The FDI Inflow to Special Economic Zones in Poland

Abstract

One of the ways of convincing investors, in particular foreign ones, to take part in the implementation of host country economic policies is the development of Special Economic Zones (SEZs) designed to ensure more favourable business environment than those available in other locations. Poland has created and develops the SEZs. They play a positive role in attracting foreign direct investment (FDI) or creating new jobs but also may have negative consequences, such as deepening regional disproportions in the country.

This paper aims at examining why certain SEZs in Poland attracted more FDI than other. In our opinion that may result from the location in a particular region (understood as a unit of administrative division of the country at the level of a voivodeship) and from endogenous conditions characteristic of the zone, such as the land it owns, infrastructure and its accessibility and finally high quality performance of the company that manages the zone.

Our calculations have shown statistically significant positive relationships between FDI inflow to SEZ and overall and some partial coefficients that describe investment attractiveness of voivodeships. Test results also suggest that efforts of managing companies with regard to wooing investors (e.g. through promotions, infrastructure development) are important in increasing the inflow of foreign investment.

Citation

Dorożyński, T., Świerkocki, J. and Urbaniak, W. (2016), "The FDI Inflow to Special Economic Zones in Poland", Contemporary Issues in Finance: Current Challenges from Across Europe (Contemporary Studies in Economic and Financial Analysis, Vol. 98), Emerald Group Publishing Limited, Leeds, pp. 135-159. https://doi.org/10.1108/S1569-375920160000098009