Location Determinants of Japanese Multinationals in Poland

Do Special Economic Zones Really Matter for Investment Decisions?

We investigate the location determinants of Japanese multinationals in Poland using a regional data set from 1991 to 2001. Special attention is placed on the geographically targeted investment incentives (Special Economic Zones, SEZs) that were created during this period. Controlling for a more comprehensive set of region-specific characteristics than previously employed to evaluate SEZ importance, we find that our results are broadly consistent with previous FDI location choice studies. However, unlike other studies, the SEZ measure`s statistical significance disappears when we control for a number of additional regional characteristics.