Quantifying the effects of Special Economic Zones using spatial econometric models

Zhaoying Lu ()
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Zhaoying Lu: Graduate School of Economics, Osaka University

No 21-01, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper evaluates the effects of a place-based program in China?Special Economic Zone (SEZ) program. It adds to the existing literature by introducing spatial proximity to understand the effects of SEZs on the local economy. Using a panel data set over the period from 2004 to 2007, the empirical results find that SEZs have positive spillover effects on regional productivity, most of which are from the neighborhood. Meanwhile, there exists a positive interdependence between local firms onregional productivity. The magnitude of spillover effects of SEZs is robust to changes in sample data, weight matrices selection, and alternative explanatory variables.

Keywords: Special Economic Zone; Place-based Policy; Spatial Analysis; Productivity; Spillovers (search for similar items in EconPapers)
JEL-codes: C21 C23 O21 R10 (search for similar items in EconPapers)
Pages: 29pages
Date: 2021-04
New Economics Papers: this item is included in nep-eff, nep-geo and nep-ure
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