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

Claudia Guagliano () and Stefano Riela

No 21, ISLA Working Papers from ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy

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.

Keywords: foreign direct investment; location choice; transition countries (search for similar items in EconPapers)
JEL-codes: F23 R38 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2005-11, Revised 2005-11
New Economics Papers: this item is included in nep-eec, nep-ifn and nep-tra
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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