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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 firmsâ€™ 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.
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