The extensive and intensive margins of employment resulting from Poland’s SEZ policy
DOI: https://doi.org/10.3846/tede.2026.23408Abstract
The paper evaluates Poland’s Special Economic Zones (SEZ) policy with a focus on the emergence of market-based business clusters. A structural model of regional growth is estimated to measure and assess the impact of the SEZs as a ‘helping hand’ on the extensive and intensive margins of employment. Literature on business clusters suggest it would require them to grow on both margins simultaneously to be viable; attracting more firms and making each firm dependent on the success of its regional peers. However, the policy went through different phases and the priorities of policy-makers as well as zone managers shifted over time. For the designated Zone Management Companies (ZMCs) the results have been modest for the extensive margin. The main outcome of the policy has been on the intensive margin, in part, this result is expected due to the large firm bias inherent in the policy and the selection bias owing to the prior location of state-owned enterprises.
First published online 9 March 2026
Keywords:
Special Economic Zones (SEZs), comparative institutions, substitutions by design, panel data analysis, regional policy, foreign direct investmentHow to Cite
Share
License
Copyright (c) 2026 The Author(s). Published by Vilnius Gediminas Technical University.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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.
Audretsch, D. B. (2002). The dynamic role of small firms: Evidence from the US. Small Business Economics, 18, 13–40. https://doi.org/10.1023/A:1015105222884
Baldwin, J. R., Brown, W. M., & Rigby, D. L. (2010). Agglomeration economies: Microdata panel estimates from Canadian manufacturing. Journal of Regional Science, 50(5), 915–934. https://doi.org/10.1111/j.1467-9787.2010.00675.x
Baptista, R., & Swann, G. M. P. (1999). A comparison of clustering dynamics in the US and UK computer industries. Journal of Evolutionary Economics, 9, 373–399. https://doi.org/10.1007/s001910050088
Billings, S. (2009). Do enterprise zones work? An analysis at the borders. Public Finance Review, 37(1), 68–93. https://doi.org/10.1177/1091142108321238
Birdsall, N., & Nellis, J. (2003). Winners and losers: Assessing the distributional impact of privatization. World Development, 31(10), 1617–1633. https://doi.org/10.1016/S0305-750X(03)00141-4
Blaszczyk, B. (2001). Secondary privatization in Poland (part II): Evolution of ownership structure and performance in national investment funds and their portfolio companies (CASE Network Reports No. 48). SSRN. https://doi.org/10.2139/ssrn.1432403
Bondonio, D., & Greenbaum, R. T. (2007). Do local tax incentives affect economic growth? What mean impacts miss in the analysis of enterprise zone policies. Regional Science and Urban Economics, 37(1), 121–136. https://doi.org/10.1016/j.regsciurbeco.2006.08.002
Bondonio, D., & Greenbaum, R. T. (2014). Revitalizing regional economies through enterprise support policies: An impact evaluation of dimeple instruments. European Urban and Regional Studies, 21(1), 79–103. https://doi.org/10.1177/0969776411432986
Briant, A., Lafourcade, M., & Schmutz, B. (2015). Can tax breaks beat geography? Lessons from the French enterprise zone experience. American Economic Journal: Economic Policy, 7(2), 88–124. https://doi.org/10.1257/pol.20120137
Chaudhary, N., & Potter, J. (2018). Evaluation of the local employment impacts of enterprise zones: A critique. Urban Studies, 56(10), 2112–2159. https://doi.org/10.1177/0042098018787738
Cieślik, A. (2005). Regional characteristics and the location of foreign firms within Poland. Applied Economics, 37(8), 863–874. https://doi.org/10.1080/00036840500061087
Cizkowicz, P., Cizkowicz-Pekala, M., Pekala, P., & Rzonca, A. (2017). The effects of special economic zones on employment and investment: A spatial panel modelling perspective. Journal of Economic Geography, 17(3), 571–605. https://doi.org/10.1093/jeg/lbw028
Combes, P.-P., & Gobillon, L. (2015). The empirics of agglomeration economies. In Handbook of regional and urban economics (Vol. 5, pp. 247–348). Elsevier. https://doi.org/10.1016/B978-0-444-59517-1.00005-2
Delgado, M., Porter, M. E., & Stern, S. (2010). Clusters and entrepreneurship. Journal of Economic Geography, 10(4), 495–518. https://doi.org/10.1093/jeg/lbq010
Delgado, M., Porter, M. E., & Stern, S. (2014). Clusters, convergence, and economic performance. Research Policy, 43(10), 1785–1799. https://doi.org/10.1016/j.respol.2014.05.007
Dorozyński, 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
Dorozyński, T., Świerkocki, J., & Urbaniak, W. (2019). FDI inflows to special economic zones in Poland. Regional approach. Journal of Management and Financial Sciences, (27), 87–103. https://doi.org/10.33119/JMFS.2017.27.5
Feldman, M. P. (2014). The character of innovative places: Entrepreneurial strategy, economic development, and prosperity. Small Business Economics, 43(1), 9–20. https://doi.org/10.1007/s11187-014-9574-4
Frank, M. M., Hoopes, J. L., & Lester, R. (2022). What determines where opportunity knocks? Political affiliation in the selection of opportunity zones. Journal of Public Economics, 206, Article 104588. https://doi.org/10.1016/j.jpubeco.2021.104588
Frenken, K., Cefis, E., & Stam, E. (2015). Industrial dynamics and clusters: A survey. Regional Studies, 49(1), 10–27. https://doi.org/10.1080/00343404.2014.904505
Freund, C., & Pierola, M. D. (2015). Export superstars. Review of Economics and Statistics, 97(5), 1023–1032. https://doi.org/10.1162/REST_a_00511
Fritsch, M., & Storey, D. J. (2014). Entrepreneurship in a regional context: Historical roots, recent developments, and future challenges. Regional Studies, 48(6), 939–954. https://doi.org/10.1080/00343404.2014.892574
Fujishima, S., Hoshino, T., & Sugawara, S. (2022). Heterogeneous effects of place-based policies and a practical treatment assignment rule. SSRN.
García-Machado, J. J., Sroka, W., & Nowak, M. (2023). PLS-SEM model on business demand for technological services and R&D and innovation activities. Technological and Economic Development of Economy, 29(1), 1–22. https://doi.org/10.3846/tede.2023.17968
Givord, P., Quantin, S., & Trevien C. (2018). A long-term evaluation of the first generation of French urban enterprise zones. Journal of Urban Economics, 105, 149–161. https://doi.org/10.1016/j.jue.2017.09.004
Giuliani, E. (2017). Industrial clusters in global networks. In H. Bathelt, P. Cohendet, S. Henn, & L. Simon (Eds.), The Elgar companion to innovation and knowledge creation (pp. 360–371). Edward Elgar Publishing. https://doi.org/10.4337/9781782548522.00031
Glaeser, E. L., Kerr, W. R., & Ponzetto, G. A. M. (2010). Clusters of entrepreneurship. Journal of Urban Economics, 67(1), 150–168. https://doi.org/10.1016/j.jue.2009.09.008
Gobillon, L., Magnac, T., & Selod, H. (2010). Do unemployed workers benefit from enterprise zones? The French experience. Journal of Public Economics, 96(9–10), 881–892.
Gobillon, L., & Magnac, T. (2016). Regional policy evaluation: Interactive fixed effects and synthetic controls. Review of Economics and Statistics, 98(3), 535–551. https://doi.org/10.1162/REST_a_00537
Goodin, R. E. (1996). Institutions and their design. The theory of institutional design (pp. 1–53). https://doi.org/10.1017/CBO9780511558320.002
Gomułka, S. (2014). Transformacja gospodarczo-społeczna Polski 1989–2014 i współczesne wyzwania [Poland’s economic and social transformation 1989–2014, and contemporary changes]. Nauka, (3), 7–16.
Gwosdz, K., Jarczewski, W., Huculak, M., & Wiederman, K. (2008). Polish special economic zones: Idea versus practice. Environment and Planning C: Government and Policy, 26(4), 824–840. https://doi.org/10.1068/c0209p
Hart, P. E. (2000). Theories of firms’ growth and the generation of jobs. Review of industrial Organization, 17, 229–248. https://doi.org/10.1023/A:1007887626165
Howell, A. (2019). Heterogeneous impacts of China’s economic and development zone program. Journal of Regional Science, 59(5), 797–818. https://doi.org/10.1111/jors.12465
Jagódka, M., & Snarska, M. (2023). Regional disparities as a result of differences in human capital and innovativeness on the example of Poland. Technological and Economic Development of Economy, 29(2), 696–716. https://doi.org/10.3846/tede.2023.18536
Jensen, C. (2004). Localized spillovers in the Polish food industry: The role of FDI in the development process? Regional Studies, 38(5), 533–548. https://doi.org/10.1080/0143116042000229302
Jensen, C., & Goldberg, I. (2014). Demand-driven innovation policies in the European Union (CASE Research Paper, No. 468). Centre for Social and Economic Research. https://doi.org/10.2139/ssrn.2394551
Jensen, C., & Winiarczyk, M. (2014). Special economic zones – 20 years later (CASE Research Paper No. 467). Centre for Social and Economic Research. https://doi.org/10.2139/ssrn.2394547
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
Jensen, C., & Mina, A. (2019). Did transition bring cleaner air? Effects of ownership, territorial and technology policy on air pollution. Ecological Economics, 165, Article 106276. https://doi.org/10.1016/j.ecolecon.2019.03.017
King, G., & Roberts, M. E. (2015). How robust standard errors expose methodological problems they do not fix, and what to do about it. Political Analysis, 23(2), 159–179. https://doi.org/10.1093/pan/mpu015
King, G., & Nielsen, R. (2019). Why propensity scores should not be used for matching. Political Analysis, 27(4), 435–454. https://doi.org/10.1017/pan.2019.11
KPMG. (2009). A guide to special economic zones in Poland. Warsaw, Poland.
KPMG. (2012). Special Economic Zones – Edition 2012. Warsaw, Poland.
Kolko, J., & Neumark, D. (2010). Do some enterprise zones create jobs? Journal of Policy Analysis and Management, 29(1), 5–38. https://doi.org/10.1002/pam.20477
Layser, M. D. (2018). A typology of place-based investment tax incentives. Washington and Lee Journal of Civil Rights and Social Justice, 403, 403–463. https://doi.org/10.2139/ssrn.3381394
Layser, M. D. (2020). How place-based tax incentives can reduce geographic inequality. Tax Law Review,74(1), 1–68. https://doi.org/10.2139/ssrn.3516469
Li, Y., Kenney, M., Patton, D., & Song, A. (2023). Entrepreneurial ecosystems and industry knowledge: Does the winning region take all? Small Business Economics, 61, 153–172. https://doi.org/10.1007/s11187-022-00681-y
Matyas, L. (Ed.). (2017). The econometrics of multi-dimensional panels. Springer. https://doi.org/10.1007/978-3-319-60783-2
Mayer, T., Mayneris, F., & Py, L. (2012). The impact of urban enterprise zones on establishments’ location decisions: Evidence from French ZFUs (Banque de France Working Paper No. 458). SSRN. https://doi.org/10.2139/ssrn.2346227
Ministry of the Economy. (2009). Informacja o realizacji ustawy o specjalnych strefach ekonomicznych [Information about the implementation of the Act on Special Economic Zones] (2008, December 31). Warsaw. https://orka.sejm.gov.pl/Druki6ka.nsf/wgdruku/2030/$file/2030.pdf
Ministry of the Economy. (2016). Informacja o realizacji ustawy o specjalnych strefach ekonomicznych [Information about the implementation of the Act on Special Economic Zones] (2015, December 31). Warsaw. https://orka.sejm.gov.pl/Druki8ka.nsf/0/B01837BE236B7D1DC1257FC5003BADB1/%24File/555.pdf
Ministry of Enterprise and Technology. (2018). Informacja o realizacji ustawy o specjalnych strefach ekonomicznych [Information about the implementation of the Act on Special Economic Zones] (2017, December 31). Warsaw. https://orka.sejm.gov.pl/Druki8ka.nsf/0/6178DA8C683C4543C12582A3003728F2/%24File/2591.pdf
Ministry of Economic Development and Technology. (2020). Polish investment zone – Current summary of operations, support during the pandemic. https://www.gov.pl/web/development-technology/polish-investment-zone--current-summary-of-operations-support-during-the-pandemic
Ministry of Economic Development and Technology. (2023). Informacja o realizacji ustawy o specjalnych strefach ekonomicznych [Information about the implementation of the Act on Special Economic Zones] (2022, December 31). Warsaw. https://orka.sejm.gov.pl/Druki9ka.nsf/0/49B7462B1889DC55C12589C1002F50C8/%24File/3306.pdf
Najwyzsza Izba Kontroli. (2010). Informacja o wynikach kontroli funkcjonowania i rozszerzania obszaru działania specjalnych stref ekonomicznych w latach 2006–2008 [Operation and expansion of the area of operation of special economic zones (SEZ) in 2006–2008]. https://www.nik.gov.pl/kontrole/P/08/130/LBI/
Najwyzsza Izba Kontroli. (2012). Pomoc publiczna udzielona w latach 2006–2010 przedsiębiorcom działającym w specjalnych strefach ekonomicznych [Public aid granted in 2006–2010 to entrepreneurs operating in special economic zones]. https://www.nik.gov.pl/kontrole/wyniki-kontroli-nik/kontrole,9267.html
Nazarczuk, J. M., Umiński, S., & Gawlikowska-Hueckel, K. (2018). The role of specialisation in the export success of Polish counties in 2004–2015. Entrepreneurial Business & Economics Review, 6(2), 91–109. https://doi.org/10.15678/EBER.2018.060205
Nazarczuk, J. M., & Umiński, S. (2018). The impact of special economic zones on export behaviour: Evidence from Polish firm-level data. E+M Ekonomie a Management, 21(3), 4–22. https://doi.org/10.15240/tul/001/2018-3-001
Nazarczuk, J. M., Umiński, S., & Márquez-Ramos, L. (2024). Exporting activity in rural regions: Does it differ from urban regions? Evidence from Poland. Technological and Economic Development of Economy, 30(3), 712–732. https://doi.org/10.3846/tede.2024.20505
Neffke, F., Hartog, M., Boschma, R., & Henning, M. (2018). Agents of structural change: The role of firms and entrepreneurs in regional diversification. Economic Geography, 94(1), 23–48. https://doi.org/10.1080/00130095.2017.1391691
Nelson, R. R. (2008). What enables rapid economic progress: What are the needed institutions? Research Policy, 37(1), 1–11. https://doi.org/10.1016/j.respol.2007.10.008
Neumark, D., & Young, T. (2021). Heterogeneous effects of state enterprise zone programs in the shorter run and longer run. Economic Development Quarterly, 35(2), 91–107. https://doi.org/10.1177/0891242420982341
Official Journal of Law. (2018). Act of 10th May 2018 on support for new investments. https://isap.sejm.gov.pl/isap.nsf/download.xsp/WDU20180001162/T/D20181162L.pdf
Ottaviano, G. I. (2010). ’New‘ new economic geography: Firm heterogeneity and agglomeration economies. Journal of Economic Geography, 11(2), 231–240. https://doi.org/10.1093/jeg/lbq041
Parker, D., & Kirkpatrick, C. (2005). Privatisation in developing countries: A review of the evidence and the policy lessons. Journal of Development Studies, 41(4), 513–541. https://doi.org/10.1080/00220380500092499
Patrick, C., Ross, A., & Stephens, H. (2017). Designing policies to spur economic growth: How regional scientists can contribute to future policy development and evaluation. In R. Jackson & P. Schaeffer (Eds.), Regional Research Frontiers: Vol. 1. Advances in Spatial Science (pp. 119–133). Springer. https://doi.org/10.1007/978-3-319-50547-3_7
Polish Local Data Bank. (n.d.). Retrieved on September 15, 2024, from https://bdl.stat.gov.pl/BDL/start?p_name=indeks
Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77–90.
Porter, M. E. (2000). Location, competition, and economic development: Local clusters in a global economy. Economic Development Quarterly, 14(1), 15–34. https://doi.org/10.1177/089124240001400105
Puga, D. (1999). The rise and fall of regional inequalities. European Economic Review, 43(2), 303–334. https://doi.org/10.1016/S0014-2921(98)00061-0
Rialland, A. I. (2009). Cluster dynamics and innovation (Marintek Report). Norwegian Marine Technology Research Institute. Trondheim, Norway.
Romano, J. P., & Wolf, M. (2017). Resurrecting weighted least squares. Journal of Econometrics, 197(1), 1–19. https://doi.org/10.1016/j.jeconom.2016.10.003
Shi, Z., Wu, Y., Chiu, Y.- ho, Shi, C., & Na, X. (2022). Comparing the efficiency of regional knowledge innovation and technological innovation: A case study of China. Technological and Economic Development of Economy, 28(5), 1392–1418. https://doi.org/10.3846/tede.2022.17125
Statistics Poland. (n.d.). Local Data Bank. https://portal.geo.stat.gov.pl/en/home/data/local-data-bank/
Stich, C., Tranos, E., & Nathan, M. (2023). Modeling clusters from the ground up: A web data approach. Environment and Planning B: Urban Analytics and City Science, 50(1), 244–267. https://doi.org/10.1177/23998083221108185
Twinam, T. (2020). Trade shocks and growth: The impact of the quartz crisis in Switzerland. SocArXiv twscm. Center for Open Science.
Verdú, F. M., & Tierno, N. R. (2019). Special issue: Clustering and innovation: Firm-level strategizing and policy. Entrepreneurship and Regional Development, 31(1–2), 1–6. https://doi.org/10.1080/08985626.2018.1537143
World Bank. (2010). Special Economic Zones. performance, lessons learned, and implications for zone development. The World Bank.
Zaratiegui, J. M. (2004). Marshallian industrial districts revisited. Part II. Problems and Perspectives in Management, 2(3), 43–58.
Zeng, D. Z. (2015). Global experiences with special economic zones. Focus on China and Africa (Policy Research Working Paper No. 7240). World Bank Group. http://documents.worldbank.org/curated/en/810281468186872492/pdf/WPS7240.pdf
View article in other formats
CrossMark check
Published
Issue
Section
Copyright
Copyright (c) 2026 The Author(s). Published by Vilnius Gediminas Technical University.
License
This work is licensed under a Creative Commons Attribution 4.0 International License.