Skip to main navigation menu Skip to main content Skip to site footer

Vol. 9 No. 3 (2021)
September 2021

Articles

Governance of special economic zones and their performance: Evidence from Poland

https://doi.org/10.15678/EBER.2021.090310

Published 2021-05-31

Tomasz Dorożyński
University of Lodz

Janusz Świerkocki
University of Lodz

Bogusława Dobrowolska
University of Lodz

Abstract

Objective: The objective of the article is to assess why some zone managing companies (ZMCs) are more successful in developing their special economic zones (SEZs) than others. In almost every part of Poland, there are winners and losers among SEZs. It suggests that the advantage of having a better zone location is relative, and other factors may play a role. The specific research question addressed in this article is whether the individual zone administrations matter.

Research Design & Methods: We used cluster and correlation analysis and estimated regression models at the level of ZMCs to explain the relative performance of SEZs in Poland over the period 2004-2018. The set of explanatory variables, treated as a proxy for ZMC’s efforts, were regressed on investment outlays and jobs created.

Findings: (1) location is the principal determinant of SEZs performance; (2) zone governance also makes a difference; (3) among ZMCs’ efforts promotional activities and infrastructural outlays impact SEZs performance to the greatest extent.

Implications & Recommendations: Zone performance depends predominantly on its location but effective governance exercised by the operator matters, too. Both conclusions advocate opting for a zone policy that limits the centralising of decision-making powers. First, regional/local authorities must be more engaged. Second, and more importantly, additional powers and resources should be delegated to zone operators.

Contribution & Value Added: The use of a regression model to explain the role played by zone operators in zones’ performance is very scarce in economic literature. There is no such a study for Poland. Our research tries to fill this gap. We check (1) whether good administration is important for the success of a SEZ and (2) why it is important: due to the resources ZMC has or rather due to the services it provides for investors.

       

Keywords

speical economic zones, zone managing companies, investment policy, Poland

(PDF) Save

Author Biography

Tomasz Dorożyński

Associate Professor at the Department of International Trade, University of Lodz. His research work focuses on the internationalization of firms, FDI, investment incentives, special economic zones, and regional development.

Correspondence to: dr hab. Tomasz Dorożyński, prof. UŁ, Department of International Trade, Faculty of Economics and Sociology, University of Lodz, 3/5 POW St., 90-255 Łódź, Poland, e-mail: tomasz.dorozynski@uni.lodz.pl

Janusz Świerkocki

Full Professor at the Department of International Trade, University of Lodz. His current research relates to the internationalisation of firms, regional development, international trade policy, FDI, and special economic zones.

Correspondence to: Prof. dr hab. Janusz Świerkocki, Department of International Trade, Faculty of Economics and Sociology, University of Lodz, 3/5 POW St., 90-255 Łódź, Poland, e-mail: janusz.swierkocki@uni.lodz.pl

Bogusława Dobrowolska

Assistant Professor at the Department of Economic and Social Statistics, University of Lodz. Her scientific interests include the application of statistical methods in economic and social research.

Correspondence to: dr Bogusława Dobrowolska, Department of Economic and Social Statistics, Faculty of Economics and Sociology, University of Lodz, 3/5 POW St., 90-255 Łódź, Poland, e-mail: boguslawa.dobrowolska@uni.lodz.pl

References

  1. Act of 10 May 2018 on support for new investments (Dz.U. [Journal of Laws] of 2018, item 1162). Retrieved from https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20180001162 on June 10, 2020.
  2. AfDB. (2015). Special Economic Zones in Fragile Situations: A Useful Policy Tool?. African Development Bank. Retrieved from https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/SEZ_anglais_SEZ_anglais.pdf on May 18, 2020.
  3. ADB. (2015). Asian economic integration report 2015: How can special economic zones catalyze economic de-velopment?. Mandaluyong City, Philippines: Asian Development Bank. Retrieved from https://www.adb.org/sites/default/files/publication/177205/asian-economic-integration-report-2015.pdf on May 18, 2020.
  4. Aggarwal, A. (2005). Performance of Export Processing Zones: A Comparative Analysis of India, Sri Lanka and Bangladesh, ICRIER Working Paper, 155. Retrieved from http://icrier.org/pdf/wp155.pdf on February 20, 2020.
  5. Aggarwal, A. (2012). Social and Economic Impact of SEZs in India. Oxford: Oxford University Press.
  6. Aggarwal, A. (2019). SEZs and economic transformation: towards a developmental approach. Transnational Corporations, 26(2), 27-48. https://doi.org/10.18356/d5636c42-en
  7. Ambroziak, A.A. (2016). Income Tax Exemption as a Regional State Aid in Special Economic Zones and Its Impact upon Development of Polish Districts. Oeconomia Copernicana, 7(2), 245-267. https://doi.org/10.12775/OeC.2016.015
  8. Ambroziak, A.A., & Hartwell, C.A. (2018). The impact of investments in special economic zones on regional development: the case of Poland. Regional Studies, 52(10), 1322-1331. https://doi.org/10.1080/00343404.2017.1395005
  9. Baissac, C. (2011). Brief History of SEZs and Overview of Policy Debates. In T. Farole (Eds.), Special Economic Zones in Africa: Comparing Performance and Learning from Global Experience, World Bank. https://doi.org/10.1596/9780821386385_CH02
  10. Cieślik, A. (1995). Political Economy of Special Economic Zones Location in Poland. Retrieved from http://www.case-research.eu/files/?id_plik=3459 on November 20, 2020.
  11. Ciżkowicz, P., Ciżkowicz-Pękała, M., Pękała, P., & Rzońca, A. (2017). The effects of special economic zones on employment and investment: a spatial panel modeling perspective. Journal of Economic Geography, 17(3), 571-605. https://doi.org/10.1093/jeg/lbw028
  12. Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty Text with EEA relevance. Retrieved from EUR-Lex – 32014R0651 – EN – EUR-Lex (europa.eu) on February 20, 2020.
  13. Dorożyński, T., Świerkocki, J., & Urbaniak, W. (2016). Specjalne strefy ekonomiczne w Polsce a aktywność spółek zarządzających. International Business and Global Economy, 35(2), 43-55. https://doi.org/10.4467/23539496IB.16.045.5626
  14. Dorożyński, T., Świerkocki, J., & Urbaniak, W. (2018). Determinants of Investment Attractiveness of Polish Special Economic Zones. Entrepreneurial Business and Economics Review, 6(4), 161-180. https://doi.org/10.15678/EBER.2018.060409
  15. Engman, M., Onodera, O., & Pinali, E. (2007). Export Processing Zones: Past And Future Role In Trade And Development. OECD Trade Policy Working Paper No. 53. https://doi.org/ 10.1787/035168776831
  16. Farole, T. (2011). Special Economic Zones in Africa Comparing Performance and Learning from Global Experi-ences. Washington: The World Bank. Retrieved from http://documents1.worldbank.org/curated/en/996871468008466349/pdf/600590PUB0ID181onomic09780821386385.pdf on March 15, 2020.
  17. Farole, T., & Moberg, L. (2014). It worked in China, so why not in Africa? The political economy challenge of Special Economic Zones. WIDER Working Paper 2014/152. Retrieved from https://www.wider.unu.edu/sites/default/files/wp2014-152.pdf on February 20, 2020.
  18. FIAS. (2008). Special Economic Zones Performance, Lessons Learned, and Implications for Zone Development. Washington: The World Bank. Retrieved from http://documents1.worldbank.org/curated/en/343901468330977533/pdf/458690WP0Box331s0April200801PUBLIC1.pdf on February 20, 2020.
  19. Frick, S., Rodríguez-Pose, A., & Wong, M. (2018). Towards economically dynamic Special Economic Zones in emerging countries, Papers in Evolutionary Economic Geography. Utrecht University. https://doi.org/10.1080/00130095.2018.1467732
  20. Frick, S., & Rodríguez-Pose, A. (2019). Are special economic zones in emerging countries a catalyst for the growth of surrounding areas?. Transnational Corporations, 26(2), 75-94. https://doi.org/10.18356/0554caef-en
  21. Gibbon, P., Jones, S., & Thomsen, L. (2008). An Assessment of the Impact of Export Processing Zones and an Identification of Appropriate Measures to Support Their Development. For Royal Danish Ministry of For-eign Affairs, Danish Institute For International Studies. Retrieved from http://www.diis.dk/files/media/publications/import/assessment_of_the_impact_of_export_processing_zones.pdf on May 25, 2020.
  22. Greene, W.H. (2003). Econometric analysis. New Jersey: Prentice Hall.
  23. Hajduga, P., Pilewicz, T., & Mempek-Śnieżyk, A. (2018). Cooperation between local authorities and economic entities in Polish special economic zones – evidence from Lower Silesia in Poland, Economics and Sociol-ogy, 11(2), 80-96. https://doi.org/10.14254/2071-789X.2018/11-2/6
  24. Information about the implementation of the Act on Special Economic Zones. (2005-2019). Ministry of Econ-omy/Ministry of Economic Development. Warsaw. Retrieved from www.sejm.gov. pl on August 15, 2020.
  25. James, G., Witten, D., Hastie, T., & Tibshirani, R. (2014). An Introduction to Statistical Learning with Applica-tions in R., Springer. Retrieved from An Introduction to Statistical Learning | SpringerLink on April 15, 2020.
  26. Jensen, C. (2018). The Employment Impact of Poland’s Special Economic Zones Policy. Regional Studies, 52(7), 877-889. https://doi.org/10.1080/00343404.2017.1360477
  27. KPMG. (2012). Special Economic Zones – Edition 2012. Retrieved from https://www.paih.gov.pl on March 20, 2020.
  28. KPMG. (2014). 20 years of special economic zones in Poland. Retrieved from https://www.paih.gov.pl on March 20, 2020.
  29. Kuznetsov, A., & Kuznetsova, O. (2019). The success and failure of Russian SEZs: some policy lessons. Trans-national Corporations, 26(2), 117-139. Retrieved from diaeia2019d2a6_en.pdf (unctad.org) on July 10, 2020.
  30. Lasek, M. (2002). Data mining. Zastosowania w analizach i ocenach klientów bankowych. Warsaw: Biblioteka Menedżera i Bankowca.
  31. Madani, D. (1999). A Review of the Role and Impact of Export Processing Zones August 1999. World Bank Policy Research Paper 2238. https://doi.org/10.1596/1813-9450-2238
  32. Mayneris, F., & Py, L. (2013). The efficiency of enterprise zone programs Some conflicting results?. Université Catholique de Louvain, IRES, CORE, Discussion Paper 20, 13-25. Retrieved from http://hdl.handle.net/2078.1/135042 on June 20, 2020.
  33. NIK. (2011). Pomoc publiczna udzielona w latach 2006-2010 przedsiębiorcom działającym w specjalnych stre-fach ekonomicznych. Bydgoszcz: Najwyższa Izba Kontroli.
  34. Rodrik, D. (2008). Second-best institutions. American Economic Review, 98(2), 100-104. https://doi.org/10.1257/aer.98.2.100
  35. Siudak, P., & Wątorek, B. (2011). Specjalne strefy ekonomiczne w Polsce w latach 1995–2009. Legnica: PWSZ w Legnicy.
  36. Trzciński, R., Stasiowski, J., Konieczna-Sałamatin, J., Skórska, P., Bienias, S., & Weremiuk, A. (2016). Raport końcowy. Wpływ specjalnych stref ekonomicznych na zatrudnienie. Ocena skutków regulacji ex post ustawy o specjalnych strefach ekonomicznych z dnia 20 października 1994 roku (Dz.U. [Journal of Laws] 1994 No. 123 item 600 with further amendments), Warsaw. Retrieved from http://www.kozminski.edu.pl/fileadmin/wspolne_elementy/Jednostki/RAPORT_SSE.pdf on February 20, 2020.
  37. Welfe, A. (2009). Ekonometria. Metody i ich zastosowanie. Warsaw: PWE.
  38. WIR. (2019). World Investment Report, Special Economic Zones. Geneva: UNCTAD.
  39. World Bank. (2017). Special economic zones: an operational review of their impacts, Washington. Retrieved from http://documents.worldbank.org/curated/en/316931512640011812/Special-economic-zones-an-operational-review-of-their-impacts on April 23, 2020.

Downloads

Download data is not yet available.

Similar Articles

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.