Zone managing companies’ governance and performance Evidence from the Polish Investment Zone

Abstract. We assess why some zone managing companies (ZMCs) are more successful in developing their special economic zones (SEZs) than others. In almost every region of Poland, there are winners and losers among SEZs. The advantage of having a better zone location is relative, and other factors may play a role in their development path. The specific research question addressed in this study is whether the quality of zone administration matters. We used cluster, correlation analysis, and estimated regression models for 14 ZMCs to explain their relative performance in Poland from 2018 to 2022. We used the case of the Polish Investment Zone (PIZ) initiative, which entered into force of the Act of 10 May 2018 on supporting new investments. The preliminary findings suggest that zone performance depends on effective governance. The efforts made by ZMCs may be decisive for attracting foreign and domestic investors. The governance quality is one of the main determinants of the number of investment projects, the value of investment outlays, and the jobs created in special economic zones. The results of the study empower us to make recommendations to policymakers. High-quality institutions can contribute to the attractiveness of investment in countries and regions. This work-in-progress paper presents the next stage of the research project on the governance quality of ZMCs (e.g. Dorożyński et al. 2021; Dorożyński, Świerkocki, 2022). Previous ones were based on data for special economic zones. In this study for the first time we used the original database on Polish Investment Zone prepared at our request by the Department of Investment Development, Ministry of Development and Technology, Warsaw, Poland. Keywords: Special economic zone, Zone managing company, Polish Investment Zone