Special Economic Zones, 20 Years After: A Panel Data Evaluation of Poland's Regional Policy

Camilla Jensen, Marcin Winiarczyk

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Abstract

In this paper we evaluate in an ex-post perspective whether the special economic zones (SEZs) introduced in Poland in 1994 have been successful in meeting regional development objectives or what we in this paper identify as a particular policy that has changed from being supply- to demand-led in terms of who ended up adopting the policy. We evaluate the policy on as many of its objectives as possible: employment creation, business creation including attraction of foreign direct investment (FDI), income or wage effects and environmental sustainability.

Our results indicate that SEZs in Poland have been successful on a number of its objectives such as in particular attraction of FDI and raising investment levels in disadvantaged regions at the outset of transition. The positive effect on business creation therefore mainly comes through FDI. In other areas such as in particular securing a higher income level and locking firms into the sustainability agenda through adoption of green technologies and reduced air pollution we find only a small positively moderating effect of the policy on what are traditional economically disadvantaged areas in Poland that were overtly dependent on the socialist production model.

The main policy implication of the paper is that SEZs may very well be a successful strategy for regionalized reindustrialization, but the policy must be seen as one of necessary temporality and can therefore not stand alone. Before launching SEZs policy-makers must have in place plans for follow up measures to ensure the longer term competitiveness and sustainability implications of such an initiative.

Original languageEnglish
Publication date22 Nov 2013
Number of pages3
Publication statusPublished - 22 Nov 2013
Externally publishedYes
EventMobilising Regions: Territorial Strategies for Growth: Regional Studies Associaton, Winter Conference 2013 - Holiday Inn London Bloomsbury, London, UK, London, United Kingdom
Duration: 22 Nov 201322 Nov 2013

Conference

ConferenceMobilising Regions: Territorial Strategies for Growth
LocationHoliday Inn London Bloomsbury, London, UK
CountryUnited Kingdom
CityLondon
Period22/11/201322/11/2013

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