment approaches zero. However, heterogeneous results emerge across different development contexts, with developing countries recording significant employ- ment gains compared to their developed counterparts.

Suggested Citation

  • Limosani, Michele & Millemaci, Emanuele & Monteforte, Fabio & Mustica, Paolo Fabrizio, 2025. "Do Special Economic Zones Boost Employment? Evidence from a Meta-Analysis," SocArXiv mf2n6_v2, Center for Open Science.
  • Handle: RePEc:osf:socarx:mf2n6_v2
    DOI: 10.31219/osf.io/mf2n6_v2
    as

    Download full text from publisher

    File URL: https://osf.io/download/69327622bce49ad7c1fbf3c2/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/mf2n6_v2?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. Patrick Kline & Enrico Moretti, 2014. "People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 629-662, August.
    2. John P. A. Ioannidis & T. D. Stanley & Hristos Doucouliagos, 2017. "The Power of Bias in Economics Research," Economic Journal, Royal Economic Society, vol. 127(605), pages 236-265, October.
    3. Marius Brülhart & Helen Simpson, 2018. "Agglomeration economies, taxable rents and government capture: evidence from a place-based policy," Journal of Economic Geography, Oxford University Press, vol. 18(2), pages 319-353.
    4. Susanne A. Frick & Andrés Rodríguez-Pose, 2023. "What draws investment to special economic zones? Lessons from developing countries," Regional Studies, Taylor & Francis Journals, vol. 57(11), pages 2136-2147, November.
    5. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016. "Economic reforms and industrial policy in a panel of Chinese cities," Journal of Economic Growth, Springer, vol. 21(4), pages 305-349, December.
    6. François Bost, 2019. "Special economic zones: methodological and definition issues," Post-Print hal-05285472, HAL.
    7. Bondonio, Daniele & Engberg, John, 2000. "Enterprise zones and local employment: evidence from the states' programs," Regional Science and Urban Economics, Elsevier, vol. 30(5), pages 519-549, September.
    8. Card, David & Krueger, Alan B, 1995. "Time-Series Minimum-Wage Studies: A Meta-analysis," American Economic Review, American Economic Association, vol. 85(2), pages 238-243, May.
    9. Dmitry Arkhangelsky & Susan Athey & David A. Hirshberg & Guido W. Imbens & Stefan Wager, 2021. "Synthetic Difference-in-Differences," American Economic Review, American Economic Association, vol. 111(12), pages 4088-4118, December.
    10. Douglas Z Zeng, 2021. "The Past, Present, and Future of Special Economic Zones and Their Impact," Journal of International Economic Law, Oxford University Press, vol. 24(2), pages 259-275.
    11. Camilla Jensen, 2018. "The employment impact of Poland’s special economic zones policy," Regional Studies, Taylor & Francis Journals, vol. 52(7), pages 877-889, July.
    12. Andrés Rodríguez‐Pose & Federico Bartalucci & Susanne A. Frick & Amelia U. Santos‐Paulino & Richard Bolwijn, 2022. "The challenge of developing special economic zones in Africa: Evidence and lessons learnt," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 456-481, April.
    13. François Bost, . "Special economic zones: methodological issues and definition," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    14. Matias Busso & Jesse Gregory & Patrick Kline, 2013. "Assessing the Incidence and Efficiency of a Prominent Place Based Policy," American Economic Review, American Economic Association, vol. 103(2), pages 897-947, April.
    15. Fangwen Lu & Weizeng Sun & Jianfeng Wu, 2023. "Special Economic Zones and Human Capital Investment: 30 Years of Evidence from China," American Economic Journal: Economic Policy, American Economic Association, vol. 15(3), pages 35-64, August.
    16. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
    17. Piotr Ciżkowicz & Magda Ciżkowicz-Pękała & Piotr Pękała & Andrzej Rzońca, 2017. "The effects of special economic zones on employment and investment: a spatial panel modeling perspective," Journal of Economic Geography, Oxford University Press, vol. 17(3), pages 571-605.
    18. Yi Lu & Jin Wang & Lianming Zhu, 2019. "Place-Based Policies, Creation, and Agglomeration Economies: Evidence from China's Economic Zone Program," American Economic Journal: Economic Policy, American Economic Association, vol. 11(3), pages 325-360, August.
    19. Stanley, T. D. & Jarrell, Stephen B. & Doucouliagos, Hristos, 2010. "Could It Be Better to Discard 90% of the Data? A Statistical Paradox," The American Statistician, American Statistical Association, vol. 64(1), pages 70-77.
    20. Gallé, Johannes & Overbeck, Daniel & Riedel, Nadine & Seidel, Tobias, 2024. "Place-based policies, structural change and female labor: Evidence from India’s Special Economic Zones," Journal of Public Economics, Elsevier, vol. 240(C).
    21. Gechert, Sebastian & Heimberger, Philipp, 2022. "Do corporate tax cuts boost economic growth?," European Economic Review, Elsevier, vol. 147(C).
    22. Susanne Frick & Andrés Rodríguez-Pose, . "Are special economic zones in emerging countries a catalyst for the growth of surrounding areas?," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    23. David Moher & Alessandro Liberati & Jennifer Tetzlaff & Douglas G Altman & The PRISMA Group, 2009. "Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement," PLOS Medicine, Public Library of Science, vol. 6(7), pages 1-6, July.
    24. Tomáš Havránek & T. D. Stanley & Hristos Doucouliagos & Pedro Bom & Jerome Geyer‐Klingeberg & Ichiro Iwasaki & W. Robert Reed & Katja Rost & R. C. M. van Aert, 2020. "Reporting Guidelines For Meta‐Analysis In Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 469-475, July.
    25. Yang Liu & Yidan Jin, 2022. "Special economic zones, export status, and firms’ productivity: Theory and evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1338-1360, August.
    26. Givord, Pauline & Quantin, Simon & Trevien, Corentin, 2018. "A long-term evaluation of the first generation of French urban enterprise zones," Journal of Urban Economics, Elsevier, vol. 105(C), pages 149-161.
    27. Havranek, Tomas & Kokes, Ondrej, 2015. "Income elasticity of gasoline demand: A meta-analysis," Energy Economics, Elsevier, vol. 47(C), pages 77-86.
    28. Isaiah Andrews & Maximilian Kasy, 2019. "Identification of and Correction for Publication Bias," American Economic Review, American Economic Association, vol. 109(8), pages 2766-2794, August.
    29. Adam A. Ambroziak & Christopher A. Hartwell, 2018. "The impact of investments in special economic zones on regional development: the case of Poland," Regional Studies, Taylor & Francis Journals, vol. 52(10), pages 1322-1331, October.
    30. Keyi Tang, 2023. "The political economy of special economic zones: the cases of Ethiopia and Vietnam," Review of International Political Economy, Taylor & Francis Journals, vol. 30(5), pages 1957-1983, September.
    31. Litwack, John M. & Qian, Yingyi, 1998. "Balanced or Unbalanced Development: Special Economic Zones as Catalysts for Transition," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 117-141, March.
    32. Havranek, Tomas & Irsova, Zuzana, 2011. "Estimating vertical spillovers from FDI: Why results vary and what the true effect is," Journal of International Economics, Elsevier, vol. 85(2), pages 234-244.
    33. Alkon, Meir, 2018. "Do special economic zones induce developmental spillovers? Evidence from India’s states," World Development, Elsevier, vol. 107(C), pages 396-409.
    34. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    35. Philipp Heimberger, 2023. "Do higher public debt levels reduce economic growth?," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1061-1089, September.
    36. Moberg, Lotta, 2015. "The political economy of special economic zones," Journal of Institutional Economics, Cambridge University Press, vol. 11(1), pages 167-190, March.
    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. Cazachevici, Alina & Havranek, Tomas & Horvath, Roman, 2020. "Remittances and economic growth: A meta-analysis," World Development, Elsevier, vol. 134(C).
    2. Lyu, Wenyi & Yang, Jian & Yu, Leng, 2025. "Place-based policies, pro-competitive effects, and allocative efficiency: Evidence from China’s economic zones," World Development, Elsevier, vol. 191(C).
    3. Abagna, Matthew Amalitinga & Hornok, Cecília & Mulyukova, Alina, 2025. "Place-based Policies and Household Wealth in Africa," Journal of Development Economics, Elsevier, vol. 176(C).
    4. 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.
    5. 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.
    6. Bajzik, Josef & Havranek, Tomas & Irsova, Zuzana & Schwarz, Jiri, 2020. "Estimating the Armington elasticity: The importance of study design and publication bias," Journal of International Economics, Elsevier, vol. 127(C).
    7. Philipp Heimberger, 2023. "Do higher public debt levels reduce economic growth?," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1061-1089, September.
    8. Tomas Havranek & Anna Sokolova, 2020. "Do Consumers Really Follow a Rule of Thumb? Three Thousand Estimates from 144 Studies Say 'Probably Not'," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 35, pages 97-122, January.
    9. Li, Jiaxin & Zhan, Shaoguo & Wang, Xuetian, 2025. "Can special economic zones in China enhance firm's global value chain position?," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 361-372.
    10. Mattia Filomena & Matteo Picchio, 2023. "Retirement and health outcomes in a meta‐analytical framework," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1120-1155, September.
    11. Michael Chletsos & Andreas Sintos, 2023. "Financial development and income inequality: A meta‐analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1090-1119, September.
    12. Cui, Yi, 2024. "Place-based policies and capital misallocation: Evidence from Chinese cities," Economic Systems, Elsevier, vol. 48(4).
    13. 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.
    14. Simona Malovaná & Martin Hodula & Zuzana Gric & Josef Bajzík, 2025. "Borrower‐based macroprudential measures and credit growth: How biased is the existing literature?," Journal of Economic Surveys, Wiley Blackwell, vol. 39(1), pages 66-102, February.
    15. Heimberger, Philipp, 2023. "The cyclical behaviour of fiscal policy: A meta-analysis," Economic Modelling, Elsevier, vol. 123(C).
    16. Zigraiova, Diana & Havranek, Tomas & Irsova, Zuzana & Novak, Jiri, 2021. "How puzzling is the forward premium puzzle? A meta-analysis," European Economic Review, Elsevier, vol. 134(C).
    17. Irsova, Zuzana & Bom, Pedro Ricardo Duarte & Havranek, Tomas & Rachinger, Heiko, 2023. "Spurious Precision in Meta-Analysis," MetaArXiv 3qp2w, Center for Open Science.
    18. Ali Elminejad & Tomas Havranek & Roman Horvath & Zuzana Irsova, 2023. "Intertemporal Substitution in Labor Supply: A Meta-Analysis," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 51, pages 1095-1113, December.
    19. Gallé, Johannes & Overbeck, Daniel & Riedel, Nadine & Seidel, Tobias, 2024. "Place-based policies, structural change and female labor: Evidence from India’s Special Economic Zones," Journal of Public Economics, Elsevier, vol. 240(C).
    20. Jindrich Matousek & Tomas Havranek & Zuzana Irsova, 2022. "Individual discount rates: a meta-analysis of experimental evidence," Experimental Economics, Springer;Economic Science Association, vol. 25(1), pages 318-358, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:osf:socarx:mf2n6_v2. 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: OSF (email available below). General contact details of provider: https://arabixiv.org .

    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.