Why do Some Special Economic Zones Attract More Firms than Others? Panel Data Analysis of Polish Special Economic Zones

Piotr Ciżkowicz (), Magda Ciżkowicz-Pękała, Piotr Pękała and Andrzej Rzońca

Prague Economic Papers, 2021, vol. 2021, issue 1, 61-89

Abstract: Using a unique firm-level data for Polish Special Economic Zones (SEZ) to estimate a set of panel data models we find that both employment and investment growth in SEZ are driven mainly by labour market characteristics of zone-hosting regions, while other factors (including market access, zone business climate and firms' concentration) play a less important role. Firms choose their locations based on labour availability rather than on labour costs. Moreover, they pay particular attention to availability of low-skilled rather than high-skilled labour. As far as tax incentives are concerned, their predictability matters more for SEZ development than their generosity.

Keywords: Special economic zones; regional economic development; economic policy tools; panel data models (search for similar items in EconPapers)
JEL-codes: C21 H25 H32 R30 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (6)

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DOI: 10.18267/j.pep.763

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