Are Special Economic Zone policies (SEZ) effective? An empirical analysis on the transport and logistics’ sector

Abstract

Monetary incentives for specific geographical areas have been implemented and regulated globally to stimulate economic growth in less developed regions, often yielding mixed and varied outcomes. Recently, Italy has launched similar initiatives to invigorate the economy of its southern regions, which are marked by significant territorial and economic gaps/disparities. This study focuses on the impact of Special Economic Zones (SEZ) in Puglia, a southern Italian region designated for these policies, using a Matching Difference-in-Difference (Matching DiD) analysis to assess their effects. Although the transport and logistics sector is formally excluded from SEZ incentives, one of the key requirements for establishing an SEZ in Italy is the inclusion of at least one port area. This paper assesses the indirect impact of SEZs on the transport and logistics sector. The findings indicate positive and significant effects on firm revenues, highlighting the potential of SEZs to serve as effective tools for revitalizing economically underdeveloped areas.