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Do special economic areas matter in attracting FDI? Evidence from Poland, Hungary and Czech Republic

Among the instruments aimed to attract internationally mobile investors, “special economic areas” can be considered as well-defined zones where usually offering low rates of taxation, and infrastructures and services accessible on preferential basis. Are those instruments effective in attracting FDI? The first empirical evidence based on Poland, Hungary and Czech Republic suggests a positive answer. However, according to a survey on research and development intensity in special economic areas in our sample countries, it is not possible to confirm clearly that scientific and technology parks were capable in attracting high-tech FDIs, even though due to global competition, international agreements and EU membership, fiscal incentives are nowadays not enough while technology and an “innovation-friendly” environment are emerging as competitive advantages.

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File URL: ftp://ftp.unibocconi.it/pub/RePEc/slp/papers/islawp21.pdf
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Paper provided by ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy in its series ISLA Working Papers with number 21.

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Length: 21 pages
Date of creation: Nov 2005
Date of revision: Nov 2005
Handle: RePEc:slp:islawp:islawp21
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