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

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Abstract

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.

Suggested Citation

  • Claudia Guagliano & Stefano Riela, 2005. "Do special economic areas matter in attracting FDI? Evidence from Poland, Hungary and Czech Republic," ISLA Working Papers 21, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised Nov 2005.
  • Handle: RePEc:slp:islawp:islawp21
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    Cited by:

    1. Soltwedel, Rüdiger & Krieger-Boden, Christiane, 2007. "The impact of European integration and enlargement on regional structural change and cohesion: EURECO. Final report," Open Access Publications from Kiel Institute for the World Economy 4243, Kiel Institute for the World Economy (IfW).
    2. Gergő Medve-Bálint, 2014. "JCMS Special Issue 2014: Eastern Enlargement Ten Years On: Transcending the East-West Divide? Guest Editors: Rachel A. Epstein and Wade Jacoby," Journal of Common Market Studies, Wiley Blackwell, vol. 52(1), pages 35-51, January.
    3. Hanhee Lee, 2015. "Foreign Direct Investment In North Korea And The Effect Of Special Economic Zones: Learning From Transition Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(2), pages 35-56, June.
    4. Dorożyński Tomasz & Kuna-Marszałek Anetta, 2016. "Investments Attractiveness. The Case Of The Visegrad Group Countries," Comparative Economic Research, De Gruyter Open, vol. 19(1), pages 119-140, March.
    5. Marian Dinga, 2011. "The Role of Investment Incentives in Regional FDI Reallocation: A Regression-Discontinuity Approach," CERGE-EI Working Papers wp438, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

    More about this item

    Keywords

    foreign direct investment; location choice; transition countries;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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