Do operations in SEZs improve a firm’s productivity? Evidence from Poland

Abstract

Special economic zones (SEZs) play a significant role in global, national and regional trade flows. Given the insufficient number of empirical contributions regarding firm-level consequences of operation in SEZs, an analysis in which implications for firms’ standings is undertaken. With the use of different estimation approaches, applied to a unique dataset comprising 155 SEZs firms and 155 non-SEZs firms (matched sample) obtained from various sources, the author investigates if SEZs firms obtain a competitive advantage through higher productivity compared to non-SEZs firms. The results prove that SEZ firms differ in this regard. However, the sign of its contribution is conditioned by the type of productivity analysed. Keywords: Special economic zones; SEZ; polish economy; productivity differentials; firm heterogeneity.