Should Local Governments Expect Benefits from Special Economic Zones? The Case of Poland
The impact of Special Economic Zones (SEZs) has
been analyzed for many years by researchers. There are lot of
theoretical studies proving the SEZs importance for regional
development, however, there is lack of empirical studies (and they
are mainly focused on China market) that are based on available data.
The theoretical studies indicate the various impacts of enterprises
operating within SEZs on the economy. The article proves that, in
case of Poland, locating SEZs in municipalities is an important part
of increasing municipalities’ income. Therefore SEZs have a positive
impact on regional development. Municipality income is understood
as taxes paid by taxpayers who depend on SEZ companies’
performance. The analysis includes the Corporate Income Tax (CIT),
Personal Income Tax (PIT) and real estate tax. The effects of SEZs
on regional development were narrowed to a few variables that are
most significant for the financial system. The analysis indicates the
significant impact of SEZs on the amount of taxes influencing the
municipality budget.
[1] Abraham, F., J. Konings, and V. Slootmaekers (2010), FDI spillovers in
the Chinese manufacturing sector, The Economics of Transition, vol 18
(1), 143-182
[2] Aggarwal, A., M. Hoppe, and P. Walkenhorst (2008), Special Economic
Zones and Economic Diversification: Same Evidence from South Asia,
in Richard Newfarmer, William Shaw and Peter Walkenhorst (eds.),
Breaking into New markets: Emerging Lessons for Export
Diversification, Washington DC: World Bank.
[3] Aggarwal, A. (2005), Performance of Export Processing Zones: A
Comparative Analysis of India, Sri Lanka, and Banglagesh, Working
Paper No 155, Indian Council for Research on International Economic
Relations, New Delhi.
[4] Ambroziak A., National regional aid in special economic zones in
Poland, SGH, Warsaw 2009 (polish)
[5] Cheng, L. K., and Y. K. Kwan (2000), What are the Determinants of the
Location of Foreign Direct Investment? The Chinese Experience,
Journal of International Economics, vol 51(2), 379-400
[6] Coe, D. T., E. Helpman, and A.W. Hoffmaister (2009), International
R&D Spollovers and Institutions, European Economic Review, vol
53(7), 723-741. [7] Desai, M. A., C. F. Foley and J.R. Hines Jr. (2009), Domestic Effects of
the Foreign Activities of US Multinationals, American Economic
Journal: Economic Policy, vol. 1(1), 181-203
[8] Devereux, M. P. (2007), The Impact of Taxation on the Location of
Capital, Firms and Profit: A Survey of Empirical Evidence, Working
Paper, Oxford University Center for Business and Taxation.
[9] Ge, W. (1999), Special Economic Zones and the Economic Transition in
China, Singapore and River Edge, NJ: World Scientific.
[10] Hale, G. and C. X. Long (2007), Are There Productivity Spillover from
Foreign Direct Investment in China, The Federal Bank of San Francisco
Working Paper No 2006-13.
[11] Hamada K., (1974), An Economic Analysis of the Duty free zone,
“Journal of International Economics”, vol. 4, 241-255,
[12] Kung, K. S. (1985), The Origins and Performance of China’s Special
Economic Zone, Asian Journal of Public Administration, vol. 7(1), 198-
215.
[13] Litwack, J. M., and Y. Y. Qian (1998), Balanced or Unbalanced
Development: Special Economic Zones as Catalysts for Transition,
Journal of Comparative Economics, vol. 26(1) 17-141.
[14] Liu, Z. Q. (2008), Foreign Direct Investment and technology spillovers:
Theory and evidence, Journal of Development Economics, vol. 85(1-2),
176-193.
[15] McGrattan, E., and E. C. Prescott (2009), Openness, Technology Capital
and Development, Journal of Economic Theory, vol. 44(6), 2454-2476.
[16] Miyagiwa K., A Reconsideration of the Welfare Economics of a Free
Trade Zone, “Journal of International Economics” 1986, No 21 s.
337−350.
[17] Miyagiwa K., Young L., Unemployment and the formation of duty free
zones, “Journal of Development Economics” 1987, Vol. 26.
[18] Park, J. D. (1997), The Special Economic Zones of Chuna and Their
Impact on its Economic Development, Praeger, London
[19] Pastusiak R., Special economic zones as a stimulator of economic
development, Editing by University of Lodz, Lodz 2011, (polish)
[20] Rolfe, R. J., D. P. Woodward, and B. Kagira (2004), Footloose and Tax
Free: Incentive Preferences in Kenyan Export Processing Zones, South
African Journal of Economics, vol. 72(4): 784-807.
[21] Różański J. (2010), International companies in Poland, PWE, Warsaw
2010, (polish)
[22] Shah, S. (2008), Special Economic Zones in South Asia: Comparative
Analysis of Bangladesh, Sri Lanka, and India, Harvard University.
[23] Siudak P., Wątorek B., Special Economic Zones in Poland in the years
1995 - 2009, PWSZ in Legnica, Legnica 2011, (polish)
[24] Warr P.G., Export Processing Zones. The economics of Enclave
Manufacturing, IBRD/World Bank, Research Observer, January 1989,
vol 4, No 1,
[25] Warr P.G., Export Proccesing Zones in the Philippines, „ASEANAustralia
Economics Papers” 20, Australian National University,
Canberra, 1985, p. 12.
[26] Warr P.G., Jakarta Export Processing Zone: Benefits and Costs,
„Bulletin of Indonesian Economic Studies”, 1983, no 3, s. 28-49.
[27] Wei, S. J. (1995), The Open Door Policy and China’s Rapid Growth:
Evidence from City Level Data, in Takatoshi Ito and Anne O. Kruger
(eds), Growth Theories in Light of The East Asian Experience, NBEREASE
vol. 4, University of Chicago Press.
[28] Whalley, J., and X. Xin (2006), China’s FDI and Non-FDI Economies
and the Sustainability of Futures High Chinese Growth, China Economic
Review, vol. 21(1), 123-135.
[29] Willmore, L. (1996), Export Processing in the Caribbean: Lessons from
four case studies, Working Paper No 42, United Nations Economic
Commission for Latin America and the Caribbean, Santiago.
[30] Young L., Intermediate goods and the formation of Duty Free Zones,
“Journal of Development Economics” 1987, Vol. 25.
[31] Local Bank Data, www.stat.gov.pl, 10.10.2014
[1] Abraham, F., J. Konings, and V. Slootmaekers (2010), FDI spillovers in
the Chinese manufacturing sector, The Economics of Transition, vol 18
(1), 143-182
[2] Aggarwal, A., M. Hoppe, and P. Walkenhorst (2008), Special Economic
Zones and Economic Diversification: Same Evidence from South Asia,
in Richard Newfarmer, William Shaw and Peter Walkenhorst (eds.),
Breaking into New markets: Emerging Lessons for Export
Diversification, Washington DC: World Bank.
[3] Aggarwal, A. (2005), Performance of Export Processing Zones: A
Comparative Analysis of India, Sri Lanka, and Banglagesh, Working
Paper No 155, Indian Council for Research on International Economic
Relations, New Delhi.
[4] Ambroziak A., National regional aid in special economic zones in
Poland, SGH, Warsaw 2009 (polish)
[5] Cheng, L. K., and Y. K. Kwan (2000), What are the Determinants of the
Location of Foreign Direct Investment? The Chinese Experience,
Journal of International Economics, vol 51(2), 379-400
[6] Coe, D. T., E. Helpman, and A.W. Hoffmaister (2009), International
R&D Spollovers and Institutions, European Economic Review, vol
53(7), 723-741. [7] Desai, M. A., C. F. Foley and J.R. Hines Jr. (2009), Domestic Effects of
the Foreign Activities of US Multinationals, American Economic
Journal: Economic Policy, vol. 1(1), 181-203
[8] Devereux, M. P. (2007), The Impact of Taxation on the Location of
Capital, Firms and Profit: A Survey of Empirical Evidence, Working
Paper, Oxford University Center for Business and Taxation.
[9] Ge, W. (1999), Special Economic Zones and the Economic Transition in
China, Singapore and River Edge, NJ: World Scientific.
[10] Hale, G. and C. X. Long (2007), Are There Productivity Spillover from
Foreign Direct Investment in China, The Federal Bank of San Francisco
Working Paper No 2006-13.
[11] Hamada K., (1974), An Economic Analysis of the Duty free zone,
“Journal of International Economics”, vol. 4, 241-255,
[12] Kung, K. S. (1985), The Origins and Performance of China’s Special
Economic Zone, Asian Journal of Public Administration, vol. 7(1), 198-
215.
[13] Litwack, J. M., and Y. Y. Qian (1998), Balanced or Unbalanced
Development: Special Economic Zones as Catalysts for Transition,
Journal of Comparative Economics, vol. 26(1) 17-141.
[14] Liu, Z. Q. (2008), Foreign Direct Investment and technology spillovers:
Theory and evidence, Journal of Development Economics, vol. 85(1-2),
176-193.
[15] McGrattan, E., and E. C. Prescott (2009), Openness, Technology Capital
and Development, Journal of Economic Theory, vol. 44(6), 2454-2476.
[16] Miyagiwa K., A Reconsideration of the Welfare Economics of a Free
Trade Zone, “Journal of International Economics” 1986, No 21 s.
337−350.
[17] Miyagiwa K., Young L., Unemployment and the formation of duty free
zones, “Journal of Development Economics” 1987, Vol. 26.
[18] Park, J. D. (1997), The Special Economic Zones of Chuna and Their
Impact on its Economic Development, Praeger, London
[19] Pastusiak R., Special economic zones as a stimulator of economic
development, Editing by University of Lodz, Lodz 2011, (polish)
[20] Rolfe, R. J., D. P. Woodward, and B. Kagira (2004), Footloose and Tax
Free: Incentive Preferences in Kenyan Export Processing Zones, South
African Journal of Economics, vol. 72(4): 784-807.
[21] Różański J. (2010), International companies in Poland, PWE, Warsaw
2010, (polish)
[22] Shah, S. (2008), Special Economic Zones in South Asia: Comparative
Analysis of Bangladesh, Sri Lanka, and India, Harvard University.
[23] Siudak P., Wątorek B., Special Economic Zones in Poland in the years
1995 - 2009, PWSZ in Legnica, Legnica 2011, (polish)
[24] Warr P.G., Export Processing Zones. The economics of Enclave
Manufacturing, IBRD/World Bank, Research Observer, January 1989,
vol 4, No 1,
[25] Warr P.G., Export Proccesing Zones in the Philippines, „ASEANAustralia
Economics Papers” 20, Australian National University,
Canberra, 1985, p. 12.
[26] Warr P.G., Jakarta Export Processing Zone: Benefits and Costs,
„Bulletin of Indonesian Economic Studies”, 1983, no 3, s. 28-49.
[27] Wei, S. J. (1995), The Open Door Policy and China’s Rapid Growth:
Evidence from City Level Data, in Takatoshi Ito and Anne O. Kruger
(eds), Growth Theories in Light of The East Asian Experience, NBEREASE
vol. 4, University of Chicago Press.
[28] Whalley, J., and X. Xin (2006), China’s FDI and Non-FDI Economies
and the Sustainability of Futures High Chinese Growth, China Economic
Review, vol. 21(1), 123-135.
[29] Willmore, L. (1996), Export Processing in the Caribbean: Lessons from
four case studies, Working Paper No 42, United Nations Economic
Commission for Latin America and the Caribbean, Santiago.
[30] Young L., Intermediate goods and the formation of Duty Free Zones,
“Journal of Development Economics” 1987, Vol. 25.
[31] Local Bank Data, www.stat.gov.pl, 10.10.2014
@article{"International Journal of Business, Human and Social Sciences:69393", author = "R. Pastusiak and M. Jasiniak and A. Kaźmierska", title = "Should Local Governments Expect Benefits from Special Economic Zones? The Case of Poland", abstract = "The impact of Special Economic Zones (SEZs) has
been analyzed for many years by researchers. There are lot of
theoretical studies proving the SEZs importance for regional
development, however, there is lack of empirical studies (and they
are mainly focused on China market) that are based on available data.
The theoretical studies indicate the various impacts of enterprises
operating within SEZs on the economy. The article proves that, in
case of Poland, locating SEZs in municipalities is an important part
of increasing municipalities’ income. Therefore SEZs have a positive
impact on regional development. Municipality income is understood
as taxes paid by taxpayers who depend on SEZ companies’
performance. The analysis includes the Corporate Income Tax (CIT),
Personal Income Tax (PIT) and real estate tax. The effects of SEZs
on regional development were narrowed to a few variables that are
most significant for the financial system. The analysis indicates the
significant impact of SEZs on the amount of taxes influencing the
municipality budget.
", keywords = "Government, local finance, municipal finance,
Special Economic Zones.", volume = "9", number = "3", pages = "913-7", }
